Oregon Governor Tina Kotek has pulled back on her budget priorities for the 2024 legislative short session, or has she? She is introducing only one bill, but expressed that her bill, SB 1537 is separate from the Housing Production Advisory Council (HPAC) recommendations, which Governor Kotek created through Executive Order 23-04 last year to develop long-term strategies for ramping up home construction across Oregon, and is expected to request more of the Governor’s wish list.

Governor Kotek’s bill, Senate Bill 1537 (Legislative Concept 19), proposes housing production with $500 million funding pared down from $600 million she proposed in December for housing and homelessness. That list included another $247.2 million for things like shelters, rent assistance, addiction treatment, child care, overtime for ODOT during the winter, and property tax for state buildings in Salem. Those items aren't off the table, just not in the Governor's bill.

The Governor is focusing on housing in SB 1537. Key provisions include:

• Housing Accountability and Production Office - Creates the Housing Accountability and Production Office (HAPO) to support housing production in local communities with a more definitive structure and process to address complaints, concerns, and issues from local governments and developers about compliance with state housing law. This office will enhance opportunities to collaborate with local governments in lieu of enforcement actions.
  
  
• Land Supply - Provides a one-time tool for cities in need of land and affordable housing to add land for housing to their urban growth boundary (UGB). Any land added would need the consent of the property owner and could only be urban reserve, non-resource land, or exception land – not high value farm or forest land except land in urban reserves already designated for future urban development. A city must meet land and affordability eligibility metrics in order to qualify to use this tool.
  
  
• Housing Affordability - Requires a portion of new development to be affordable. Within any expansion areas, 30% of all housing units must be legally restricted for affordable housing. Affordability requirements exist in over 800 jurisdictions and 25 states, but most programs require between 10-20% of units as affordable. A 30% requirement in Oregon would be one of the strongest requirements in the country. Oregon has a critical need for guaranteed affordability, as existing land within UGBs (outside of Portland) has no affordability requirement.
  
  
• Climate-Friendly Homes - Funds grants for new affordable housing construction to incorporate energy-efficient design, reduce energy costs for low-income residents, and stabilize operational costs for owners. These incentives will help reduce the energy burden for low-income Oregonians across the state.
  
  
• Funding for Housing Production Tools - Includes a $500 million investment package from existing state resources requested by Governor Kotek. Here is an initial breakdown of that funding:
  1. Housing infrastructure financing: $200 million
  2. Moderate-income housing financing: $200 million
  3. Site acquisition: $40 million
  4. Climate-friendly incentive funding: $20 million
  5. Site mitigation and readiness funding: $10 million
  6. Local housing planning technical assistance funding: $10 million
  7. Local housing infrastructure planning capacity: $5 million
  8. Housing Accountability and Production Office: $5 million.

“Decades of underbuilding have left Oregon with a severe housing shortage that is driving up rents, home prices, and worsening our homelessness crisis,” Governor Kotek said. “People that are ready to transition out of homelessness struggle to find housing. Meanwhile, employers – both public and private – in Oregon struggle to hire due to a lack of workforce housing for rent or purchase, harming local economies across the state. That’s why SB 1537 is my top priority in the short session, and I look forward to working with legislators to make progress this year.”

Bills, including SB 1537 (LC 19), will be publicly posted on the Oregon legislative website before the session starts February 5.


--Donna Bleiler

Post Date: 2024-01-17 20:04:45

Last Update: 2024-01-17 22:14:37