Oregon’s 2025 Housing Legislation: What Multifamily Owners, Investors & Developers Need to Know This Week – May 26, 2025

With Governor Kotek’s signature last week, Oregon rolled out a comprehensive set of new housing laws that will have serious implications for the multifamily sector, from stricter notice periods on affordable housing to new rules for lease terminations. It expanded rental assistance program eligibility to tighter regulations and landlord compliance requirements. Whether you’re an owner, investor, or developer, understanding the impact—and the industry’s stance—on key bills like SB 973, HB 2134, and SB 974 is essential for future planning and risk mitigation.

Below the bills the governor signed into law, we’ve got a list of items still working their way through the Oregon legislative process, along with industry insight and positions taken by Multifamily NW, the largest multifamily housing association in Oregon.

Oregon Housing Bills that are Now Law and Which Are Still Pending

Governor Tina Kotek signed these bills into law last week:

• HB 2134: Tenants can terminate leases early without penalty if the landlord issues a non-renewal notice. Landlords cannot charge early termination fees or rent beyond the move-out date with a 30-day written notice from tenants. (Industry opposed.) Effective January 1, 2026.

• HB 3378: Requires landlords to provide a tangible key or access code alongside app-based access. (Multifamily NW opposed as redundant, unnecessary legislation.) Effective January 1, 2026. 
• SB 814: Expands eligibility for long-term rental assistance programs for individuals under 25 while consulting additional stakeholders in program design. (Multifamily NW support – high.  Helpful for college students and others.) Effective January 1, 2026. 
  

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• SB 973: SB 973 tightens rules for landlords withdrawing from affordability programs—giving tenants more time, transparency, and protection—and grants the state new tools to preserve affordable housing. (Multifamily NW support – medium.) Effective date: 91^st day after adjournment.  Important implications to Affordable Housing in Oregon, summary follows:
  
  Key Provisions:

1. New Tenant Disclosures (Section 2)
   • Before charging application fees or signing a lease, landlords of publicly supported housing must provide written notice to applicants:
   • Either the standard notice under ORS 456.259(4), or
   • A new written notice (if the first doesn’t apply) with the earliest date affordability restrictions could end, using a form prescribed by the Housing and Community Services Department.
     

2. Stronger Notification Requirements (Section 3 – ORS 456.259 Update)

Landlords must:

• • Give tenants 30–36 months’ notice (increased from 20–24) before ending affordability restrictions.
  • Provide the notice in plain language, include safe harbor provisions, and translate into the top five non-English languages in Oregon.
  • Deliver it by mail and post it in a common area.
  • Notify prospective tenants during the 30 months prior to affordability termination.
    

Penalties for Noncompliance:

Failure to notify means the affordability restrictions are automatically extended—no earlier than 30 months after proper notice is given.

Right of First Refusal & Purchase (Section 4 – ORS 456.262 Update)

• • The state may appoint a “designee” to purchase the property to preserve affordability.
  • A qualified purchaser can make a purchase offer and record a right of first refusal, valid for 36 months after affordability ends.
  • The owner must provide property-related documents to the purchaser on request.
  • Documents are confidential but can be shared with funders or regulators under confidentiality agreements.
  • The department can record the right of first refusal itself if no purchaser acts within 60 days of termination
    

4. By December 1, 2025, the Housing and Community Services Department must:

• • Create tenant notice forms
  • Post forms and translations on its website
    

Multifamily NW – Industry Opposition – High – 

• SB 690-1 This bill would ban evictions on pregnant women and mothers of children under the age of 1 if they are set to receive rent assistance through the OHA 1115 waivers. The industry opposes this bill because it requires landlords to monitor the pregnancy status of tenants invasively.
• HB 3521 A This bill requires providers to pay damages if a lease isn’t executed, even for reasons beyond their control, increasing costs; passed out of Senate Housing Committee unanimously on 5/19 – waters down execution deposit process/agreement.
• HB 3974 Limits the applicant screening charge a residential landlord may collect to $20; referred to Rules.

Industry Support – High

• SB 974 A8 This bill expedites permitting timelines, requires cities to respond to applicants within 2 weeks and has certain timelines for final engineering approval; further public testimony due to several amendments (A8 was adopted and extends deadlines, drops automatic fee awards, adds in a new land use track option and  a broad pre-emption of local design standards) passed out of committee 10-1 on 5/21
• HB 3522-A This bill simplifies squatter removal, making units available to responsible tenants faster; passed out of the Senate Housing Committee unanimously on 5/19

Industry Oppose – Medium

• SB 426 A This bill would make an owner and a direct contractor jointly liable in a civil action for any unpaid wages to an unrepresented employee; passed out of committee 4-3
• SB 444 A This bill requires the Director of the Department of Consumer and Business Services to adopt rules to conform the state building code to accessibility requirements under the Fair Housing Act and certain American National Standards Institute standards for housing accessibility. This bill effectively increases the number of Type A dwelling units by 2.5x. It adds additional expense and more units than are likely necessary; no study of actual units was needed prior to coming up with this number.

Multifamily NW Industry Support – Medium

• SB 586 A reduces from 90 to 60 days the termination notice that a landlord must give the tenant when selling the dwelling, and you have to pay a relocation fee; passed out of committee unanimously on 5/21 (4-3 vote)
• HB 2074 extends the sunset date for vertical housing development projects; passed the Senate floor unanimously on 5/21
• HB 2077 extends the sunset date for the property tax exemption for nonprofit corporation low-income housing; passed the Senate floor unanimously on 5/21
• HB 2078 extends the sunset date for the property tax exemption for multiunit rental housing; passed the Senate floor unanimously on 5/21

Multifamily NW Industry Oppose – Low

• HB 3054 is a manufactured housing rent control bill that would cap rent increases at 6%; the engrossed-A version allows for a greater increase if agreed upon by park residents; passed out of committee with a 3-2 vote on 5/21

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