Bend proposes new policies to tackle housing affordability crisis

In a recent government meeting, significant discussions centered around the approval of development waivers and the introduction of a new tax increment financing (TIF) assistance program aimed at addressing housing affordability in Bend.

The meeting began with a recommendation from staff to approve System Development Charge (SDC) waivers for a project by Habitat for Humanity, which plans to develop nine townhomes designated for affordable homeownership. The total requested waiver amounts to $68,949. The motion to approve the waivers passed unanimously, with additional provisions ensuring that any unexercised waivers would account for potential future increases.

Following this, the Bend Urban Renewal Agency presented a comprehensive proposal for a TIF assistance program. The program aims to incentivize the construction of affordable housing and the creation of well-paying jobs in the area. A key aspect of the proposal is the requirement that 15% of newly constructed units be rented at or below 90% of the area median income (AMI). The program is designed to be flexible, allowing for negotiations on additional benefits if developers exceed the minimum requirements.

The proposal also includes a focus on energy efficiency and supplier diversity, with staff seeking input on how to best implement these standards without imposing excessive costs on developers. Concerns were raised about the feasibility of the proposed average annual salary threshold of $72,000 for new jobs created, particularly for industries where such salaries may not be realistic. Staff acknowledged these concerns and indicated that they are working on strategies to include a broader range of local businesses in the program.

The meeting concluded with a commitment to refine the TIF program based on feedback and data collected from local developers and stakeholders. The administrative guidelines for the program are set to be finalized by January 1, 2025, with ongoing opportunities for community input and adjustments to the policy as needed.