Governor Tina Kotek Unveils $500M Legislative Housing Plan

Salem, Oregon- Governor Tina Kotek recently revealed the details of her 2024 legislative housing production proposal, aimed at addressing Oregon’s severe housing shortage. The focal point of this initiative is Senate Bill 1537 (Legislative Concept 19), a result of extensive stakeholder engagement spanning several months.

Expressing the urgency of the housing crisis, Governor Kotek emphasized, “Decades of underbuilding have left Oregon with a severe housing shortage that is driving up rents, home prices, and worsening our homelessness crisis.”

The singular focus on SB 1537 this year underscores its importance as a comprehensive solution to the state’s housing challenges. The proposed bill encompasses key provisions designed to tackle various aspects of the housing crisis:

1. Housing Accountability and Production Office (HAPO):
Governor Kotek’s plan introduces the Housing Accountability and Production Office (HAPO), offering a structured process to address complaints, concerns, and issues related to state housing law. HAPO aims to enhance collaboration with local governments, prioritizing cooperation over enforcement actions.

2. Land Supply Expansion:
SB 1537 provides a one-time tool for cities in need of land and affordable housing to expand their urban growth boundary (UGB). Consent from property owners is mandatory, and eligible land types include urban reserve, non-resource land, or exception land. Strict metrics ensure that cities meet land and affordability requirements to use this tool.

3. Housing Affordability Mandate:
To address affordability challenges, the bill mandates that 30% of all housing units in expansion areas must be legally restricted for affordable housing. This requirement surpasses standards set by most jurisdictions nationwide, reflecting Oregon’s commitment to guaranteeing affordability.

4. Climate-Friendly Homes:
SB 1537 allocates funds for grants supporting the construction of energy-efficient, affordable housing. This initiative aims to reduce energy costs for low-income residents and stabilize operational costs for property owners, contributing to a climate-friendly housing landscape.

5. Robust Funding Package:
Governor Kotek proposes a $500 million investment package from existing state resources to bolster housing production. The breakdown includes allocations for housing infrastructure financing, moderate-income housing financing, site acquisition, climate-friendly incentives, site mitigation, local housing planning, and HAPO.

The bill will be publicly posted on the Oregon legislative website later in the 2024 legislative session, allowing citizens to engage with the proposed measures.