A 135,000-square-foot transit-oriented affordable housing development is in the works for property at TriMet‘s Willow Creek Transit Center, at 235 S.E. Edgeway Drive in Hillsboro.

Mercy Housing’s Northwest office and the Immigrant and Refugee Community Organization (IRCO) are co-developing Willow Creek Family Housing and Early Learning Center – a project that gained the Hillsboro City Council’s approval late last month.

In February, the city and TriMet entered an intergovernmental agreement (IGA) to spur development of affordable housing at the transit center. The parties agreed to work together to solicit development proposals for a 2.89-acre parcel on the undeveloped portion of the park-and-ride facility at the north end of the property. Pursuant to the IGA, TriMet will make the subject property available for purchase by Mercy Housing at a discounted price of $1.25 million.

Currently, the total project cost estimate is $66.5 million, according to the city.

The city will dedicate an allocation of Metro affordable housing bond funds, estimated at $15.5 million, to support the project. Mercy Housing plans to invest $3.5 million.

Carleton Hart Architecture is the project architect. Neither a general contractor nor subcontractors have been selected yet. A general contractor will likely be selected in June 2026, according to a city of Hillsboro staff report.

Plans call for a five-story building with 118 units – 29 with one bedroom, 68 with two bedrooms, 16 with three bedrooms, and five with four bedrooms. Forty-one units will be for occupants earning up to 30 percent of the area median income. Some units will be for people earning up to 50 percent of AMI and others will be for those earning up to 60 percent of AMI. Also, 18 permanent supportive housing units will serve people exiting homelessness. There will be one manager’s unit.

Amenities will include a fully accessible community room with a kitchen, a tech center, a children’s area, and smaller meeting spaces. A smart screen in the lobby will provide transit information. Each floor will feature a laundry/lounge space and secure indoor bike storage.

“The design intent will connect residents with each other, the community, and nature with a forecourt plaza, walking path, gardening (space), and play areas,” Mercy Housing developer Justine Ealy stated in an email.

Mercy Housing will partner with IRCO to provide an on-site, 3,500-square-foot early learning center on the ground floor. The center will hold two preschool classrooms each able to accommodate up to 20 students.

Resident services, led by IRCO, will include health and wellness programs, meals for seniors, after-school activities, career coaching, workforce development, and more, the city’s staff report states.

The design plan calls for construction of 59 parking spaces, including 30 tucked under the building, according to the staff report. Parallel parking spaces will be included along the public street to the south, so that early learning center attendees can be dropped off and picked up.

Design details may change during the land use and permitting process.

Construction is anticipated to start as soon as late 2026 and require approximately 20 months to complete.

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