[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6281006,"mediaKeyId","2608592-0150dce00e590d5e143d8af3dcad7605","parentId",2608592,"title","Public hearing on HB 2968: state guarantee proposed to let cities defer system development charges to ease housing finance","audioSeconds",1473,"startMs",325000,"endMs",1798000,"viewUrl","/Search/View?dp=1&key=2608592-0150dce00e590d5e143d8af3dcad7605&start=325&end=1798","thumbnailUrl","https://assets.pipeline.soar.com/2608592-0150dce00e590d5e143d8af3dcad7605/thumbnail_325000.jpg","articleUrl","/articles/6281006/Oregon/Public-hearing-on-HB-2968-state-guarantee-proposed-to-let-cities-defer-system-development-charges-to-ease-housing-finance","mediaUrl","https://secure.pipeline.soar.com/6281006-1d94d39c12a85d58f8ca226c56b8941b/orig.mp4?Expires=1771204241&Signature=hes9z30H5Enz1p-lhqKOSCFuCAKHByCopSfXwOvFwYYZp9ZIdxLdaEW3V1QqVefn8gxHgRsQMiJUCBokipG-NzDkXEZ6te6JKoZH5kxzfVFszjbKL51yZV96qabjDCvfGTZOUbDusgxP5iqcobpYCK6dyQsN~rGrfR5EyPR~UqaUX-AAT6dG~RDOBaJvUO~Y1U9E9irWKFWcvdbx5Hr597ZfMFLpyaf8OzgK2TjeDLMAztR8ZO0lvEra~Cug-Jf1njvUq1~EroZ~JSOABYtXTGiWl~HVq~2q~jGoHZ6eTQZfQHLXL0E6QET5K~v2fYx7WM~Khu7n6kasie4mXr9Nrw__&Key-Pair-Id=KUT5TJCACFTXG","author","Oregon State Legislature","date","2025-03-12T00:00:00Z","article","Representatives, municipal officials and housing advocates told the House Committee on Housing and Homelessness on March 12 that House Bill 2968 would reduce upfront development costs and improve financing feasibility by allowing local governments to defer systems development charges (SDCs) until after occupancy and by establishing a state guarantee and collection mechanism for unpaid charges.

Representative Mark Gamba, sponsor of HB 2968, told the committee the bill enables cities and developers to sign agreements to pay SDCs up to six months after receiving a certificate of occupancy, allowing developers time to lease units and move to lower permanent financing rates. \"What this bill does is it allows the city and the developer to sign an agreement that says we will pay the system development charge 6 months after we receive our certificate of occupancy,\" Gamba said.

Under the proposal, once a city and developer sign the deferral agreement the developer is contractually responsible for the SDCs; if a developer defaults the state would make the city whole by paying SDCs from a dedicated fund and assess a civil penalty (proponents described a 20% fee) plus interest and assign nonpayment to the Department of Revenue for collection. A panel of witnesses told the committee this fund is intended to cover rare defaults while enabling many projects that currently do not \"pencil\" under high construction interest rates.

Housing officials and industry groups said SDCs are a meaningful development cost: Matthew Schawbold, director of Governor Kotek's Housing and Homelessness Initiative, cited the Oregon System Development Charge Study and said the average SDC in Oregon is about $15,000 and can be much higher in some areas. Jonathan Clay of Multifamily Northwest and Kevin Cronin of Housing Oregon said SDCs can equal 3–6% (and in denser low-rise apartments higher) of total development costs and that deferral with a state guarantee could reduce carrying costs and improve feasibility for affordable and market-rate projects.

Committee members asked several clarifying questions. Representative Mannix and others asked whether the state takes a security interest in the property; proponents said placing a lien is permissive, not required, and collection could include assigning debt to the Department of Revenue. Representatives also asked whether cities could already offer such deferrals; proponents said jurisdictions could defer SDCs now but often lack leverage and would prefer the guarantee to avoid local fiscal risk.

Proponents discussed fund sizing. Sponsors said constitutional constraints limit the state to guaranteeing only the money in the fund. Stakeholders reported calculations ranging from a low-end $5 million to a high-end $20 million pot; sponsors said they proposed an initial $10 million pilot to start and grow the program as cities opt in.

Supporters at the hearing included the governor's housing office, Multifamily Northwest, Housing Oregon, the League of Oregon Cities, Sideline Institute, the city manager of Lebanon, Habitat for Humanity affiliates, and the Oregon Housing Alliance. Local officials and developers said the measure would be voluntary for cities and would likely be used more for larger multifamily or subdivision projects than single-family permits.

No formal committee vote was taken on HB 2968 during the March 12 hearing; the committee closed testimony and did not advance the bill that day. The written record remained open and proponents said they were available to answer additional questions as the proposal moves through policy review.

Quotations in this article are taken directly from committee testimony and attributed to witnesses listed in the speaker roster below.","mediaType","Video","parentTitle","House Committee On Housing and Homelessness 03/12/2025 1:00 PM","oneSentenceSummary","House Bill 2968 would let cities defer systems development charges (SDCs) until after occupancy and create a state-managed guarantee and collection process to cover defaults; supporters said the change could make more housing projects financially feasible.","taxTitle","Housing and Homelessness, House of Representatives, Committees, Legislative, Oregon","taxId",18023,"location","Oregon","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6281002,"House committee hears divided testimony on HB 3746, a proposal to reform condominium construction-defect liability",2951,2209000,5160000,"/Search/View?dp=1&key=2608592-0150dce00e590d5e143d8af3dcad7605&start=2209&end=5160","https://assets.pipeline.soar.com/2608592-0150dce00e590d5e143d8af3dcad7605/thumbnail_2209000.jpg","/articles/6281002/Oregon/House-committee-hears-divided-testimony-on-HB-3746-a-proposal-to-reform-condominium-construction-defect-liability","https://secure.pipeline.soar.com/6281002-f55acf91a9fc864fe337050864978206/orig.mp4?Expires=1771204241&Signature=PE4dKHul3Xxpgsq6o23zYEUIozh08iTZsC2T7lYGx7y1z2-wzZ1lCPxElWoENci647E8BDTQvqD5scClKPyzAPgDSkYH1wUUM7~Us-7Eog7kJ92IfngDkmNGY5rZ3bV3Qrp6YeWWmNEVNDOMSqFaOe6zD8kkO-WpyPUtQQMQsuK5OczdNDdspg1XLkrnBRId5Mob0rmAs3-nlebXRmD~5Pn3OOvbc1iz1cucM2IchqYsdPz~Hf1gX5c5pyLsxRzx4DcT0hpAEi9xYc8OfVJQEm0azM6bm0CnDUy43IvZ9rxj3EORr0K1X7xv4iIocK6xpsKLg6yShYm5WQ65vGU5Xg__&Key-Pair-Id=KUT5TJCACFTXG","The House Committee on Housing and Homelessness heard extensive, sometimes sharply divided, testimony on House Bill 3746 on March 12. Sponsors said the measure is intended to revive condominium production—an entry path to homeownership that has largely vanished in Oregon—by reducing developer liability risk and adding inspection requirements. Opponents warned that shortening the statute of ultimate repose could leave homeowners without remedies for latent defects that emerge after several years.

Representative Vicki Breece Iverson introduced the bill and described its history: past efforts in 2019 and 2020 to reform construction-defect laws aimed at increasing condo construction. Senator Mark Meek, a co-sponsor, told the committee that condo starts in Oregon have collapsed since 2006 and that the state needs targeted changes to make condominium development viable again. \"Condos are often the most affordable pathway to home ownership,\" Meek said, adding that Oregon's current liability framework has discouraged developers and insurers.

Key provisions described by sponsors include reducing the maximum developer liability period for construction defects from 10 years to six years (with a one-year extension in limited circumstances for late discovery), creating a right for developers to cure defects to avoid litigation, requiring mandatory independent envelope and moisture-intrusion inspections during construction and before certain milestones, and requiring a majority of unit owners to approve association litigation on defect claims.

Supporters at the hearing included Habitat for Humanity of Oregon, builders and affordable housing developers who said insurance markets and liability risk have suppressed condo production and that reforms in other states correlated with increases in condo starts. Builders and developers asked for carve-outs for very small projects (three- to four-unit developments) where inspection and administrative burdens can be disproportionately costly.

Opponents included the Community Association Institute (CAI), the Oregon Builder Lawyers Association, and some condominium manager and owner representatives. Those witnesses argued the 10-year repose exists because certain latent defects—water intrusion, mold, and improperly installed systems—may not be apparent until well after six years. Blair Townsend of the Oregon Builders Lawyers Association said defects involving moisture intrusion and mold can take seven to nine years to surface and that shortening the statute of repose risks leaving homeowners without recourse.

Witnesses also debated inspection details and who would pay for recurring or follow-up inspections. Some proponents favored inspections at roughly two years and again before year five to detect and address problems earlier; opponents and association managers expressed concern that inspection costs would fall to unit owners or small HOAs and that the bill as drafted was not sufficiently prescriptive about inspection standards and qualified inspectors.

Committee members were told an amendment is forthcoming; sponsors said they continue to work with stakeholders in a standing work group and expected more detailed language to address concerns about inspections, voting thresholds for associations, and protections for homeowners. The committee closed the public hearing and indicated further hearings would follow when amended language is available. The written record remains open for additional comments.","House Bill 3746 would reduce the developer liability period for construction defects and add inspection and voting requirements; the committee heard extensive support and opposition at a March 12 public hearing.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6281011,"House committee adopts amendment to HB 3505 to ease charges tied to residential fire sprinkler meters",247,61000,308000,"/Search/View?dp=1&key=2608592-0150dce00e590d5e143d8af3dcad7605&start=61&end=308","https://assets.pipeline.soar.com/2608592-0150dce00e590d5e143d8af3dcad7605/thumbnail_61000.jpg","/articles/6281011/Oregon/House-committee-adopts-amendment-to-HB-3505-to-ease-charges-tied-to-residential-fire-sprinkler-meters","https://secure.pipeline.soar.com/6281011-1fa8499b1392a3e817485f3acb95363f/orig.mp4?Expires=1771204241&Signature=dtBlQpF6P8Q9X7jveoPoFrcc4LfveY~mdwju8H~-nMPUml34~1sMrleoT3LkQ8A7VhSYeW3EW7hsQisbCAQX4QNDsiCqG2xF8EGmERhys72X5-NNp9pMDOzDdcEVJ5thzBkpwmqj-SWq2scwCq5LGxWlGxHz06m2cJqjMm5aT7JMM3bva-brdZ4yu3eF9qJ~VHCh2GiAz~ixx0fFHQou-t~0-cLXm5tdNXB-19WWb4FEaq3n2Xo92CH7EDlA8~G70X~3q5MQZkaPA0bHXaHzZMhajvDyzLjSag35CsL77jc~l4f5cKmUyg7ibg2V9WCPn~NIg6mWlH0a4zM8jCAwbQ__&Key-Pair-Id=KUT5TJCACFTXG","The House Committee on Housing and Homelessness adopted the -3 amendment to House Bill 3505 and moved the measure to the House floor with a due-pass recommendation after a work session on Wednesday, March 12.

The -3 amendment clarifies how cities may assess systems development charges when a residential fire sprinkler system using National Fire Protection Association (NFPA) 13D standards requires a larger water meter. The amendment covers the portion of the SDC tied to the installation of an NFPA 13D residential fire sprinkler system or the difference between the increased capacity of a water meter required by that sprinkler system and the capacity that would be required without it. Committee staff said the amendment is intended to address concerns raised by the city of Gresham about charging for meters used for purposes beyond sprinklers.

Chair Marsh opened the work session and asked for a summary; committee staff summarized the measure and its minimal fiscal impact. Vice Chair Breece Iverson moved adoption of the -3 amendment. With no discussion offered, the committee conducted a roll call and recorded aye votes. Committee members then moved the bill as amended to the floor with a due-pass recommendation.

Representative Mark Gamba and committee staff had previously described the bill as a way to encourage installation of residential sprinklers by clarifying meter- and SDC-related charges, and proponents said the measure has little fiscal or revenue impact.

The committee selected a carrier for the bill to carry to the floor; Representative Frangula volunteered to carry HB 3505 for the committee.

The committee recorded affirmative roll-call responses from multiple members and the motion to adopt the -3 amendment and the motion to send the bill to the floor passed. The committee concluded the work session and opened the next public hearing on a different bill.

Votes at a glance: The committee adopted the -3 amendments to HB 3505 and recommended the bill to the floor with a due-pass recommendation.","The House Committee on Housing and Homelessness voted to adopt the -3 amendment to House Bill 3505, a measure that clarifies how systems development charges (SDCs) may be assessed when residential NFPA 13D fire sprinkler systems require larger water meters. The committee then recommended the bill to the House floor with a due-pass recommendation.","actionData","errors"]

Article not found

Public hearing on HB 2968: state guarantee proposed to let cities defer system development charges to ease housing finance

House committee hears divided testimony on HB 3746, a proposal to reform condominium construction-defect liability

House committee adopts amendment to HB 3505 to ease charges tied to residential fire sprinkler meters