Special Housing Opportunity Funds

The Special Housing Opportunity Fund is designed to provide low market interest rate loans to encourage residential development in the Riverfront-Downtown Urban Renewal Area.

​To enable creative and flexible approaches to stimulate and finance its vision, Salem has assembled a program for downtown property and business owners. The borrower and the property must meet the minimum requirements as outlined below; additional requirements may apply. Please read all requirements before submitting an application.

Terms and Minimum Requirements

  • Maximum Loan Amount: $50,000 per housing unit maximum (subject to available funds)
    • For loan requests over $750,000, prevailing wage rates may apply
  • Interest Rate: 3% fixed rate
  • Term: Fixed up to 20 years maximum
  • Loan Fee: $500 (projects which include more than 25 units will be charged an additional $500 fee)
  • Equity Requirement: Minimum 10%

Additional terms may apply. Terms are subject to change.

Eligible Borrower:

  • Property owners who can show fee title ownership or equitable ownership via Land Sales Contract recorded with Marion County
  • Purchasers of land who have evidence of a legal option to purchase
  • Tax-exempt property and business owners are not eligible

Eligible Property:

  • Commercial or mixed-use property located within the Riverfront-Downtown Urban Renewal Area

Eligible Activities:

  • All normal and reasonable soft and hard costs directly associated with construction of a housing unit
    • Tenant improvements are subject to an executed lease and a cost per square foot, which has been approved during underwriting
  • Predevelopment costs as part of a construction-ready project
    • Construction-ready is defined as having funding commitments and permits within 60 days, the reimbursement of some or all predevelopment and acquisition costs would be allowable

Ineligible Activities:

  • Acquisition (or the payoff of existing balances in excess of appraised value)
  • Loan fee
  • Refinance
  • Training
  • Staffing costs
  • Equipment and personal property
  • Reimbursement of hard costs prior to loan award
  • Organizational expenses
  • No cash back to owner

​Application documents

Special Housing Opportunity Fund Program43 KB
Urban Renewal Agency Loan Application35 KB

Contact us

Sheri WahrgrenDowntown Revitalization Manager
Mailing address:
350 Commercial St NE
Salem OR 97301
TTY/TDD: