Oregon House passes Bill 2964 to fund affordable housing predevelopment costs

The Oregon State Legislature convened on April 11, 2025, to discuss House Bill 2964, a significant legislative proposal aimed at addressing the state's affordable housing crisis. This bill, sponsored by a bipartisan group of representatives and senators, seeks to establish a framework for providing loans to support the predevelopment costs associated with affordable housing projects.

House Bill 2964 mandates the Oregon Housing and Community Services Department (OHCS) to award loans specifically for predevelopment expenses, which include professional services, feasibility studies, development fees, and community engagement efforts. Notably, the bill stipulates that these loans cannot be used for land purchases, ensuring that funds are directed towards the initial stages of housing development. To qualify for these loans, projects must adhere to affordability restrictions, ensuring that the housing remains accessible to low-income households for a defined period.

The bill also establishes the Affordable Housing Predevelopment Loan Fund, which will be continuously appropriated to facilitate these loans. Additionally, it requires the OHCS to adopt initial rules by June 1, 2026, and to integrate existing predevelopment loan programs into this new framework. The program is set to sunset on January 2, 2028, unless extended.

During the legislative discussions, proponents of the bill emphasized the urgent need for affordable housing solutions in Oregon, citing rising housing costs and increasing homelessness as critical issues. However, some opposition arose regarding the potential effectiveness of the loan program and concerns about the long-term sustainability of funding for affordable housing initiatives.

Experts in housing policy have noted that while House Bill 2964 represents a proactive step towards alleviating the housing crisis, its success will depend on the effective implementation of the loan program and the ability of the OHCS to manage the funds efficiently. The bill's passage could have significant social implications, potentially increasing the availability of affordable housing and improving living conditions for low-income families across the state.

As the legislative session progresses, stakeholders will be closely monitoring the developments surrounding House Bill 2964, which could set a precedent for future housing initiatives in Oregon. The bill's emergency clause indicates a sense of urgency among lawmakers to address the pressing housing needs in the state, signaling a commitment to finding solutions in a challenging economic landscape.