Four-Story Affordable Apartments Planned For Heart of Bend's West Side - The Source

Affordable housing developers are planning a four-story, 64-unit apartment building in a mixed-use area in the heart of Bend’s west side, a project that would bring lower-cost housing to a highly desirable part of the city.

The proposed development would occupy a vacant 1-and-a-half-acre parcel on the corner of Columbia Street and Commerce Avenue — a stone’s throw from concerts, breweries and shops and a short walk from the Deschutes River.

“This location was intentionally chosen by Housing Works in partnership with the City of Bend,” said Lynne McConnell, executive director of Housing Works, Central Oregon’s regional housing authority and developer of the project. “Without deliberate intent, there will not be affordable housing this close to the river and all the amenities that exist on the west side.”

Housing Works calls the project “Milltown Landing.” The property lies at the edge of a redeveloping industrial area once home to one of Bend’s foundational lumber mills, adjacent to one of the city’s oldest neighborhoods. Some residents there have written to the City of Bend with concerns over added traffic, parking constraints and that the size of the proposed building was incompatible with nearby single-family homes.

The City of Bend funded Housing Works’ purchase of the land for $2.6 million from Nosler, a bullet manufacturer in the process of relocating to Redmond. The money came from the City’s Affordable Housing Fund, a 1% fee tacked onto building permits, and the PRO Housing Fund, a highly-touted federal grant the City received in 2024.

“We felt like this was a great opportunity to get affordable housing into an area of town where it does not exist yet,” McConnell said.

McConnell estimated the building will open in early 2028.

Housing Works still needs about $25 million in construction funding, McConnell said. About 30% to 40% could come from a traditional bank loan, while the rest may come from federal tax credits for affordable housing, McConnell said.

McConnell said all 64 units will be restricted to people earning less than 50% of the area median income — $40,000 for an individual or $57,000 for a family of four.

State projections say Bend will need to build nearly 10,000 homes restricted to incomes below 60% area median income in the next 20 years to meet demand and counteract historic underbuilding.

Housing Works opened a 59-unit affordable housing complex on Bend’s west side near OSU-Cascades last year, while Rooted Homes built 40 affordable homes for purchase on Simpson Avenue, but the Milltown Landing development would be the closest affordable housing to the Deschutes River to date, McConnell said.

An eclectic mix of uses surround the proposed property. To the west lies the Century Center, a popular commercial hub with an indoor concert venue, an outdoor event space, a brewery, bars, sports shops and more. To the east lies Mt. Bachelor’s shuttle service parking lot and south lies the Nosler buildings. To the north, across Commerce Avenue — a dirt road — lies part of the River West neighborhood, mostly single-family homes.

Housing Works, an affordable housing developer, bought the land just south of Commerce Avenue in the River West neighborhood for $2.6 million in November from bullet manufacturer Nosler. Credit: Eli Zatz

Though parking isn’t a requirement for developers, Housing Works plans to build a 128-space parking lot along with the apartment building. The City will also require Housing Works to pave part of Commerce Avenue as part of the development. McConnell said she hopes to gather enough funding to pave the entirety of the road in front of the Century Center.

According to McConnell, the Mixed-Urban zoning would have allowed a six-story building, but they chose four “in order to be a good neighbor.”

“That felt like the right mix of what is a redeveloping area but also close to neighbors,” she said.

The City received 23 letters during a recent public comment period, most of which opposed the project, according to Beth LaFleur, a City planner assigned to the application.

Many said they felt the building was too big, and that it would shade homes and dominate views.

Where mixed-use and residential zones meet, Bend’s development code requires larger setbacks for buildings taller than 35 feet. But that doesn’t apply to the front of buildings, meaning the proposed apartment can be built with little to no setback from Commerce Avenue, LaFleur said.

Other residents said the neighborhood infrastructure isn’t ready for an influx of density, calling for more parking and traffic safety measures.

“This neighborhood consists of early 1900s-era lots, many of which were originally designed for small homes and carriage houses,” said Carmen Cook, a nearby resident and Bend real estate agent, in a letter to the City. “The infrastructure, including unimproved City-owned alleys, was never designed for current or future vehicle density.”

According to Jacob Larsen, a spokesperson for the City, developers are required to submit sewer and water use estimates, as well as traffic studies in their applications. Those are reviewed by the City to ensure nearby infrastructure is adequate, he said. For most developments, however, the City can only require developers to improve adjacent roads, Larsen said.

The City code does have larger setback requirements for developments in mixed-use zones abutting residential zones, but those don’t apply in this case, according to LaFleur, the planner.

Peter Grube, a nearby resident who is also on the development team for a four-story building in midtown Bend, wrote in support of the Housing Works project.

“As someone who is going to be directly impacted by this project, I want to be clear: I welcome it,” Grube wrote. “This is exactly the kind of centrally located, high-density infill that Bend urgently needs.”