MCEDD Offers Flexible Loan Funds for Workforce Housing

May 27

Written By Columbia Community Connection

From Mid-Columbia Economic Development District:

By Jessica Metta

The Dalles, Ore., May 27, 2026 — Mid-Columbia Economic Development District (MCEDD) may be more well-known in the region for providing flexible business loans to entrepreneurs, start-up businesses, and existing businesses that otherwise would not qualify for a commercial bank loan.

But the organization also has $2 million in revolving loan funds available to develop “attainable” workforce housing in its Oregon counties. Attainable is defined as affordable for those earning up to 120% of area median income (AMI), a figure that is set per county and updated annually. Developments in Hood River, Wasco, Sherman or Gilliam County are eligible. These funds originated from the Oregon Governor’s Regional Solutions Office in 2013.

Through the history of the program, the loan funds have been used to rehabilitate 9 upper-level apartment units in the Honald Building in downtown The Dalles, rehabilitate a 6-unit multi-family dwelling in The Dalles, construct a duplex in The Dalles, and construct the 32-unit Leeward Apartments in Hood River. Funds are usually paired with a commercial bank loan to complete the project and can be flexible on collateral. While the loan is being repaid, sale prices or rents must be kept at levels affordable for those earning up to 120% AMI. To help spur the development of more workforce housing, interest rates recently have been set as low as 5.5%.

Several of the cities or counties in MCEDD’s region provide additional incentives to encourage housing development. Both Sherman and Gilliam County offer several housing development incentives or grants to construct or rehabilitate housing (owner-occupied, for sale or for rent). Hood River’s Westside Urban Renewal Area offers a Modest Housing Construction Incentive (MCHI) that provides a direct payment to builders of new homes in Westside Urban Renewal District that meet certain maximum sizes. The MHCI intends to level the development fee disadvantage that modest housing types have as compared to large single-family detached housing. Finally, the City of The Dalles offers development incentives including the Urban Renewal Incentive Program for System Development Charges through the Columbia Gateway Urban Renewal Agency and a Vertical Housing Zone downtown.

Developers seeking more information about MCEDD’s Attainable Housing Revolving Loan Funds or these incentives are encouraged to visit mcedd.org/financing/housing-loans/ or contact Ami Beaver at 541-296-2266 x1004 or ami@mcedd.org.