Oregon House passes, sends to Gov. Kotek $376 million Emergency Housing Stability and Production Package

SALEM, Ore. (KTVZ) -- The Oregon House on Monday passed Senate Bills 1530 and 1537, key pieces of Gov. Tina Kotek's $376 million Emergency Housing Stability and Production Package, sending them to her desk as her top priority and the only legislation she proposed for this short legislative session.

The investment and related policy doubles down on last session’s $2 billion housing package, "continuing the Legislature’s ongoing commitment to putting affordable housing within reach for all Oregonians," the House Majority Office said in a news release.

“This package strategically leverages our limited state resources and lowers barriers to building more affordable housing to make a significant impact towards achieving our homelessness relief and housing goals,” said Rep. Maxine Dexter (D-NW & Downtown Portland), Chair of the House Committee on Housing and Homelessness. “This package puts our valuable state dollars to work to help fund homeless shelters, support renters, build critical infrastructure and boost housing production across Oregon.”

Making it Easier to Build More Affordable and Middle Income Housing

The package grants qualifying cities a one-time expansion of their Urban Growth Boundaries. Cities under 25,000 people can expand by 50 acres, while cities over 25,000 people can expand by 100 acres. In the Metro area, the cap is 300 acres. 30 percent of housing in any expanded areas must be affordable, one of the highest requirements in the nation. Cities must display that they have done comprehensive planning and permitting before expansion and demonstrate need for both housing and land.

The package also creates a new $75 million revolving loan fund to make interest-free loans to local governments to help finance production of affordable housing and moderate income housing projects.

Senate Bill 1530 makes significant and wide-ranging investments directed at the immediate housing needs for Oregonians like continuing shelter operations and recovery housing, and building on the resources the Legislature has committed toward sustainable, affordable housing production and support in recent legislative sessions. These investments consist of $123.55 million and include:

• Direct allocation to cities for 44 infrastructure projects across the state to support shovel-ready housing production ($94.3 million)
• Funding for 27 recovery housing projects ($18 million) in communities across the state 
• Affordable housing in historically under resourced communities ($29.25 million):
  • Purchase and redevelopment of a property on N Dixon Street in Portland for development of affordable housing to Albina Vision Trust ($25 million)
  • Unite Oregon’s purchase of a property on E Burnside Street in Portland for development of affordable housing ($3 million)
  • Center for African Immigrants and Refugees Organization’s purchase of a property on SE Stark Street for development of affordable housing ($1.25 million)

The House will also consider HB 4134, to bolster critical infrastructure projects that pave the way for housing development in Oregon.

The package also establishes the Housing Accountability and Production Office to support local governments as they work to achieve their housing production goals. This office will oversee growth and ensure that any new builds align with what Oregon values and demonstrated needs.

Building Better and Smarter for The Future

The legislature understands additional housing must consider climate change and reduce the carbon footprint on our environment. That’s why this legislation includes $24.5 million for Healthy and Safe Homes, a legislative concept reinforcing the need to build resilient structures  for the future. Program areas funded through this legislation include:

• Healthy Homes Repair Fund to support home improvements to lower energy usage and make homes safer ($15 million)
• Residential Heat Pump Fund in the Department of Environmental Quality ($4 million)
• Air conditioners and air filters provided on an emergency basis to at-risk individuals ($3.5 million)
• Support for warming or cooling emergency shelters ($2 million)

Continued Investments In Pathways to Housing

Legislation passed today continues funding for proven methods to prevent homelessness and resources families and individuals depend on to stay housed.

Specifically, legislation allocates a total of $131 million for:

• Emergency shelters, Project Turnkey sites and navigation centers ($65 million)
• Homelessness prevention services, through Oregon Eviction Diversion and Prevention and Eviction Prevention Rapid Response Programs with 30% set aside for culturally responsive organizations ($34 million)
• Urban League of Portland for homelessness prevention services ($7 million)
• Maintain and expand capacity for 27 recovery housing projects ($18 million)
• Individual development accounts for first-time homebuyers ($5 million)
• Support for the furnishing of reused household goods to low-income residents through Community Warehouse ($1 million)
• Education and support of tenants at risk of rent increase or possible eviction through Seeding Justice ($1 million)

If signed by Governor Kotek, the package brings the total of housing-related investments in 2023 and 2024 to more than $2.3 billion. This package is one of the priorities House Democrats outlined at the beginning of this legislative session.

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Governor Kotek Issues Statement on Passage of Emergency Housing Stabilization and Production Package

Salem, OR—Today, in response to the passage of Senate Bill 1537 and Senate Bill 1530, Governor Tina Kotek issued the following statement:

“Oregonians are struggling under the pressure of an increasingly unaffordable housing market. After hearing this concern directly from Oregonians from across our state last year, I knew we had to make major progress on our housing crisis during this year’s legislative session. I want to thank legislators for meeting the urgency of this moment and providing much-needed funding that will boost housing production throughout the state.

“These bills offer a menu of tools that will provide the support needed to ease our housing crisis and help all our communities thrive. I believe this package will make meaningful progress in fixing our housing shortage while also preserving our land use system and ensuring strong environmental protections. But this is not the finish line. We have more work ahead to solve our housing and homelessness crises – and I will keep pushing for more because the need is so great. Oregonians are counting on us to deliver.”

Today, the House of Representatives passed SB 1537 by a 48-8 vote and passed SB 1530 by a 51-6 vote. Both bills passed the Senate last week. Additional projects from the Emergency Housing Stabilization and Production Package are funded through HB 4134, which the House will vote on Tuesday. That bill would then need to be approved by the Senate.

In total, the Emergency Housing Stabilization and Production Package provides a $376 million state investment in addressing the housing crisis.

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News release from Legislative BIPOC Caucus:

Legislature Advances Housing Investments Supporting Communities of Color, Low-Income Families, and Rural Residences

SALEM, Ore. - Today, the Oregon Legislature adopted Senate Bill 1530, which will make targeted investments designed to keep Oregonians in their homes, increase access to homeownership for low-income families, and build climate resilience into our housing supply. 

This comprehensive package includes critical investments that will address the legacies of racism in Oregon’s housing practices and work to lower the barriers that have long prevented low-income Oregonians from accessing safe and affordable homes. 

Senate Bill 1530 includes a $15 million investment in the Healthy Homes Repair Fund, an innovative grant program that goes directly to household-serving organizations to do essential home repairs and improvements. About 49% of homes and apartments Oregonians live in were built before 1980. Much of this housing is energy inefficient and in need of dire repairs such as mold abatement and lead removal. Frontline communities, including communities of color, low-income families, people with disabilities, and people in rural areas are at the highest risk. This investment will help address the state’s housing crisis by ensuring greater housing security for our most vulnerable Oregonians.

The bill also allocates $5 million into Oregon’s Individual Development Account (IDA). For more than twenty years, the Oregon IDAs have been a powerful tool addressing the state’s racial wealth gap by providing match savings opportunities, information about financial systems, and coaching to support individuals attain their economic goals. This policy is a recommendation from the bipartisan JARDOH Taskforce (2021-23), which included BIPOC led organizations and housing experts, charged with identifying proposals to increase homeownership amongst communities of color. By helping Oregonians save money for down-payments and closing costs, IDAs open the possibility of homeownership to new sections of the state.

Additionally, the bill will send $25 million to the Albina Vision Trust in an effort to rebuild the historically Black neighborhood in North and Northeast Portland. The funding will assist Abina Vision Trust, a nonprofit dedicated to revitalizing the Albina neighborhood through public and private partnerships, in its purchase of the 10.5-acre Dr. Matthew Prophet Education Center and convert this aging building to affordable housing units, an education hub, communal green spaces and mixed-used commercial opportunities. Through this critical investment, the legislature is addressing the legacy of Oregon’s racist housing and urban planning policies that displaced families and disrupted this community. 

This legislation is part of the Legislature’s larger 2024 Emergency Housing Stability and Production Package, which also includes SB 1537 and HB 4134. SB 1530 passed 21-7 out of the Senate and 51-6 out of the House with bipartisan support. It now heads to the Governor’s desk.