Housing (Affordable Housing)

Authorizes the Housing and Community Services Department to fund mixed income housing. Requires the department to develop a mixed income housing loan program. Establishes the Mixed Income Development Loan Fund for such purposes. Transfers moneys to the fund from the Housing Project Revolving Loan Fund. Requires the department to adopt initial program rules by January 1, 2027. Takes effect on the 91st day following adjournment sine die.

Exempts certain projects for public works, primarily related to affordable housing, from the requirement to pay a prevailing rate of wage. Takes effect on the 91st day following adjournment sine die.

Adjusts certain terms of the revolving loan program for cities and counties to fund affordable housing projects. Allows state agencies to adjust terms of a grant made to the Network for Oregon Affordable Housing in the last biennium. Limits the building permit plan review for housing with two or fewer dwelling units. Establishes a local government process for land use approvals for housing subject only to clear and objective standards, conditions and procedures. Becomes operative on July 1, 2026. Establishes responsibilities for landlords and tenants for residential tenancies destroyed by natural disasters. Requires state agencies to give priority to housing providers when transferring surplus real property. Requires the Land Conservation and Development Commission to adopt rules regarding prioritization of lands added to urban reserves. Limits the amount of commercial lands within certain planned areas that may be used for affordable housing. Takes effect on the 91st day following adjournment sine die.

Prohibits cities and counties within the Portland MSA from enforcing requirements that developers provide affordable units in multiunit dwellings unless the city or county first calculates the developers' average expected losses due to providing affordable housing and the city or county offsets those losses. Becomes operative for rental housing on January 1, 2028. Becomes operative for all housing on January 1, 2029.

Adds to a temporary UGB addition program an option for each city or Metro to also add to its urban growth boundary a site for manufactured dwellings, prefabricated structures or manufactured dwelling parks, or for housing that is predominantly for older persons and affordable for households with incomes not more than 120 percent of area median income. Sunsets January 2, 2033. Takes effect on the 91st day following adjournment sine die.

Establishes the Housing Opportunity, Longevity and Durability Fund to deposit Article XI-Q bonds to be used by the Housing and Community Services Department to preserve affordable housing at risk of loss. [ Authorizes the State Treasurer to issue $100 million in bonds for the fund for the 2025-2027 biennium. ] Requires the department to, with input from stakeholders, report to the interim committees of the Legislative Assembly relating to housing on or before December 1, 2026, on legal and policy barriers to affordable housing production. Declares an emergency, effective on passage.