Oregon launches Construction Loan Guarantee Program to reduce barriers for affordable housing development

Oregon Housing and Community Services (OHCS) and the Network for Oregon Affordable Housing (NOAH) launch the Construction Loan Guarantee (CLG) Program. The program decreases risk to lenders, making it easier for developers to access construction loans to build affordable homes for people with low to moderate incomes.

“This program is a critical step toward addressing Oregon’s housing shortage,” said OHCS Executive Director Andrea Bell. “The goal of this program and partnership is to concretely reduce barriers for lenders and developers, making way to get more homes built across Oregon.”

In 2023, the Oregon Legislature allocated $20 million to OHCS to establish the program. Following a request for proposals (RFP) process, OHCS awarded the funding to NOAH to administer the program. Eligible projects may include single-family homes, manufactured home communities, and multifamily rentals.

“NOAH is excited to be launching this Construction Loan Guarantee Program. It is designed to give lenders more confidence to invest and help projects secure better terms to ensure more affordable housing units can be developed,” said NOAH’s Deputy Director and Director of Lending Ann Remmers. “We’re especially hopeful about the impact this will have on smaller developments and rural communities, supporting both rental homes and homeownership. We encourage developers and lenders to reach out.”

By providing lenders with extra financial security up front, CLG increases their ability to make loans to projects. These loans make developing affordable housing easier, creating more certainty in the face of unpredictable factors like interest rates, material costs, or supply chain issues. 

Visit the NOAH CLG webpage for more program details and how to apply.