Troubled Family Shelter in Gresham Goes Into Receivership After Missing Loan Payments

A court-ordered receiver has taken control of Rockwood Tower, a 65-room family homeless shelter in Gresham, after owner East County Housing LLC defaulted on $2.37 million in loans following Multnomah County’s termination of its contract over alleged financial mismanagement. The shelter was purchased in 2021 with a $6.8 million Project Turnkey grant—state funds distributed by the Oregon Community Foundation to convert hotels into homeless housing—but the owner began using the property as collateral for loans in early 2025 and stopped making payments by September. Despite deed restrictions requiring the property remain permanent housing, it’s unclear whether the shelter will continue serving homeless families as WaFD Bank pursues sale of the distressed property.