Wilsonville Breaks Ground on 121 Units of Affordable Housing at Wilsonville Transit Center

August 26, 2024 — A ceremonial ground-breaking event took place this morning at the Wilsonville Transit Center, signaling the beginning of a public-private partnership to build 121 units of critically-needed affordable housing in Wilsonville.

In partnership with Metro, Clackamas County, and developer Palindrome, the City of Wilsonville is leading this significant “transit-oriented development” project to help mitigate a State housing crisis and address homelessness by providing new homes in Wilsonville that are conveniently located near South Metro Area Regional Transit (aka SMART) and TriMet’s Westside Express Service (WES) commuter rail.

“We are thrilled to reach the construction stage of an important project that is addressing a regional housing shortage and providing new opportunities for individuals and families to find stability in Wilsonville,” Wilsonville Mayor Julie Fitzgerald said. “Wilsonville is delivering on Oregon’s biggest need with a project that will empower people by providing new, more affordable homes that have broad access to transit and supportive services.”

Named for the Spanish word for flying, “Vuela” is scheduled to be completed in late 2025 or early 2026. Residences are to be made available to households making between 30% and 80% of Area Median Income.

Notably, Vuela’s ground floor space is to include a coffee house, SMART Welcome Center, and a permanent home for Wilsonville Community Sharing, Wilsonville’s food bank and social services provider. The ground-floor amenities are funded with a $1.9 million grant from the Oregon legislature.

Unlike typical, market-rate residential development, affordable housing projects rely on a variety of public subsidies. To catalyze development, the City sold the 1.3-acre property to Palindrome for $1 and is subsidizing $1.4 million in System Development Charges (SDCs).

Additional funding sources include $28.4 million in tax-exempt bonds issued by Oregon Housing and Community Services, $24.6 million in equity from federal low-income housing tax credits allocated by Oregon Housing and Community Services, $8 million in regional Metro Affordable Housing Bond Funds awarded by Clackamas County, and a $250,000 Metro TOD grant.

Wilsonville’s 2020 Equitable Housing Strategic Plan identified the site as an opportunity to build transit-oriented affordable housing. The City’s ownership of the land allowed it to establish a vision for the property and set development requirements. The availability of existing, underused Transit Center parking further serves the development and lowers costs; the development is leasing space for the project’s exclusive use (while maintaining sufficient parking for daily public use by transit users).

At points throughout construction, some bus stop locations will be temporarily relocated, and there may be minor delays. Signage will be posted. Visit ridesmart.com for more information.

Please visit ci.wilsonville.or.us/vuela for additional information, or contact Kimberly Rybold, Senior Planner, 503-570-1583

Pictured Above

1. Robert Gibson, Vice President, Development – Palindrome
2. Christine Lewis, Metro Councilor
3. Caroline Berry, Wilsonville City Councilor
4. Aaron Woods, Oregon State Senator, District 13
5. Julie Fitzgerald, Wilsonville Mayor
6. Courtney Neron, Oregon State Representative, District 26
7. Chad Rennaker, President – Palindrome
8. Martha Schrader, Clackamas County Commissioner
9. Kristin Akervall, Wilsonville City Council President
10. Ryan Whitt, Director of Construction – Pacificap Construction