City Passes New Development Incentives

After months of deliberation, the Bend Urban Renewal Agency (BURA) passed a resolution to create new developer incentives to promote affordable housing and job creation. BURA is comprised of City Council members and is tasked with oversight and policy making for Bend’s urban renewal efforts.

The policy has been making a road show through the various advisory committees, and the Chamber has weighed in on the importance of flexibility and a straightforward process for year one. The overarching goal of the program is twofold:

To jumpstart development of affordable rental units
To incentivize creation of living wage employment in key industries

For more information on the policy passed by BURA, click here…

Housing Affordability Policy

Baseline Assistance. Developments will be eligible for assistance in an amount equal to 12 years of tax increment reimbursement (BURA’s proportion of property tax revenue) if they meet the following criteria:

15% of dwelling units restricted to rent for households earning less than or equal to 90% AMI
Rent increases must be lower than the statutory maximums for those rent-restricted units
Developer agrees to meet those criteria for a minimum of 12 years.
Assistance Type. Assistance can be in the form of tax increment reimbursement and/or payment of development fees associated with the project, such as SDCs.

Additional Assistance. Developers may be eligible for additional assistance in BURA’s discretion if they development has:

More than 15% of dwelling units restricted to rent for households earning less than or equal to 90% AMI, rent increases must be lower than the statutory maximums for those rent-restricted units;
Meets new energy efficiency requirements (e.g., LEED Silver, Energy Trust of Oregon New Building Whole Building Program, Energy Trust Multifamily Market Solutions Best, Earth Advantage Silver, Energy Star)
Meets new supplier diversity requirements: Award twenty-three percent (23%) of its prime contractors to small businesses; including five percent (5%) for small, disadvantaged businesses and minority-owned businesses, and five percent (5%) for women-owned small businesses)
Additional Assistance Cap. The additional assistance must be reasonably proportional to cost to the developer to provide the extra housing benefit and in no event can the assistance not meet a 2:1 return over a specified period (2x the length of the assistance given).

Employment Development Policy

Business Assistance. Assistance will be given in an amount equal to 12 years of tax increment reimbursement (BURA’s proportion of property tax revenue) to eligible businesses that increase full-time employment by five (5) new jobs paying at least $72,000.

Eligible Businesses. Eligible businesses include headquarter operations and/or headquarter-type facilities, manufacturing and suppliers, warehouse & distribution, fabrication, research & development (R&D), and other employers engaging in business-to-business or intrafirm distribution.
Community Benefit. Childcare facilities may be eligible for assistance even if they create less than five (5) new jobs or those new jobs pay less than $72,000.

*Eligible businesses and community benefit exemptions may be revisited/revised when the City completes a Target Sector Analysis, which is expected to take place at the end of 2024

Both policies will be in effect beginning January 1, 2025, and additional details can be found HERE.