Oregon Housing and Community Services originally purchased 140 modular homes from Nashua Builders in Boise, Idaho for $26 million. 118 of those were installed at Royal Oaks Mobil Manor in Phoenix.
But, after major construction defects were found a year ago, the state decided to entirely replace the homes.
The state’s Housing Stability Council met Friday to approve $12 million for the new homes, plus an additional $5 million in tax credits. That money will come from remaining state wildfire funds allocated after the 2020 Labor Day Fires.
OHCS Deputy Director Caleb Yant said they’re asking for this money before pursuing possible legal action against the Idaho manufacturer to keep the Royal Oaks redevelopment moving forward.
“It’s been noted that there aren’t court filings that have occurred and I want council members to know that that does not mean that we’re not actively pursuing accountability for not getting a product that we paid for," he said.
Council Member Mary Li from the Multnomah Idea Lab said she had some concerns about the urgency with which the agency is moving forward with this funding request, especially when they haven't addressed some of the other parts of the project, like the timeline for getting the units ready for move-in. The opening of Royal Oaks was originally slated for September 2023.
OHCS Executive Director Andrea Bell said that they're working to push forward multiple pathways for this project at the same time.
"We are moving forward on the initial commitment made years ago to ensure that those homes are replaced and to ensure that the homes that are replaced are reflective of what people's expectations are," Bell said.
OHCS is also working with the Oregon Department of Justice to look into how the Idaho manufacturer of the defective homes can be held accountable.
The local housing authority in Jackson County is coordinating the purchase of the new homes and says they’ve found an Oregon-based supplier, but they're still in the procurement process and can't yet reveal its name.
