All Roll Calls
Yes: 138 • No: 3
OregonHB 40372026 Regular SessionHouseWALLET
Relating to housing; and prescribing an effective date.
Sponsored By: Sponsor information unavailable
Signed by Governor
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Bill Overview
Analyzed Economic Effects
14 provisions identified: 7 benefits, 3 costs, 4 mixed.
Renters get protections after natural disasters
A destroyed rental home's tenancy ends immediately unless the parties agree otherwise after the disaster. For agreements outside Oregon's special manufactured-home and floating-home tenancy laws, landlords must return deposits and prepaid rent, prorated from the disaster. Those tenants owe no rent while the home is destroyed or disaster-inaccessible; a government unsafe-occupancy posting establishes inaccessibility. Tenants who did not cause the disaster owe no cleanup, and landlords must offer a valuables search after the emergency. Landlords may issue termination notices to occupants who remain after the tenancy ends.
Housing approvals streamline but public appeals narrow
Beginning July 1, 2026, local governments must use clear, objective rules for tree removal tied to housing development. This covers urban growth boundaries, qualifying unincorporated communities, nonresource land, and rural residential zones. For housing applications covered by the law's clear-and-objective approval rules, governments may limit owner notice to 100 feet. For developments with 20 or more units, that distance is 500 feet. Governments cannot require a public hearing before deciding those applications, and only applicants may appeal to the state land-use appeals board.
More cities face housing compliance orders
The state land-use commission can issue city compliance orders without a population threshold. It needs good cause to believe a city repeatedly violates housing laws or causes unreasonable housing costs or delays. Other grounds include specified adverse housing impacts, failure to enter a required housing acceleration agreement, or materially breaking that agreement.
Some homes skip government plan review
State and local governments cannot require plan review for qualifying one- or two-family homes. A registered engineer or architect must design and stamp the plans. That professional must also be certified by the state department director to examine those plans. The exemption is no longer limited to conventional light-frame construction.
State rules must address housing barriers
By January 1, 2027, Oregon must allow lower urban-reserve priority for land where physical constraints make future services unreasonable or not cost effective. By January 1, 2028, the state land-use commission must adopt rules addressing barriers to middle housing and cottage clusters. Rules must also address unreasonable costs or delays for accessory homes and single-room housing, and discretionary housing criteria. They must cover siting and design, model residential development charges, and estimates of land's housing capacity. The rules must emphasize efficient development and housing availability and affordability, following specified 2024 recommendations where practical.
Interest-free state loans support housing projects
Cities and counties that adopt housing funding programs can offer developers grants and loans for eligible project costs. The state housing department provides interest-free agency loans for approved awards, based on property-tax growth multiplied by the loan term. The program uses a 10-year term or a longer agreed period needed for full repayment. Agency loans can be repaid at any time. The department can change or settle loans and related restrictions to support repayment and compliance with affordability rules.
More financing for middle-income homes
State agencies must update their grant agreement with Network for Oregon Affordable Housing to finance more qualifying housing projects. Homes must be sold or rented as primary residences to households earning above 60% and no more than 120% of area median income. They must stay affordable for at least five years. Financing is capped at $1 million per project, not per household.
More nonprofits qualify for park financing
More nonprofits qualify for loans through Oregon's manufactured-home park preservation and development programs. They must have federal 501(c)(3) or 501(c)(4) tax-exempt status. They must be community development financial institutions or have held that certification on October 1, 2025. They must work statewide on affordable housing investment, purchase, renovation, and construction. State requirements also cover program capacity, financial risk, and additional resources.
Affordable housing must preserve commercial space
A new plan-change requirement applies to affordable housing in qualifying mixed-use developments larger than 10 acres. It covers developments with land-use approvals or binding agreements setting commercial areas or minimum acreage alongside residential or other uses. Applicants must amend the plan if housing reduces available commercial land below 80% of the adopted amount. The amendment must allow an additional area at least as large as the proposed housing development.
Middle-housing land splits face approval deadlines
Tentative approval for a middle-housing land division expires unless the final land-division map is approved within three years. A different local deadline applies when a related map or plan is submitted at the same time. Cities and counties can also require final map approval before issuing building permits. The law allows that permit requirement but does not mandate it statewide.
Housing funding violations trigger repayment penalties
Developers must immediately pay all outstanding fees for the full fee term after funding-agreement or affordability violations. This also applies when major project changes make it ineligible, or completion exceeds three years after funding without a local extension. Local governments can penalize developers, homeowners, or other representatives who willfully lie or hide material facts about funding or compliance. The penalty is up to 20% of funding received, plus interest and collection fees. Unpaid amounts can become property liens and be sent for state collection.
Funded homes face time-limited affordability rules
Funded housing must have a recorded affordability covenant with first claim on the property while the agency loan remains unpaid. Rental homes must be affordable to households earning no more than 120% of area median income. The covenant can rank behind financing only with a local government repayment pledge and a state-approved alternative revenue source. Funding can transfer to later buyers, and state rules can allow affordability restrictions to end after a permitted lender's foreclosure. After full loan repayment, the sponsoring local government can change or end affordability restrictions.
Housing groups gain state land priority
Oregon must offer state property first to state agencies, then its lessee, then eligible housing groups. That housing priority requires homes for households earning no more than 120% of area median income. Adjacent owners seeking similar uses and local governments follow; listed housing groups also get a later opportunity without affordability limits. These priorities remain subject to state trust duties. For public-purpose transfers to local governments, the state can bar resale to private buyers.
Housing tax breaks carry annual fees
Local governments can grant eligible loan-funded housing projects a property-tax exemption starting the first tax year after completion. Projects in urban renewal areas cannot receive this exemption. When repayment is not otherwise provided for, the first annual fee includes administrative costs divided by the funding agreement's years. Annual fees rise 3% each following year. The exemption ends upon listed disqualifications, including fee delinquency; full repayment ends it beginning the next tax year.
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
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
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
A-Engrossed
B-Engrossed
Enrolled
House Amendments to Introduced
Introduced
Senate Amendments to A-Engrossed
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