In 2021, Oregon鈥檚 housing agency, called Oregon Housing and Community Services, purchased 118 modular homes to rebuild Royal Oaks. The project broke ground in November 2022 with an opening originally scheduled for September 2023.
But last summer, those homes were found to be unfit to live in due to mold, leaking water and other defects. This delayed the move-in for wildfire survivors, many of whom had been living in temporary housing for years. There are unresolved questions about why the homes had defects.
The state then provided approximately $17 million in June to buy 118 new homes.
But this time, a local housing authority was in charge of choosing the manufacturer.
Ryan Haynes, director of real estate development for the Housing Authority of Jackson County, said his agency recently chose construction company InteliFab from Klamath Falls, and they're taking a much more hands-on approach.
"This factory is going to allow us to show up and oversee the work and inspect the work unannounced. So we are going to be able to make sure that everything is being completed in a first-class manner, which is something that I don't think happened with the previous units that the state procured," he said. "We are going to be involved, and we are going to be over there, and we are going to observe throughout the entire manufacturing process to make sure things are being done the way they're supposed to be done."
Haynes said the county's housing authority recently placed an order for the first 40 units, some of which could be ready for move-in as early as April. There will be two more orders for about 40 units each later on.
"We're optimistic that this project is now finally on the right path. I think we're disappointed by how long it took us to get to this point," he said.
Meanwhile, OHCS and Oregon's Department of Justice are in ongoing legal proceedings related to why the original batch of modular homes had defects, according to OHCS. Those modular homes were constructed by the company Nashua Builders based in Boise. A representative for OHCS declined to comment further on the nature of the legal proceedings.
Some have wondered if the state was negligent in caring for the original modular homes in the period between construction and installation. It took time to find a suitable location for them, so they were left sitting for months. OHCS said the problems were not due to the homes being unoccupied for so long but because of problems with the manufacturing.
The Housing Authority of Jackson County owns the site and will manage Royal Oaks. The homes are for those who lost their housing in the 2020 Labor Day wildfires and who meet certain income eligibility requirements. Previous residents of Royal Oaks will also be prioritized.
According to a statement from the nonprofit organization ACCESS, which has been helping fire survivors find housing, they are "currently waiting for clearance from OHCS or the Housing Authority to move forward with qualifying fire survivors for Royal Oaks. We are happy to see movement in a positive direction and look forward to helping place fire survivors."
"Those who qualify will be granted a manufactured home at Royal Oaks" and pay rent for the space, according to the statement.
