OregonHB 23162025 Regular SessionHouseWALLET

Relating to lands designated for housing; and prescribing an effective date.

Sponsored By: Kevin Mannix (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 2 benefits, 1 costs, 5 mixed.

Homebuyers face occupancy and resale limits

Buyers of homes built on Home Start Lands must use them as their primary residence for at least five years. They must live there at least nine months total each calendar year and intend to keep it as their main home. The city or county and Oregon's Department of Administrative Services can enforce this deed requirement. Deeds must also give the state the first chance to buy the property when it is sold. That right lasts as long as the applicable affordability covenant; no purchase price is specified.

Cities get help serving new homes

Oregon distributes available grants to cities with housing developed on Home Start Lands. Cities can use the money for needed services, including infrastructure, police, and firefighting. Each city's share matches its share of all program housing units certified for occupancy during the prior state fiscal year. No total grant amount is specified.

State funds affordable housing program startup

The law provides $859,665 from Oregon's General Fund for program startup during the two-year budget period beginning July 1, 2025. It creates a separate Home Start Lands Fund, with ongoing spending authority for the Department of Administrative Services. The fund supports program operations, including grants and loans, using net land-sale proceeds, rent and lease revenue, legislative funding, other deposits, and interest. Agencies can negotiate to use proceeds from land deals for other capital purchases. This funding is not a direct household payment.

Developers get land with affordability duties

Oregon can sell, transfer, or lease designated state land to developers for affordable homes, including community-land-trust shared-equity homes. Leases can last up to 99 years, with renewal up to another 99 years, but renewal is not guaranteed. Before a deal, land needs a qualified appraisal and an affordability covenant lasting at least 30 years; competing developers trigger bidding based on delivery ability. Developers must diligently prepare sites, build single-family or middle housing, and sell or rent homes under affordability and deed restrictions. A lease signed before state acquisition must depend on that acquisition. Homes can join planned communities under Oregon's planned-community laws, but the state or developer must retain utility and infrastructure land and responsibility, including cottage-cluster common courtyards.

Easier housing approvals with firm deadlines

Local governments must allow single-family homes, middle housing, and denser housing allowed by zoning on designated Home Start Lands. No zone change or conditional-use permit is needed, but density, lot-size, and clear, objective housing standards still apply. Cities and counties can deny projects for inadequate water, sewer, drainage, or streets; slopes of at least 25%; 100-year floodplains; and specified hazards or natural-resource limits. Decisions must meet the statutory deadline, explain the outcome and appeal rights in writing, and allow Land Use Board of Appeals review. Approvals expire after four years. Without an approved application within three years of designation, the state must order termination for state-designated sites; locally nominated sites can lose designation by state order or local ordinance.

More land for affordable homes

Oregon's Home Start Lands program takes effect on the 91st day after the 2025 regular legislative session ends. The state identifies land inside urban growth boundaries that is not committed to permanent state use and suits housing. It must consider underused sites, consult affected agencies, and can exchange land for roughly equal-value sites inside these boundaries. Designated state land is exempt from ordinary state land-management and sale laws; trust lands, subsurface-only rights, legally barred uses, and lands classified under ORS 273.251 are excluded. Local governments can also nominate land by ordinance, with all owners' consent and a plan or funding source likely to add affordable homes. Nominated sites need at least 30 years of affordability, starting at the first homeowner sale or first rental occupancy. Eligible households earn up to 120% of area median income: low income is up to 80%, and moderate income is above 80% through 120%.

Housing developers get aid and infrastructure duties

Oregon's Department of Administrative Services can give purchasers and lessees grants or loans for affordable housing on Home Start Lands. Developers receiving land for a nominal amount must take responsibility for improvements needed to provide enough infrastructure capacity. For market-rate deals, the department must provide or lend money as needed for infrastructure serving the expected housing. These improvements can be required in addition to, or instead of, system development charges. No grant or loan amounts are specified.

Housing land gets temporary tax relief

Home Start Lands sold, transferred, or leased through the program can receive a land property-tax exemption for two consecutive tax years. The land must be used or held for use under the program's requirements. Up to three more consecutive years are available if qualifying construction starts by year two's end and continues or finishes in each later year. Owners or lessees must apply to the Department of Administrative Services annually by March 1, including a land description and written declaration. For acquisitions after March 1 but before July 1, the deadline is 30 days after acquisition. The department must approve or deny applications by April 1; denials cannot be appealed. County assessors apply the certified exemption while recording the land's otherwise taxable value and tax. Relief ends after five consecutive years or the first year certification is denied, whichever comes first. Ineligible exemptions can trigger recovery of unpaid taxes and a penalty up to 5% of additional taxes; penalties may be waived for unintentional misstatements.

Sponsors & Cosponsors

Sponsor

  • Kevin Mannix

    Republican • House

Cosponsors

  • Bobby Levy

    Republican • House

  • Boomer Wright

    Republican • House

  • Court Boice

    Republican • House

  • Cyrus Javadi

    Democratic • House

  • Emerson Levy

    Democratic • House

  • Jeffrey Helfrich

    Republican • House

  • Mark Gamba

    Democratic • House

  • Mark Owens

    Republican • House

  • Sue Rieke Smith

    Democratic • House

  • Tom Andersen

    Democratic • House

  • Willy Chotzen

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 114 • No: 2

Senate vote • 6/27/2025

Rules suspended. Third reading. Carried by Pham. Passed.

Yes: 28 • No: 1

House vote • 6/26/2025

Third reading. Carried by Mannix. Passed.

Yes: 50 • No: 0

legislature vote • 6/24/2025

Ways and Means: Heard and Reported Out with Amendments

Yes: 19 • No: 1

House vote • 5/29/2025

Revenue: Heard and Reported Out with Amendments

Yes: 6 • No: 0

House vote • 4/9/2025

Housing and Homelessness: Heard and Reported Out with Amendments

Yes: 11 • No: 0

Actions Timeline

  1. Chapter 481, (2025 Laws): Effective date September 26, 2025.

    8/7/2025House
  2. Governor signed.

    7/17/2025House
  3. President signed.

    6/30/2025Senate
  4. Speaker signed.

    6/30/2025House
  5. Rules suspended. Third reading. Carried by Pham. Passed.

    6/27/2025Senate
  6. Second reading.

    6/27/2025Senate
  7. Recommendation: Do pass the C-Eng. bill.

    6/27/2025Senate
  8. Referred to Ways and Means.

    6/26/2025Senate
  9. First reading. Referred to President's desk.

    6/26/2025Senate
  10. Third reading. Carried by Mannix. Passed.

    6/26/2025House
  11. Second reading.

    6/25/2025House
  12. Recommendation: Do pass with amendments and be printed C-Engrossed.

    6/25/2025House
  13. Work Session held.

    6/24/2025House
  14. Returned to Full Committee.

    6/24/2025House
  15. Work Session held.

    6/24/2025House
  16. Assigned to Subcommittee On Capital Construction.

    6/23/2025House
  17. Referred to Ways and Means by prior reference.

    6/3/2025House
  18. Recommendation: Do pass with amendments, be printed B-Engrossed, and be referred to Ways and Means by prior reference.

    6/3/2025House
  19. Work Session held.

    5/29/2025House
  20. Public Hearing held.

    5/15/2025House
  21. Referred to Revenue by order of Speaker and then Ways and Means by prior reference.

    4/16/2025House
  22. Recommendation: Do pass with amendments and be printed A-Engrossed, be referred to Revenue, and then referred to Ways and Means by prior reference.

    4/16/2025House
  23. Work Session held.

    4/9/2025House
  24. Work Session held.

    4/2/2025House
  25. Public Hearing held.

    3/26/2025House

Bill Text

  • JWM Amendment -B9 (Adopted)

    6/24/2025

  • JWMCC Amendment -B7 (Proposed)

    6/24/2025

  • JWMCC Amendment -B9 (Proposed)

    6/24/2025

  • HREV Amendment -A6 (Adopted)

    5/29/2025

  • HREV Amendment -A6 (Proposed)

    5/27/2025

  • HREV Amendment -A5 (Proposed)

    5/15/2025

  • HREV Amendment -A6 (Proposed)

    5/15/2025

  • HHOUSH Amendment -4 (Adopted)

    4/9/2025

  • HHOUSH Amendment -4 (Proposed)

    4/7/2025

  • HHOUSH Amendment -1 (Proposed)

    4/2/2025

  • HHOUSH Amendment -3 (Proposed)

    4/2/2025

  • HHOUSH Amendment -1 (Proposed)

    3/26/2025

  • HHOUSH Amendment -2 (Proposed)

    3/26/2025

  • A-Engrossed

  • B-Engrossed

  • C-Engrossed

  • Enrolled

  • House Amendments to A-Engrossed

  • House Amendments to B-Engrossed

  • House Amendments to Introduced

  • Introduced

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