Stalled Portland Low-Income Housing Project Now Costs Nearly $1 Million Per Apartment

PORTLAND, Ore. — By the time families move into Monarca, the low-income housing development formerly known as Minnesota Place, the cost per apartment will have nearly tripled from the original estimate.

Oregon Housing and Community Services (OHCS) has revealed that the $56.2 million budget includes previous financing and redevelopment costs.

The revised project offers a total of 57 units — 42 two-bedroom units and 15 three-bedroom units. Hacienda reduced the original 72-unit plan to provide more two- and three-bedroom homes.

The cost per unit is $985,513. The original estimate was $361,000 per unit.

The Project’s Budget Increased From $26 Million to $56.2 Million

Construction of the $26 million Minnesota Place project began four years ago, but ground to a halt in 2024 amid a wage dispute.

The Oregon Housing Stability Council approved the revised financing on October 2. Two members objected to the additional expenditure and abstained from the vote.

OHCS spokesman Mark Miller disputed that the building stood unoccupied because the state turned down a proposal that it make up the wage difference. He said the wage issue was one of several problems with the project.

The revised project provides family accommodation with long-term affordability requirements.

Hacienda Community Development Corporation Will Provide Low-Income Families With On-Site Support

Hacienda Community Development Corporation, the Latino-led organization providing housing and supportive services, will have a dedicated Resident Services team to provide on-site support.

The team will work with low-income residents earning at or below 60% of the Area Median Income (AMI) and connect them to Hacienda’s local resources, including childcare, education, healthcare, and food access.

AMI varies widely across Oregon’s urban and rural areas.