Oregon’s first motel-turned-apartment complex will open for limited occupancy in March, five months after the state allocated $65 million to buy and convert motels into temporary homes for wildfire victims and others experiencing homelessness.

A nonprofit, Options for Helping Residents of Ashland, will receive $4.2 million from the state through Project Turnkey to purchase and transform a Super 8 motel in Ashland into a new resource center and apartment complex for wildfire victims and others experiencing homelessness.

Cass Sinclair, senior director of program services for the nonprofit, said she expects between 64 and 74 people will eventually be housed in the converted 50-room motel. The nonprofit plans to open an initial block of 20 rooms in March before the other 30 rooms open following a remodel in April.

The organization supports vulnerable adult populations, so families with children will not be housed at the motel, Sinclair said.

The Oregon Community Foundation, the organization administering the funds, is continuing to review another 19 applicants from nonprofits and government agencies in 15 counties and remains hopeful that it will eventually be able to provide grants to between 18 and 20 organizations statewide to purchase and convert motels into shelters, according to Megan Loeb, associate program officer at the foundation.

Bend is among the applicants hoping to receive funding through Project Turnkey. Last week, the Bend City Council approved a purchase and sale agreement to acquire the Old Mill & Suites to convert it into 64 units for people experiencing homelessness. The proposal still needs to be approved by the Oregon Community Foundation, Loeb said.

The Multnomah County Joint Office of Homeless Services is also among the applicants being considered by the foundation. Denis Theriault, a spokesman for the county, said the office has identified a property to convert into a shelter and is in negotiations with the seller, but he declined to provide additional information on the property being considered. However, Theriault said it could take up to three months for the county to finish the inspection and appraisal process, complete the review process with the foundation and close on the property.

In October, Oregon lawmakers allocated $30 million toward turning motels into apartments for wildfire victims and an additional $35 million into converting motels into housing for those experiencing homelessness. Backers said at the time that the funding could be used for up to 1,000 new shelter units. The state hoped that some units would be available by winter.

But it’s now clear that the vast majority of motel rooms won’t be ready before the end of winter, and it could take several months for many to be up-and-running. Loeb also said last month that the foundation now anticipates that between 600 to 700 new units, rather than 1,000, will eventually be available.

It’s also unclear whether all the applicants under review will ultimately be able to move forward with their proposals.

The Clackamas County Housing Authority has already hit snags with two properties it proposed purchasing, the Econo Lodge in Jennings Lodge and the Red Fox Motel in Estacada. The Jennings Lodge project fell apart because the motel roof needed repairs, while the proposal to convert the motel in Estacada faced opposition from residents, according to The Estacada News.

Kimberly Dinwiddie, a spokesman for Clackamas County, said that a new motel to convert has not yet been identified. Once the county settles on a new site, Dinwiddie said it will have to go through a public engagement process before potentially moving forward.

Loeb did not say whether other applicants were facing similar hurdles. The foundation has until the end of June to allocate all $65 million in Project Turnkey grant money. If funds remain unused at that time, they will have to be returned to the Oregon State Treasury.

“It is our continued hope that Clackamas County can identify a suitable property soon,” said Loeb, “so that due diligence can begin and their project can be considered for an award.”