The legislative housing package intended to ease the state’s housing crisis and build more homes for teachers, nurses and firefighters passed the statehouse on Monday and now heads to the governor’s desk.
The two measures, Senate Bill 1537 and 1530, were Democratic Gov. Tina Kotek’s top priority for the 2024 legislative session and they passed both chambers with bipartisan support. Those two measures, along with House Bill 4134, will send a total of $376 million toward boosting housing production, funding infrastructure like roads and land acquisition and supporting renters.
“Oregonians are struggling under the pressure of an increasingly unaffordable housing market,” the governor said in a statement. “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.”
In Kotek’s first days in office, she established an aggressive statewide housing production goal of 36,000 new housing units a year — up from the 22,000 or so Oregon builders were creating. The latest funding package builds on a $200 million package legislators passed in the previous legislative session to help fund housing.
FILE - Newly sworn-in Oregon Gov. Tina Kotek signs three executive orders to combat homelessness at the State Library of Oregon in Salem on Tuesday, Jan. 10, 2023, her first full day in office. The executive orders declared a homeless emergency in most of the state, increased housing construction targets and directed state agencies to prioritize reducing homelessness.
Claire Rush / AP
The latest package includes a $75 million dollar revolving loan fund meant to help cities boost affordable housing stock. It will create a program to help local governments offer interest-free loans in an effort to build more moderate and affordable home projects. Local jurisdictions choose the project and can borrow from the state fund to offer a grant to local developments.
Rep. Pam Marsh, D-Ashland, whose district was devastated by the Almeda Fire in 2020, said the lack of housing in her community has made recovery slow.
“Our desperate lack of housing is inhibiting recovery, undermining our workforce, driving homelessness and despair, and discouraging families from staying or moving to the community,” Marsh said.
Rep. Maxine Dexter, D-Portland, who worked on the overall housing package said the revolving loan element of the bill was “innovative” and “visionary.”
The bills funnel money into a wide range of projects, including $131 million for housing and homelessness projects such as Project Turnkey, which includes projects like buying hotels to convert into emergency housing. State lawmakers are putting an additional $123.5 million to support shovel-ready housing production for counties to acquire land and develop properties.
Finally, $24.5 million will be reserved to provide air conditioners and air filters on an emergency basis, support warming and cooling shelters and help support home improvements to lower energy usage.
One of the initial sticking points of the housing package was the exemption to allow cities a one-time opportunity to sidestep state land-use laws and bring in more than 100 acres for cities with a population greater than 25,000 people and no more than 50 acres for those with fewer than 25,000 people.
But ultimately, the bills passed with bipartisan support.
“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,” the governor said in a statement. “But this is not the finish line.”