The Clifford - How We Did It
The Nuts and Bolts
IHI acquired an ownership interest and operating control of this four-story brick building in 2007 and spent two years assembling acquisition and construction financing. We were originally scheduled to begin construction in 2009, but a faltering economy and the loss of two historic tax credit investors delayed the project until 2010. As they say, when the going gets tough, the tough get going! Our funding partners stuck with us and, in some cases, stepped up with additional resources. The resulting financing structure is a complex mix of partners and 14 different sources that gets the job done.

Funding Partners/Sources:
  • Tax Increment Financing - The Clifford Apartments are located in the Central Eastside Urban Renewal District, making the project eligible for $3.15 Million of TIF funding from the Portland Development Commission/Portland Housing Bureau.
  • Oregon Department of Housing and Community Services - The State awarded four separate capital grants totaling $1,162,000 to the project, plus $160,000 to fund on-site services.
  • Federal Home Loan Bank of Seattle - The Bank uses 10% of its earnings from the previous year to award competitive Affordable Housing Program grants to projects that meet local housing needs - it awarded The Clifford $791,000.
  • Historic Tax Credits - Because the building is a contributing structure in an historic district and IHI prioritized its historic integrity in our rehab plans, the project is eligible for historic tax credits based on the amount of "qualifying rehab expenses" it generates. IHI pre-sold these credits to The Historic Preservation Fund, bringing in $670,000 for the project. Learn more about Historic Tax Credits.
  • City of Portland - The Clifford was awarded Housing Investment Funds and a grant from the Bureau of Housing and Community Development.
  • Multnomah County Strategic Investment Partnership Funds - Multnomah County made an $80,000 grant for acquisition of The Clifford.
  • IHI contributed equity of $300,000 and made a bridge loan of $320,000.
  • Rental subsidy - The Housing Authority of Portland awarded 15 project-based Section 8 units and the US Department of Housing and Urban Development (via the City of Portland) awarded McKinney rent subsidy for 15 units. Both subsidies ensure that residents of these units pay only 30% of their income toward housing (which means zero if their income is zero).
  • Private debt -Oregon Affordable Housing Tax Credits buy down the interest rate on our permanent mortgage, which is being provided by the Network for Oregon Affordable Housing.
What was Innovative?
IHI used $300,000 of relocation funds from another project to secure purchase rights for The Clifford. Instead of just spending funds to temporarily relocate residents of Musolf Manor, we used The Clifford for relocation, making our money do double duty. Effectively, we got a "two-fer!"