Coos Bay adopts state-backed moderate-income revolving loan program ordinance

The Coos Bay City Council voted unanimously Tuesday to adopt an ordinance authorizing the city's participation in Oregon's moderate income revolving loan program, a state-funded program intended to help finance housing for moderate-income households. The council enacted Ordinance No. 587 after a public hearing and discussion of program details. The ordinance implements statutory authority created by Senate Bill 1537 (2024) as amended by SB 48 (2025) and authorizes the city to enter into agreements with Oregon Housing and Community Services (OHCS) to receive and pass through loans or grants to qualifying projects. City staff said the program can function as either a loan or a grant and is intended to help close financing gaps that make moderate-income housing infeasible under current market conditions. City staff explained that the program will require municipal code language, program policies and an application and vetting process. Nicole (city staff, housing programs) told the council OHCS will review applications after the city pre-screens them; if approved the funds flow to the city and then are passed through to the developer. She said the payment structure for loans is commonly repaid through a predetermined annual program fee in lieu of some portion of property taxes on the taxable improvements, with a carve-out for fire districts. Each financed parcel would carry a lien securing repayment. Developer Greg (Timber Cove) spoke during the public hearing, describing construction progress at his Timber Cove project and saying site costs have risen rapidly in the last 8'12 months. Greg said he is targeting sale prices near $400,000 and views the MIRL program as a way to preserve that price point by helping pay infrastructure and site-work costs. Council members asked for clarifications about program mechanics. Staff said typical design points under discussion include a 10'year maturity for loans, a state-authorized administrative fee (6% in the statute), and that OHCS will vet applications before funds are released. Staff also described that the exemption applies to improvements (the incremental assessed value) while land retains its pre'development assessed value, and that the program does not create immediate tax reductions until a structure is built and assessed by the county. Council discussion addressed two practical choices: whether to be an early adopter while OHCS is still finalizing program toolkits, and how much administrative burden the city should take on. Staff said the city will rely on consultant support and a local nonprofit partner, Southern Coast Regional Housing, to help launch the program and that OHCS is iterating the program based on early adopters' feedback. Council members who supported adoption said the city could later refine program policies; no amendments to the ordinance were offered at the meeting. Motion and vote: Councilor Tom (mover) moved to enact the ordinance; a second was recorded. The roll call recorded Councilor Cribbons, Councilor Niebergone, Councilor Matthews, Mayor Benetti, Councilor Kilmer and Councilor Stevens voting yes; the motion passed and Christine (city recorder) announced Ordinance No. 587 was duly enacted. Next steps: Staff said they will draft the implementing program policies and an application process and return to council as needed. OHCS will provide final toolkits and will perform state-level reviews of applications before funds transfer. For context, the council described the MIRL program as intended for the moderate-income segment (often described in statute as up to about 120% of area median income) and as a complement to other local incentives such as multi'unit property tax exemptions. Staff emphasized the city is authorizing participation in the state program and that future program approvals will follow local policy and application review requirements.