Mariposa Village Affordable Housing Development

January 2020: the City purchased a seven-acre parcel at 780 Rand Road in Hood River for the purpose of developing affordable housing.

October 2020: the City contracted with Leland Consulting Group, DDV Consulting and Urbsworks to prepare a development strategy for the site, and a developer solicitation. Goals were established by the city council, and the consultant team met with stakeholders before preparing four preliminary development alternatives.

Spring 2021: a StoryMap and a brief survey were used to obtain public feedback, and the preliminary development alternatives were refined for use in developer-solicitation documents.

Autumn 2021: after a competitive solicitation process, Community Development Partners (CDP) and Columbia Cascade Housing Corporation (CCHC) were selected as the City’s preferred development team to build affordable housing at 780 Rand Road.  The City and CDP/CCHC completed a Purchase Option Agreement in February of 2022, which was needed by the developer to qualify for state and federal funding sources.

After completing the Purchase Option Agreement, the City Council encouraged CDP and CCHC to employ their creativity and development expertise with respect to site- and building design, and financing and deal structuring, to deliver housing on the site consistent with the City’s goals.

March 2022: a portion of the site was rezoned, and the entire site is now zoned Urban High Density Residential (R-3).

July 2024: a Site Plan Review application was approved for affordable housing development on the site featuring 130 residential apartments (one 4-story building, three 3-story buildings and two 2-story buildings), a 3,600-s.f. single-story community building, off-street parking totaling 195 vehicle stalls (20% of parking designed to be EV ready), Westside Community Trail and Ridgeline Trail improvements, public park space and amenities, interconnected paths, public and private utilities, public street improvements, private driveways, emergency fire access, trash/recycling enclosures, a potential bus stop located northwest of the community building, and associated on- and off-site improvements. This included concurrent approval of a two-parcel partition with access- and utility easements, and dedication of public right-of-way for a new street.

October 2024: CDP and CCHC announced the official name of the new affordable housing development, “Mariposa Village.” The name was inspired by the Monterey Mariposa Lily, a wetland species of Oregon and three-petaled flower. “Mariposa” is also the Spanish word for butterfly, a symbol of transformation and hope, further echoing the positive impact this development will have on the Hood River community. The name was selected by a cohort of community members and key stakeholders, including representatives from Columbia Cascade Housing Corporation, Mid-Columbia Housing Authority, Community Development Partners, the City of Hood River, The Next Door, Inc. and the Oregon Human Development Corporation.

On April 17, 2025 the City, in partnership with Community Development Partners (CDP) and the Columbia Cascade Housing Corporation (CCHC), officially closed on the Mariposa Village project. This milestone means all agreements are in place, funding secured, and building permits became ready for issuance. The closing finalizes transfer of ownership, secures financing, and formally commits all project partners to move forward with construction. Construction is expected to take approximately two years. See CDP’s press release for more information (https://www.communitydevpartners.com/closing-announcement-mariposa-village/).

Mariposa Village will provide 130 units of affordable, intergenerational housing for households earning between 30% and 60% of the area median income. In addition to services offered by CCHC, EngAGE Northwest will provide intergenerational learning, wellness and creativity programs. The project emphasizes social and environmental sustainability with features like a community center, a new public park, walking trails, and enhanced crosswalk at Rand Road. The development is targeting a Gold National Green Building Standard certification and the community center is planned to achieve Energy Trust of Oregon’s Net Zero certification.

The project was designed by Holst Architecture with support from Place Landscape Architecture, and is being built by Walsh Construction Company. Portland State University’s Center for Public Interest Design conducted the pre-development community engagement and outreach based on Asset Based Community Development principles. Resident services will be provided by CCHC and EngAGE Northwest, and property management by Guardian Management.

Property Purchase

The City of Hood River purchased the property in January 2020 for $1.2M. The Oregon Business Development Department granted $410,000 for the purchase and the remainder was financed by the City. Construction excise tax is a repayment source, and other funding sources include local, state and other community partners.

Goals

At the time of purchase the City committed to development of at least 50 housing units for households earning at or below 120% of area median income. Since that the time the city council refined its primary goal and identified additional goals.

Hood River’s Housing Needs

Following adoption of a Housing Needs Analysis in 2015, the City developed a housing strategy and established goals of creating opportunities for a more inclusive and diverse housing inventory.  Elements of the Housing Needs Analysis were updated in 2019, and updated housing income and affordability data is included in a 2022 Affordable Housing Strategy.  Key points about housing affordability include:

• Median home prices and median rents have seen steady increases.  Both exceed Oregon statewide levels.
• Hood River will have an ongoing need for housing affordable to lower- and moderate-income households including those making $92,160 or less annually (with four members in the household).

• Homeownership rates in Hood River declined from 51% to 46% between 2015 and 2019; in 2019 about 54% of Hood River households were renters.
• In 2019, about 48% of renters were cost burdened, meaning they paid more than 30% of their gross income for housing and may have difficulty affording necessities such as food, clothing, transportation and medical care.
• In 2019, 77% of people who work in Hood River lived elsewhere and commuted.

The aerial photograph below depicts Hood River’s city limits in 2020 (dashed blue line) and Urban Growth Boundary (dashed red line). The 780 Rand Road site, highlighted in yellow, is in close proximity to retailers and service providers along Cascade Avenue (US Route 30, the Historic Columbia River Highway). The Hood River County School District owns a vacant site nearby where a school may be constructed in the future.

Preparation of preliminary development alternatives included evaluation of zoning, utilities, topography and natural features on the site and in the surrounding area, as well as the City’s capital facilities plans for public infrastructure. The Village at Rand Hill neighborhood is located immediately east of the site, and the Adams View Subdivision is located to the southwest. There are undeveloped properties to the west and south, and partially developed properties to the north. Public utilities including water, sanitary sewer and stormwater facilities are available to serve the site, but new roads and other infrastructure will need to be constructed. Wetlands and steep slopes will affect where housing and other improvements can be constructed on the site.

In the spring of 2022, the property was rezoned to Urban High Density Residential (R-3) in its entirety, and PBS Engineering & Environmental completed a wetland delineation report. The report shows that the extent of the wetlands identified by PBS are consistent with the wetlands identified in previous analyses for the site, and it was reviewed by the Department of State Lands and the US Army Corps of Engineers for their concurrence.

The project will feature multi-family apartment buildings and rowhouse/townhouse-style units for rental. The images below describe a variety of housing types that were considered. Shared-equity home ownership (e.g., through a Community Land Trust) remains desirable but was not found to be economically feasible in this development.

The development will incorporate amenities including a public off-street trail, community garden, and park space and open space.

The developer selection process began in July of 2021 with a Request for Qualifications to affordable housing developers. Seven well-qualified firms responded, and the City short-listed BRIDGE Housing Corporation and Community Development Partners (CDP) to respond to a more detailed Request for Proposal (RFP) in September. The RFP outlined City Council’s project goals which included not only development of affordable housing but also environmental sustainability, energy resiliency, community engagement, and park and open space. Both BRIDGE and CDP proposed developing over 120 units of housing for households earning between 30% and 60% of Area Median Income on the City’s parcel.

On November 22, 2021, City Council selected CDP as the preferred developer for the City’s 780 Rand Road affordable housing project. CDP is partnering with the Columbia Cascade Housing Corporation, the development arm of the Mid-Columbia Housing Authority.

Construction mobilization started on April 24, 2025.

The Mariposa Village Affordable Housing Development project closed on April 17, 2025.

The project went out to bid on January 6, 2025, with bids due by January 31, 2025.

CDP, CCHC and the City sought funding for the project between 2022 and 2024.

Selection of the preferred developer, and initial negotiations for a Purchase Option Agreement occurred during autumn 2021 into spring of 2022.

A Request for Qualifications (RFQ) for affordable housing developers, followed by a Request for Proposals from two of the firms that responded to the RFQ, occurred during the summer and autumn of 2021.

A development strategy for the site was prepared between November 2020 and June 2021. This work included goal setting, community engagement, preliminary site plans and financial analysis.

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June 10, 2024: The affordable housing development at 780 Rand Road secured final pieces of funding needed to move forward. Community Development Partners (CDP) and Columbia Cascade Housing Corporation (CCHC) were awarded private activity bonds and a 4% Low Income Housing Tax Credit allocation for the project by Oregon Housing and Community Services (OHCS).

April 2024: As a part of Senate Bill 1530 (2023), Hood River received an appropriation of approximately $2.4 million for water, sanitary sewer and stormwater infrastructure improvements to serve affordable housing on the site.

March 2023: Community Development Partners submitted a second application to OHCS for funding through the Local Innovation and Fast Track (LIFT) program. The City of Hood River learned in July of 2023 that the Rand Road Affordable Housing Development will receive $15.1 million in LIFT Funds from OHCS.  CDP then applied for 4% Low Income Housing Tax Credits and tax-exempt bonds through OHCS to complete the funding package.

The 2023 federal omnibus appropriations bill included $3 million directed to Columbia Cascade Housing Corporation (CCHC) for development of affordable housing in Hood River.  This award was expected to leverage additional capital from Oregon Housing and Community Services (OHCS).

Spring 2022: Community Development Partners (CDP) and Columbia Cascade Housing Corporation (CCHC) took several significant steps in the fundraising process for development of 129 affordable housing units, including:

• An application was submitted to Oregon Housing and Community Services (OCHS) for LIFT Rental funds.  This request was not successful. Significantly more LIFT funding was requested by affordable housing developers in 2022 than was available.  CDP/CCHC determined it would reapply for OHCS LIFT funding in 2023, and discuss alternative funding strategies and timelines with the City.
• The project’s income mix was updated to consist of 39 units (rather than 20) for households earning up to 30% of Area Median Income (AMI), and 90 units for households earning up to 60% AMI.  This results in a greater diversity of incomes, better serves the area’s most housing instable residents, and increases chances of success of receiving LIFT funding.  Further, the 30% AMI units will be supported by Project Based Vouchers that strengthen both the social impact and financial outlook of the project.
• CDP/CCHC met with the Energy Trust of Oregon (ETO) to discuss their funding programs. The project will qualify for incentive funds for both Multi-Family and Attached Residences.  CDP/CCHC also plans to use ETO’s technical assistance and incentives for “Path to Net Zero” and solar programs.
• CCHC submitted a request of $3 million for the project to Senator Merkley’s office via the community initiated spending process.

 
Affordable housing developers in Oregon are experiencing a variety of challenges. Four of the primary challenges are summarized below:

1. Construction Cost Escalation – Many factors over the past several years have resulted in dramatic cost increases in construction materials and labor. In recent years, projects on the west coast experienced 12% cost increases year over year.
2. Rising Interest Rates – the interest rate environment has risen rapidly. The Federal Reserve increased the prime rate by a cumulative 4.25% in 2022, the most since 1980. As of early 2024, the federal funds rate target range was 5.25% – 5.5%.
3. New Limits on Private Activity Bonds (PABs) – 4% Low Income Housing Tax Credits (LIHTCs), which are central to the funding of this project, are required by federal tax law to be paired with PABs. The law requires that at least 50% of project costs must be financed with PABs. PABs are issued on a State level and until very recently Oregon always had excess PABs for 4% LIHTC projects. However, the recent increases in local and regional funding for affordable housing throughout the State has caused the demand for PABs to increase substantially, and OHCS has more demand for PABs than available supply. This shortage is causing a slowdown in the amount of affordable housing projects that can move forward across the state. Affordable housing advocates are encouraging the US Congress to lower the “50% test” to a 25% test to enable more affordable housing projects to move forward.
4. Very High Level of Competition for LIFT Funds. The Oregon Housing and Community Services LIFT program was substantially oversubscribed. In 2022 there was $30,350,000 in LIFT funding in the category available to the 780 Rand Rd. project (LIFT Rural paired with 4% LIHTC), and approximately $110 million was requested by developers of seven projects throughout Oregon. It was the most competitive application process for LIFT in the program’s three-year history.

To receive updates and other project information for Mariposa Village, please email HRaffordablehousing@communitydevpartners.com with your name and contact information.

At this time there is no “sign-up list” for the affordable housing development at Mariposa Village but you are welcome to contact the Columbia Cascade Housing Corporation (CCHC) to confirm if subsidized rental housing is available elsewhere in the region.  And, CCHC provides other resources including down payment assistance, foreclosure prevention, home repair loans and home-buyer classes.

To learn more about Hood River’s housing market economics, download this document to review two broad housing market economic topics affecting Hood River.

Factors affecting housing demand:

• What factors influence Hood River’s growth and housing market? Will they change over time?
• What might Hood River look like in the future if current development patterns continue?

Effects of housing production:

• How can Hood River increase housing supply to positively impact housing affordability?
• What impact does allowing increased development capacity have on the housing market?
• What’s the relationship between SDC’s and housing prices?