Board of County Commissioners

State leaders must work together on the path to Oregon's recovery

by Ann Lininger, Doug Stamm and Bob Walsh
March 10, 2009

A team of community members assembled by Gov. Ted Kulongoski will soon begin work identifying projects in Oregon for financing with new federal stimulus package funds.

The decisions this team will make can create jobs and new industry in Oregon and lead the way to our state's economic recovery. To make the most of this opportunity, Oregon will need tremendous cooperation among all those with a stake in the future, including public, private and philanthropic sectors.

Fortunately, we have a strong precedent from the affordable housing sector to use as a model as we approach this task. In an unprecedented partnership over the past two years, Meyer Memorial Trust, Walsh Construction Company, Oregon Housing and Community Services and other partners united to create the Housing Acquisition Fund to safeguard 7,000 rent-subsidized apartments that are at risk of converting to market rates.

This risk arises when private owners conclude federal contracts in which they promised to keep rents low in exchange for favorable financing. In a watershed first step, the Schnitzer Family sold the 235-unit Clay Tower building to a nonprofit operator. The nonprofit, which strives to provide low-cost housing, will maintain modest rents instead of transforming the building to high-end, market-rate housing.

The Housing Acquisition Fund, administered by Network for Oregon Affordable Housing (NOAH), will help other nonprofits buy and upgrade aging, subsidized apartments and keep operating them at low rents.

Meyer Memorial Trust has invested $5.2 million in the Fund, and the owners of Walsh Construction Company have contributed almost $1 million to this effort. Oregon Housing and Community Services awarded more than $2 million to the Fund, and the governor's proposed budget includes an additional $16 million to help preserve these apartments.

Last week, one of the 10 largest private foundations in the country – the MacArthur Foundation – announced a $5 million investment in Oregon's affordable housing preservation work. This is MacArthur's largest ever investment in Oregon. Leaders at MacArthur credit the close teamwork of Oregon's foundations, private businesses and government as influential in its decision to invest in the project.

With help from a diverse team of partners, including the Collins Foundation, Oregon Community Foundation, City of Portland and others, NOAH has raised $27 million to help nonprofits buy and safeguard aging subsidized apartments from willing sellers.

This teamwork has also catalyzed other breakthroughs. Last week the Oregon Senate joined the House in passing a bill modestly increasing document recording fees on real estate transactions to generate $15 million for affordable housing over the next two years. Sen. Betsy Johnson credited the public/private/philanthropic partnership behind Oregon's preservation effort as momentum supporting this victory. Sen. Laurie Monnes-Anderson noted the united support among what are often opposing interests – Oregon's Realtors, bankers, homebuilders and nonprofit organizations – as a crucial element in this success.

This team of public, private, foundation and nonprofit partners is on track to safeguard affordable housing for 7,000 Oregonians between now and 2013. Imagine what Oregon could accomplish if more of its public, private, philanthropic and nonprofit entities joined forces behind the federal stimulus money? That's the opportunity that awaits as the Governor assembles the Oregon Way Advisory Group to identify projects for financing with stimulus package funds.

If this group includes leaders from all segments of Oregon's communities – including public, private, philanthropic and nonprofit – who can rise above partisanship, Oregon will not only recover from the recession, it will emerge stronger than ever.

What if it were customary for Oregonians to work together in this way? How far could we leverage the federal stimulus dollars if we do? Imagine what we could all do together if we decided this kind of collaboration is the Oregon Way?

Ann Lininger is a Clackamas County Commissioner and former director of program related investing at the Meyer Memorial Trust. Doug Stamm is CEO of the Meyer Memorial Trust. Bob Walsh is CEO of Walsh Construction Company.