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Housing Preservation for Developers

OHCS has several ways to support housing developers with affordable housing preservation projects. There are different ways and funding programs that OHCS assists developers with to preserve affordable housing. For example, one preservation opportunity may include extending the affordability of developments with expiring program restrictions, such as in the Low Income Housing Tax Credit program.

Below you will find definitions, program descriptions and resources to help developers preserve affordable housing in Oregon.

​Preservation: means any Project with at least twenty-five percent (25%) of the units having existing federal Project-Based Rental Assistance Contract; and

a) the HUD Section 8 Project-Based Rental Assistance Contract is expiring within seven (7) years of the date of the OHCS NOFA application; or

b) the USDA Rural Development direct mortgage is maturing within seven (7) years of the date of the OHCS NOFA application; or

c) the USDA Rural Development project has a pending prepayment request; or

(Note, USDA Rural Development projects with a maturing mortgage within 3 years of the date of

the OHCS NOFA application, or where the Owner’s prepayment request has been approved, will be prioritized.)

d) the USDA Rural Development project’s restrictive use covenants have expired; or

e) Projects with Public Housing Units undergoing a preservation transaction involving a comprehensive recapitalization, including those converting to HUD Section 8 projects under the HUD Rental

Assistance Demonstration or projects under the HUD Section 18 Demolition and Disposition Programs.

​The HUD 811 Project Rental Assistance (PRA) program allows persons with disabilities to live as independently as possible in the community by subsidizing rental housing opportunities which provide access to appropriate supportive services.

In partnership with Oregon Department of Human Services and the Oregon Health Authority, OHCS will accept applications for Project Rental Assistance for new, acquired and rehabilitated or existing affordable housing projects funded by LIHTC, HOME, National Housing Trust Fund, and other state funding programs. This health care/housing agency partnership allows for affordable supportive housing for persons with disabilities. No funds are available for construction or rehabilitation.

Application submittals are contingent on availability of HUD funding. Application awards and Project Rental Assistance Contracts are also contingent upon a housing development project receiving development funding approval from Oregon’s Housing Stability Council, and the completion of an environmental review. Funded projects, new or rehabilitated, with awarded Project Rental Assistance Contract must meet placement in service timelines as established by HUD and or OHCS.

​The Oregon Legislature allocates Lottery Backed Bonds to support OHCS efforts to preserve the state’s affordable housing stock. 

The funding is intended to preserve housing at risk of converting to market rate rents due to expiring federal contracts or maturing or pre-payment eligible federal loans with at least 25 percent of the units are covered by federal Project Based Assistance. 

The residents of these developments represent the lowest income Oregonians that face a high risk of homelessness if the federal rental subsidy does not continue, placing additional burden on affordable housing already in short supply. 

Lottery Backed Bond – Preservation Funds will provide gap financing to acquire and rehabilitate these developments. It will ensure the units remain affordable and the facilities will be in good condition for future years.

It is OHCS intent to have these resources leverage 4% LIHTCs paired with conduit bonds.​​​

Affordable Rental Housing
Development Resources and Production

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