Governor Kotek Signs Bills that Break Down Barriers to Housing Construction

Hillsboro, OR – Today, Governor Tina Kotek commemorated the signing of House Bill 2138, House Bill 3031, House Bill 2258, Senate Bill 684, and House Bill 3145, bipartisan bills aimed at building the housing that Oregonians need with the urgency they deserve. These bills are an essential component of the Governor’s work to break down barriers to more housing construction and bring down the costs of housing across the state.

“Families struggling with the high cost of living are forced to make impossible choices, between staying in the communities they love or finding a place they can afford. This affordability crisis is the stubborn engine of our homelessness crisis,” Governor Kotek said. “Solving this decades-old problem demands that we bring creative, practical solutions to increase the supply of all kinds of homes as fast as we can. We have to cut red tape and get out of our own way. We have to invest in affordable housing projects. We have to help our cities and counties build the infrastructure they need to start building new homes.”

Habitat for Humanity hosted the event at their site in Hillsboro, Century Commons. Construction at Century Commons will soon be complete with 18 affordable homes, including townhomes and single-level, ADA-accessible homes. The Governor spoke at the event with Deborah Flagan, Vice President of Hayden Homes; Tillamook County Commissioner Erin Skaar; and Brett Dery, a homeowner.

House Bill 2138 legalizes and speeds up the production of middle housing to give Oregonians the housing options that suit their needs and lower the price of housing for everyone. The bill builds on the Governor’s long history of right-sizing state housing policy to better meet Oregon’s needs and turn back the impacts of exclusionary and discriminatory zoning policies.

“I never thought I’d be able to say this, but I’m a homeowner in Bend, Oregon, and that’s because affordable housing is finally being prioritized,” Brett Dery, Central Oregon Homeowner, said. “The legislation Governor Kotek signed will help families like mine find stability, freedom, and a real place in their community. It means living where we work, biking through our neighborhood, and building a future with confidence. I’m grateful for the Governor’s leadership and commitment to making homeownership possible for more Oregonians.”

House Bill 2258 will provide a series of pre-approved building plans, streamlining approval processes and eliminating barriers to building small apartments, single-unit dwellings, duplexes, townhomes, and other middle housing options. The bill would also create land use and design standards for the plans, providing clarity and predictability for developers, cities, and counties.

“At Hayden Homes, we’re committed to building homes that the area median wage earner can afford. This year, we opened new communities in Albany, Cottage Grove, and Bend, with homes starting between 90-100% average medium income,” Deborah Flagan said. “These communities are a direct result of past bipartisan legislation allowing for zoning reform and the integration of mixed housing types. I want to thank Governor Kotek for her unwavering leadership. Today’s bill signing reflects the continued commitment to tackling Oregon’s housing shortage head-on.”

House Bill 3031 creates the Housing Infrastructure Project Fund, which is designed to reduce infrastructure barriers to development with strategic investments. It would provide loans, forgivable loans, and grants to cities, counties, special districts, and federally recognized tribes to fund transportation, water, wastewater, stormwater, and site development projects that are directly linked to housing development.

“When I started working on housing in Tillamook County, we hadn’t seen a new affordable development in nearly 20 years. We needed homes for families, seniors, and our workforce, not just vacation properties,” Tillamook County Commissioner Erin Skaar said. “One thing was clear: this work needs a champion. For Oregon, that’s Governor Kotek. Thanks to her leadership, communities like ours are finally making real progress.”

Senate Bill 684, introduced by Senator Khan Pham, creates the Construction Revolving Loan Fund, a new tool to provide long-term financing for mixed-income residential housing.

“Senate Bill 684 allows us to take the first steps towards building a revolving loan fund that in the future can get subsidized construction loans in the hands of developers eager to build both market-rate and affordable housing in communities across the state,” Senator Khanh Pham (D-Outer SE & NE Portland) said.

“Housing is a bipartisan problem and requires bipartisan solutions,” Senator Dick Anderson (R-Lincoln City) said. “It is clear Governor Kotek and the Legislature are committed to finding solutions to our housing crisis.”

House Bill 3145, introduced by Representative Pam Marsh (D-Southern Jackson County), sets aside $25 million in Local Innovation and Fast Track (LIFT) funds to build factory-produced housing. These modular homes can be built faster and at a lower cost than traditional construction, positioning them as a crucial tool to urgently meet the state’s housing goals.

“Getting out of this housing hole requires us to re-examine our conventional ideas on so many fronts, including land use, permitting, design, and financing. The use of factory-based components that can get homes on the ground more quickly and, perhaps, more inexpensively, needs to be a pillar in our state’s housing strategy,” Representative Marsh said. “House Bill 3145 provides Oregon developers, builders, factory operators, and communities the chance to test new approaches that could help us break through barriers to housing production.”

Since Day One of her term, the Governor has been laser-focused on solutions to create a healthy housing market, where everyone can afford a home. As a result, the state estimates that in the Governor’s first biennium in office, 2,800 affordable housing units were financed and infrastructure for over 25,000 affordable and market-rate housing units were provided. Additionally, tools have been established to continue to accelerate the development of more housing, including the Housing Accountability and Production Office (HAPO), a moderate-income revolving loan (MIRL) fund, and a state land inventory.

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