A local nonprofit is set to acquire lots for six homes in the Beach Creek development

By Damian Mann for Ashland.news

The Ashland City Council on Tuesday, July 15, unanimously approved a new local developer to build a long-awaited affordable housing project in the Beach Creek development.

Trusted Homes, an Oregon public benefit nonprofit corporation, will develop six lots in the development off Mountain Avenue, beside the railroad tracks, that have been set aside for affordable housing.

The organization plans on building four cottages and two single-family houses.

“Some have expressed concern about their experience,” said Brandon Goldman, director of Ashland Community Development.

Councilors said that despite Trusted Homes’ lack of experience, they found the nonprofit’s leadership team capable and appreciated that it was a local company and had developed a land trust model that could be used elsewhere in the city.

“It’s heartening to see our tax dollars come back to our community,” Councilor Eric Hansen said.

Mayor Tonya Graham said she’d been involved with Trusted Homes as an adviser to help develop the land trust, which sets aside land for affordable housing.

“A community land trust has been the missing piece for a long time,” she said.

A community land trust, according to the organization’s website, owns the land underneath the home a buyer purchases and leases the parcel to the new homeowner to cover the costs of the land trust. To make housing permanently affordable, home buyers would be required for the next 99 years to sell the homes at an affordable rate, the website says.

According to the proposal, the homes will be offered at or below 80% of the area’s median price. The homes are expected to become available for sale in 2027.

City wants similar projects

The city hopes to develop more small-scale affordable housing projects in the future.

Trusted Homes was the only company to respond when the city issued a request for proposals.

KDA Homes, an Ashland developer, set aside eight lots on Beach Creek for affordable housing. Habitat for Humanity has built two houses on a pair of lots. The six remaining lots have been in limbo for some time.

The city had hoped to find a developer that would guarantee the residences remain affordable for 30 years. Trusted Homes extended it to 99 years.

Before the development is built, Trusted Homes will have to secure two affordable home ownership grants from the state before the project can move forward, according to Goldman.

“The transfer agreement (for the land) is contingent on Trusted Homes getting grants from the state,” Goldman said.

Jessica Therkelsen, executive director of Trusted Homes, said the organization will be applying for about $500,000 in state grants in February. The grant awards will be announced in May, according to Therkelsen.

Local contractor Kyle Taylor, who is set to build the units for Trusted Homes, said much of the infrastructure and planning for the project has already been completed by KDA.

“From a building perspective this is a really straightforward project,” he said. Some of the specifications, such as solar, have already been designed, he said.

Therkelsen said the project is good and manageable for her new organization. She said the affordable home grants would not be affected by ongoing issues surrounding federal cuts.

Ashland is considered a rural community under state regulations, and LIFT (Local Innovation and Fast Track Homeownership Program) funding is expected to continue, Therkelsen said.

Positive response from state

In conversations with the state, she said, the reaction to the project has been positive.

“This is a beautiful opportunity that doesn’t come along every day,” Therkelsen said.

Councilor Jeff Dahle said there is concern about any project, particularly one that is dependent on grants, and he asked for quarterly updates.

“I’m so excited, but I just want to see it, to get those reports, to see if something is going sideways,” Dahle said. “We bump into so many headwinds when we mash so many things together.”

Therekelsen agreed to provide quarterly updates. “That is something that makes perfect sense,” she said.

Councilor Bob Kaplan said he appreciated the partnership between the contractor and Trusted Homes.

Kaplan asked what Trusted Homes would do in the meantime, given that financing will take a year.

Therkelsen said the organization would ensure the homes sell to qualified buyers.

“Ultimately,” she said, “our job is to make sure these homes sell quickly to qualified folks.”

Trusted Homes will conduct community outreach and build relationships. A homeowner education program and prequalification will need to be set up, she said.

Working with banks to process loans will be another step, Therkelsen said.

Councilor Dylan Bloom said there are always some reservations with a new organization, but he applauded the presentation by Trusted Homes.

Councilor Gina DuQuenne said she was excited but concerned about a new project and a new organization.

“I want us to be strategic,” she said. “I want us to follow up.”

Reach freelance reporter Damian Mann at dmannnews@gmail.com.

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