La Grande explores incentives, funding options as developers press for infrastructure help

La Grande City Manager John O'Brien opened a community roundtable on housing production, telling attendees the city wants to "get aggressive" about education and incentives to spur construction of homes in the price ranges the community needs. He introduced Planning Director Mike Boquist, who summarized a 2020 housing study staff are using as the baseline for an incentive program.

Boquist said the 2020 study identified roughly 150 homes that would meet La Grande's greatest need in the low-to-middle-income bands and that staff adjusted thresholds upward by about 1820% to approximate 2024 income and price levels. "We're trying to create an incentive program to kind of help incentivize developers to build housing," Boquist said, adding staff want community input so the program targets homes that fill demonstrated gaps.

Developers and contractors in the room pressed staff on one consistent point: infrastructure and up-front costs. A self-identified general contractor who described plans for a 30-to-50-home subdivision said per-lot infrastructure expenses are a major barrier, citing an example of roughly $54,000 per lot in predevelopment costs for utilities, streets and hookups. "Before we even start, we're at $54,000 for those lots," he said, and said that infrastructure costs can add roughly $1,5001,800 to the per-house cost. He urged the city to consider fee deferrals or reimbursement programs so builders do not have to front large sums.

Developers also discussed the market price points they can build to and the market demand the city is seeing. Several participants said the local market is strongest in the roughly $250,000$350,000 range; a real estate professional noted moderate-priced homes in La Grande are selling rapidly, with one cited sale taking a single day and the group observing a roughly 40-day turnaround for that price tier. "If you don't get middle-income people out of rental housing, you're not going to make growth," a participant said.

City staff outlined several funding and policy tools they are investigating. They described preliminary inquiries into a state moderate-income loan program (discussed in the meeting as a form of loan or revolving financing that municipalities would need to obtain and structure) and said Business Oregon and other state grant sources may be available. Staff warned the mechanics can be complex: some state programs require cities to demonstrate rate structures or cashflow capacity, and the city may need to float money until reimbursement arrives. "We're interested in it but we're not at a place where we can say with confidence our ability to gain it and or implement it," O'Brien said.

Speakers also raised supply-side issues: the 2020 inventory shows vacant land within the urban growth boundary sufficient for a 20-year supply in theory, but much of that land is not currently market-available or lacks the pipes and mains to support new neighborhoods. Developers and staff discussed options including targeted municipal infrastructure investment (to reduce developers'up-front costs), fee deferral tied to reimbursement upon sale or occupancy, and use of urban renewal or state funds to underwrite initial works.

Participants exchanged practical suggestions: forming a local committee or working group to pursue grant applications, using urban renewal strategically, and improving public outreach about how any new taxes or fees would be spent. Staff invited attendees to further engagement, including a July 22 town hall at Eastern Oregon University, and said the city will continue to vet state programs and funding models.

The meeting did not include a vote or formal action. Staff concluded by thanking developers and residents for the input and offering follow-up meetings to refine ideas and pursue grant-writing support. The city said more detailed proposals and fiscal analyses will follow as staff investigates specific programs and funding mechanisms.