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Affordable Housing Developer Resources

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Affordable housing units under construction.

The City works to support development of deed restricted affordable housing units in a variety of types.


We support acquisition and development of single family, multi-family, land trusts, mixed income, rehabilitation projects, and shelters. We have implemented a variety of tools to help create and retain units.


Request for Proposals (RFP)

There are no open RFPs at this time.

Affordable Housing Fund

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.

Requests for Proposals for Affordable Housing Fee Funding are typically released in late fall. Contact staff to be placed on a mailing list.

Community Development Block Grant Program (CDBG)

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 2019-2023 Consolidated Plan, a comprehensive housing and community development strategy that was prepared with extensive public involvement.

Each year, the City requests proposals from 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.

City Surplus Property

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. Requests for Proposals are issued.

Low Income Rental Property Tax Exemption

Qualifying low-income 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.

System Development Charges (SDC) Exemptions

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. 

2019 AMI Chart for Deschutes County

Income threshold

1 person

2 person

3 person

4 person

5 person

6 person

7 person

8 person

Area Median Income (AMI)









Moderate Income (80% AMI)









Low Income(50% AMI)









Extremely Low Income (30% AMI)**











  • 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.


The City has instituted various incentives via the development code.  City staff are happy to discuss additional incentive ideas at any time.

Density bonus

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.

Parking bonus

For all multi-family developments at 60% AMI or under, requirement is 1 space per unit instead of 1.5.

Cottage code

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.


How do I apply to receive Affordable Housing Funding for my upcoming project?

Affordable Housing Funding is typically allocated once per year through a competitive RFP process. Project applications are ranked by committee members in accordance with the City of Bend’s Consolidated Plan. Recommendations by the committee are then made to City Council, who approves or changes the funding recommendations. Funding decisions are typically made within 2 months of RFP submission. Requests are typically not considered outside of the RFP cycle.

Affordable Housing Funding can be used for rentals, ownership, land trusts, and shelters. We can fund acquisition, rehabilitation, pre-development, construction, and preservation. We are happy to be the “first money in” to help developers qualify for additional leveraged resources such as LIHTC or LIFT.

Funded properties are subject to deed restrictions, covenants, or other mechanisms that help insure the funded properties remain affordable to our residents.

How do I request money once I’ve been approved for an award?

Affordable housing staff prepare contracts for each funded project/ entity after City Council approves the funding. Funding requests should include proposed loan or funding terms, including whether the project will need funding up front (for instance, for an acquisition) or incrementally (for construction or rehabilitation.) Terms are 3% interest over 20 years unless negotiated and approved by committee and council.

The agreement you sign will include forms for requesting reimbursement as well as reporting instruments so that the City can see the numbers and demographics of the people you are serving. All entities will be required to provide a W-9 and agree to regular monitoring of services and finances. Please keep affordable housing staff up to date on your timing—we request at least 30 days notice of anticipated closing.

How long do I have to spend the money I’ve been awarded? What if my project is delayed?

Typically, developers have 2 years from contract signing to draw down the awarded funds. If the project is delayed for circumstances beyond the developers’ control, extensions may be granted. Any funds that have not been disbursed within 2 years after award will be returned to the loan pool to be used for projects that will develop in a timely manner. If you are concerned about the timeliness of your project, please contact affordable housing staff to discuss options.

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