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City of Redmond Awards Housing Works $450,000 Community Development Block Grant

Post Date:11/28/2018 2:54 PM

- Grant Helps Pave the Way for a $13.4M, 48-Unit Affordable Housing Complex

REDMOND, OREGON  On Tuesday, November 27, 2018, Redmond City Council unanimously approved a $450,000 Community Development Block Grant (CDBG) to Housing Works, the region’s largest provider of affordable housing.  Housing Works will use the money to purchase a 1.97-acre parcel in Redmond’s Mid-Town area.  The parcel, located at 5th St. and Greenwood Ave., will be developed into 48 residential apartments, providing 44 two-bedroom and 4 three-bedroom units for households earning at or below 80% area median income (up to approximately $56,000 for a family of four). 

“The City’s primary goal for its yearly allocation of CDBG funds is to assist in the development of affordable housing and the prevention of homelessness,” states Jodi Burch Accounting & Financial Reporting Director. “This Housing Works project is a critical step forward, helping bring safe, stable and affordable housing to our community and is exactly the type of project we want to make happen through our CDBG program.”

CDBG resources are allocated to the City of Redmond by the U.S. Department of Housing and Urban Development (HUD).  The project now moves to HUD for funding approval, and the land acquisition parcel must pass an environmental review before the development can begin. 

The proposed 5th St. and Greenwood Ave. development site is currently owned by the Redmond Urban Renewal Agency (Agency).  The Agency purchased the vacant Central Business District lot in 2016.  For the past decade, the Agency has been making strategic investments to improve Redmond’s downtown district.  This project helps achieve key objectives of the Mid-Town Plan and the Housing Opportunity Fund by establishing a residential presence in downtown. 

The project is planned for completion in 2020.





CDBG Background:

CDBG resources are allocated by the U.S. Department of Housing and Urban Development (HUD).  The City of Redmond’s CDBG program is governed by the five-year 2014-2018 Consolidated Plan (Con. Plan) which is approved by HUD.   The City’s Housing and Community Development Committee (HCDC) is assigned the responsibility of advising the Council and staff on the administration of this program.

An Annual Action Plan outlines how the City plans to invest the yearly allocation to achieve the five primary goals of the Con. Plan: 


•             Goal 1: Provide decent affordable housing and work towards prevention of homelessness.

•             Goal 2: Increase economic opportunities.

•             Goal 3: Support agencies/organizations that serve low-and moderate-income persons and special needs populations by helping them to expand services. 

•             Goal 4: Further Fair Housing and Administration in Redmond.

•             Goal 5: ADA and Infrastructure.


Each CDBG activity must meet one of three HUD national objectives: 1) Benefit low- and moderate- income persons (LMI Area Benefit, LMI Limited Clientele, and LMI Jobs); 2) Aid in the prevention or elimination of slums or blight (urban renewal areas qualify); or 3) Meet other community development needs having a particular urgency that the grantee is unable to finance on its own.  Expenditure of CDBG funds is highly structured with specific formulas:


•             70% of all funds needs to be spent to benefit low and moderate-income residents in the community.

•             A maximum of 15% of funds can be spent on public services. 

•             A maximum of 20% of funds can be spent on administration and planning efforts.

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