Bend, OR – In an effort to tackle the growing affordability crisis in the city’s rental market, Bend’s city leaders have introduced a new property tax rebate program aimed at incentivizing the construction of multifamily housing. The program, adopted in September, offers long-term tax relief to developers who meet specific affordability criteria, a move the city hopes will ease the burden on renters while fostering new development.
The “site specific program” is designed to create parcel-level urban renewal areas for proposed housing projects. By using tax increment financing (TIF), property taxes generated from new developments are used to repay developers, effectively lowering their upfront costs. In return, developers are expected to offer a portion of the units at below-market rents, addressing the city’s need for more affordable housing options.
According to city officials, the program aims to avoid the public backlash that has historically accompanied other tax incentive initiatives. Past programs have faced criticism for offering tax breaks to developers without sufficiently benefiting the public or addressing the city’s housing shortage.
“This new incentive structure is designed with accountability in mind,” said a representative from the city’s economic development office. “We want to ensure that as Bend grows, our residents—especially those in lower-income brackets—aren’t priced out of the city.”
Five planned multifamily housing developments have already applied for property tax rebates under the new program. If successful, these projects could deliver hundreds of new units to the rental market, many of which are expected to be offered at more affordable price points.
Bend, like many other rapidly growing cities, has struggled with rising rent prices in recent years. The city’s rental market has become increasingly competitive, with average rent prices outpacing the ability of many residents to afford them. The new incentive program is part of a broader strategy to address this issue, with a focus on ensuring that new developments are accessible to a wider range of income levels.
City leaders hope that by offering long-term tax rebates tied to affordability, they can strike a balance between promoting economic development and ensuring that growth benefits everyone in the community.
However, the success of the program will largely depend on how well it is implemented and whether developers can be encouraged to prioritize affordability without sacrificing the financial viability of their projects.
As the program progresses, city officials will closely monitor the outcomes, hoping it serves as a model for other cities grappling with similar housing challenges. The outcome could shape Bend’s approach to urban development for years to come.
