A Portland Housing Nonprofit is Selling Dozens of its Rentals. Low-Income Tenants Could Be Buyers

Reach Community Development, one of Oregon’s largest affordable housing landlords, has finalized a $12.6 million deal to offload 66 homes, a move it says will help stem cash flow problems and help its tenants become homeowners.

The transaction will see Reach partner with Minneapolis nonprofit Brick By Brick Housing Corp. and the national Housing Partnership Network to form Rose City Fund LLC, which will work over the next two years to repair and sell the 66 “scattered site” single-family, duplex and multiplex homes to new buyers — many of them current tenants, the nonprofit said.

About a third of the units stand vacant, and many require extensive repairs to get them into good enough condition that a bank will approve a mortgage for them, Reach CEO Margaret Salazar said in an interview.

Of the occupied rentals, 22 tenants have expressed interest in buying and will be referred to the Portland Housing Center for mortgage counseling, paid for by Reach, Salazar said.

Prices will vary depending on whether a buyer takes the home as-is or fixed up, but Reach expects to sell most homes for between $350,000 and $600,000. Current tenants will have right of first refusal.

Next in line would be first-time homebuyers and households making less than 120% of the area median income. The median income for a four-person household is $124,100, so 120% would equal just under $149,000, according to the latest data from the Portland Housing Bureau. Reach said it is working with local organizations Proud Ground, Portland Housing Center, the Urban League of Portland (Portland, OR)and the Native American Youth and Family Center to reach those buyers.

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