Urban Renewal Agency adopts flexible affordable housing loan policy to create revolving loan tool

The Bend Urban Renewal Agency adopted a revised Affordable Housing Assistance Loan Program to create a revolving loan tool for affordable housing projects within urban renewal areas when the tax increment plan allows.

Urban renewal manager Jonathan Taylor described changes from the 2020 Murphy Crossing policy: the new policy extends program eligibility to all URAs (where the adopted TIF plan permits), provides for a 1% origination/application fee, allows fixed or scalable interest (instead of only 0%), shortens the maximum loan term to 10 years (the prior policy allowed up to 20 years), retains a minimum 20‑year deed restriction for assisted affordable housing and expands eligible activities to include predevelopment and other development costs as determined by the agency. Staff proposed a rolling quarterly application window and noted that funding availability will depend on each URA’s capacity; Juniper Ridge will need a minor TIF amendment to use the program there.

Member discussion covered whether loans should support mixed‑income developments versus 100% income‑restricted projects; staff noted Murphy Crossing surplus land rules would constrain a particular ODOT surplus site to 100% restricted units, but the revised policy preserves agency discretion to require or allow different affordability mixes by project and to change loan terms on a case‑by‑case basis. BURA adopted the policy and rescinded the prior Murphy Crossing policy; staff said the Home Committee (a separate advisory group) will consider alternatives including revolving fund design and credit enhancement approaches.

Action: BURA adopted the policy and rescinded the Murphy Crossing affordable housing assistance policy. Staff will implement the rolling application process and consider program adjustments and funding availability within URA budgets.