La Pine will add to its inventory of affordable housing next year following the completion of a 39-unit apartment building where rents will be restricted for lower income earners.

The Foundation for Affordable Housing, a national nonprofit, announced the development last week, projecting construction will be complete by summer 2026. Construction will begin this spring. The new building will be situated on a 1-acre parcel just east of U.S. Highway 97 along Drafter Road in the Wickiup Junction area of La Pine.

It’s part of plans for 100 affordable units to be built on three acres in La Pine in phases over the next several years.

Only people and families who make 30% to 60% of the area median income will be able to rent the apartments. Developers estimate monthly rents will start at $600 — about half the median market-rate rent in La Pine.

That’s according to U.S. Census Bureau data the national nonprofit gathered during research for its government funding application. According to Tommy Waldron, chief strategy officer with the nonprofit, the La Pine project won a funding award primarily because of the “immense need.”

“La Pine is just a huge need,” Waldron said. For example, “these are people living out of their car, working part-time at grocery stores,” he said.

In La Pine, 73% of seniors and 55% of people are “cost-burdened,” meaning they spend more than a third of their income on housing. Both of those figures are higher than the Deschutes County average.

Affordable developments in La Pine qualify for low-income housing tax credits through the federal government because the area meets the requirement of having half of households below 60% median income or a poverty rate of 25% or more. The 39-unit project in La Pine beat out seven other affordable projects across Oregon for the tax credit, which was awarded by the state.

The tax credit award amounted to $14 million, Waldron said. However, the value of tax credits has dropped since the award, meaning the amount will be less. The project will cost about $18.7 million in total.

Waldron said the project qualified for up to $19 million through the federal program, but Oregon caps awards at $14 million.

The Foundation for Affordable Housing is also planning an affordable housing project in Bend. Building affordable housing in La Pine can be more financially feasible than in Bend because there is less demand for space, said Lynne McConnell, executive director of Housing Works, the Central Oregon Regional Housing Authority.

“There’s never enough affordable housing in any of the communities,” McConnell said. “The need is there no matter where you go.”

Rents in La Pine, at about $1,115 per month, are cheaper than the Deschutes County average of about $1,600, according to census data collected by the nonprofit. But La Pine’s median income, at about $44,000 is also far below the county median of nearly $80,000.

Rent restrictions for affordable units are based on incomes for Deschutes County. Waldron said the La Pine apartments will provide about 10 new units for people making about $24,000 a year, or 30% of the median income.

The development will consist of one-, two-, and three-bedroom apartments, and 10 units will be reserved for veterans. The building will include a large community room, game rooms, fitness area and a common deck with mountain views. Outside, the grounds will include a playground, bike storage, raised garden beds and natural areas.