November  25,  2013      Commissioner  Dan  Saltzman  1221  SW  4th  Avenue  Room  230  Portland,  Oregon  97204    Dear  Commissioner  Saltzman:      We  are  writing  this  letter  to  ask  that  you  seriously  reconsider  your  decision  not  to  move  forward   on   our   Section   108   loan   application   with   Portland   Housing   Bureau   (PHB)   to  construct  our  community  office  building  on  our  Clara  Vista  affordable  housing  campus,  located  on  Killingworth  and  Cully  Avenues.   In  conversations  with  your  Chief  of  Staff,   it  has   been   stated   that   your   opposition   to   our   project   is   that   an   office   building   is   not  congruent  with   the   2008   housing   preservation   ordinance   (No.   182302)   passed   by   the  Portland   City   Council   and   sponsored   by   then   Housing   Commissioner   Nick   Fish.     We  would  like  to  point  out  that  since  passage  of  the  ordinance,  a  similarly  situated  project—The  Halsey   Center   located   at   1435  NE   81st—was   financed   utilizing   Section   108   funds.    The  Center  does  not  have  housing  units   but  provides   an  array  of   services   targeted  at  very  low-­‐income  individuals.    Given  this  precedent,  we  think  our  project  merits  support.      Furthermore,  our  application  for  Section  108  financing   is  a  CDBG  eligible  project  given  the  services  we  provide  to  our  Latino  population  housed  at  our  Clara  Vista  campus  as  well   as   those   seeking   support   services.   Our   services   include   mortgage   foreclosure  counseling,   home   buying   assistance,   energy   and   rent   assistance   payments,   home  retention   services,   economic   development   assistance   and   training,   youth   and   family  services,   programs   and   support,   medical   and   clinical   services   (delivered   at   our  community   center   on   campus),   and   financial   education.     All   of   these   services   are  delivered  in  a  culturally  specific  manner,  taking  into  account  that  this  is  one  of  the  most  fragile  and  disenfranchised  populations  in  the  City  of  Portland  that  remains  vibrant  and  optimistic  about  its  opportunities.      The  community  office  building  is  part  of  the  preservation  and  development  strategy  that  was  begun  by  PHB  and  Hacienda  in  2002  to  solidify  the  redevelopment  of  the  Clara  Vista  campus.  Our  project  will   also  help   anchor   a  neighborhood   that  has   steadily   improved  since  Hacienda  took  over  the  complex  over  20  years  ago.    Hacienda  is  currently  located  at  three  different  locations  and  paying  rent  to  three  different  landlords.  The  community  office  building  will  help  consolidate  our  operations  while  at   the  same  time  anchor  the  neighborhood  on  Killingsworth  and  Cully.        Hacienda’s   continued   presence   in   the   Cully/Killingsworth   neighborhood   combats  gentrification   in   an   area   identified   as   high-­‐risk   for   gentrification  by   PHB’s   opportunity  

Board of Directors

Guillermo Sandoval Chair

Megdy Khoury

Treasurer

Angela Martin Secretary

Javier Alomía Ana Alvarado

José Ibarra Victoria Lara

Dave McConnell María Ordoñez

Alex Perez Peter Platt

Joseph Portillo Ellen Wyoming

Victor Merced Executive Director

Main Office 5136 NE 42nd Ave. Portland OR 97218

Ph: 503.595.2111 Fax: 503.595.2116

www.haciendacdc.org

mapping   assessment.     The  Hacienda  project   helps   the  City   and  PHB   accomplish   its   equity   goals.    We   are   a  culturally  specific  organization  working  with  a  minority  general  contractor  on  this  and  other  Hacienda  projects.    Colas  Construction  will  employ  local  residents  in  the  construction  of  the  project  and,  through  a  recently  signed  MOU  with  Metropolitan  Alliance  for  Workforce  Equity  (MAWE),  we  will  provide  apprenticeship  opportunities  for  the  area’s  residents.        Until  your  recent  decision  to  stop  the  financing  process  for  our  project,  Hacienda  had  spent  nearly  $300,000  of  its  own  resources  in  pre-­‐development  costs.    Our  investment  in  the  project  will  be  the  first  commercial  office  built  in  the  Cully  neighborhood  in  over  30  years.    The  project  will  spur  the  redevelopment  of  the  area  almost  immediately.  We  have  secured  an  out-­‐of-­‐town  New  Market  Tax  Credit  investor  and  bridge  financing  from  both  Well  Fargo  ($700,000)  and  Craft  3   ($1.7  million).  This  project   is  one  of   the  few  applications  that  are  able  to  afford  hard  debt  which  makes  the  Section  108  financing  especially  important  to  both  PHB  and  Hacienda.  It  is  very  difficult  for  our  community  to  bring  this  level  of  investment  into  the  area.    The  longer  we  delay  the  start  of  this  project,  the  longer  it  will  take  to  get  boots  on  the  ground  and  local  residents  employed.        Our  community  has  waited  a  long  time  for  this  project  to  come  to  fruition.  We  ask  that  you  allow  the  financing  to   proceed   without   delay.     To   help   facilitate   the   process   given   your   concerns,   we   have   developed   three  scenarios  that  would  help  you  make  a  positive  recommendation:  

1) Allow   the   project   to   proceed   given   how   it   accomplishes   many   of   the   City’s   housing,   equity,   and  neighborhood  development  goals;      

2) Amend   the   existing   ordinance   to   clarify   the   overall   intent   so   that   a   project   like   ours   can   proceed  through  to  financing.  You  can  either  choose  to  amend  it  through  a  consent  calendar  item  or,  as  your  Chief  of  Staff  suggest,  a  transparent  public  process;      

3) Combine   the   financing  of   the   community  office  with   an  existing  25-­‐unit   preservation  project  on   the  Clara   Vista   campus   (Vista   de   Rosas,   formerly   Wendorf).   This   would   allow   both   projects   to   move  forward  as  one,   thereby   legitimately  accomplishing  the  City’s  preservation  goals  while  assuaging  any  concerns  that  it  is  not  keeping  with  the  spirit  and  intent  of  the  ordinance.      

We  would   like  to  schedule  a  meeting  with  you  at  your  earliest  convenience  to  discuss  your  response  to  our  request   and   in   the  meantime   ask   that   you   consider   the   overall   benefit   of   a   project   like   this   to   our   Latino  community  as  well  as  the  Cully/Killingsworth  neighborhood.      Sincerely,        Victor  Merced  Executive  Director      Guillermo  Sandoval  Hacienda  Board  Chairman