JOHN DAY — The Meadowbrook Apartments, 555 E. Main St. in John Day, are getting a massive renovation.

The $3 million project includes energy-efficient windows, water-saving plumbing, new siding, a metal roof and the conversion of two units to meet full accessibility standards under the Americans with Disabilities Act, according to information from Northwest Real Estate Capital Corp., the Boise-based owner/operator of the complex.

Meadowbrook 1, the portion of the complex being renovated, includes three buildings with eight apartments each. No work is being done at this time on the other two buildings, known as Meadowbrook 2.

The renovation is funded by a slew of sources, including tax credits awarded by the Oregon Department of Housing and Community Services and a loan from the Rural Community Assistance Corp.

General contracting duties are being carried out by Boise-based CSDI Construction. Architectural services are being provided by the Boise office of CSHQA.

The Meadowbrook Apartments are considered low-income housing, with tenants receiving rental subsidies from the U.S. Department of Agriculture’s Rural Development division (Meadowbrook 1) or the U.S. Department of Housing and Urban Development (Meadowbrook 2).

“Rental subsidies allow tenants to pay no more than 30% of their income towards rent, while allowing owners like ourselves to collect enough rent to operate the property,” explained Ben Casiano, a real estate developer with Northwest Real Estate Capital Corp.

“For example, if a tenant makes $2,000 per month, they should pay no more than $600 in rent. However, if apartment rent is $900 per month, a typical landlord has no incentive to rent a unit to that tenant. With a subsidy, the tenant pays $600 and Rural Development pays $300, and the property collects the full $900 in rent.”

Casiano calls the subsidy program “crucial” because it allows low-income tenants access to clean, safe and affordable housing regardless of their income level.

“Everybody deserves a safe place to call home,” he added.

Northwest Real Estate Capital Corp. is a nonprofit that specializes in affordable housing. The company owns or oeprates dozens of apartment complexes in eight Western states, including 23 in Oregon, according to its website.

The company also derives income from property management and real estate development, Casiano said.

Meadowbrook residents displaced by the renovation work will be staying at either the John Day Motel or Sunset Inn while their buildings are being rehabilitated.

“We have two awesome local hotel partners in John Day Motel and Sunset Inn,” Casiano said. “We would not be able to relocate tenants while their units are being rehabbed without these two partners.”

Northwest Real Estate Capital Corp. will cover lodging and food expenses for Meadowbrook tenants for the duration of the time they are out of their units, according to Casiano.

Even though Northwest Real Estate Capital is investing $3 million in the rehab project, there will be no rent increase, Casiano said. In fact, residents at Meadowbrook can expect lower utility bills as a result of improvements made to the facility.

“The tenants will see no change in their rents after construction is complete, and we anticipate a decline in utility expenses with all the energy-efficient and water-saving upgrades being made,” he said. “Meadowbrook 1 was built in 1980 and has had no major upgrades since then.”

Work on the first building is expected to be finished and tenants back in their units by mid-July. The third and final building is expected to be fully renovated in November.