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Washington County outlines 44‑unit permanent supportive housing project for Forest Grove
Summary
Washington County Housing Services updated council on the Forest Grove permanent supportive housing project at 3127 Pacific Avenue (former Jim's Auto), describing a 44‑unit development for households exiting homelessness, secured 9% LIHTC plus $4M gap funding, a $2.5M predevelopment loan from the Housing Authority, and an anticipated construction start in fall 2027 pending permit and final funding steps.
Washington County Housing Services presented progress on a permanent supportive housing (PSH) project sited at 3127 Pacific Avenue (the Jim’s Auto property). Jill Chen, deputy director of the Housing Authority of Washington County, said the development will offer studio and one‑bed units for households exiting homelessness and that the Housing Authority will remain the owner and developer.
Key funding and schedule items: the Housing Authority board approved a $2,500,000 predevelopment loan to advance the project; the team was awarded a 9% Low‑Income Housing Tax Credit allocation from the state plus $4,000,000 in gap financing and rental assistance/subsidies that cover services for 45 households. Jill Chen said those awards mean the project does not require the Housing Services (SHS) funds at this time and allows the project to move rapidly into community engagement, schematic design, and preconstruction work.
Lisa Varon, Real Estate Division Manager, described the project team: Scott Edwards Architecture (architect), Walsh Construction (general contractor), Central Cultural (resident services lead), Transcending Hope (case management), and CareOregon (behavioral health partnerships). Varon gave an initial permitting timeline that anticipates submitting for a building permit in winter 2027, issuance in summer 2027, and construction start in fall 2027.
Councilors asked about unit counts and whether code variances will be necessary. Jill Chen said the team originally modeled about 60 units but scaled back to 44 because of funding limits in the 9% tax credit allocation; she added the design team expects to request a few exceptions (for example, balconies or playground requirements) that Oregon law permits the city to consider on a case‑by‑case basis.
Why it matters: The project brings new permanent supportive housing units targeted to people exiting homelessness, funded largely through state tax credits and gap financing, with an intensive services model intended to help residents reintegrate into the community.
Next steps: The housing authority will continue community engagement, finalize schematic design, execute MOUs with service partners, and proceed with permit applications and funding approvals over the next 6–14 months.
