Portland, OR – Home Forward has acquired the Cesar Apartments, located near SE Hawthorne Blvd. and Cesar Chavez Blvd, to convert to Permanent Supportive Housing (PSH) for individuals exiting chronic homelessness. Purchasing the two-year-old building, which can be converted into supportive housing with minimal changes to the structure and layout, was part of an innovative strategy to capitalize on favorable market conditions to acquire market-rate buildings for affordable housing—a quick and cost-effective approach to bring more affordable housing on-line.

The Cesar offers 47 units ranging from studios to two-bedroom apartments. Built in 2022, the modern design, transit-accessible location, and community amenities make it an ideal site to support Multnomah County’s most vulnerable residents. With minimal structural changes required, the property will quickly transition into housing that fosters stability and dignity.

“Addressing our region’s affordable housing crisis requires a diverse set of tools and strategies. By leveraging new opportunities in the real estate market to supplement our existing efforts, and working across jurisdictions, we can rapidly expand the supply of permanent supportive housing at a fraction of the cost, maximizing public investment and delivering immediate solutions for those in need,” said Ivory Mathews, Chief Executive Officer of Home Forward. “This acquisition exemplifies the power of collaborative governance and bold, equitable action in addressing homelessness.”

The acquisition and conversion of the Cesar is possible thanks to $9 million from the Portland Housing Bureau (PHB), including $6.7 million in Metro Affordable Housing Bond funds designated for PSH pilot projects, and $2.3 million from Multnomah County, as well as Regional Long Term Rent Assistance and Supportive Housing Services funds from the Joint Office of Homeless Services to support wrap-around services for all Cesar residents.

“Last year, PHB began exploring whether we could bring much needed Permanent Supportive Housing online faster and at a lower cost than we usually achieve with new development,” said PHB Director Helmi A. Hisserich, “So we were very excited when Home Forward, Metro, and Multnomah County stepped up as partners on the Cesar Apartments acquisition. We look forward to announcing more acquisitions in the new year.”

The project aligns with the Portland Housing Bureau’s Local Implementation Strategy for Metro Bond funds, which aims to advance racial equity while producing 300 units of Permanent Supportive Housing, as well as 737 units with two or more bedrooms for families, and 605 units for households earning less than 30% of the area median income (or less than $28,320 a year for a family of two in 2024). The Cesar advances all three of these goals, which PHB is now exceeding across the board.

“This is a smart project to bring more affordable housing online and I’m proud of the creative approach used to increase our supply of supportive housing,” said Multnomah County Chair Jessica Vega Pederson. “With housing supply at crisis levels, this will create 47 residences specifically for people experiencing chronic homelessness with the support our neighbors need to stay housed long-term. This is aligned with our Homelessness Response System’s focus on tangible solutions to our region’s chronically low inventory of available housing.”

The building is nearly half vacant and remaining residents who income qualify will have the option to continue living at the Cesar or receive relocation assistance from Home Forward. New residents will begin moving in this June through referrals from Coordinated Access. The Cesar will feature on-site services tailored to residents’ needs, including behavioral health resources, tenancy education, and eviction prevention support. These critical services, provided through partnerships with the Joint Office of Homeless Services and local service providers, will ensure long-term housing stability for residents.

“Changes in the housing market have made it possible to create affordable homes at a lower cost to taxpayers with the purchase of pre-existing buildings,” said Metro Councilor Duncan Hwang. “It’s great to see Portland using this opportunity to increase supportive housing for our region’s most vulnerable population.”

Home Forward will continue to work with the Joint Office of Homeless Services to select a service provider that aligns with its equity-driven mission. Together, they aim to create a supportive housing model that uplifts individuals while addressing systemic inequities in access to stable housing.

“Ending unsheltered homelessness is going to take innovative ideas and bold leadership. Home Forward’s acquisition of the Cesar Apartments and PHB’s work to bring more Permanent Supportive Housing to Portland is just that,” said Donnie Oliveira, Deputy City Administrator for Community and Economic Development. “The City will continue this work to address our housing crisis and bring critical resources to our most vulnerable populations, and we are proud of our partnerships with Home Forward, Multnomah County, Metro, and others to get it done.”