Oregon Recoups 22 Cents on the Dollar at Auction for Defective Modular Homes
An attempt by Oregon state to recoup some of the millions lost with the purchase of defective modular units to replace homes destroyed in the 2020 wildfires yielded 22 cents on the dollar at auction.
The state paid more than $170,000 for each of the 140 units found to be defective on delivery – inspections uncovered waterproofing issues resulting in damp, and improperly installed doors and windows. Roof structures were also not up to code.
The Homes Were Uninhabitable
The homes were labeled ‘uninhabitable’ by state attorneys, who said it would cost Oregon another $7.7 million to repair the faults.
The contract for the two-bedroom one-bathroom prefab homes, that fetched an average of $37,200 on auction, was given to Pacific Housing Partners, housing brokers that appointed Nashua Homes in Idaho to undertake the manufacturing process. The state has instituted a lawsuit for $11.8 million to recoup some of its losses.
Units were Earmarked to Replace Homes at Royal Oaks Mobile Manor Destroyed by Fire
The modular homes were earmarked to replace properties destroyed in the Labor Day fires at the Royal Oaks Mobile Manor in Phoenix at a total cost of $23.9 million, according to Oregon Housing and Community Services.
The defects were reported by the Jackson County Housing Authority, appointed to oversee the reconstruction of the modular home estate.
The Housing Authority reported material defects inside and outside the units and asked the state to put the brakes on further deliveries. Records show that waterproofing issues showed signs of water damage to the interior of the units.
To date, the state has auctioned 68 modular homes pocketing $2.5 million, Another 72 units are expected to be auctioned later this year.
Residents are Expected to Take Occupation in April
In March 2024, the state decided to purchase new homes for the Phoenix estate. Jackson County Housing Authority oversaw the purchase of 118 housing units for $17 million from InteliFab, a Klamath Falls company.
The purchase amounted to $12.2 million funded by wildfire housing recovery funds and an additional $5 million from affordable housing tax credits approved by lawmakers in 2021. Residents are expected to take occupation by April.
Blue River Modular Homes Residents Will Move in at the End of January
Another 20 modular homes costing $4 million will be ready for occupation at the Lazy Days RV & Mobile Homes Park in Blue River on January 31. This is a project by Homes for Good, the Lane County housing agency. Most of the money for the project was funded by the state.