SALEM, OR - The first example of Salem's new push for "work-force housing" apartments aimed at people who work downtown but can't afford a luxury condo might be taking shape. City leaders have agreed to provide as much as $1 million in federal funds to Salem Keizer Community Development, which would jump-start a proposal to build 40 apartments at 260 State St., the former McMahan's Furniture store site. The nonprofit organization builds affordable-housing projects.
"I think it will just help enliven the downtown environment," said Rick Stucky, the president of Salem Keizer Community Development's board and a former city councilor. Affordable apartments will bring a "constant presence" to a downtown that badly needs it, he said.
The nonprofit group still needs to complete its purchase of the 12,000-square-foot lot from its private owner, and it will need additional funds from the state and other sources to begin construction. But officials said they are confident that the deal will come together. If the plans fall into place, construction of the building could begin by September 2009.
The McMahan's building was destroyed in a 2006 fire, opening a prime piece of real estate at Commercial and State streets. In keeping with the goals of work-force housing, tenants of the apartment building would have to meet income requirements. "It's for people generally starting out and having a fairly low income," said Bruce Crane, the executive director of Salem Keizer Community Development.
Specific income requirements for tenants wouldn't be determined until 2010, when the apartments would open, he said. As it stands now, however, the goal is to rent the apartments to single people who earn no more than about $31,000 per year, Crane said. For a family or couple, the income limit would be higher. It also is too early to comment on the cost of renting the apartments, Crane said. Thirty-five of the apartments would be one-bedroom units, and the remaining five apartments would have two bedrooms. Preliminary plans call for retail space on the ground floor.
In February, the city urban development department established a "Work Force Affordable Housing Project" and issued a request for proposals. Three proposals were submitted, including the winning one from Salem Keizer Community Development.
The intent is to address a common complaint: Many of the condominiums and apartments planned for construction or built in recent years are too expensive for workers who earn modest incomes. Downtown Salem has fewer than 50 rental units, according to a city report. Most of the apartments have monthly rental rates that average about $900.
Last year, Salem City Council adopted the goal of creating 100 units of affordable housing in the city core. Those residents taking part in the city's Vision 2020 planning process also picked downtown housing as a high priority.
Source: StatesmanJournal.com