City has struggled with affordable housing

The issue of affordable housing is nothing new in Sisters. In early 2008 the Sisters City Council provided direction to have the Sisters Housing Plan developed by an outside contractor.

The City's concerns back in 2008 were identical to the ones still being discussed in 2015. The Sisters Housing Plan, adopted in January 2010, contained a needs analysis, inventory of existing affordable housing, and six specific housing strategies to be implemented. It was a complete action plan never implemented. And now in 2015, the same issues face a different council.

The discussions at the spring Economic Vitality Summit identified the lack of workforce housing as one of the most pressing issues facing the city. Dana Perry, a resident of Sisters Country, volunteered to convene a brainstorming meeting of interested people to look at options for addressing the housing situation in Sisters.

The session took place August 19, with a wide range of interests and occupations represented. There were several builders and developers, representatives of local and state housing agencies, local employers, Sisters Planning Commission members, Habitat for Humanity board and staff members, seniors, Sisters School District, Sisters Community Development Director, a member of the Deschutes County Planning Commission, real estate investors, and several interested private citizens.

Perry described the purpose of the meeting as an opportunity to understand what's currently happening in Sisters regarding workforce housing and how community members can get involved.

Attendees shared their interests in housing, mentioning everything from creating a product that will provide more children for the school district, to opportunities for businesses to attract employees who can afford to live where they work. There was also interest in greater housing options for seniors.

Habitat for Humanity executive director, Sharlene Weed, believes it is necessary to identify where the gaps exist in the current housing inventory and find ways to fill them.

One thing on which there was agreement is the need for more apartments. The developers helped the other attendees understand why building apartments in a small town is not easy to do. One consideration is the rent that an apartment builder can charge versus the cost of the building. It takes too much energy and money to build small numbers. Economy of scale with a large apartment complex reduces the property management costs and provides a better rate of return.

Mark Reed, a Portland property owner and developer, estimated that 95 percent of apartment developers build them and immediately flip them for a quick return on investment. He said that in Sisters a new apartment complex might require a developer who is looking for a long-term investment, considering the sustainability of the project rather than quick profitability.

There is some affordable single-family housing already in the pipeline but it will take anywhere from six months to four years to become available. In the meantime, advocates believe it is incumbent upon the City and interested citizens to identify as many ways as possible to encourage more construction of single-family housing under $250,000 and also rental properties of all kinds - apartments, multifamily, and single-family.

Some of the brainstorming included: looking at mechanisms that can be set up to raise capital; annexing land into the city specifically for affordable housing; donations of land to reduce the cost of building; employer-provided housing; as well as all the subsidy programs.

Developers/builders can be attracted to build affordable housing by offering a variety of incentives: system development charge grants, reduction or removal of plan review fees, and density and height bonuses, to name a few. The City, County, and State can help out by offering tax-deferral incentives.

The group identified several next steps. The most important one is "debunking the myth" regarding affordable housing: Affordable housing doesn't automatically attract more crime and drugs. Tamarack Village on Larch Street near the post office is a good example of affordable housing that is an asset to the community.

A broad segment of the community believes that in Sisters there is a need for essential worker housing, so that local teachers, public workers, and firefighters can afford to live where they work.

Perry agreed to head up a group to work on community awareness and education. Anyone interested in joining in the effort can reach Perry at [email protected]