Tiny-house builder Jesse Russell has dreamed since early 2016 of building a neighborhood for people who are into small-scale living.

“It’s been amazing how much support has come out of the woodwork to help me,” Russell said.

Russell and his investors have identified 3.2 acres in southeast Bend, which they plan to develop as a 22-lot cottage neighborhood dubbed The Hiatus. Russell said he hopes to keep the houses, ranging from 400 to 600 square feet, priced at less than $250,000. Although he hasn’t submitted a final plan or subdivision application to the city of Bend, Russell said he’s already fielding emails from people who want to buy one of the houses.

“I am a true believer; this is a type of housing people want,” he said.

Before Russell can create the community he envisions for The Hiatus, he has to contend with residents of another unique neighborhood: The Shire, which was inspired by J.R.R. Tolkien’s Middle-Earth paradise. The Hiatus would be built on 3.2 acres that wrap around the outside of The Shire’s main eight large lots, where residents said the home values start at $500,000.

“Everybody that bought in this neighborhood bought because of The Shire concept,” said Joanna White-Wolff, who lives on Ring Bearer Court, a private drive. “The concept of community and like-minded people, that’s why I wanted to be here.”

White-Wolff said her immediate neighbors, as well as people living in Tillicum Village and on Knightsbridge Place, are concerned that residents of The Hiatus won’t fit into the established neighborhood. “They don’t have garages,” she said. “Do you understand how big that is, not to have a garage?”

Another Ring Bearer Court resident, Keith Caldwell, said he understands that because The Shire wasn’t finished before the housing bust — as the original developer intended — the next phase of development won’t be in exactly the same style. But he thinks the 22 small houses Russell is planning are too far from traditional starter homes or townhouses, which would be permitted under the city’s standard residential zoning.

“I have nothing against starter homes. I have nothing against cottages,” he said. “But it has to fit. We do have roughly $4 million invested in our eight homes up here.”

Russell said he wants to make The Hiatus as cohesive as possible with The Shire. “That’s important to me,” he said.

It’s true that The Hiatus is not a traditional subdivision. Russell is taking advantage of the city’s cottage housing development code, which sets no minimum lot or dwelling size. The 27 parking spaces would be on-street and clustered at intervals every few houses. The houses would face inward with paths leading to two or three common structures, which Russell said could be built as storage, a greenhouse, or a community gathering spot with a kitchen.

“The thing about these cottage communities, it’s not just about the houses,” Russell said. “It’s the community it brings.”

Russell, owner of Tongue and Groove Tiny Homes, said his role in The Hiatus is developer. The design and construction plan for the houses hasn’t been finalized, he said.

Unlike true tiny houses, The Hiatus homes will have full kitchens, bathrooms and washers and dryers, Russell said. They’ll mimic many of the qualities of tiny-house design, which features quality materials, open designs and space-saving features, he said.

Russell hopes to submit a revised site plan and application soon and receive the city’s conditions of approval before the end of the year. If all goes well, The Hiatus could be breaking ground and taking preorders next spring, he said.

Russell, a Bend native, said he hopes The Hiatus becomes a type of neighborhood found throughout the city. He wanted to build something that was attractive to investors as well as homebuyers and without affordable-housing subsidies. He’s been working on the concept since early 2016. “It wasn’t until we got this piece of land and could do a lot of them that it made financial sense,” he said.

— Reporter: 541-617-7860, kmclaughlin@bendbulletin.com