The City of Bend determined that 10% of all housing units that had been completed for the 2023 calendar year were deed-restricted affordable.
The City considers housing affordable if a household is paying no more than 30% of its gross income on rent or a mortgage. With this definition, affordability varies by each family's income. The City plans to continue supporting all types of housing, including affordable, to help the high number of individuals rent-burdened in Bend.
Historically, the City's housing department's goals have been to see about 100 deed-restricted affordable units developed per year. However, the city does not have a general percentage of affordable housing that it's aiming for. According to Lynne McConnell, the City of Bend's housing director, the city bases its goals for affordable housing on resources and revenue that it has access to.
The cost of building affordable units in Bend is so high, McConnell explained, that its difficult to rent or sell the units at an affordable level. Thus, incentives can be useful.
This last biennium, 2021 through 2023, the City had more resources as a result of COVID-19 relief funds from the Coronavirus Aid, Relief and Economic Security Act and the American Rescue Plan Act.
With these resources, the City was able to support acquisition and development of affordable housing projects. The City can support projects through funding the acquisition of land, development or construction through its Affordable Housing Fund. Other tools, funding programs and tax exemptions that the City can provide allow developers to more easily create affordable housing.
"We were able to put those resources, as well as additional resources that were generated at the state level, into affordable housing," said McConnell. "That made a massive impact in our ability to deliver."
The City altered its goals in the last biennium because of the increased resources. Bend had a goal of having 1,000 units in progress in that two-year period, instead of 100 a year. While the City wasn't able to reach that goal, it came close with a total of 886 completed or permitted units at the end of 2023.
The 886 units included projects that the City has funded or that are in permitting, in addition to those that have been completed. McConnell clarified that the units counting toward the 10% affordable housing were only completed units.
Another resource the City has in promoting affordable housing development include its System Development Charge Exemption Program, created in 2018. This program makes it so affordable housing developments don't have to pay SDCs, the charges normally charged to developers to cover the costs of new infrastructure like roads and sewers. According to McConnell, the exemptions and the cash that came through relief funding were two of the biggest factors in getting these units off the ground.
The City's five-year strategic plan for housing listed affordable rental housing as one of its top priorities. Affordable homeownership is slightly lower in priority. Out of the affordable homes completed in 2023, McConnell said that 144 were rentals and 18 were slated for homeownership.
"We do have a lot of affordable ownership opportunities coming online," said McConnell.
Affordable homeownership units coming online but not yet complete include about 150 units, which, according to McConnell, is a big deal. "That's far more than we've had in any given year before."
McConnell highlighted a few affordable housing projects in development that the housing department is excited about. Cleveland Commons, a joint venture between Housing Works and NeighborImpact in southeast Bend, is a former shelter that was owned by NeighborImpact for several years.
This project, which will house folks who have chronic health conditions, will offer 33 units of permanent supportive housing to help those who have been houseless in the past. It will be a stable place for people to exist as long as they need.
"It's a small one, but it's going to be very mighty for our ability to tackle some of the challenges with houselessness," said McConnell.
Another project currently underway includes Rooted at Simpson, developed by Housing Works and Rooted Homes. The development will include 40 single-family homes and 59 subsidized rental apartments.
"The fact that we are doing this through incentives and the power of our limited community wanting to do this work and wanting to give back is really cool," said McConnell.
