Getting affordable housing projects financed and built will hopefully become easier in Oregon soon thanks to the Construction Loan Guarantee (CLG) Program, a strategic initiative designed to reduce lender risk and unlock capital for developers working to address the state’s housing shortage.
The program, launched by a partnership between Oregon Housing and Community Services (OHCS) and Network for Oregon Affordable Housing (NOAH) is aimed at tackling a persistent challenge in affordable housing development: securing construction financing. By providing lenders with additional financial security, the CLG Program gives them greater confidence to approve loans for projects serving low- to moderate-income Oregonians.
Addressing Real-World Barriers
Construction loan guarantees help projects move forward despite persistent industry challenges. Fluctuating interest rates, rising material costs, and ongoing supply chain disruptions have stalled or derailed affordable housing projects across Oregon. By reducing lender risk, the CLG Program enables better loan terms and increases the likelihood projects can break ground and complete construction.
Ann Remmers, NOAH’s Deputy Director and Director of Lending, highlighted the program’s potential reach. “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.”
The Construction Loan Guarantee Program’s Impact on Rural Communities and Smaller Developments
While the program benefits affordable housing development statewide, Remmers emphasized its expected impact on smaller developments and rural communities—areas that often face the greatest financing challenges. The CLG Program supports both rental housing production and homeownership opportunities, creating pathways to housing stability across different tenure models.
Developers and lenders interested in the Construction Loan Guarantee Program can find application details and program information at the NOAH CLG Program webpage.
More About The Foundation for Affordable Housing
For over 30 years, The Foundation for Affordable Housing (FFAH) has been helping to build and manage hundreds of affordable housing communities accounting for thousands of homes.
Founded by Tom and Deborrah Willard, our organization is a tax-exempt 501(c)(3) public benefit nonprofit corporation. Read more about FFAH here.
