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Board amends ARPA grant terms to City of Sisters project as occupancy date shifts to 2027
Summary
Deschutes County approved an amendment to its $500,000 ARPA grant to the City of Sisters for a 40‑unit affordable housing project, changing the fund‑expenditure deadline language to allow a later construction schedule with occupancy targeted for March 2027.
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Deschutes County approved an amendment Oct. 1 to the county’s ARPA grant agreement with the City of Sisters, revising project performance language so the county’s funds can be fully expended by Nov. 30, 2026, while the project’s new anticipated certificate‑of‑occupancy date is March 2027.
Laura Skundrick, management analyst with the county’s Community Development Department, told the board the original grant tied the project completion date to the federal Treasury’s ARPA expenditure deadline of Dec. 31, 2026. Staff recommended revising the agreement to require full expenditure by Nov. 30, 2026, to provide a one‑month buffer to ensure funds are spent or alternative uses identified before the Treasury deadline.
Clayton Croers of Northwest Housing Alternatives, the city’s development partner, said the funding structure for the project relies on 501(c)(3) nonprofit bonds and that market and bond‑market conditions have complicated schedules. Croers said the team is targeting a closing before Thanksgiving 2025 and a roughly 15‑month construction schedule aimed at March 2027 occupancy. He said the project’s income mix and financing approach may be a model for other middle‑income and workforce housing projects in the region.
The board approved the amendment and the first motion to revise the grant language. Commissioners Dyer and Chang voted yes and the chair voted yes.
Staff corrected a drafting error in materials during the hearing (an erroneous reference to “November 31”) and noted that the amendment reflects updated performance dates only; the county continues to support the project’s financing and development partners. The grant allocation was originally approved by the board in January 2023 for development of approximately 40 multifamily rental units.

