A nonprofit tied to the Central Oregon Builders Association is moving ahead on an affordable housing project with the purchase of 10 bank-owned lots in southeast Bend.

Building Partners for Affordable Housing, an arm of the builders association, paid $250,000 a week ago for the lots with existing infrastructure, such as sidewalks and streets, off Parrell Road just north of China Hat Road. The nonprofit plans to begin “a very open process” in the next couple of weeks to select a real estate agent to sell the one existing home on the site and builders to complete the remainder of the subdivision, said Andy High, staff vice president of government affairs for the association.

Getting back to work

“It will be a small piece in getting guys working and turning things around down here,” High said.

Sale prices for the homes could range from $140,000 to $159,000, depending on the types of efficient or renewable energy options — such as solar panels and radiant floor heating — included in the homes, and whether some building costs increase, High said. The homes will be sold to buyers earning up to the region’s median income — $63,500 for a family of four in Deschutes County in 2009.

The $250,000 to purchase the lots came from the federal Neighborhood Stabilization Program, part of the 2008 Housing and Economic Recovery Act passed by Congress. The money was intended by Congress to stabilize property values and prevent blight in areas with high foreclosure rates. It was intended to help people purchase foreclosed and abandoned homes, but it also allows governments and nonprofits to purchase and redevelop distressed residential properties.

$500,000 from the city

The project is also using $500,000 in affordable housing money from the city of Bend.

High said Central Oregon Builders Association has some members who support government spending on projects intended to revive the economy and others who oppose it.

“We don’t necessarily like the government borrowing money,” High said.

“But on the other hand, it’s already been borrowed, it’s out there. Home building … has always helped bring this country out of a recession. It’s a small piece, and it’s come into our local economy.”

Building Partners for Affordable Housing purchased the lots from Home Federal Bank, which obtained the property from David Solomon and Erin Solomon, respectively the president and secretary of Solomon Construction Inc., through a deed in lieu of foreclosure, according to Deschutes County property records and the Oregon secretary of state. The Solomons could not be reached for comment Friday.

Construction costs will be paid through the city of Bend’s affordable housing fee program, which was implemented in 2006 and was opposed by COBA prior to its adoption.

The fee is one-third of 1 percent of the permit valuation for every building permit issued by the city, and the money goes into a fund that is used to loan money to affordable housing projects at low or no interest.

Building Partners will have its contractors use sustainable construction practices, and will seek third-party certification of this from the nonprofit Earth Advantage Institute, High said.

‘Good way’ in for buyers

“This is a good way for (buyers) to get in on the home, have a super green home, and have a new home that’s going to have a warranty and everything that comes with a new home,” High said.

Anyone interested in buying one of the homes can call the Central Oregon Builders Association at 541-389-1058.