Two major housing projects — totaling 180 new units — are in the works for Redmond after both were unanimously approved to move forward by city council during its regular meeting Feb. 27.

One project, known as Redmond Landing, will be built by Washington State-based developer Vaughn Bay Construction. The second, called Cinder Hollow, will be the fourth Redmond project led by Rooted Homes, a Bend-based nonprofit dedicated to affordable housing formerly known as Kor Community Land Trust.

The second development, known as Redmond Landing, will be built on nine acres at 1850 SW Umatilla Avenue, just west of U.S. Highway 97 and between the Bi-Mart store and the Best Western. It will include 156 rental units limited to residents making 60% of area median income.

Representatives of Vaughn Bay Construction said costs to rent the apartments will range from $1,343 a month for 900 square foot 2-bedroom units, $1,549 a month for 1,150 square foot 3-bedroom units, and $1,725 for 1,400 square feet for four-bedroom units.

Rooted Homes plans to build the Cinder Hollow Housing Project. It will include 30 homes built on an undeveloped piece of land off SW 31st street near the Redmond Memorial Cemetery. The city purchased the property from Deschutes County in May 2023 with a community development block grant.

The homes will be sold to private owners, but deed restricted to residents at 80% of area median income or about $75,000 a year. Home prices will average between $250,000 and $280,000 and there will be two and three bedroom options. The average size will be 1,300 square feet.

Redmond Landing

The city council on Tuesday approved a 20-year tax abatement on the project, which developers said will allow them to keep the units affordable for the foreseeable future.

However, the developer must get authorization from at least 51% of affected tax entities in order to secure the credit, said Linda Cline, the city’s housing program analyst.

Cline said the developers could go to other taxing districts such as the fire, community college and parks and recreation, but Cline said the school district is probably the quickest way forward.

“The city and the school district together I believe it is 63%,” said Cline. “Theoretically, they could go to the other taxing districts (but) the school district and the city together is the clearer path to get to over 51%.”

Cline said Redmond Landing should be built by July 2025 and said the developers are ready to start construction immediately. The last time the city offered a developer a tax abatement to build affordable housing was in 2020 with the Bridge Meadows housing project, Cline said.

Developers said the tax break will help them keep rents lower.

“The rents are based on incomes. It does change if you go up or down on an annual basis, depending on what the median income does in Deschutes County,” said Zac Baker, development manager for Southport Financial Services, a Florida-based real estate investment firm involved in financing the project. “These rents will be reduced at that 60% median income level for 50 years. We are doing true long term 50 year affordability … likely it will get extended past 50 years.”

Rooted Homes

City council also moved the Rooted Homes project forward with an unanimous vote.

Jackie Keogh, the executive director of Rooted Homes, told city council that said once the organization acquires the land from the city, it will be able to use deed restrictions as a tool to ensure the homes remain affordable for generations to come. When a resident sells the house, they are required to sell it back to Rooted Homes, which means the organization can re-sell it at an affordable rate to another low income family.

“Every time the homes resell, they will be required to go to another low income household in perpetuity,” Keogh told the council. “The goal with that model is you essential create two pipelines, one of our new construction homes and the other of our resale homes. Essentially you double the number of homes that the city of Redmond residents have access to.”

Keogh said given the organization builds highly energy efficient homes, so utility costs will never be higher than $12 a month. She said that frees up extra income for homeowners.

Keogh said she estimates the homes will be completed by the summer 2027.

Cline gave council an idea of where the city stands in regards to funding on the Rooted Homes project, and said it will be necessary to get grant money and money from congressional allocations to build up the infrastructure of the cinder pit, which has never been developed in the past. It is filled with lava rocks and very steep in places.

“Since this is a site that has never been built on, it has somewhat considerable needs,” said Cline. “But (grants are) how we can help make sure it is affordable housing and that we can have a developer like Rooted (Homes) to work on it.”

She said the city is waiting for word on a grant application to U.S. Department of Housing and Urban Development as well as money directly allocated by Congress. Both are highly sought after, Cline said.

“Right now we have no indication we are not getting it. But it is super competitive. It’s a national competitive grant … we thought we would have an answer back by now, but we still don’t,” Cline said. “Then when I checked with our HUD rep, they said they were still deliberating on the decision.”

Cline said the grant from HUD, which she said might be a longshot, would be used to connect the site with the city’s water and sewer systems and put in streets and sidewalks. She side regardless of what happens, the city is dedicated to getting the homes built.