Bend Chamber launches low-interest loan program to spur workforce housing development

BEND, Ore. (KTVZ) -- The Bend Chamber is holding a media event Thursday to showcase the next phase of its Workforce Housing Initiative and celebrate a new, low-interest loan from the Chamber, funded by an initial seed donation of $500,000 from Providence Health Plan.

The loan product provides early-stage capital at a low interest rate to reduce the cost of constructing a home, making it affordable to locally employed, mid-market buyers.

“We are so grateful to community business leaders like Providence for investing in one of the fundamentals of community health – the ability to own a home,” said Katy Brooks, Bend Chamber CEO.

In partnership with Mid Oregon Credit Union, Bend Redmond Habitat for Humanity, and local builders Hiatus Homes, and Cascade Precision Homes, the first project utilizing this new loan product is located in SE Bend and will be ready for occupancy in early winter. The new home will be permanently affordable, and deed restricted to households earning up to 120% of area median income (AMI).

The low-interest, short-term loan is designed to offset land acquisition, pre-development, and construction costs in a market burdened by the high cost of land, construction supplies, labor and lending. The new program will leverage the collaboration of local builders, developers, investors and non-profit partners to build more attainable housing for Bend’s workforce within 80%-120% of AMI.

The Chamber conducted a study in 2022 that showed 91% of regional employers said housing had a high impact on their ability to hire and retain employees.

“This was a clear indication that our housing problem is not just a human issue, it’s an economic constraint,” said Sara Odendahl, Bend ChamberDirector of Government Affairs and Strategic Initiatives.

How the Loan Works

• The Bend Chamber partners with non-profit housing organizations, builders, developers, and employers to identify land throughout the city of Bend to utilize the Loan, resulting in lower costs passed on to the buyer.
• The fund is flexible and can be used for property acquisition, permitting, or construction costs.
• The fund will be managed by Mid Oregon Credit Union and deployed as an 18-24-month revolving loan at 3% interest.
• The home must be deed-restricted to ensure that future buyers are employed in Bend and earn between 80%-120% of AMI.
• The loan fund is funded through philanthropic contributions to the BendNEXT Foundation, the 501(c)3 foundation of the Bend Chamber.

“Building homes within financial reach of employees is critical to employers”, said Brooks. “This loan provides a way to leverage the ability to reduce costs and partner with others who want Bend to be home and workplace to more of us.”

The mission of the Bend Chamber is to create an environment where businesses, their employees and our community excel together through collaboration, advocacy, resources and leadership to meet Bend’s business challenges.

The BendNEXT Foundation is the philanthropic arm of the Bend Chamber. BendNEXT strengthens our businesses, economy, and our community through workforce development and retention, leadership development, and activating partnerships to tackle our region’s most pressing issues.