Northeast Portland Affordable Housing Development Uses Geothermal Energy to Lower Utility Costs

thick industrial pipes laid out beside a deep dirt trench at an urban apartment construction site, overcast sky, tall evergreen trees and a damp city street in

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  • calendar_today October 9, 2026

Sandoval Development Embraces Geothermal Energy

A new affordable housing complex in Northeast Portland, known as the Sandoval, is set to transform how residents manage utility costs by incorporating geothermal energy to heat and cool its 78 apartments.

How the Closed Loop System Works

The development employs a closed loop system where water circulates through pipes that extend approximately 600 feet underground. This design harnesses the earth’s stable temperature to provide energy efficient heating and cooling throughout the building. Architect Sander Kohler of Scott Edwards Architecture explained that this method helps regulate the temperature inside the apartments year-round.

Aimed at Supporting Low-Income Families

The Sandoval’s apartments are targeted towards households earning between 50% and 60% of the area median income, addressing a critical need for affordable housing in Portland. Additionally, the nonprofit Sabin Community Development Corp., led by Nathalie Hansen, intends to take the responsibility for building utility bills, allowing residents to avoid the burden of fluctuating utility costs.

Hansen noted, "They never have to choose between turning the heat on and putting food on their table." By covering utilities, the nonprofit aims to help residents stabilize their monthly expenses and reduce the risk of losing housing due to unpaid bills.

Integrating Solar Panels for Greater Efficiency

Thanks to the geothermal system’s design, less roof space is needed for traditional heating and cooling equipment. This opens up additional space for installing solar panels, further enhancing the building’s energy efficiency. Nathalie Hansen stated that this extra solar capacity will support the nonprofit's plan to keep utility accounts in its own name, giving residents one less expense to worry about.

Pioneering Model for Sustainable Housing

According to project leaders, the Sandoval’s geothermal system is a first of its kind in the Portland area and could serve as a model for future developments in sustainable housing. Sander Kohler called it "a great testing ground" for this efficient and less commonly used technology. Project information indicates that while conventional heating and cooling systems typically last 15 to 20 years, the geothermal equipment used at the Sandoval could remain operational for 50 to 100 years.

Funding and Future Plans

The geothermal portion of the Sandoval project is funded by the Portland Clean Energy Fund, with additional financial support coming from Metro, the Portland Housing Bureau, and other partners committed to affordable housing. The building is slated to open in 2028.

Project leaders hope that this innovative approach to heating and cooling will set a precedent for combining energy efficiency with affordable housing efforts in the region.

Source: koin.com.