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A two-building development that will bring a total of nearly 200 units of affordable housing to Portland’s Powellhurst-Gilbert neighborhood advanced last week, as construction funding was approved for the first phase and notice of a Type II adjustment review was issued for the second.

Central City Concern and Related Northwest are teaming on the phased development of a pair of properties at Southeast Division Street and 115th Avenue. The first phase, the $15 million Division Street Apartments, will include 40 single-room occupancy units and 20 studios. The second phase, the $38.3 million 115th at Division, will include 138 apartments – a mix of studios and units with one, two or three bedrooms.

Both buildings are designed by Ankrom Moisan Architects and will be built by Walsh Construction Co.

Portland City Council last week approved construction financing not to exceed $8.475 million for the Division Street Apartments, at 11332 S.E. Division St. The project is the first of two to be awarded funding through the Portland Housing Bureau‘s 2018 notice of available funding for permanent supportive housing. All 60 low-barrier housing units in the building will rent for $500 per month; 40 will serve homeless individuals with mental health issues, and 10 will be reserved for individuals with severe mental illness.

According to Ryan Hood, a project manager with Related Northwest, the project team is planning to close on the property on May 28 and break ground at the beginning of June. Construction of the three-story building is expected to require about 13 months.

The four-story 115th at Division will rise on a 1.02-acre lot at 11518 S.E. Division St. The new building will feature a large central courtyard and 87 vehicle parking spaces. Shapiro Didway Landscape Architecture is the project’s landscape architect. A Type II adjustment review will address locating vehicle access from a driveway near the property’s southern end, as the Portland Bureau of Transportation will not allow curb cuts on Division Street.

Funding for the project will come from a $258.4 million housing bond approved by voters in November 2016. The development team is hoping to close on the property in late October and break ground shortly afterward, Hood said. Construction is expected to require about 16 months.

The building is primarily intended to serve households making between 30 and 60 percent of the area median income. Seven of the units are to be set aside as permanent supportive housing. The proximity of the building to the Division Street Apartments will allow for residents elevating out of permanent supportive housing units to remain in the immediate community by transitioning to living at 115th and Division. Further, both buildings’ proximity to Central City Concern’s Blackburn Center will allow residents to access that facility’s comprehensive services, which include health care, addiction treatment and employment assistance.