QuickTake:
Lane County commissioners voted to add accessory dwelling units in a region still reeling from the 2020 Holiday Farm Fire. County officials celebrated the plan — but lamented how long it’s taken to get to this point.
Lane County commissioners approved a $5.5 million plan to put affordable housing in the McKenzie River valley, a region still rebuilding after the devastating 2020 Holiday Farm Fire.
Commissioners unanimously approved a contract Tuesday, Dec. 16, that will pay for the purchase and placement of about 20 accessory dwelling units — essentially small stand-alone homes of up to 900 square feet each. The $5.5 million comes out of nearly $17.5 million the county has received in federal community development block grants for affordable housing in the region.
The planned 20 homes will come to a region that was hard-hit by the Holiday Farm Fire, which burned more than 173,000 acres and destroyed 517 homes on a 20-mile stretch that includes Blue River and other unincorporated communities like Finn Rock, Nimrod and Vida.
The residents who chose to stay and rebuild have faced a long journey through the red tape surrounding insurance settlements and building permits and have waited for years for federal and state aid to materialize. Some people who work in the region still live in recreational vehicles due to the unavailability of affordable housing.
The $17.5 million the county received is part of $422 million the U.S. Department of Housing and Urban Development awarded Oregon in February 2022 for recovery efforts after the 2020 Labor Day wildfires. It has taken years for the funding to reach the local level in a meaningful way as it flows from the federal government to the Oregon Housing and Community Services agency and then the county.
County officials celebrated the start of the housing work, but acknowledged the slow pace of the work.
“Slow and insufficient funding has hampered recovery efforts,” a memorandum to county commissioners about the project said.
This project will work with private property owners who want accessory dwelling units on their land. So far, more than 25 owners have shown an interest, Matt McRae, the county’s disaster recovery manager, told commissioners.
The work ahead includes environmental assessments and applications from prospective tenants and property owners. After the presentation, McRae said he hopes to see the dwellings built sometime in 2026.
Commissioners said affordable housing is sorely needed in that region.
“We know that increases housing in areas that wouldn’t otherwise have the opportunity,” said Commissioner Heather Buch, whose district includes the McKenzie valley.
Under the agreements, participating property owners agree to rent the accessory dwelling units as affordable housing for at least eight to 10 years. In exchange, they receive a forgivable loan, with payments no longer needed after the eight- to 10-year rental period.
Under the requirements, first priority for tenants will go to wildfire survivors and then eligibility continues for others who meet the income requirements. Tenants cannot earn more than 80% of the area median income.
For 2025, the income threshold was $58,700 annually for a household of two. If the homes were built now, the cost would be $1,468 a month for rent and utilities for tenants.
The property owner will be responsible for collecting rent and maintenance and repairs. McKenzie Community Land Trust, a nonprofit leading much of the rebuilding and affordable housing work in the valley, will screen applications from potential tenants, monitor for compliance with the program and provide training to owners. The county also plans to hire an asset manager to manage the loans and financial details.

