Notice of Comments Received on Review of Eligible Areas for
USDA Rural Development Rural Housing Programs

The U.S. Department of Agriculture (USDA) Rural Development in Oregon has received and considered comments on areas being reviewed for continued eligibility under USDA's Rural Housing Programs. During the review, all comments were considered.

Below is a summary of the comments received for the rural area review in Oregon.

COMMENTS RECEIVED IN OREGON

1) Grants Pass, OR — All comments received strongly opposed reclassifying Grants Pass as not rural and ineligible for USDA Rural Housing Programs.

• Received seven comments indicating that Grants Pass, even with its recent population growth, remains an underserved area of the state that struggles with limited access to affordable and workforce housing and low income levels, and that the county is one of the Oregon Housing and Community Services's targeted areas for homeownership; USDA's proposal to reclassify Grants Pass for rural eligibility would leave the area without low down payment mortgage options for low-income residents, except for the Federal Veterans Association loans.
• Received one comment indicating that the Board of Josephine County Commissioners declared a housing emergency in November 2017 and that USDA's proposal to reclassify Grants Pass for rural eligibility would worsen the crisis.
• Received one comment indicating that Grants Pass is rural in character and if USDA were to account for transient college students, seasonal retirees, and part-time residents during the summer tourist season, Grants Pass would likely remain eligible for USDA's housing programs, which are critical for local residents in this community that still struggles with poverty due in large part to the decline in the timber industry in the region; USDA's proposal to reclassify Grants Pass for rural eligibility would have a devastating impact.
• Received one comment indicating that Josephine County is an underserved area of the state that struggles with limited access to affordable housing, low incomes, and limited availability of financial assistance and that USDA's proposal to reclassify Grants Pass for rural eligibility would have a detrimental effect on its residents and significant negative health impacts due to increased stress levels of low-income families.
• Received one comment indicating that the housing shortage in Grants Pass makes homeownership more affordable than renting, except that many people cannot afford the down payment; USDA's housing programs have bridged that gap, and the loss of eligibility for Grants Pass would exacerbate the housing crisis.
• Received one comment indicating that Grants Pass continues to have the characteristics of a rural community, and it depends upon USDA's programs to provide housing opportunities for low-income residents.
• Received one comment indicating that the current housing crisis has resulted in rising costs so that a local resident with a stable job, earning a standard or slightly high income for the area, must spend 50 percent of that income on housing if financial assistance is not available.
• Received one comment asking that Grants Pass be maintained as an eligible area.

2) Central Point, OR — The single comment received opposed reclassifying Central Point as not rural.

• Received one comment indicating that Central Point continues to have the characteristics of a rural community, and it depends upon USDA's programs to provide housing opportunities for low-income residents.

3) Damascus, OR — The single comment received opposed reclassifying Damascus as not rural.

• Received one comment indicating that Damascus was recently unincorporated, has many characteristics of a rural community, and is similar to nearby communities that USDA still considers to be rural.

4) All Areas Under Review, OR — The single comment received opposed reclassifying any area in Oregon as not rural for at least another two years.

• Received one comment indicating that Oregon is experiencing the worst affordable housing crisis in over 20 years and that it will not be resolved for at least another two years; USDA's proposal to reclassify some areas for rural eligibility would further delay that recovery.

CONSIDERATION OF COMMENTS

Based on the review of the areas within Oregon, using the 2015 American Community Survey (ACS) data and rural area guidance located in USDA Handbook HB-1-3550, Chapter 5, and taking into consideration the comments received, Rural Development now proposes to maintain the rural eligibility designation for the following area:

1. Deschutes River Woods, OR – census-designated place (CDP)

Based on USDA's review and consideration of comments received, the rural eligibility designation is proposed to change to not rural for the following areas:

1. Grants Pass, OR
2. Damascus, OR
3. Sherwood, OR
4. Wilsonville, OR
5. Central Point, OR
6. Hayesville, OR – CDP
7. Four Corners, OR – CDP
8. Bethany, OR – CDP

Areas that will be considered as no longer being rural or rural in character can be viewed on Rural Development's eligibility maps. To view proposed ineligible areas, select either the "Single Family Housing Guaranteed," "Single Family Housing Direct," or Multi-Family Housing" tab, and then selecting the "Proposed Ineligible Areas" tab.

These proposed changes will become effective on June 4, 2018. 

For details, or questions about specific changes, please contact the Oregon Rural Development Single Family Housing Program Staff at (503) 414-3353.