Deschutes County approves 20‑year property tax exemption renewal for Mountain Laurel Lodge

The Deschutes County Board of County Commissioners voted to approve a 20‑year renewal of a qualified rental housing property tax exemption for Mountain Laurel Lodge, a 54‑unit, deed‑restricted senior housing project in Bend.

Carrie Bell, housing production and incentives coordinator for the City of Bend, told the board the exemption is authorized by state statute and requires that savings be passed dollar‑for‑dollar to residents as rent reductions. She said the combined tax exemption impact across all taxing districts is estimated at just under $2 million over 20 years; the county’s initial first‑year share is about $7,083 and the 20‑year county impact is roughly $190,000.

John Gilbert, owner with Pacific Crest Affordable Housing and the applicant, said Mountain Laurel Lodge serves predominantly low‑income seniors and that many current residents pay rents below the 60% area‑median‑income threshold. Gilbert said losing the exemption would increase the maximum allowable rent by about $38 per month — a meaningful amount for residents on fixed incomes. He said about half the building likely uses housing vouchers and that the development has been fully occupied for years.

The board discussed alternatives and precedents. Commissioner DeBone questioned whether the county should act before other taxing districts had finished their reviews and urged caution about committing another 20‑year exemption; Commissioner Adair moved to decline to consider the request to allow other districts to weigh in but the motion failed for lack of a second. Supporters emphasized the role of the exemption in preventing senior homelessness: "Projects like this are a shield against homelessness, particularly for people who are 55 and older," one commissioner said during debate.

After discussion the board called for a vote. The transcript records Commissioner Demers voting yes, Commissioner DeBone voting no, and the Chair voting yes; the motion as recorded in the meeting carried and the board directed staff to finalize the decision documents and coordinate timing with other taxing districts as appropriate.

Next steps: staff will implement the board’s direction and coordinate with the Bend City Council and other affected taxing districts as the applicant pursues final council approvals required on the city’s portion of taxes. The exemption applies to low‑income rental housing and is intended to preserve affordability for households at or below 60% AMI.