NEWBERG, Ore. — SPARK Newberg, the proposed affordable homeownership “bridge” program, has cleared a major hurdle by securing its 501(c)(3) nonprofit designation — one of the final requirements to unlock more than $740,000 in city-allocated housing funds.
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SPARK Newberg board members say this milestone allows them to shift from planning to action, launching efforts to acquire land and pursue critical grant support.
“We’ve been slowing things down until we received our 501(c)(3) designation,” said SPARK Newberg Board President and Newberg Mayor Bill Rosacker. “Now, we’re talking about where we’re going for land, working on sourcing grant money, and finalizing other details.”
SPARK Newberg is an affordable housing initiative developed by local business owners and community leaders to help Newberg residents earning up to 80% of the area median income — roughly $91,000 per year — save for a home down payment through a 48-month program combining discounted housing and financial education.
“Something we realized we didn’t explain well is that this is not aimed at getting people from tents into houses, or from transitional housing into houses,” Rosacker said. “There are a lot of other organizations who are doing that, and doing that well. We’re focused on providing a hand to those who are close to getting a house a leg up, so they can make that final step.”
The construction excise tax, or CET, funds would help the organization purchase land for a planned 20-unit apartment-style complex serving as program-based affordable housing.
Since being awarded the funds by the Newberg City Council in June — contingent on legal review and approved nonprofit status — SPARK Newberg has faced scrutiny from residents questioning the city’s approval process for an untested organization and potential conflicts of interest involving Rosacker’s dual role as mayor and board president.
Rosacker, who has recused himself from city council votes and discussions related to SPARK Newberg, and the board say they’ve worked to address those concerns while keeping the project on track.
From Conditional Approval to Concrete Steps
When the Newberg City Council conditionally awarded CET funds to SPARK Newberg in June, councilors pressed for reassurance on everything from legal eligibility to operational readiness. In a subsequent meeting, they reviewed SPARK Newberg’s application and requested assurances that the organization was viable, not theoretical.
At the time, board members Brian Naffin of Austin Industries, Doug Cain of Providence Newberg Health Foundation, and Rosacker said key elements — including nonprofit status, property selection, and program policies — were still pending while they sought to secure preliminary funding.
Now, with nonprofit paperwork in hand, the group says it can pursue grants and begin searching for a suitable property.
“We’re hitting an exciting point,” Naffin said. “We just couldn’t apply for grants until we got our 501(c)(3). So we’re kicking that off.”
Unanswered Questions Remain
Despite the progress, city officials, board members, and outside critics say key questions remain.
During the Aug. 18 city council meeting, Affordable Housing Commission Chair Casey Banks spoke against the council’s decision to award CET funds to SPARK Newberg, noting the group did not meet the established criteria and lacked a recommendation from the commission. She requested council rescind its funding award.
One criterion requires meeting city standards for affordability — typically, rent or fees under 30% of household income and serving families making less than 80% of area median income (AMI). SPARK board members said they are still working with the city to determine how those benchmarks will apply, given recent changes in local rent and income trends.
As a new nonprofit, the city also seeks long-term guarantees. CET-funded projects must remain affordable for 60 years, but how SPARK Newberg will manage economic changes over that span is still unclear.
“It’s a little bit undefined right now,” Naffin said. “We’re collaborating with the city, but we don’t have a final product.”
SPARK Newberg’s leaders say the uniqueness of the program is targeting the often overlooked segment in traditional affordable housing models: the “missing middle” — working families who earn steady incomes but cannot save enough for homeownership.
“Many of us in this room see our employees work hard and are still unable to afford a house,” Naffin said. “That means the businesses need to start the expensive recruiting process again, and people who would otherwise stay here and raise their families here are moving away.”
Their goal is to provide a pathway from renting to stability, equity, and eventual homeownership.
“We envision that family — they’re working hard, but they just can’t get there,” Cain said. “It’s hard out there. We know how hard it is. We’re hoping this gives people a chance and the resources to make that leap and set roots here in Newberg.”
Program Details Evolving
Many program components — including fees, participant support, retention benchmarks, and staffing — remain in development. The board says flexibility is both a strength, allowing for tailored support over a four-year stay, and a challenge, requiring careful participant intake and ongoing evaluation.
City councilors and housing advocates have cautioned the group not to classify the project as supportive or transitional housing, which could trigger additional staffing and compliance requirements. SPARK has said it plans to operate “dormitory-style” housing, offering more flexibility if a participant stops engaging in the program.
Under Oregon law, tenants are protected from unfair eviction. Without a dormitory-like designation, SPARK could face legal barriers to replacing participants who drop out but continue occupying units.
Critics have argued during city council meetings that this approach could deny protections to a vulnerable population. Naffin said the intent is not to remove participants unfairly, but to ensure that those benefiting from reduced rent remain active in the program.
“We’re not going to walk in and kick someone out right when they miss a part of the program,” he said. “We want to work with them — we want to be reasonable. At the same time, we can’t have someone eight months into the program stop participating but still take up space that could go to someone else who may find more benefit.”
Rosacker said he will not serve as a paid member of the organization to avoid conflicts of interest.
Looking Ahead
As SPARK begins seeking land and applying for grants, leaders say communication with the city, partners, and the public will be critical — especially in defining how the program meets affordability goals and delivers measurable community value.
“There’s a huge need in this community,” Naffin said. “But we want to do something that’s unique and sustainable.”
Rosacker said the organization’s next goal is raising $6 million — including the $740,000 in CET funds — to acquire land, construct the apartment-style complex, and hire an executive director.
For him, the question is no longer whether SPARK Newberg will succeed.
“It’s not if this program will happen — it’s when,” he said.
