SB 1567

83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session
  Enrolled
  Senate Bill 1567
Sponsored by Senators PHAM K, ANDERSON, MEEK, PATTERSON; Senators BROADMAN,
   FREDERICK, GELSER BLOUIN, GOLDEN, NERON MISSLIN, SOLLMAN, Representatives
   ANDERSEN, CHAICHI, CHOTZEN, DOBSON, GAMBA, GOMBERG, HUDSON, JAVADI, LEVY
   E, MANNIX, MCDONALD, MCLAIN, MUNOZ, NELSON, NOSSE, PHAM H, RIEKE SMITH,
   TRAN, WISE (Presession filed.)
  CHAPTER .................................................
  AN ACT
Relating to mixed income housing; creating new provisions; amending ORS 456.550, 456.612 and
    456.620; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
    SECTION 1. Sections 2 and 3 of this 2026 Act are added to and made a part of ORS 456.548
to 456.828.
    SECTION 2. (1) As used in this section, “mixed income housing” means multifamily
housing, as defined in ORS 456.717, that includes both units available at fair market value
and units restricted for low income households, as defined in ORS 456.270.
    (2) The Housing and Community Services Department shall develop and implement a
program to provide below-market, short-term loans for the development of mixed income
housing.
    (3) The department shall adopt rules for loans provided under this section that establish:
    (a) Eligibility criteria;
    (b) The method by which interest rates and terms are set;
    (c) The proportion of housing units that must be restricted units;
    (d) The minimum duration for which restricted units must be affordable, which must be
at least the term of the loan; and
    (e) The means by which a project that receives a loan described in this section may en-
sure affordability of restricted units through an affordable housing covenant, as defined in
ORS 456.270.
    (4) Loans under this section must be made subordinate to any existing or concurrently
made private loan on the property, unless the private lender agrees otherwise.
    (5) The department shall deposit payments made under this section into the Mixed In-
come Development Loan Fund under section 3 of this 2026 Act.
    SECTION 3. (1) The Mixed Income Development Loan Fund is established in the State
Treasury, separate and distinct from the General Fund. Interest earned by the Mixed Income
Development Loan Fund is credited to the fund.
    (2) The fund consists of:
    (a) Moneys received under section 2 (5) of this 2026 Act;
Enrolled Senate Bill 1567 (SB 1567-B)  Page 1
     (b) Moneys appropriated, allocated, deposited or transferred to the fund by the Legisla-
tive Assembly;
     (c) Authorized bond proceeds; and
     (d) Moneys from any other source, including from the federal government or local gov-
ernment.
     (3) Moneys in the fund are continuously appropriated to the Housing and Community
Services Department to implement this section and section 2 of this 2026 Act.
     SECTION 4. On or before January 1, 2027, the Housing and Community Services Depart-
ment shall adopt initial rules implementing section 2 of this 2026 Act.
     SECTION 5. ORS 456.550 is amended to read:
     456.550. (1) There exists in this state a seriously inadequate supply of and a pressing need for
safe and sanitary dwelling accommodations within the financial means of persons and families of
lower income, including but not limited to persons and families displaced by the clearing of [slums
and] blighted areas or by other public programs;
     (2) Private lending institutions have been and will continue to be unable to provide necessary
financial support for [lower income] housing and the resulting shortage of financing has been in
whole or in part responsible for the shortage of lower income housing;
     (3) It is a valid public purpose to provide for the construction, rehabilitation, purchase, leasing
and refinancing of housing for such persons and families who would otherwise be unable to obtain
adequate dwelling accommodations which they could afford and to aid in the acquisition of land for
present or future developments including such housing accommodations;
     (4) It is further found that the authority and powers conferred by ORS 456.548 to 456.828 and
ORS chapter 458 upon the Housing and Community Services Department and the Director of the
Housing and Community Services Department constitute a necessary public program and serve a
valid public purpose;
     (5) To stimulate and increase the supply of housing for persons and families of lower income it
is necessary that a central source of housing information, planning, educational services and tech-
nical assistance and a revolving fund be established. The Housing and Community Services Depart-
ment shall be that central source in this state;
     (6) It is the policy of this state to increase the amount of and improve the condition of low and
moderate income housing by investing in developing local capacity to build, rehabilitate and manage
housing. A primary vehicle for building such capacity is the formation and expansion of community
development corporations; and
     (7) In that the [farmworkers] agricultural workforce in this state [benefit] benefits the social
and economic welfare of all of the people in Oregon by [their] its unceasing efforts to bring a
bountiful crop to market, the Legislative Assembly declares that it is the policy of this state to en-
sure adequate accommodations commensurate with the housing needs of Oregon’s [farm] agricul-
tural workers that meet decent health, safety and welfare standards. To accomplish this objective
in the interest of all of the people in this state, it is necessary that:
     (a) Every state and local government agency that has powers, functions or duties with respect
to housing, land use or enforcing health, safety or welfare standards, under this or any other law,
shall exercise its powers, functions or duties consistently with state policy and in a manner that
will facilitate sustained progress in attaining the objectives established;
     (b) Every state and local government agency with jurisdiction over [farmworker] agricultural
workforce activities must make every effort to alleviate insanitary, unsafe and overcrowded ac-
commodations;
     (c) Special efforts should be directed toward mitigating hazards to families and children; and
     (d) Accommodations must be designed to provide for the rights of free association to seasonal
[farmworkers] agricultural workers.
     SECTION 6. ORS 456.612 is amended to read:
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    456.612. The Legislative Assembly finds and declares that the primary purpose of financing by
the Housing and Community Services Department is to provide affordable housing for persons and
families of lower income, including by financing the development of mixed income housing.
    SECTION 7. ORS 456.620 is amended to read:
    456.620. In carrying out housing programs, the Housing and Community Services Department
shall:
    (1) With the approval of the Oregon Housing Stability Council, adopt standards for the planning,
development and management of housing projects for which qualified housing sponsors receive all
or a portion of any required financing under ORS 456.548 to 456.828, for audits and inspections to
determine compliance with such standards and adopt criteria for the approval of qualified housing
sponsors under ORS 456.548 to 456.828.
    (2) Adopt criteria by which the department may approve or disqualify qualified housing spon-
sors.
    (3) Enter into agreements with qualified housing sponsors to regulate the planning, development
and management of housing projects constructed with the assistance of the department under ORS
456.548 to 456.828.
    (4) With the approval of the council, establish maximum household income limits for all or a
portion of the units in housing projects, including housing developments or other residential hous-
ing, financed in whole or in part by the department. The department may finance only [the portion
of] housing projects [consisting of] including one or more units rented to households with an in-
come below 120 percent of the area median income, as defined in ORS 458.610. The department shall,
by rule, adopt a methodology for allocating the affordable housing portion of a housing project’s
shared costs, including infrastructure and parking. For a housing project financed by the depart-
ment, the council may establish a minimum ratio or number of units that will be rented to house-
holds with an income below 120 percent of the area median income. [If the income level in any unit
exceeds 120 percent of the area median income, the department shall, to the extent practicable, require
that the project, development or other housing financed by the department have no less than a minimum
percentage of low income units as established by rule.] Income limits for department programs ad-
ministered on a statewide basis may be established by reference to the area median income. This
subsection does not restrict the acquisition of manufactured dwelling parks.
    (5) With the approval of the council, ensure that financing is provided in the department’s pro-
grams for manufactured housing and for the purchase of lots described in ORS 92.840 by manufac-
tured dwelling park tenants.
    SECTION 8. Notwithstanding ORS 307.237, the amount of $20 million is transferred from
the Housing Project Revolving Loan Fund to the Mixed Income Development Loan Fund es-
tablished by section 3 of this 2026 Act. The transfer shall be made on the effective date of
this 2026 Act.
    SECTION 9. This 2026 Act takes effect on the 91st day after the date on which the 2026
regular session of the Eighty-third Legislative Assembly adjourns sine die.
Enrolled Senate Bill 1567 (SB 1567-B)  Page 3
Passed by Senate February 27, 2026  Received by Governor:
  ........................M.,........................................................., 2026
        ..................................................................................
  Approved:
  Obadiah Rutledge, Secretary of Senate
  ........................M.,........................................................., 2026
        ..................................................................................
  Rob Wagner, President of Senate
  ..................................................................................
  Tina Kotek, Governor
Passed by House March 4, 2026
  Filed in Office of Secretary of State:
        ..................................................................................   ........................M.,........................................................., 2026
  Julie Fahey, Speaker of House
  ..................................................................................
  Tobias Read, Secretary of State
Enrolled Senate Bill 1567 (SB 1567-B)  Page 4