Mid Oregon Credit Union Pioneers Workforce Housing Land Acquisition Fund

Posted by Alyse Knudsen on January 15, 2025

Mid Oregon Credit Union is stepping up to address the critical shortage of workforce housing in Bend, Ore., by working with local partners and partnering with the GoWest Foundation to create the Workforce Housing Land Acquisition Fund. The fund, established with a $500,000 investment from Providence Health Care, aims to address the critical shortage of workforce housing by providing low-interest loans for essential workers, such as teachers and healthcare professionals, so that they can afford housing closer to their workplaces and ease their financial burdens. 

“Mid Oregon Credit Union has been deeply embedded in Central Oregon since 1957, serving nearly one in four households in the region,” shared Kevin Cole, CEO of Mid Oregon Credit Union. “One of our key successes is our community responsibility – believing that healthy communities are built on the foundation of attainable homeownership.” 

“The idea [for the fund] was generated during our discovery meetings with development partners,” Cole explained. “They shared that the market for land acquisition and entitlement phase lending was very tight. The going rate (for private money) was 15% with 3 points. This was a major cost driver for projects since it was the first money into a project and had a long carrying period on the loans.” 

Bend Chamber Workforce Housing Revolving Loan Fund. Courtesy: Bend Chamber

Mid Oregon has partnered with the Bend Chamber Workforce Housing Initiative which launched a new low-interest, short-term loan to help local nonprofits build affordable homes for essential workers. The fund will be managed by Mid Oregon and will be used as an 18–24-month revolving loan at 3% interest. In addition to funding affordable housing, the project will engage local stakeholders, advocate for supportive housing policies, and partner with developers to create housing for workers earning 80 to 120% of the Area Median Income. 

The GoWest Foundation awarded Mid Oregon a $20,000 grant to support the planning and launch of the fund. The grant will be used to establish fiduciary partnerships for managing the fund’s operations, conduct outreach and engagement activities with local stakeholders, raise awareness about the initiative through community events, and collaborate with local and state policymakers to advocate for supportive housing legislation and policies, including state appropriation to the fund. 

Cole and the Mid Oregon team worked with the GoWest Foundation to ensure the project aligned well with the foundation’s workforce housing priorities. “The Foundation has been open to novel ideas and concepts to help produce more workforce housing,” said Cole. “I appreciate the willingness to look at new approaches to solve this issue. Central Oregon, like so many other communities, needs to adopt an ‘all of the above’ approach to solve the workforce housing problem. It is nice to have a partner that is open to building something new.” 

According to Cole, the first loan under the program has been issued for a construction phase project, and they are currently looking for additional eligible projects, including those for land acquisition. “By ensuring that our neighbors can afford to own their homes, we strengthen not only their lives but the very fabric of our community,” Cole emphasized. 

This program exemplifies Mid Oregon’s and the GoWest Foundation’s commitment to fostering community stability, economic success, and quality of life for our region’s essential workforce while cultivating more inclusive and vibrant communities. 

GoWest Foundation Grants
If your credit union wants to collaboratively tackle challenges around workforce housing, small business support, or rural access to financial services in your community, reach out to the GoWest Foundation at [email protected].  

Posted in Community Impact, GoWest Foundation, Oregon, Regional Member News, Top Headlines.