Oregon Housing Agency Exceeds Construction Cost Benchmarks for Affordable Housing Projects
The Oregon Housing and Community Services (OHCS) agency has consistently failed to meet its own construction cost benchmark for affordable housing projects, exceeding the national average for hard construction costs by a significant margin. For the past three years, the agency has funded projects where hard construction costs averaged 31% more than its benchmark, reaching $318 per square foot last year. This issue was highlighted at a recent meeting of the Oregon Housing Stability Council, whose members are appointed by Governor Tina Kotek. During the meeting, a new council member, Ed McNamara, abstained from voting on a package of four proposed developments due to concerns about their high costs, particularly two projects that far exceeded the agency's benchmark. Despite his dissent, the projects were approved by the other council members.
