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OregonSB 482025 Regular SessionSenateWALLET

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

13 provisions identified: 1 benefits, 1 costs, 11 mixed.

Cities can exchange residential growth land

Metro and cities outside Metro can add qualifying housing sites while removing roughly equal acreage of residential-zoned land. Added land must allow the same or greater housing density; Metro additions must be designated urban reserves. Land can be removed without its owner's consent. Owners can appeal removal only after recording an agreement allowing annexation and development within 20 years if their land stays inside the boundary. The exchange process also has limited review and court-challenge routes.

Cities must plan larger housing sites

Before adding a covered site over 15 net residential acres, cities must adopt a binding plan within their comprehensive plan. Minimum homes per net residential acre are 17 within Metro, 10 in cities of 30,000 or more, six in cities of 2,500–29,999, and five in smaller cities. Plans must include varied housing, middle housing, accessible homes, neighborhood open space, and commercial land. They must protect resources and address hazards, with binding assurances of needed urban services. Cities of at least 5,000 must plan connected walking and biking routes, plus transit connections where public transit exists.

Larger housing sites must include affordability

On covered sites over 15 net residential acres, at least 30% of homes must have affordability restrictions lasting at least 60 years. Rental homes must be affordable at incomes up to 80% of area median income; purchase homes at up to 130%. Construction of all affordable homes must start before the final 15% of market-rate homes receive occupancy approval. Affordable homes must be spread throughout the site, share amenities equally, and have recorded restrictions with financial penalties before building permits. Cities can require greater affordability only with significant, proportional offsets to permit fees, development charges, property taxes, or land and predevelopment costs.

State loans finance local housing awards

For finally approved applications, the state housing department provides interest-free loans to local sponsors for developer grants or loans. Each developer award equals the calculated property tax increase multiplied by the state loan term. On request, county assessors compare taxes on the last certified roll with estimated completed-project taxes, excluding operating taxes and fire-district local option taxes. State loans also cover administration: up to 5% of proceeds for local non-tax costs and 1% for county tax administration. Local sponsors must offer funding agreements, with payment after the project ordinance or resolution takes effect unless the agreement sets another schedule.

Housing grant properties face rising fees

Unless alternative repayment is arranged, exempt project property owes annual fees for its expected exemption term: its tax-increase share plus administration initially, then 3% more each year. Fees are collected like property taxes; property-interest holders each face liability for the full amount, and sponsors remain responsible for unpaid loan balances. Estimated fire-district taxes go to those districts, while net fees return to the housing loan fund. Developers immediately owe all remaining fees after an unextended three-year completion deadline, loss of project eligibility, or grant-agreement violations; willful grant fraud can add a penalty up to 20% of the grant, plus interest and collection fees. Those enforcement amounts become property liens and delinquent debts assigned to the state revenue department for collection, with net collections returning to the fund.

Cities can use local housing adjustments

Local governments can seek an exemption from statewide housing design-adjustment rules through the Housing Accountability and Production Office. Their process must cover all housing applications and required adjustments, with either 90% approval over five years or developer testimony showing flexibility. The statewide rules stop applying after the initial application, until denial or revocation. The office allows at least 45 days for public comment and issues an order within 120 days; approvals cannot be appealed. It can impose conditions and revoke exemptions for noncompliance, unreasonable housing costs or delays, or broken conditions.

Cities face housing land expansion tests

Housing sites can combine touching parcels, or parcels separated only by a road, even with different owners. Cities must show land need through the 20-year expansion-history test and absence of undeveloped tracts over 20 net residential acres, or show 75% of earlier expansion land is developed or ready through plan designations and financing. Affordable-housing need requires above-state-average severe housing cost burdens or severe rent burdens among at least 25% of renters. Evaluations use evidence from the public-notice date; net residential acres exclude rights-of-way and protected or environmentally constrained areas. State review takes 60 days, requires approval for substantial compliance or return with fixes, limits court challenges to the city or a submitted site owner, and places approved land in future housing-capacity inventories.

Housing applicants can request newer standards

Housing applicants inside an urban growth boundary can request review under the standards in effect when they make the request. Their application must have been complete initially, or requested information must be submitted within 180 days. The request restarts review deadlines. Cities and counties may deny requests after public notice or after an earlier request to change standards. They cannot require a new application, duplicate information, redundant steps, or fees beyond added processing costs.

Housing grants bring limited tax exemptions

Grant-funded eligible housing property receives a property tax exemption starting in the first tax year beginning after completion. Loan-only projects do not receive this exemption, and other taxable property in the same account remains taxable. Grant-funded property cannot also receive other property tax exemptions, partial exemptions, or special assessments. The program exemption ends at the earliest applicable repayment, delinquency, foreclosure, or disqualification event.

Local housing funding carries affordability rules

Local governments can offer developer grants and loans for eligible housing infrastructure, development charges, predevelopment, construction, and land-price reductions. They must consult affected city or county governments and set eligible project types and added requirements. Funding can reimburse eligible costs incurred up to 12 months before local site approval. Rental and for-sale homes must remain affordable for at least the related state loan term. Applications include affordability, costs, schedule, feasibility, and a state-form financial plan; review takes 90 days unless application volume causes an extension, and project value and parcel details go to county tax officers.

Local sponsors can pledge housing repayments

Local sponsors can back state housing loans with their full repayment promise, taxing power, and department-approved revenue. Developer loan repayments can serve as alternative revenue, but the program's annual property fee cannot be pledged that way. Repayment generally starts after project completion unless the funding agreement sets another date or trigger. Completion before July 1 starts repayment in the tax year beginning that July 1; later completion starts it in the following assessment year. Repayments return to the Housing Project Revolving Loan Fund, which remains continuously available to the state housing department for program payments.

Renewal-area housing gets loans, not grants

Local sponsors can fund eligible housing projects in urban renewal areas through the specified state-backed loan arrangements. However, the program prohibits project grants for housing in those areas. Funding authority therefore does not give these developers access to program grants.

Some housing loans replace tax relief

Housing property tied to the specified alternative state loan agreements cannot use the program's property tax exemption. Other property tax relief remains available when the property qualifies for it. Developers funded through these agreements do not owe the program's annual property fee for that project. The fee exemption does not extend to the developer's other projects.

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: 100 • No: 4

House vote • 6/26/2025

Third reading. Carried by Marsh. Passed.

Yes: 48 • No: 3

Senate vote • 6/23/2025

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

Yes: 27 • No: 1

legislature vote • 6/18/2025

Ways and Means: Heard and Reported Out

Yes: 20 • No: 0

Senate vote • 4/9/2025

Housing and Development: Heard and Reported Out with Amendments

Yes: 5 • No: 0

Actions Timeline

  1. Effective date, September 26, 2025.

    7/25/2025Senate

  2. Chapter 530, 2025 Laws.

    7/25/2025Senate

  3. Governor signed.

    7/17/2025Senate

  4. Speaker signed.

    6/27/2025House

  5. President signed.

    6/27/2025Senate

  6. Third reading. Carried by Marsh. Passed.

    6/26/2025House

  7. Second reading.

    6/25/2025House

  8. Recommendation: Do pass.

    6/25/2025House

  9. Referred to Ways and Means.

    6/23/2025House

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

    6/23/2025House

  11. Rules suspended. Third reading. Carried by Anderson. Passed.

    6/23/2025Senate

  12. Second reading.

    6/23/2025Senate

  13. Recommendation: Do pass the A-Eng. bill.

    6/23/2025Senate

  14. Work Session held.

    6/18/2025Senate

  15. Returned to Full Committee.

    6/16/2025Senate

  16. Work Session held.

    6/16/2025Senate

  17. Assigned to Subcommittee On Capital Construction.

    6/12/2025Senate

  18. Referred to Ways and Means by order of the President.

    4/17/2025Senate

  19. Recommendation: Do pass with amendments and be referred to Ways and Means. (Printed A-Eng.)

    4/17/2025Senate

  20. Work Session held.

    4/9/2025Senate

  21. Public Hearing held.

    3/5/2025Senate

  22. Referred to Housing and Development.

    1/17/2025Senate

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

    1/13/2025Senate

Bill Text

  • SHDEV Amendment -3 (Adopted)

    4/9/2025

    PDF

  • SHDEV Amendment -3 (Proposed)

    4/7/2025

    PDF

  • SHDEV Amendment -2 (Proposed)

    3/5/2025

    PDF

  • A-Engrossed

    PDF

  • Enrolled

    PDF

  • Introduced

    PDF

  • Senate Amendments to Introduced

    PDF

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