Construction fencing surrounds a 1962-era single-story home at 3326 SE 89th Avenue ahead of demolition that makes way for a new 31-unit affordable housing project called Alyssa Daye Gardens. The 32,500-square-foot, four-story wood-framed structure will offer affordable housing with ground-floor common spaces and support services. The project is led by the Mental Health and Addiction Association of Oregon, working under the name The Peer Company, which operates its Portland Recovery Campus next door to the site at 8935 SE Powell Boulevard.

The project originally intended to offer 38 housing units, but further development refinements reduced that number. The main floor includes a lobby, community room, offices, private courtyard, and four of the 31 homes. The project will improve pedestrian infrastructure along SE 89th by connecting two sidewalk segments split by the soon-to-be redeveloped property. Infill housing development from 2001 created a 90-foot-long disconnected sidewalk to the north of the site, which can now connect to the existing sidewalk that connects to SE Powell Boulevard.

The Peer Company trains and coordinates people with lived experience of addiction and mental health issues to assist others in their recovery process. The Alyssa Daye Gardens will provide permanent supportive housing units for previously homeless families affected by mental health or substance abuse disorders. The regulated affordable housing is for people earning at or below 30 percent of the Area Median Income (AMI), with 20 one-bedroom units and 11 two-bedroom apartments. The Department of Housing and Urban Development (HUD) calculates that a single person’s 2026 30% AMI in Portland is $26,950 per year.

This project includes rooftop solar power and received support from the Oregon Multifamily Energy Program (OR-MEP), which supports energy-efficient design of new and existing affordable multifamily rental properties. The Oregon Housing and Community Services (OHCS)—Oregon’s agency that provides financial and program support to create and preserve affordable housing—is also providing funds for this development, which has an estimated cost of $666,748 per unit. The project will remain affordable for at least 30 years as part of its public funding request.

The Alyssa Daye Gardens is designed for chronically homeless families with children, where at least one of the household residents has a mental health or substance abuse disorder. Project documents explain that designers used wood-look finishes, warmer colors, and large windows to improve daylight and views as part of the building’s trauma-informed design. It also features accessibility considerations for those with mobility challenges. A resident services team works one-on-one with resident families to establish personalized goals while offering resources and skill-building support for successful residency and long-term housing security. Additional resources in the adjacent Peer Company’s Recovery Campus offer peer support, community-based recovery groups, employment connections, and other program offerings.

The demolition permit for the existing 762-square-foot structure is still under review, but it has passed its 35-day hold period. When crews remove that building, they will fill the basement and prepare the site for the on-slab construction. People can anticipate increased construction activity in the area and eventually a more connected pedestrian space. The Peer Company’s campus offers on-site parking with several stalls adjacent to the new housing development.

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