A novel condo project is nearing completion at 6909 NE Multnomah Street, where developer Neil Heller added two Accessory Dwelling Units (ADU) next to a 1,234 square foot 1951-era home. This approach seems similar to other infill housing projects, but its focus on reducing city-paid fees and lessening infrastructure buildout should produce a more affordable product for buyers, according to Heller.
As a resident, living just blocks away from his worksite, making space for more neighbors without upsizing the cost of entry to home ownership in the community is important to Heller. “I live here in the neighborhood, and I take my daily walk or two over to the project. It’s about seven blocks away from where I live,” remarked Heller. He also mentioned his commitment to keeping the original house on the site, which had been the home to Robert and Suzanne Matney, longtime residents who were central to the surrounding community. “They were the original owners, from what I understand. The guy even planted that big cedar tree that’s on the corner. When you see how big it is, you realize that they’ve been there a long time. They raise their kids there, and I guess they were a staple in that part of the neighborhood,” said Heller. “People just loved them, and so when they heard that we weren’t going to tear the house down and we would take good care of it, they were happy about it.”
The existing home spanned several lots but was massed near the corner, leaving plenty of yard space for the two 800-square-foot detached ADUs. “We removed some sheds and gazebos,” recalled Heller. His Heller Development Company then followed the condo plat process to create a micro three-unit condo he is calling “Cedar Corner Cottages.” Each of the new homes the contractor created has two bedrooms and a full bathroom on the top level. The main floor has a kitchen, a living area, and a half bathroom. Heller explained that people may recognize the construction style from other area homes created by Rees Bettinger Properties. “Rees Bettinger is my general contractor on this, and sort of my development advisor.”
Heller says this is his maiden project in which all the homes on the property are intended for individual sale. “This is the first project where we are not using owner-occupied finance strategies. We have investment partners, and this is the first time we don’t have to live in the construction dust.” He is not new to the housing creation process. He has tested out his work at his own property. “I added a basement apartment and an ADU out back so we turned our single-family lot into three households,” Heller said. Additionally, he spends a considerable amount of his professional life thinking about housing supply and its impact on communities. “I have an urban planning consulting firm, and I work with cities around the country to update their zoning codes. I’m [also] faculty with the Incremental Development Alliance. It’s a national nonprofit. And we teach local people how to invest in real estate and contribute to their communities.”
This condo project is Heller’s way of bringing his philosophy and professional experience close to home. “It’s nice being able to invest into the neighborhood that I live in, bring more affordable, diverse housing options to help people looking for homes,” Heller admits that there is a limit to how much of his style of infill housing is possible in the area, but he is committed to local contributions to the housing market. “I would ideally like to stay in Montavilla and continue to contribute to the vitality here. But I know that’s not always possible because deals do pop up elsewhere.”
These new homes are designed to be naturally affordable, without income restrictions. Heller accomplished this by building the units as ADUs rather than using some of Portland’s modern lot-division tools that do not require a condo Home Owners Association (HOA). “I did consider the middle housing land division. We felt like the ADU was going to be a bit more cost-effective. Right now there’s an SDC (System Development Charges) vacation, but at the time [we started] there was not. To not have to pay those SDCs, $25,000 per unit, that’s a lot of savings. And when you permit ADUs, the [city won’t] require you to improve the right-of-way,” explained Heller. “That would have been cost-prohibitive, either requiring us to build larger homes and sell them for more, or potentially leading to a project that just wouldn’t even pencil.”
In the case of this property, NE Multnomah Street is not fully improved, with gravel parking lanes on both sides and no sidewalks. Adding that infrastructure and the rainwater management required when you fully pave a street would have significant financial consequences. “Stormwater could be a $150,000 cost, which these small projects can’t really support,” said Heller. The original home received updates to the kitchen and bathroom, but Heller said it was in great shape, just a little outdated, until crews refreshed it. It also retained its single-car garage for onsite vehicle parking.
This smaller infill project joins others on this block, both by developers and by existing property owners. That scale of housing development pleases Heller, as it aligns with what the Incremental Development Alliance teaches. “We say ‘nobody’s coming to save you.’ If you’ve ever looked at a building and said ‘you know what that could be…’ then you’re probably that person who needs to figure out how to make it become that thing,” said Heller. “The idea here is to embolden and strengthen a whole swarm of local small-scale developers that can invest in their neighborhoods.”
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