The pilot program will allow the City of Bend to annex a stretch of land between Hwy. 20 and Bear Creek Road, adding 85 housing units in the first phase. Credit: Pixabay

The City of Bend will be the first to test out a state affordable housing project. The Oregon Department of Land Conservation and Development chose Bend, likely for its acute affordable housing shortages.

Redmond and Bend were both in the running to test out House Bill 4079, whichย  allows cities to use a non-traditional urban growth boundary expansion to increase the supply of affordable housingโ€”something not previously not allowed in the state. Under current legislation, Redmond would not be eligible to apply again, according to Lynne McConnell, Bend’s affordable housing manager.

The pilot program will allow the City of Bend to annex a stretch of land between Hwy. 20 and Bear Creek Road, adding 85 housing units in the first phase. Credit: Pixabay

โ€œBend has a severe shortage of housing for our teachers, firefighters and service industry employees,โ€ McConnell said in a press release. โ€œThis development will have a huge impact on the lives of those who are struggling to make ends meet in Bend.โ€

Bend and Redmond submitted applications for the pilot program on Aug. 18. The Central Oregon cities were two of the nine cities with populations over 25,000 eligible to apply for the program, which passed the Oregon Legislature in 2016.

Bendโ€™s program site is located on about 35 acres between U.S. Hwy 20 and Bear Creek Road, adjacent to the eastern boundary of Bendโ€™s city limits. The development will be built in phases, according to the Cityโ€™s plan. Phase oneโ€”which is scheduled to start soon after the City annexes the propertyโ€”is about 17 acres and will include 30 affordable units, 30 market-rate units and 25 premium single-family attached units.

Pacwest Builders, who usually builds custom houses, is the developer of the property, McConnell said.

The next two phases, according to the Cityโ€™s plan, will build 159 more affordable units, 112 market-rate and 38 single-family attached units.

According to the rules of HB 4079, 30 percent of the housing built must be affordable to households making 80 percent of less of the area median incomeโ€”and remain that way for 50 years. As of August, 80 percent of the area median income is $39,040 for a single person, or $55,680 for a family of four, according to data from the City of Bend. That translates to a limit of $1,045 per month for a one-bedroom dwelling and $1,448 for a three bedroom.

McConnell said the first homes are unlikely to be built before 2020 and the development will go through the normal land use processes from here on, so residents will have a chance to engage with the process.

โ€œBend is thrilled for the opportunity to assist in providing needed affordable and middle-income housing to our residents,โ€ McConnell said. โ€œWe are very thankful for the many partners who supported our application.โ€

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6 Comments

  1. $1,045 is considered affordable housing for a single service worker?? Seriously?

    Sounds like it will put a tiny little bit of downward pressure on rent prices by reducing the shortage of rentals, but thats it.

  2. Sneaky way to side step the UGB. Sure the House Bill allows it…and then you rubber stamp it with ‘affordable’. But? In a few years will we remember when things change. What will affordable be in 5 years? This is really a way for Bend to be ‘Californicated’ And really, a one bedroom for our service workers at $1045 + utilities (maybe a soup kitchen would be a good idea). I would have been way more impressed if studios and tiny homes were included in the mix along with ‘boarding house’ style apartments. That alone could add another 100 units. Northwest Crossing East would be a better name. Bend is full of creative people, just not present in the housing industry. Same old, same old solutions that are doing nothing innovative. But I guess on the east side…it’s out of sight out of mind.

  3. Hey Mark — Thanks for your comments. On the question of “will it be affordable in 5 years” — the story states that the program requires the affordable units to be that way for 50 years.

    But yes, whether those prices are actually affordable to low-income folks is a big question…

  4. I agree with Mark. A worker earning $15 per hour has gross income of $31,200 per year/12=$2600 per month. If rent is $1045 for a one bedroom, they would not qualify to rent under traditional criteria of property managers that require income 3 times the rent amount which would be $3135 per month or $18 per hour so saying they are affordable is a joke. I personally like the idea of tinier permanent foundation homes people can rent to own and build wealth and community as featured in a recent article about such a community in Michigan.

  5. I’m 71 and I’m on social security and i don’t get very much money i would like a house please help us out if you can

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