Funding Availability

The 2024-2025 application cycle includes three funding sources. Funding amounts are estimates and subject to change. They include:

Affordable Housing Fund (AHF)
- $1.2 million for the development of affordable housing. 

Commercial and Industrial Construction Tax (CICT)
- at least $241,000 for affordable housing, and 
- up to $241,000 for support, services, and programs for people making up to 30 percent of area median income.

Community Development Block Grant (CDBG)
- $415,000 for affordable housing and community development projects, and 
- $95,000 for social services.

Schedule

Affordable Housing Development and Public Services Schedule 

Pre-Application Training Webinar

Training was held on September 9, 2024, 11:00 a.m. To view the recorded training, visit https://www.youtube.com/live/XeaHz2gFWeA 

Affordable Housing Development and Public Services RFP Training Slide Deck

Frequently Asked Questions (FAQs)

The FAQ period is now closed.

• FAQ #1 covers questions asked during the Pre-Application Training Webinar on 9/9/24. FAQ #1
• FAQ #2 answers emailed questions. Posted 10/7/24. FAQ #2
• FAQ #3 answers emailed questions. Posted 10/21/24. FAQ #3
• FAQ #4 corrects dates in City of Bend Public Services Policy. Posted 10/24/24. FAQ #4

In July, 2006, the City of Bend was the first city in Oregon to implement an Affordable Housing Fee. Proceeds from this fund have been employed to develop a wide variety of housing throughout Bend. Currently, the Affordable Housing Fund is used to acquire land for deed restricted affordable housing, develop the land, construct homes, or rehabilitate homes. All funded developments are required to undertake a deed restriction, guaranteeing the homes will be affordable to lower income residents well in to the future.

The fee is 1/3 of 1% of the total valuation on all Building Permits submitted to the City of Bend. Collection of the fee started at the end of October 2006. According to the ordinance, priorities for this funding are based upon the goals identified in the five-year Community Development Block Grant Program Consolidated Plan.

Applications are open from September 30, 2024, through October 28, 2024. Visit the Request for Proposals tab for information on the funding cycle. 

In April 2004, the City of Bend began its first Community Development Block Grant (CDBG) Program Year. The CDBG Program is a federal funding program that provides assistance for housing and community development projects that benefit low- and moderate-income persons. The funds are provided by the US Department of Housing and Urban Development and are utilized or distributed by the City of Bend.

The CDBG Program is guided by the City of Bend 2023-2027 Consolidated Plan, a comprehensive housing and community development strategy that was prepared with extensive public involvement.

Each year, the City requests proposals from non-profit organizations and agencies undertaking CDBG-eligible projects. The proposals are reviewed by the City Council's CDBG/Housing Advisory Committee, which then submits its funding recommendations for consideration and approval by the Council. The projects selected for CDBG funding each year are outlined in the City's annual Action Plan.

Applications are open from September 30, 2024, through October 28, 2024. Visit the Request for Proposals tab for information on the funding cycle. 

The City periodically sells city owned land for development as affordable housing. In the last ten years, the City has sold over ten acres of land for development as affordable housing. Properties are usually sold for the cost of titling and Requests for Proposals are issued.

There are no open or active Requests for Proposals at this time.

Qualifying rental housing projects are also eligible to receive exemption from City property taxes for a 20-year period. With agreement from other taxing jurisdictions, projects receiving exemption from City property taxes may also be eligible to receive exemption from their entire property tax bill for the 20-year exemption period. An application must be submitted to the City.

Multi-family Developments must also be supported by state or federal affordable housing funding. ORS 307.515 authorizes exemptions to low-income households earning no more than 60% of Area Median Income. Any savings incurred by a developer must be passed through to the residents in the form of reduced rents.

Background:

As of December 1, 2017, all City (does not include Parks & Rec) system development charges (SDCs) will be exempted for housing for which the developer or property owner agrees to record a deed restriction to maintain the property as affordable housing for households with income at or below 80% of area median income (AMI).

Requirements:

Homes for rent or sale must be deed restricted to those making 80% Area Median Income (AMI) and below. 

2024-25 AMI Chart for Deschutes County

Visit the U.S. Department of Housing and Urban Development's FY 2024 Income Limits Documentation System for a full table.

Process:

• Complete application and return to City of Bend Affordable Housing at 710 NW Wall Street, Bend OR 97703.
• Submit application by first of month.  Include recording fee estimated to be $200.
• Application presented to Affordable Housing Advisory Committee at their next meeting.
  • Applicant should attend meeting to answer any questions.
  • Committee has power to grant exemptions without going through Council.
• If application is approved, legal documents are created to record deed restriction.
  • Affordable housing staff and property owner will work together.
  • Structured as a forgivable loan at 3% annual interest covering the affordability period.
    • No payments due if property is in compliance.
    • During the affordability period, if out of compliance, SDCs become due and payable with interest.
    • Owner can request reconveyance and loan/restriction will be forgiven after the compliance period ends.
  • Documents need to be recorded prior to occupancy on a single unit or prior to pulling permits on multi-family.

Applications for an Expedited Review Letter are made electronically through the Online Permit Center Portal. Below is a link to the City’s Permit Center. There you will find instructions and access to the Portal. You will also find Portal Help Videos & How-Tos on this Permit Center we page for assistance with the Portal. Once you have created a Portal account and logged into your account, from there you will need to navigate under the “Engineering & Agreements” section to click “Apply.” We apologize that there currently is no link for the Housing Department specifically in Portal. You will need to remember “Engineering & Agreements” and click “Apply” under that section. Please be sure to call the Housing Department directly at 541-323-8550 for assistance with Expedited Review Letter applications.

You will need to upload a completed Expedited Review Worksheet to your application in Portal.
City of Bend Expedited Review Worksheet

Expedited Permitting Application in Permit Center Portal

Expedited Review and Permitting Policy

The City of Bend has three property tax exemption programs to support our housing goals.

The City of Bend has three tax exemption programs available for housing developments in the City of Bend that meet respective program requirements. All three programs are allowed per Bend Municipal Code (BMC) Title 12.

Multiple Unit Property Tax Exemption (MUPTE)
A 10-year tax exemption on improvements (typically only residential) for multi-unit residential projects in Core and transit-oriented areas that meet certain public benefit requirements that meet certain public benefit requirements. View the MUPTE webpage and review BMC12.35 for more information about this program.

Non-Profit Tax Exemption
100% tax exemption for non-profits, 501c(3) or (4) charitable corporation including tax credit partnerships, for affordable housing development including bare land holding. Exemption length is based on the period of affordability. Find out more information by reading BMC12.30. Please follow the instructions below for electronic application.

Qualified Rental Property Tax Exemption
A 20-year tax exemption for both land and improvements for qualifying rental housing projects. Find our more information by reading BMC12.25. Please follow the instructions below for electronic application.

The City is still exploring future adoption of a Middle-Income Exemption (Newly Rehabilitated or Recently Constructed Housing), pending future legislative changes.

Application Instructions 

Applications for Tax Exemptions are made electronically through the Online Permit Center Portal. Below is a link to the City’s Permit Center. There you will find instructions and access to the Portal. You will also find Portal Help Videos & How-Tos on this Permit Center we page for assistance with the Portal. Once you have created a Portal account and logged into your account, from there you will need to navigate under the “Engineering & Agreements” section to click “Apply.” We apologize that there currently is no link for the Housing Department specifically in Portal. You will need to remember “Engineering & Agreements” and click “Apply” under that section. Please be sure to call the Housing Department directly at 541-323-8550 for assistance with Tax Exemption applications. 

Qualified Rental Housing Tax Exemption 
You will need to upload a completed Property Tax Exemption Questionnaire & Checklist and the certification of income levels to your application in Portal.

Qualified Rental Housing Tax Exemption Questionnaire & Checklist 

Qualified Rental Housing Tax Exemption Certification of Income Levels

Tax Exemption Application in Permit Center Portal 

Non-Profit Property Tax Exemption

Non-Profit Property Tax Exemption Questionnaire & Checklist

Non-Profit Property Tax Exemption Certification of Income Levels

Tax Exemption Application in Permit Center Portal 

Revenue and Taxation.

Property Tax Exemption

Projects that are providing up to 50% of the units as affordable (targeting 80% of Area Median Income for ownership projects, 60% of AMI for rental projects) are allowed to go to 1.5 of the base density for that zone. It has a decreasing scale of 1.4 for 40% affordable, 1.3 for 30%, etc.

A Cottage Code will provide a housing type that responds to changing household sizes and ages (e.g., retirees, small families, single-person households); provide opportunities for ownership of small, single family detached units within residential zoning districts; encourage creation of more usable space for residents of the development through flexibility in density and lot standards; and support growth management through efficient use of urban residential land. ->Small units (<1000 sq ft) sharing open space.

The intent of House Bill 2001 is to provide more opportunities for a variety of housing types in traditionally single-family neighborhoods and to increase the overall housing supply in and around cities.

Visit our House Bill 2001 page for more information. 

EXPANDING HOUSING OPPORTUNITIES IN VARIOUS ZONES 

Getting more affordable housing units on the ground in more zones:
Senate Bill (SB) 8, passed in 2021, allows development of affordable housing on
lands not zoned for residential uses and increases the number of units
allowed in zones with deed-restricted affordable housing.

EXPANDING HOUSING OPPORTUNITIES IN VARIOUS ZONES

More flexibility to build affordable housing on commercial land:
House Bill (HB) 3395, passed in 2023, allows affordable housing on commercial
land, as long as it's not in an industrial zone, and provides flexibility
based on income levels and mixed-use options. For example, housing
that is affordable to a household making 80% to 120% of the area
median income can be built on commercial land if commercial use is
built on the ground floor of the development.

EXPANDING HOUSING OPPORTUNITIES IN VARIOUS ZONES

Allowing affordable housing to be an outright use on certain properties:
House Bill (HB) 3151 bill, passed in 2023, updates the definition of affordable
housing to include manufactured home parks and requires local
governments to allow affordable housing on properties owned by
housing authorities or non-profits.
The definition of affordable housing now includes manufactured home
parks that serve households making 120% or less of the area median
income. This has the potential for manufactured home parks to be
eligible for different zones and higher density standards in line with
affordable housing criteria. Zones include residential, commercial,
mixed-use districts or public facilities. Land zoned light industrial that is
public owned and next to lands zoned for residential use or schools
also qualifies.

CONVERTING COMMERCIAL BUILDINGS INTO HOUSING UNITS

House Bill (HB) 2984, passed in 2023, means a city can allow a developer to convert
a commercial building into residential housing without doing extra steps
in the land use process, such as a zone change or conditional use
permit. The bill does not allow this in land zoned for industrial uses or
public facilities.

STREAMLINING THE DEVELOPMENT PROCESS

More flexibility during the application process for developers:
Senate Bill (SB) 1537, which will go into effect on Jan. 1, 2025, Offers more flexibility
during the application process for developers, including adjustments to
development standards and the ability to "opt-in" to new city standards
adopted after an application is submitted. Some examples of what a
developer could request include reducing bicycle parking or certain
setbacks.
This bill also allows a developer to “opt in” to a city’s standards and
criteria that were adopted after an application was submitted. For
example, say a developer submitted an application for a housing project
at a time where 35-foot buildings were not permitted in a certain zone,
but then a few months later a City passes new codes to allow for
35-foot buildings in that zone. This bill would allow the developer to
opt-in to using the newer codes so the housing project could be built up
to 35 feet tall and therefore include more housing units.
Adjustments will sunset on Jan. 2, 2032.