Eugene City Officials Closed Downtown Housing Project Deal
The city has transferred ownership of a vacant Willamette Street building to developers to start a new housing project.
Updated on Oct. 7, 2026 in Openings & Closings
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The City of Eugene and developers officially closed on a redevelopment project at 1059 Willamette St. on Sept. 30, 2026. This initiative aims to revitalize the area by transforming a long-vacant site into 133 new housing units.
Why it matters
The project serves as a key effort to stimulate downtown economic activity and expand housing options. By utilizing federal grant funding, the city ensures that a significant portion of these new apartments remain affordable for residents.
The $10 million investment from the city and the downtown urban renewal district supports the construction of 133 total units. This includes 68 apartments priced below market rate, with 10 units specifically reserved for domestic violence survivors.
The players
City of Eugene
This local government authority serves as the primary municipal body overseeing development projects and urban renewal initiatives in the city.
Lane Community College
This institution formerly occupied the building at 1059 Willamette St. before the structure sat vacant for 14 years.
The details
The city transferred the former Lane Community College building to developers following its acquisition of the site in 2020. Under the current agreement, developers are required to price at least 51% of the units at 80% of the Area Median Income to satisfy federal grant requirements.
Timeline
The building at 1059 Willamette St. has remained vacant since 2012.
The City of Eugene purchased the site in 2020.
City officials and developers closed on the housing project on Sept. 30, 2026.
Demolition of the existing building is scheduled for completion by the end of 2026.
New construction is expected to commence in early 2027.
Market Landscape
This project mirrors a nationwide trend of local governments leveraging vacant institutional properties to address urban housing shortages. By securing federal funding, Eugene is positioning its downtown district to compete with residential growth in surrounding areas.
Residents can anticipate increased construction activity and eventual improvements to downtown housing availability. The project aims to provide long-term stability for low-income tenants and domestic violence survivors through mandated rent price caps.
The takeaway
The transformation of the long-vacant Willamette Street property marks a significant step in the city's long-term plan to modernize downtown infrastructure. This development model highlights the importance of combining municipal investment with federal grants to achieve local housing goals.
What happens next
Demolition of the existing building is projected to be completed by the end of 2026, followed by the start of new construction in early 2027.
Further reading
For more information on ongoing redevelopment efforts, visit the Eugene Openings & Closings section.
Source note: This article includes information reported by KLCC | NPR for Oregonians.
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