State picks Bend’s affordable housing pilot project

(Update: More details of project)

A whole new neighborhood is coming to the east side of Bend, in a special state-approved project. Close to 400 homes and apartments will be located off of U.S. Highway 20 and Bear Creek Road.

Of those homes, 185 are exclusively for people who make less than the Bend area’s median income, which is about $40,000. Another 170 units are for people whose income sits in the middle (around $70,000. And 25 units are “premium” houses, available to whoever wants to live there.

If someone wants to live there, they’d fill out a standard application. However, for the houses specifically designated as affordable housing, applicants will have to prove they don’t make too much money and take the housing away from someone who really needs it.

Will this solve Central Oregon’s affordable housing problems? Lynne McConnell, the affordable housing manager for the city of Bend, said no. But it’s a step in the right direction.

“The city of Bend knows that we have a deficit of about 5,000 units for folks making 60 percent of the area median income and under,” McConnell said Tuesday. “This development, while its not going to fix that problem, is a significant step towards meeting the need in our community that’s existing today.”

The state of Oregon chose Bend for an affordable housing pilot program. Essentially, the program fast-tracks the city’s usual process to add land to the city so officials can create space for more affordable housing.

The whole lot is 35 acres, which allows developers to add other special features, such as a commercial area where one day, there might be stores or shops.

“We’re excited, because this site allows us to have the opportunity for recreation with the park site and pond. It also has some wonderful walking trails and green spaces, as well as a community garden,” McConnell said. “And then a very good mix of incomes of neighborhoods, which is the goal for any development.”

City officials expect to break ground on the developments in about two years. They’ll build the affordable housing units first, with the hopes they’ll be built by 2021. The entire community is expected to be finished by 2025.

Here’s more information, from the city’s announcement Monday:

The Oregon Land Conservation and Development Commission has chosen the city of Bend’s affordable housing pilot project for a fast-track effort approved by lawmakers two years ago under House Bill 4079, the city announced Monday.

The LCDC on Friday chose Bend’s pilot project over the city of Redmond’s similar, competing proposal. It will allow the city to use a non-traditional Urban Growth Boundary (UGB) expansion process to increase the supply of affordable housing in Bend. A UGB expansion of this type has never before been allowed in the state.

To qualify for this pilot program, cities had to demonstrate that they developed policies to promote affordable housing within the existing UGB and explain why this type of development could not occur within the current UGB.

The pilot program site is about 35 acres between U.S. Highway 20 and Bear Creek Road, adjacent to the eastern boundary of the city limits.

It will contain a mix of housing types, including townhomes and apartments and a small commercial space along Highway 20. It will include a six-acre park site with walking trails and a pond, and additional green space for community gardens. A playground and community building will serve residents.

There will be 394 homes, including waterfront town homes at market rate and affordable homes for both middle-income residents and those making 60 percent or less of area median income, which is about $38,000 annually for a family of four.

The application for the House Bill 4079 pilot program was a collaborative public-private partnership,, since the land involved is privately owned. Development of the pilot program site is expected to be completed by 2025 .

The city council must first annex the site into the city before permitting and development can begin. The project supports the council’s goal to increase affordable housing options in Bend.

“Bend has a severe shortage of housing for our teachers, firefighters and service industry employees,” Affordable Housing Manager Lynne McConnell said. “This development will have a huge impact on the lives of those who are struggling to make ends meet in Bend.”

Learn more about the city’s Affordable Housing Program at bendoregon.gov/affordablehousing.

The state legislation had said two cities – one smaller, one larger – could be chosen. Nine cities were eligible, but only Bend and Redmond submitted proposals, with Redmond proposing about 485 housing units on 40 acres northeast of the city.

Bend City Manager Eric King said earlier this year that no matter which of the cities was chosen, both were preparing to go lawmakers in 2019 and urge that the other project also be allowed to proceed, due to the region’s serious shortage of affordable housing.