The Portland Housing Bureau (PHB) has invested $6 million to ensure long-term affordability for tenants at the Belmont Dairy Apartments and Lofts, a historic mixed-use building in Southeast Portland. The funding, sourced from the City’s Construction Excise Tax revenue, will preserve affordability for 67 regulated units for a 99-year term, preventing their conversion to market-rate housing.
Originally a functioning dairy facility, Belmont Dairy has been transformed into an 85-unit residential property spanning two city blocks. The building features studios, lofts, one- and two-bedroom apartments, along with a grocery store on the ground floor and close proximity to major transit lines, local dining, and Laurelhurst Park. The property also supports Portland’s sustainability goals by utilizing clean energy sources to reduce carbon emissions.
With Belmont Dairy’s 30-year affordability terms set to expire in 2026, Vital Housing, in partnership with AOF Pacific, has acquired the property to maintain affordability for decades to come. PHB’s investment guarantees that the 67 regulated units will remain affordable to households earning 60% of Area Median Income (AMI)—$63,720 for a three-person household. These units include two studios, 46 one-bedroom apartments, and 19 two-bedroom apartments, alongside 18 market-rate lofts.
Robert Sheppard, Founder and Managing Partner of Vital Housing, highlighted the importance of preserving affordability while advancing sustainability.
“Vital Housing’s mission is to tackle the growing affordability crisis while making meaningful progress toward decarbonizing the housing sector,” Sheppard said. “The long-term preservation and decarbonization of Belmont Dairy is a testament to our commitment to delivering lasting social impact for the communities we serve.”
Vital Housing plans to enhance energy efficiency and sustainability at Belmont Dairy through heat pumps, solar panels, LED lighting, water conservation measures, and improved indoor air quality. These improvements align with Portland’s broader goals of promoting affordable, energy-efficient housing.
Senator Ron Wyden praised the initiative, emphasizing its benefits for the community.
“Affordable housing plus energy efficiency equals a winning equation for Southeast Portland,” Wyden said. “This provides a wonderful example of how smart and targeted investments can help make our community an even better place to live while also designing a model that other communities can emulate.”
Sadie McKeown, President of CPC, echoed the significance of extending affordability while removing barriers to energy efficiency.
“This milestone exemplifies our unwavering commitment to addressing the housing crisis while breaking down the financial barriers to energy efficiency,” McKeown said. “CPC Climate Capital is proud to support Vital Housing and the City of Portland by investing in the extension of housing affordability.”
