The Portland Housing Bureau is putting $12.3 million behind 106 new affordable homes on city-owned land in Hazelwood and Mt. Tabor.
The bureau announced Thursday, Sept. 17 that it selected developers for two sites after a competitive solicitation earlier in 2026. The larger project, Cornerstone at Gateway, will bring 82 affordable rental units to 10226 E. Burnside St. in Council District 1. The smaller, Mt. Tabor Annex Townhomes, will add 24 for-purchase townhomes at 511 SE 60th Ave. in Council District 3.
The Mt. Tabor award pushes Portland's total Metro Affordable Housing Bond-funded units to 2,177.
That is 48% above the city's original goal of 1,475 units set when Portland received $211 million from the voter-approved regional bond in 2018.
Cornerstone at Gateway: senior housing in Hazelwood
Mercy Housing Northwest will develop Cornerstone at Gateway with service partner ROSE CDC and case management from Northwest Pilot Project, a Multnomah County nonprofit that connects low-income seniors with permanent housing. Walsh Construction is the general contractor.
The 82 one- and two-bedroom apartments will prioritize low-income older adults. Rents will be capped for households earning 50% of Area Median Income (AMI), with eight units reserved for extremely low-income households at 30% AMI.
The project team will also explore adding larger units for families.
The bureau is awarding the project $8 million in Gateway Tax Increment Financing (TIF) funds.
The Gateway TIF district, created in 2001, focuses on housing, transportation and employment in the area and is expected to reach maximum indebtedness by 2032, according to city budget documents.
Cornerstone is the fourth city-funded development in recent years to prioritize low-income older adults, according to the bureau's Sept. 17 announcement. The bureau described that population as "the fastest-growing group experiencing homelessness in recent years."
Mt. Tabor Annex Townhomes: homeownership at former Mt. Tabor Annex
REACH Community Development and builder Pahlisch Commercial, Inc. will develop 24 three-bedroom townhomes on the former site of the historic Mt. Tabor Annex building. Each unit will include a garage and a balcony overlooking a shared central courtyard.
Eighteen townhomes will be priced for households earning up to 80% AMI. Six will be reserved for buyers at 60% AMI or below. Proud Ground, a community land trust, will hold the land to keep the homes permanently affordable.
The bureau is awarding $4.3 million in Metro Affordable Housing Bond funds. The award is contingent on Metro's concept endorsement, a step that has not yet been scheduled.
At the Sept. 11 ribbon-cutting for Legin Commons, a separate Metro Bond-funded project, PHB Interim Director Quisha Light called stable housing the foundation for physical health, educational success and economic opportunity.
Neither the bureau's announcement nor public records include a groundbreaking date or construction timeline for either project. Metro's concept endorsement for the Mt. Tabor townhomes is the next milestone.
