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Construction of a three-story, 40-unit affordable housing development will start next month in the Powellhurst-Gilbert neighborhood, in the heart of the Jade District in Portland.

Gorman & Company is developing the 42,667-square-foot Jade Apartments in partnership with APANO Communities United Fund. The site is at 2905 S.E. 89th Ave., between 82nd Avenue and Interstate 205.

鈥淲hat is really amazing about this project is that we were able to work with nonprofit APANO that’s been working for years in this neighborhood and had identified the site more than 10 years ago,鈥� said Kevin Kellogg, Pacific Northwest market president of Gorman & Company. 鈥淲e’re finally able to build housing on the site they wanted.鈥�

The project team also includes architect SERA Architects, civil engineer BKF Engineers, structural engineer Aman Structural Engineering LLC, and landscape architect PLACE. The general contractor is a joint venture 鈥� Gorman & Company’s in-house construction team, Gorman General Contractors LLC, and minority-owned GSI Builders Inc.

The Jade will include 14 one-bedroom units, 11 two-bedroom units, and 15 three-bedroom units. Five units will be regulated for households making up to 30 percent of the area median income (AMI). All other units will be for households making up to 60 percent of AMI.

The three-story building will have two courtyards with a community room in between. Other amenities will include an outdoor play area, a community garden, a secure mail and package room, a secure bike room, laundry rooms on each floor, on-site property management and resident services offices, and on-site parking.

In front of the building, a road will be constructed with sidewalks to help residents travel to bus stops on Southeast Division Street, Kellogg said.

The project is designed to Earth Advantage silver standards. Also, the building will meet the Portland Housing Bureau’s green building standards. There will be a full solar array and battery backup system, heat-pump water heaters, a high-efficiency HVAC system, and an enhanced building envelope and insulation.

鈥淥ur goal is to power the entire building, including the units, with clean energy,鈥� Kellogg said, adding that most of the energy will be generated on-site.

The total project cost is approximately $24 million. Funding is coming from the Portland Housing Bureau via the Portland Clean Energy Community Benefits Fund, Metro’s Transit-Oriented Development Program and affordable housing bond funds, Multnomah County general funds, and Oregon Housing and Community Services’ General Housing Account Program and Oregon Multifamily Energy Program, as well as funds from Banner Bank.

The building is expected to open in early 2026.