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OregonSB 15212026 Regular SessionSenateWALLET

Relating to local requirements to develop affordable housing.

Sponsored By: Sponsor information unavailable

Became Law

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 4 benefits, 0 costs, 3 mixed.

Exemptions and protections for inclusionary projects

Starting January 1, 2028, continuing care retirement communities are exempt if they record a covenant to operate as a CCRC; units later converted to regular housing must follow local inclusionary rules. New inclusionary rules do not apply to projects with a permit application already submitted and deemed complete, or with a building permit filed before the rule’s operative date. Multifamily rentals built under these local programs are not labeled “publicly supported housing” under the cited state law.

How cities must spend construction taxes

Starting January 1, 2028, after keeping up to 4% for admin and paying refunds, cities and counties must split construction excise tax money. 50% funds developer incentives or offsets, 15% goes to the state for down payment help, and 35% supports local affordable housing programs. This makes funding more predictable for incentives and homebuyer aid.

State blocks conflicting local housing rules

Beginning January 1, 2028, cities and counties cannot enforce local rules that conflict with this law’s affordability and inclusionary housing rules. Beginning January 1, 2029, the same bar applies to the law’s 2029 updates. This keeps local ordinances from blocking the state’s housing affordability rules.

Cities can require affordable units in big projects

Starting January 1, 2028, cities and counties can set sales or rent prices or require affordable units in new multiunit housing. The rule applies to buildings with 20 or more homes statewide, and 10 or more homes in the Portland metro area outside the City of Portland. Developers can pay a local in‑lieu fee instead of building all required units. Cities must use clear, objective approval rules and can offer incentives like more density, faster permits, or taller buildings. Some central city and historic areas can use a different review, but builders can always choose the clear, objective path.

Fewer design roadblocks for housing

Starting January 1, 2028, cities and counties cannot apply most residential design rules to housing inside an urban growth boundary. They can still enforce design rules on multiunit buildings and on projects with fewer than 20 homes. Setbacks, building height, accessibility, fire access, health and safety, water quality, hazardous cleanup, wildlife protection, and statewide planning goals still apply.

Pilot sites tightened and old laws expire

Starting January 1, 2028, cities with a pilot housing site must follow state pilot rules and cannot replan or rezone the site for other uses unless they remove it from the urban growth boundary and rezone it. The law bars using these rules to bring high‑value farmland inside the boundary and clarifies that pilot sites do not let cities convert land already planned for needed housing. For pilot sites, cities may set sales prices or require sales to certain buyer classes when allowed. Parts of a 2016 law expire on January 2, 2028; parts of a 2021 law expire on January 2, 2030; and a 2025 section expires on January 2, 2033.

Stevens Road land reserved for affordable homes

Starting January 1, 2028, the Stevens Road plan must set aside at least 20 net acres for homes at nine or more units per gross acre. The land is sold to the city at the price set under prior law and kept affordable to buy or rent for at least 50 years. At least 12 net acres serve households at or below 60% of area median income; at least six net acres serve households at or below 80% of area median income with priority for education workers where allowed; and two net acres must have tracts where 80% of homes meet the 80% AMI rule, with one acre prioritized for education workers. If the city resells within 99 years, it may recover only its purchase and resale costs.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 62 • No: 30

House vote • 3/4/2026

Third reading. Carried by Gamba. Passed.

Yes: 32 • No: 21

House vote • 3/3/2026

Rules: Heard and Reported Out

Yes: 4 • No: 3

Senate vote • 2/20/2026

Third reading. Carried by Pham. Passed.

Yes: 21 • No: 6

Senate vote • 2/12/2026

Housing and Development: Heard and Reported Out with Amendments

Yes: 5 • No: 0

Actions Timeline

  1. Effective date, January 1, 2027.

    4/6/2026Senate

  2. Chapter 79, 2026 Laws.

    4/6/2026Senate

  3. Governor signed.

    3/31/2026Senate

  4. Speaker signed.

    3/5/2026House

  5. President signed.

    3/5/2026Senate

  6. Third reading. Carried by Gamba. Passed.

    3/4/2026House

  7. Second reading.

    3/3/2026House

  8. Recommendation: Do pass.

    3/3/2026House

  9. Work Session held.

    3/3/2026House

  10. Public Hearing held.

    2/27/2026House

  11. Referred to Rules.

    2/24/2026House

  12. First reading. Referred to Speaker's desk.

    2/24/2026House

  13. Third reading. Carried by Pham. Passed.

    2/20/2026Senate

  14. Second reading.

    2/19/2026Senate

  15. Recommendation: Do pass with amendments. (Printed A-Eng.)

    2/18/2026Senate

  16. Work Session held.

    2/12/2026Senate

  17. Public Hearing held.

    2/5/2026Senate

  18. Referred to Housing and Development.

    2/2/2026Senate

  19. Introduction and first reading. Referred to President's desk.

    2/2/2026Senate

Bill Text

  • Enrolled

    3/4/2026

    PDF

  • A-Engrossed

    2/18/2026

    PDF

  • Senate Amendments to Introduced

    2/18/2026

    PDF

  • SHDEV Amendment -2 (Adopted)

    2/12/2026

    PDF

  • SHDEV Amendment -3 (Proposed)

    2/5/2026

    PDF

  • Introduced

    1/28/2026

    PDF

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