Bend, OR – In a pivotal move to address the city’s ongoing housing crisis, the Bend City Council voted 4-2 on Wednesday, December 4, to select the Caldera Ranch site for inclusion in the city’s Urban Growth Boundary (UGB). This decision is the first step in utilizing Senate Bill 1537, a state law designed to expedite the construction of affordable and market-rate housing on newly designated land.
The Caldera Ranch site, located along SE Knott Road on Bend’s southeastern border, covers 91.4 acres and is proposed to include 716 housing units. Of these, 254 will be designated as affordable housing, with 192 units aimed at households earning 80% or less of the area’s median income, and 38 units targeting lower-income residents making 30% of the area median income. The plan also includes 14 townhomes and 10 detached homes priced for buyers at 130% of the area median income.
The council’s decision followed a lengthy deliberation, with strong arguments both for and against the two proposed sites. The Caldera Ranch site was favored for its proximity to essential infrastructure, including transportation access, water, and sewer services, as well as its overall potential to provide affordable housing. The site also offers plans for a small commercial development and a neighborhood park, enhancing the long-term livability of the area.
Despite concerns raised by some residents of neighboring communities, such as those from Woodside Ranch who worried about the site’s wildfire risk, the council ultimately decided that Caldera Ranch offered a quicker path to the housing solutions needed to alleviate the city’s housing crisis. Councilors emphasized the urgency of moving forward with the project, as the city struggles to meet the growing demand for affordable housing.
“I think we should move forward now. I don’t think we can wait,” said Mayor Melanie Kebler, voicing her support for the site. “We are an infill city, but we need every tool we can use.”
Opponents of the decision, including Councilors Mike Riley and Barb Campbell, raised concerns about the speed of the decision-making process, calling it rushed and urging further evaluation of the sites. Riley, who preferred the Jasper Ridge location, expressed concerns about the “enormous amount of change” already happening in the southeast area and argued for a more thorough review before making a final decision.
The Caldera Ranch project is expected to meet the requirements of Senate Bill 1537, which mandates that at least 30% of the new housing be affordable to households earning up to 80% of the area’s median income for renters and 130% for homebuyers. The site exceeds this minimum, providing 35.5% affordable units.
The next steps in the process will involve the developers applying for UGB amendments and a Comprehensive Plan update, followed by a Master Plan and Annexation application. Public comment will be welcomed during these stages. Construction on the first homes could begin as early as the summer of 2027, with a full build-out of the site projected over the next decade.
The selection of Caldera Ranch marks a significant step toward addressing Bend’s affordable housing shortage, which has been exacerbated by rapid population growth and rising home prices in recent years. As the city prepares for continued growth, the decision highlights the ongoing challenge of balancing development with sustainability and community concerns.
