Modular homes originally intended for Almeda Fire survivors but found to be defective are being auctioned off by the state of Oregon.

An auction of 33 units intended to replace destroyed housing at the Royal Oaks Manor mobile home park outside Phoenix began Tuesday afternoon online by GovDeals.com, a third-party service that the state Department of Administrative Services uses to sell property. The initial posting has five units, each with a minimum bid price of $26,400.

The website notes that bidders must be from within the United States.

Oregon Housing and Community Services ordered 140 homes from an Idaho manufacturer for $24 million shortly after the 2020 Almeda Fire and other Oregon conflagrations. A total of 118 were designated for placement at Royal Oaks Manor along South Pacific Highway, but inspections revealed a number of problems when they started to arrive in 2023.

“What we have been told is some will be sold to individuals and some in batches,” said Delia Hernandez, public information officer for OHCS.

The first auction will run until Nov. 12. A second auction of 35 units is set to begin on Nov. 7. “We don’t know how many may be held over for the second phase,” Hernandez said.

All the information on defects and the inspection reports will be given to prospective bidders. They will have a time to go in and inspect them, Hernandez said. Experts have repeatedly said the homes are repairable, she said.

“Folks who have expressed interest have been contractors so far,” Hernandez said. “We know that there are a number of parties who are interested in purchasing the homes and repairing them.”  

Hernandez previously told the Rogue Valley Times that mold has been discovered in some of the homes, as well as leaking water and multiple other code issues.

Other auction details from the Gov.Deals listings include a requirement for the successful bidders to remove the units from their Medford location by Jan. 31, 2025. In-person viewing will be held on Nov. 6. Most units include new appliances. The homes are two-bedroom, one-bath and either 64 or 70 feet long by 14 feet wide.

OHCS contracted with Nashua Homes of Boise, Idaho, to build the 140 units. When they began to arrive in Southern Oregon in 2023, problems were apparent.

In early 2022, the Housing Authority of Jackson County had purchased the 21-acre Royal Oaks site that was destroyed in the Almeda Fire with $6 million awarded by OHCS to provide housing for survivors. The authority spent another $5 million to redevelop the site, including replacing most of the infrastructure.

In August 2023, OHCS announced plans to rebuild the units, but abandoned the idea earlier this year

In June, however, the state Housing Affordability Council allocated another $12 million to purchase replacements of the homes. The funds came from federal assistance for recovery from the Almeda and other Labor Day 2020 fires in Oregon, as had funds for the original modular home purchase.

The Housing Authority of Jackson County reached an agreement in September with OHCS to provide nearly $17 million to bring 118 modular homes to the site. The housing authority will manage the park.

InteliFab of Klamath Falls has been contracted to construct 118 new units, which will have two bedrooms, one bath, a floor space of 917-square-feet and an attached carport.

Residents were first projected to move into Royal Oaks Manor beginning in fall 2023. Priority for the housing is being provided first to former Royal Oaks residents who were burned out, then to other fire survivors. ACCESS, Jackson County’s community action agency, is handling the screening process to establish eligibility.

“We feel very confident for the first half of the year (for move-ins). We are still hoping for April,” said Ryan Haynes, development director for the housing authority. “Weather may be a factor in bringing homes over Highway 140 from Klamath Falls.”

The homes are under construction now, but none are ready for delivery,” Haynes said. “Our project manager was over there last week. He is very impressed with the quality,” he said.

Hernandez could not comment on any potential litigation but did say there is an ongoing legal process.

“There are different ways we are trying to recover the funding. Litigation is one of the ways; and then also to auction the homes off,” she said.

The 68 homes up for auction are stored in south Medford off Charlotte Ann Road. Of those, 66 had been on the Royal Oaks site at one time. There are also 72 additional homes that the state purchased from the manufacturer that are still in Idaho and were never brought to Oregon. Hernandez told the Times those units will be moved into Oregon and auctioned off in the spring of 2025.

To participate in the auction, go to govdeals.com/account/register.

Editor’s note: This story has been updated to remove reporting that was not properly attributed to Jefferson Public Radio.