Bend, OR Zoning Overlays & Bonuses: Density Bonus Law (2026)

The City of Bend ties its only codified density bonus to manufactured home park closures. 050 states that the City's Zoning Ordinance authorizes increased density in Manufactured Home Park Overlay Zones through a density bonus program, but a park owner only qualifies by entering a development agreement committing to the affordability terms in this section. At least 10 percent of the new units created under the bonus must go to qualified tenants displaced from the closing park, with rent or mortgage payments capped at the higher of the tenant's prior space rent and mortgage, 30 percent of the family's HUD-adjusted income, or 30 percent of income for a family at 50 percent of the Bend MSA median, sized to the new unit's bedroom count.

Up to 10 percent of newly created affordable rental units must go even lower, priced for families at or below 30 percent of median income, based on an income survey the owner must run on existing tenants. New rental units built under the bonus must stay affordable for at least 20 years after project completion and must be offered first to the park's existing tenants, with the restriction imposed through a deed restriction or covenant that survives a change of ownership, though it can lapse on foreclosure.

Ownership units created under the same overlay zone bonus must stay affordable for eight years, with a portion of gained equity recaptured for 20 years.