Sisters URA approves $400,000 grant for Larch Commons workforce housing

The Sisters Urban Renewal Agency voted on June 10 to award a $400,000 workforce housing grant to Sisters Habitat for Humanity for construction at the Larch Commons development.

Peter Hoover, executive director of Sisters Habitat for Humanity, spoke during public comment and thanked the board for its support of workforce housing, calling the Woodland Subdivision a "positive addition to the community" and noting the organization expects to have built more than 100 homes in Sisters in the near future. "We are very, very proud of that," Hoover said. Later in the meeting, staff described that Sisters Habitat had been through land-use approvals and that street and public improvements at the Larch Commons site have been accepted by the city.

Jordan Wheeler, speaking for staff, said the grant award is the outcome of the updated workforce housing program and described operational concerns tied to the project's use of a land trust, including timing and form of affordability covenants and when conditions for fund release are met. Wheeler also noted that the agency retains clawback ability if a project defaults. "We had 1 proposal from Sisters Habitat for Humanity ... for the construction of workforce housing units at their Larch Commons project," Wheeler said. The board voted to approve the grant agreement, with Member Pereden moving the motion and it passing unanimously.

Staff noted this $400,000 award is one of two grants to Sisters Habitat (the other being an $186,000 affordable housing grant) and said Sisters Habitat is targeting units at about 120% AMI for this project, while the program allows up to 150% AMI depending on settings. The board directed staff to finalize the grant agreement consistent with the revised program rules and noted requirements for recording affordability covenants before full release of funds.