This shows what one building in Hillside Park may look like. (Courtesy photo: Clackmaas County)

Clackamas County is progressing in an effort to restructure its portfolio of public housing while continuing to provide affordable housing options for residents.

County staff presented the Clackamas County Board of Commissioners with an update on this initiative during a meeting Tuesday, June 17.

The county has administered public housing since 1937 but, in 2022, decided it needed to transition away from the traditional public housing model — which had become more challenging due to a reduction in federal funding — and instead utilize funding sources like Section 8 rental assistance program and the Low Income Housing Tax Credit program.

“Repositioning allows the agency to better align its assets with the evolving needs of the community while ensuring long-term sustainability. Furthermore, this initiative is essential to fulfill the agency’s mission of providing safe, decent, and affordable housing options, as it allows them to optimize their resources and offer a broader range of housing solutions to residents in need,” a county report reads.

The county is currently redeveloping two former public housing sites, Hillside Park in Milwaukie and Clackamas Heights in Oregon City, and is planning to sell the Oregon City View Manor site along with a smattering of other properties.

The Hillside Park redevelopment will replace 100 units with a 500-unit affordable housing complex consisting of four buildings. It will be constructed in stages and work is expected to take place in 2026. The original site was built in the 1940s and the units “have exceeded their useful life.”

“In 2018, HACC (the Housing Authority of Clackamas County) initiated a master planning process in order to develop the Hillside Park property into a mixed-use, medium-density community. The final and approved master plan calls for demolishing the existing structures and redeveloping the site with higher density housing typologies. The site was also rezoned accordingly,” the county report reads.

The county decided to redevelop and expand Clackamas Heights, replacing a 100-unit complex with a 200-unit facility, while choosing to sell rather than redevelop the Oregon City View Manor site, which has 100 units. Construction on Clackamas Heights is expected to commence this fall while the sale of Oregon City View Manor is anticipated to net the county $12-16 million. Current residents at Oregon City View Manor will be able to relocate to Clackamas Heights if they want.

“By increasing the density of one site while maintaining the same number of families served, we can optimize land usage more effectively and avoid displacement of families. The justification for redeveloping only Clackamas Heights is further rooted in the strategy to avoid the concentration of poverty by substantially increasing the number of affordable units in the vicinity,” the county report reads. “Moreover, the neighborhood (near Oregon City View Manor) is characterized by a notable absence of social services and resources such as grocery stores, transportation, and recreational facilities. Therefore, the proceeds generated from the disposition of OCVM can be strategically redirected to other targeted geographic areas within the county, where the need for affordable housing may be more pressing.”

Among 145 other scattered site units, 81 will be sold as affordable housing to existing or low-income residents while 60 will be sold on the open market and four will go to community-based organizations focused on things like hospice or medical-respite care. The sites are mainly in Milwaukie and Oregon City, but there are also properties in Tigard, Wilsonville, Beavercreek, Estacada and Sandy, according to the county staff report. The county noted that operating the scattered sites is much more expensive on a per unit basis than at the larger complexes ($7,110 versus $5,500).

“Residents are given the first opportunity to purchase a scattered site home and offered relocation assistance with a Section 8 voucher. Proceeds for the sale of the scattered site portfolio are restricted by HUD to support affordable housing and will be reinvested in the

redevelopment of Clackamas Heights, Hillside Park, and future developments,” the county staff report reads.

Clackamas County commissioners were happy with how the repositioning efforts have gone so far.

“When we want to address the housing crisis, this is how it’s done folks — so pay attention to Clackamas County,” Commissioner Ben West said.