All Roll Calls
Yes: 138 • No: 3
OregonHB 40372026 Regular SessionHouseWALLET
Relating to housing; and prescribing an effective date.
Sponsored By: Sponsor information unavailable
Became Law
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 7 benefits, 0 costs, 2 mixed.
Faster, clearer approvals for housing
Starting July 1, 2026, cities and counties must use clear‑and‑objective rules for housing in covered areas, with limited notice, no public hearing, and only the applicant may appeal. If you choose expedited land division, the local government must decide within 63 days, with no hearing and only the applicant may appeal; they may charge a cost‑recovery fee. Cities and counties must approve qualifying middle housing land divisions that meet set standards, and tentative approvals lapse if the final plat is not approved within three years. By January 1, 2028, state rules will set model siting/design standards and model system development charges for middle housing and ADUs, and a report is due by July 1, 2028 on safe‑harbor options. By January 1, 2027, urban reserve rules must be updated to allow lower priority for land that is hard or costly to serve.
More sites and conversions for affordable homes
Local governments must allow affordable housing on land owned by certain public bodies, nonprofits, and housing authorities, and on land zoned for commercial, public, or religious uses. Many commercial buildings can be converted to residential use without a zone change, subject to infrastructure and safety limits. Most affordable projects must stay affordable for an enforceable period, often 30 years, and can use density and height bonuses unless health or safety findings say otherwise. The state also gives priority for buying surplus state property to tribes, local governments, nonprofits, and housing authorities, and can require buyers to build housing for households at or below 120% of area median income or to limit resale.
Tax-exempt housing projects with annual fees
The state gives interest-free loans to cities and counties to fund affordable and middle‑income housing projects. Once a project is finished, the property becomes tax‑exempt starting the next tax year, but not if it sits in an urban renewal area. In place of those taxes, the fee payer owes a yearly fee: first year equals the project’s tax increment plus admin costs divided by the loan term, and it rises 3% each year. Fees are certified by July 15, put on the tax roll, collected like property taxes, a portion goes to fire districts, and the rest repays the state loan. Loan terms are capped at the greater of 10 years after the first listed tax year or the period needed to repay principal and fees. Repayment starts after completion unless the agreement sets a different start.
Disaster protections for renters
If a natural disaster destroys your rental, the tenancy ends right away. Your landlord must return deposits and prepaid rent and let you retrieve valuables. You do not owe rent while a government posts the unit unsafe or inaccessible. Parties may agree to different terms after the disaster. These rules do not apply to rental agreements covered by ORS 90.505 to 90.850.
Grants for middle-income housing projects
The state updates its agreement with NOAH so grant funds can finance homes that stay affordable for at least five years. The homes must be sold or rented to households with incomes over 60% and up to 120% of area median income. Each project can receive up to $1,000,000.
Loans to preserve manufactured home parks
The housing department makes loans to eligible nonprofit CDFIs to preserve, buy, expand, repair, or rebuild affordable manufactured dwelling parks, including after disasters. Eligible nonprofits must be CDFIs or certified as CDFIs by October 1, 2025, operate statewide, and support affordable housing investment. Loans can include interest or deferred payments and must mature no later than September 15, 2036 unless extended. The department may forgive unpaid balances up to losses on program investments or loans.
Stronger state enforcement on housing delays
The state can order local governments to fix housing rule violations. New triggers include repeated violations, rules that cause unreasonable cost or delay, policies that create inequitable impacts, not signing a housing acceleration agreement, or materially breaching one. The commission can require corrective action to speed housing and improve equity.
Affordability rules and developer penalties
Eligible projects must serve low‑ and moderate‑income households, and rents must be affordable to people earning at or below 120% of area median income while the related state loan is outstanding. A first‑position affordability covenant must be recorded; it may be subordinated only if the sponsor pledges full faith and credit and provides an acceptable alternate revenue source. If a developer fails to finish within 3 years, makes the project ineligible, or violates the agreement, they must pay all outstanding annual fees at once and may face a penalty up to 20% plus interest and collection costs; unpaid amounts become liens and may be collected by the Department of Revenue. Sponsors must adopt an ordinance or resolution describing the project, eligible costs, terms, and tax‑exempt status and declaring the local housing need, unless specific delegated and guarantee conditions are met and the property is not tax‑exempt. Sponsoring jurisdictions aim to review funding applications within 90 days, but may extend when volume is high and may allow applicants to amend before a set deadline.
Faster permits for certified home plans
For one‑ and two‑family homes, if a DCBS‑certified engineer or architect designs and stamps the plans, the state or city cannot require a plan review. Agencies are not liable for not doing that review. This can cut review time and some fees for homeowners and small builders.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 3/5/2026
House concurred in Senate amendments and repassed bill.
Yes: 52 • No: 1
Senate vote • 3/4/2026
Third reading. Carried by Anderson. Passed.
Yes: 28 • No: 2
Senate vote • 2/26/2026
Housing and Development: Heard and Reported Out with Amendments
Yes: 5 • No: 0
House vote • 2/18/2026
Third reading. Carried by Breese-Iverson. Passed.
Yes: 40 • No: 0
House vote • 2/12/2026
Housing and Homelessness: Heard and Reported Out with Amendments
Yes: 13 • No: 0
Actions Timeline
Chapter 108, (2026 Laws): Effective date June 5, 2026.
4/13/2026HouseGovernor signed.
4/7/2026HousePresident signed.
3/6/2026SenateSpeaker signed.
3/6/2026HouseHouse concurred in Senate amendments and repassed bill.
3/5/2026HouseNeron Misslin, granted unanimous consent to change vote to nay.
3/4/2026SenateManning Jr, excused, granted unanimous consent to vote aye.
3/4/2026SenateThird reading. Carried by Anderson. Passed.
3/4/2026SenateSecond reading.
3/3/2026SenateRecommendation: Do pass with amendments to the A-Eng. bill. (Printed B-Eng.)
3/2/2026SenatePublic Hearing and Work Session held.
2/26/2026SenateReferred to Housing and Development.
2/19/2026SenateFirst reading. Referred to President's desk.
2/19/2026SenateThird reading. Carried by Breese-Iverson. Passed.
2/18/2026HouseSecond reading.
2/17/2026HouseRecommendation: Do pass with amendments and be printed A-Engrossed.
2/16/2026HouseWork Session held.
2/12/2026HousePublic Hearing held.
2/10/2026HousePublic Hearing held.
2/5/2026HouseReferred to Housing and Homelessness.
2/2/2026HouseFirst reading. Referred to Speaker's desk.
2/2/2026House
Bill Text
Enrolled
3/5/2026
B-Engrossed
3/2/2026
Senate Amendments to A-Engrossed
3/2/2026
SHDEV Amendment -A11 (Proposed)
2/26/2026
SHDEV Amendment -A12 (Proposed)
2/26/2026
SHDEV Amendment -A13 (Proposed)
2/26/2026
SHDEV Amendment -A17 (Adopted)
2/26/2026
A-Engrossed
2/16/2026
House Amendments to Introduced
2/16/2026
HHOUSH Amendment -1 (Proposed)
2/12/2026
HHOUSH Amendment -10 (Adopted)
2/12/2026
HHOUSH Amendment -3 (Proposed)
2/12/2026
HHOUSH Amendment -4 (Proposed)
2/12/2026
HHOUSH Amendment -5 (Proposed)
2/12/2026
HHOUSH Amendment -6 (Proposed)
2/12/2026
HHOUSH Amendment -8 (Proposed)
2/12/2026
HHOUSH Amendment -9 (Proposed)
2/12/2026
HHOUSH Amendment -1 (Proposed)
2/10/2026
HHOUSH Amendment -10 (Proposed)
2/10/2026
HHOUSH Amendment -3 (Proposed)
2/10/2026
HHOUSH Amendment -4 (Proposed)
2/10/2026
HHOUSH Amendment -5 (Proposed)
2/10/2026
HHOUSH Amendment -6 (Proposed)
2/10/2026
HHOUSH Amendment -8 (Proposed)
2/10/2026
HHOUSH Amendment -9 (Proposed)
2/10/2026
HHOUSH Amendment -1 (Proposed)
2/5/2026
HHOUSH Amendment -3 (Proposed)
2/5/2026
HHOUSH Amendment -4 (Proposed)
2/5/2026
HHOUSH Amendment -5 (Proposed)
2/5/2026
HHOUSH Amendment -6 (Proposed)
2/5/2026
HHOUSH Amendment -8 (Proposed)
2/5/2026
Introduced
1/28/2026
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