Oregon’s Housing Bills Decoded: What Owners & Developers Need to Know Now – May 20, 2025
In this rundown, we break down high-priority, medium-priority, and low-priority bills that could impact property owners and the multifamily housing market. Potential changes range from permitting timelines to rent assistance and new rules for tax exemptions. This update is essential for anyone invested in Oregon’s rental housing landscape.
The Oregon legislature is set to wrap no later than Monday, June 30th. Here’s this week’s update:
High-priority bills:
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Senate Bill 426 A—This is one to watch, with strong opposition from Multifamily NW. SB 426 would make owners and direct contractors jointly liable in civil actions for any unpaid wages to unrepresented employees. A work session was held on May 19th. For property owners, this legislation could mean taking on more risk and financial liability.
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Senate Bill 814 A (High Support) extends rent assistance to people under 25. It’s already moved fast: it passed the House floor on May 12th, was signed by the Senate President on May 13th, and was signed by the Speaker of the House the very next day. The legislation should offer new stability for younger renters facing housing insecurity.
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Another high-support bill is SB 974 A, which would accelerate permitting timelines. If you’re trying to get a project approved, cities must respond to your application within two weeks, and there are firm deadlines for final engineering approvals. These requirements may alleviate development delays.
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MultifamilyNW strongly opposes House Bill 3521-A. HB 3521 would require housing providers to pay damages if a lease isn’t executed, even if the reason is entirely out of their control. This change significantly impacts costs and risks for owners and managers.
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But there’s some relief in House Bill 3522A, which has MultifamilyNW’s high support. This bill would simplify squatter removal, making it easier and faster to turn over units to responsible tenants, which would benefit both providers and residents looking for housing.
Medium-priority bills
There’s also a lot happening with these medium-priority bills:
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SB 500-1: With medium support from MultifamilyNW, this directs a study of rent control effects in Oregon.
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SB 586 A is assigned medium priority support. This bill reduces the notice period—from 90 to 60 days—that a landlord must give a tenant when selling a property. It still requires the owner to pay a relocation fee, but it gives property owners a bit more flexibility.
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SB 684 A would establish a state program providing low-interest, short-term loans for the construction of mixed-income public developments, facilitating financing for diverse housing in Oregon.
MultifamilyNW supports all three of the tax exemption bills that have come out of committee.
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House Bill 2074 extends the sunset date for tax exemptions on multi-unit and affordable housing development projects from January 2026 to January 2032. The legislation could make or break the math for the future of affordable housing.
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HB 2077: Also supported at a medium level, this would extend the current policy by keeping property tax exemptions alive for nonprofit-run low-income housing through January 2032.
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HB 2078: This extends the sunset for property tax exemptions for multi-unit rental housing from 2027 to 2033. All three of these bills passed out of committee unanimously on May 12th—a rare show of consensus in Salem.
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HB 2567 A expands Oregon’s heat pump program, which should help both providers and tenants with affordable heating and cooling. Governor Kotek signed this into law on May 14th.
Low-Priority Bills
Finally, on to low-priority bills. Even if the stakes are lower, it’s still important to know what’s on the table:
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HB 3054 A: This is a manufactured housing rent control bill. MultifamilyNW opposes it, but it’s notable because it would cap rent increases at 6 percent. There’s a newer version that would allow higher increases if park residents agreed, and the extra money supports park improvements.
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HB 3378: This is another low-priority bill the industry opposes. It would require housing providers to offer an alternative mode of entry if the primary method is a phone app. Multifamily housing owners have pushed back, saying that most already provide backup methods for tenants locked out.
In summary, the Oregon legislature’s session is rapidly coming to an end, with numerous housing-related bills currently under consideration. Changes to permitting, tax exemptions, rent control studies, and more will all shape the environment for multifamily housing in the state. MultifamilyNW is right there in the mix, advocating for a healthy, balanced housing market.
We’ll be watching the session’s final days—and the governor’s pen—very closely. As always, we’ll keep you updated on what these legislative moves mean for Oregon’s multifamily market.
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