So I think I'm going to call calling this meeting here.

You do.

There you go.

Calling this meeting to order of the Bend Urban Renewal Agency.

Welcome everybody.

I think we have two items on the agenda, the investment strategy, but also the tiny TIFF applications.

We have a few items.

Yeah, thank you.

We have approval of minutes.

Do I have a motion?

I'll move to approve the January 22nd, 2025 brand meeting minutes.

Move by Councillor Council second by Councilman Mendez.

All those in favor?

Any opposed?

I think that's it, right?

So we have the two items.

Um the tax increment finance plans and then the investment strategy.

Um much time do we have allocated for this tonight?

We have about an hour and 15 minutes or so for both of these.

And we also have the bonds of that item for meeting.

Yep.

Um, we can plow through these in this order, but maybe we should see where we get um in case it takes a little longer on the tiny tip stuff, um, and then see where we are on the investment strategy.

Because you wanted to start with the tiny tip application there.

All right, so then we get going on that.

Good afternoon, Chair and members of the agency.

Tonight's staff is presenting the first round of applications for consideration regarding the tax increment assistance for housing affordability, or more commonly known as the site specific program.

The projects under consideration tonight will result in 893 residential units.

153 of those will be restricted to rent for households earning 90% area median income or less.

It will contribute to 12% of the Oregon housing needs analysis five-year goal for the city of Benn.

The construction of these projects will contribute to 173 million dollars for our local economy, and the reduced rent savings for households is estimated to be 10.1 million dollars in 2025.

All projects meet the enhanced policy for assistance greater than 12 years, and if approved, will result in three new tax increment finance districts and one redevelopment project in the core area.

For those that do move forward, you will direct staff to draft any of the necessary documentation for implementation of the site-specific program.

The consult and confer process is a 45-day window that allows for public notification and taxing district consultation on the proposed TIFF areas.

During this window, the planning commission will also determine conformance to the City of Bend's comprehensive plan.

On May 7th, the city council will hold a quasi-judicial hearing in determining the establishment of the new TIP areas under a non-emergency ordinance.

And then within three years of official implementation, a development agreement between Borough and the approved applicants will occur.

Last year, under the direction of Burr and City Council, staff conducted an overall investment analysis in response to the direction of finding an alternative for the multi-unit tax exemption program.

The analysis looked at area occupational wages, current rental and homeownership markets, financial impacts to households of all income wages, and rental rates of new and older multifamily unit developments.

The key takeaway from that report was eight out of ten occupations and 50% of Bend households would spend more than 30% of their income on multifamily rent in Bend.

The Department of Administrative Services, in partnership with the Oregon Housing and Community Services, released in December the 2025 report for equitable housing production for communities in the state of Oregon.

That report factored under production of units, meaning what we're not exit what we're not meeting the need for today, population growth, income mobility, ownership structures.

The methodology indicated that BIN will need 33,000 new units with emphasis on specific area median income ranges over 20 years.

It is easier to quantify this amount in five year increments or cycles.

For the first cycle under the new methodology, BIND, both public private and public private partnerships, will need to construct and deliver 8,500 housing units by 2035.

This includes both rental and homeownership opportunities.

This number accounts for nearly 1,000 units that have not been produced to meet existing needs or under production.

If you look at the graph, 2020 22% of all new units will be needed for households earning between 58,000 and 126,000 household income, and over 70% for households earning between 43,000 and 150,000.

To give you some context from the policy justification that was authored last year, one and two person households account for 60% of all households in Bend, with one person households being the fastest growing households in the city based on the American Community Survey.

Currently, one person households, the average median income is 44,000, with the percent of bent households being 29%.

For two-person households, the percentage of bent households is three 37%, with the average income of $96,000.

If all the projects are approved tonight, not only does Borough restrict 70% 17% of the proposed units under consideration tonight for households earning 90% AMI or less, you will also contribute 12% to the five-year need.

Another challenge to meet future needs is the current market and financial conditions, which are hindering the overall residential construction and limiting naturally occurring affordability in the city.

Finance interest rates have dramatically increased since 2019 with a five basis point increase.

For perspective, if these developments had occurred in 2019 when the interest rates were 3.71%, they could have saved on average $36 million in interest payments alone.

To further add context, the average rent and Bend in 2019 was 1,400.

Speaking of average rents, today the average rent for a single and multifamily unit in Bend is $2,300, with the vacancy rate currently at 6.8%.

Further compounding market stability are threats of national implementation of tariffs on primary products used in construction, both residential and commercial.

For context, if tariffs are implemented as proposed, 25% on wood will compound the existing anti-dumping duties of 14.5%.

This would further strain domestic production capacity.

Following the massive supply chain disruptions due to the COVID-19 pandemic and the growing demand for housing, this will inevitably lead to price increases in the necessary commodities for housing production.