Eugene opens 2026 affordable housing RFP with limited funds and site

The City of Eugene announced its 2026 Affordable Housing Trust Fund (AHTF) Request for Proposals on Jan. 7, 2026, inviting developers and nonprofit housing providers to apply for a modest package of resources tied to specific affordability and financing requirements. Resources include up to $650,439 in AHTF funding drawn from the Construction Excise Tax and access to a 0.95-acre city-owned parcel on Hilyard Street between 33rd and 34th Avenues, of which about 0.76 acres are available for development.

Proposals must meet a set of clear eligibility rules: projects must be located within Eugene city limits, include at least four dwellings, serve households earning 100% of Area Median Income or less, comply with city affordability requirements, and secure at least 50% of total development costs from other funding sources. Letters of interest are due Feb. 5, 2026, with complete applications required by March 5, 2026. The announcement outlines the selection process and provides background on the AHTF.

The immediate effect for Lane County housing efforts is twofold. First, the AHTF allocation represents continued municipal use of Construction Excise Tax revenue for housing, signaling policy prioritization of affordability even as the dollar amount remains limited relative to overall housing needs. Second, making a small city-owned site available can accelerate a development timeline for the right project, but the acreage and funding cap suggest the opportunity is geared to small-scale or infill developments rather than large mixed-income complexes.

Institutionally, the RFP’s 50% leverage requirement steers applicants toward partnerships and stacked financing. That structure favors organizations able to combine private investment, federal or state grants, tax credits, or philanthropic capital. Smaller community groups or first-time developers without established financing channels may find the threshold challenging, narrowing competition to entities with capital access or prior experience assembling funding packages.

For residents, projects developed under this RFP will target households at or below 100% AMI, which can include moderate-income renters or homeowners priced out of market-rate options. The minimum four-unit requirement allows for a range of housing types, from small multifamily buildings to clustered townhomes, providing flexibility in design and neighborhood fit.

The selection process and limited funding mean the RFP is likely to attract proposals that can quickly demonstrate financial feasibility and alignment with city affordability goals. Interested developers and housing organizations should prepare letters of interest by Feb. 5 and full applications by March 5, 2026 to be considered.

The takeaway? If you’re planning to build affordable housing in Eugene, start lining up match financing and confirm the project meets city affordability rules now. Our two cents? Small pots of public money and small infill sites add up only when they’re paired with strong partners and realistic budgets.