The Strategy Behind Preserving Affordable Housing Options

The Portland Affordable Housing Preservation Partnership (PAHPP), a mission-based limited partnership established by Edlen & Company along with Meyer Memorial Trust, represents a new model of impact driven real estate development to preserve housing that is affordable to our working middle income population. The purpose of the partnership is to identify, acquire, operate, and preserve housing that is affordable to those earning between 60% and 120% of the area median family income.

Can you explain how PAHPP is different from typical affordable housing projects that Edlen & Company pursues?

PAHPP represents a new approach to preserving affordable housing through the acquisition of existing properties that currently offer an affordable option. Over time, market rate housing ages. In many cases, these buildings are acquired, renovated, and converted to higher rent units beyond the financial capacity of existing renters, resulting in displacement. Beyond the human cost to those who can’t afford the increased rents and are forced out, there is also a social cost to the equity, diversity, and vitality of the neighborhoods in which these properties exist.

What is the intention of PAHPP, - why was it established?

The partnership between Edlen & Company and Meyer Memorial Trust is a collaboration with the goal to make sure that units which are currently providing affordability can continue to do so. It was a strategic move to engage our collective expertise and make a difference in our communities. There is a huge deficit in affordable housing, and if we hope to make a dent in it, we need to both add to the existing supply via the development of new affordable units and prevent the loss of existing affordable housing stock, including units that are currently unregulated.  

The financing and process necessary to develop new affordable housing projects is costly, complex and difficult to scale, as the number of new units that can be constructed is 100% dependent on the availability of local gap funding sources. Yet, here in the Portland and SW Washington metro areas, there are approximately 20,000 units of low-cost market-rate housing that could be preserved, ensuring this resource continues to be available to our community, which is the purpose of PAHPP.

Can you speak more to this concept of preserving existing assets?

The Portland and SW Washington metro area housing market is failing a large portion of its citizens. Within the current housing market, approximately 48% is rental and within this rental market, the need for affordable housing is escalating. The PAHPP model works within the existing inventory of affordable housing. It is not about bringing new units to the market. Rather, it’s about making sure that properties which are currently providing affordability aren’t removed from the market.

Is affordability a primary focus for Edlen & Company?

Yes, a lot of our practice is affordability focused, although we do have other types of projects in our portfolio - all of which are in service to our mission to create positive impact on community. Specific to affordability, our firm pursues many projects that represent different prongs in a multi-faceted strategy to address the big problem that our region has around affordability. This is not new for us – we have been working on affordable housing projects for the past 20 years.

The PAHPP partnership is unique however, in that we are acquiring existing properties. And, through investment in these properties, including addressing deferred maintenance and implementing energy and water efficiency upgrades, our objective is to maintain and hold these buildings over the long term to protect affordable housing options throughout the greater Portland and SW Washington metro areas.

Why is affordability such an important focus?

Healthy, stable housing is infrastructure, like roads and schools, and is a key determinant of health outcomes.

How does PAHPP have community impact?

Preserving these units supports neighborhood diversity and the values of social equity, a foundational principle of Edlen & Company. PAHPP demonstrates an approach to investment that has low risk, while delivering high social impact, and is scalable. It is a sustainable approach in that it keeps an existing building in use. Deferred maintenance and upgrades can occur while people can still live in the buildings. To date, we have acquired and preserved 216 apartment homes and they are exceeding our expectations, even during the challenges presented by the COVID pandemic.

It all comes back to people – our work’s impact on people. That is a driving force. To make a difference.