Habitat for Humanity and a community land trust are the big winners under proposals approved Wednesday by Bend’s affordable housing advisory committee to provide $1 million in low-interest city loans to build affordable homes.

But the money is a far cry from the nearly $3.5 million developers and nonprofits requested.

“I feel like Solomon with the baby,” committee member Kathy Austin said. “How do you cut it up?”

The Bend City Council will make the final decision on how much to lend later this spring, but for now, the city’s working with $445,000 from the city’s affordable housing fee and $570,000 from federal block grants for housing and services. The city pot of money is significantly less than usual — Bend was able to lend $1.5 million last year — because the city started its loan process earlier in the year, before it had collected as much money as in 2017.

If the City Council agrees with the committee’s recommendations, Habitat for Humanity will receive $300,000. Two-thirds of that would come through the federal block grant.

It would help Habitat purchase land and make mortgage down payments for families who make between 35 and 80 percent of area median income.

The other $100,000, in the form of a loan from Bend’s affordable housing fee fund, would help Habitat build nine cottage homes on an acre of flat land where Newport Avenue meets College Way.

Kôr, the community land trust, and Housing Works would receive $255,000 to put toward building a five-cottage cluster at 21221 Hurita Place. Four of the homes would be sold, and one would be kept as a rental.

Operating as a community land trust means residents would own the homes but Kôr would own the land those homes sit on. Bend’s turned Kôr down for funding several times, committee member Richard Bonebrake said, and it’s time to work with the group to see what it can do.

“They have a lot of real creative ideas,” he said. “They just need to start trying to dazzle us.”

Bethlehem Inn would receive $170,000 toward demolishing its dormitory-style housing for single residents and building a new structure with space for more residents. The Bethlehem Inn expansion, which also includes a new 10-family building set to open this summer, will cost about $9 million, and it’s raised more than $7 million of that so far.

Central Oregon Veterans Outreach would get $30,000 in federal funds to finish buying a single-family home now owned by the Oregon Department of Transportation. It also would receive $50,000 to start building a house or duplex on lots at Emerson and Dekalb avenues.

Pacific Crest Affordable Housing would receive $50,000 to build 64 apartments on Butler Market Road adjacent to the future Empire Road extension. Bend already provided the land for free, and building the apartments will cost about $19 million.

Mission Church would get $85,000 from the federal grant to add a shower area, restrooms, kitchen, laundry and storage for its community care program.

The committee also agreed to split $70,000 among NeighborImpact, Saving Grace, Thrive Central Oregon and Volunteers in Medicine for services including counseling and free health care.

— Reporter: 541-633-2160; jshumway@bendbulletin.com