Washington’s takings ruling carries lessons for Oregon housing providers [8/10/26]
August 10, 2026
Aaron Kirk Douglas

Washington’s takings ruling carries lessons for Oregon housing providers [8/10/26]

Washington court ruling reinforces a Ninth Circuit trend Oregon owners should watch

NOTE: Since this story was originally published, RHAWA has appealed to the 9th Circuit and plans to appeal to the U.S. Supreme Court if necessary. 
U.S. District Judge Barbara Rothstein dismissed the RHAWA-backed Cedarland Homes LLC v. Ferguson case on Aug. 5, rejecting a physical-takings challenge to Washington’s COVID-era eviction moratoriums. Although Rothstein’s ruling is not itself binding on federal courts in Oregon, it follows the same legal reasoning used by Ninth Circuit panels in previous challenges to COVID eviction restrictions in Seattle and Los Angeles. Those courts have repeatedly distinguished landlord-tenant regulation from the government-authorized physical invasions addressed by the U.S. Supreme Court in Cedar Point Nursery v. Hassid.[1]

Why it matters: Oregon and Washington are both within the Ninth Circuit, so the developing body of federal appellate law on landlord takings claims is directly relevant to owners in both states. While the recent Ninth Circuit decisions on this precise issue have been unpublished and are not generally binding precedent, they show how federal courts in this circuit have been analyzing eviction restrictions. For Oregon housing providers facing extensive landlord-tenant regulation, Cedarland adds another decision pointing in the same direction.

Portland has less supply than Seattle but still weaker rent growth

Only about 2,400 apartment units remain under construction in Portland, compared with approximately 14,600 in Seattle. Yet Seattle effective rents increased 0.7% during the past year, while Portland’s declined 0.3%. CoStar points to stronger Seattle population and employment growth as a major difference. Portland has posted healthy occupancy gains, including in Vancouver, Washington, but those improvements have not yet translated into broad rent growth across the metro.[2]

Why it matters: Portland’s construction slowdown is finally reducing supply pressure, but that alone will not create rent growth. Investors looking for the next stage of recovery should watch employment, migration, and household formation just as closely as deliveries.

Southwest Washington parking rules begin changing in January 2027

Washington’s Parking Reform and Modernization Act will limit multifamily parking mandates in covered jurisdictions to no more than 0.5 required space per dwelling unit. Jurisdictions with populations of 50,000 or more must comply by Jan. 27, 2027, while covered jurisdictions between 30,000 and 50,000 have until July 27, 2028.[3]

Why it matters: The reform is particularly relevant to Portland-area developers looking north of the Columbia River. Reduced parking requirements can improve land efficiency and project feasibility, adding another meaningful difference between the development environments on opposite sides of the river.

Oregon revives permanent lending for affordable apartments

Oregon Housing and Community Services has relaunched its Permanent Loan Program, providing fixed-rate permanent mortgages for affordable rental housing once properties stabilize. The program includes elderly and disabled bonds and a HUD risk-share product, and it marks the first time in nearly two decades that the agency has directly financed long-term mortgages for affordable rental housing.[4]

Why it matters: Affordable housing developers have been struggling with higher permanent loan costs and refinancing gaps. A lower-cost public option can improve debt coverage, reduce refinancing risk, and provide another exit from expensive construction financing.

$3 million Gladstone lawsuit highlights a low-cost safety risk

The owners and operators of Rivergreen Apartments in Gladstone face a $3 million lawsuit after a 7-year-old girl fell from a third-story bedroom window and suffered severe injuries. The complaint alleges that a window stop costing only a few dollars could have limited the opening and prevented the fall. Current building standards would require additional window safety measures in circumstances where the early-1990s property was constructed under older standards, according to the plaintiff’s attorney.[5]

Why it matters: Older properties often contain conditions that complied with code when they were built but would not meet today’s standards. For owners, the case is a reminder that extremely inexpensive preventive measures may be worth considering during unit turns and safety inspections even when a formal retrofit is not legally required.

Albina Vision Trust could turn Rose Quarter parking into a neighborhood

Portland is considering a development partnership with Albina Vision Trust involving underused property around the Moda Center, including parking facilities and other parcels. The longer-term vision is a mixed-use district incorporating housing, jobs, retail, public space, and entertainment while reconnecting a Lower Albina neighborhood substantially altered by earlier urban renewal projects.[6]

Why it matters: The long-term multifamily story is the land surrounding the arena. If public investment makes the Rose Quarter more active, connected, and developable, some of Portland’s most underused centrally located property could become residential land.

Moda Center deal could bring $573 million in public investment

Portland City Council is considering terms for as much as $120 million in city funding for Moda Center renovations. City participation would unlock $365 million in state funding and another $88 million from Multnomah County, potentially bringing the total public contribution to $573 million. The proposed term sheet also includes a 20-year commitment for the Trail Blazers to play home games at the arena and requires the team to cover costs beyond the public contribution.[7]

Why it matters: The arena itself is not a multifamily project, but public investment on this scale could materially affect conditions around the Rose Quarter and Lower Albina. Owners and developers should watch whether the spending leads to housing sites, infrastructure, and neighborhood activation rather than simply a renovated arena.

Bend considers public financing to push housing production higher

A city-appointed committee is recommending that Bend consider a voter-approved housing bond of roughly $50 million to $100 million, along with expanded property tax and infrastructure fee exemptions and new lending or credit-support programs. The proposed bond could support roughly 350 to 1,000 homes. Oregon’s Housing Needs Analysis estimates Bend will need more than 33,000 additional homes during the next 20 years.[8]

Why it matters: Bend’s housing discussion is moving beyond zoning into the harder question of project economics. Developers may gain new financing tools and fee relief, but taxpayers and policymakers will have to decide how much public capital they are willing to put behind housing production.

Hillsboro income gains show how quickly submarkets can change

Two Hillsboro census tracts more than doubled inflation-adjusted median household income between 2014 and 2024. The Calle Diez area increased from less than $30,000 to roughly $77,000, while another Hillsboro tract increased from about $36,000 to $85,000. The Portland metro’s average increase over the same period was approximately 25%.[9]

Why it matters: Apartment demand can change dramatically within a few miles. Neighborhood-level income growth can support different rents, amenities, and unit mixes even when metro-wide statistics suggest much slower change.

HFO Gresham sale earns CoStar recognition

CoStar recognized the $60.8 million sale of a two-property, 337-unit Gresham apartment portfolio among the Portland market’s top second-quarter transactions. MG Properties acquired the properties from Investment Property Group, with HFO Investment Real Estate’s Tyler Johnson and Cody Hagerman representing the parties.[10]

Why it matters: Large suburban transactions remain an important test of investor confidence in the Portland market. This sale demonstrates continued demand from an experienced Western U.S. multifamily operator even while broader Portland rent growth remains soft.

Daimler job cuts add another headwind to Portland apartment demand

Daimler Truck North America plans to eliminate 387 production jobs at its Swan Island factory as manufacturing shifts to North and South Carolina. Its North American headquarters will remain in Portland, and the company plans to consolidate parts distribution into Prologis Broadmoor, a new 271,828-square-foot warehouse in Northeast Portland.[11]

Why it matters: The apartment market cannot fully recover without employment growth. Portland’s much smaller construction pipeline is helping the supply side of the equation, but job losses such as these demonstrate why demand remains the larger question.

Federal Laws and Policy

LIHTC carryback proposal could strengthen affordable housing equity

A bipartisan, bicameral proposal would allow Low-Income Housing Tax Credit investors to carry credits back five years rather than one, potentially allowing investors to use the credits against tax liabilities from earlier years.[12]

Why it matters: Greater flexibility could improve LIHTC pricing and preserve investor appetite during recessions, helping affordable housing developers fill more of their capital stacks with equity instead of additional debt or subsidy.

Green New Deal for Public Housing reintroduced

Federal lawmakers have reintroduced the Green New Deal for Public Housing Act, proposing extensive federal spending on public housing modernization, electrification, energy efficiency, resiliency, and workforce development.[13]

Why it matters: The immediate prospects for enactment are uncertain, but large federal housing investment proposals matter to private developers because they can affect construction labor, materials demand, energy standards, and the direction of future federal housing policy.

Sources:

[1] Cedarland Homes LLC et al. v. Ferguson et al., U.S. District Court for the Western District of Washington. Federal case docket via Justia; Rental Housing Association of Washington, “A Tale of Two Lawsuits.” The Aug. 5 dismissal details are based on the court-order writeup supplied for this roundup.

[2] CoStar Analytics, Aug. 7, 2026, “Seattle pulls ahead of Portland on multifamily rent growth despite much larger construction pipeline.”

[3] Washington State Legislature, Engrossed Substitute Senate Bill 5184, Chapter 204, Laws of 2025; RCW 36.01.397.

[4] KVAL, Aug. 3, 2026, “OHCS launches Permanent Loan Program to help affordable housing projects.”

[5] The Oregonian/OregonLive, Aug. 6, 2026, “Mom sues landlord for $3M, contends $5 device could’ve prevented daughter from plummeting from window.” OregonLive Real Estate.

[6] Portland Business Journal, Aug. 7, 2026, “Portland to consider development partnership with Albina Vision Trust.”

[7] KGW, Aug. 6, 2026, “What Portland city councilors say they need to support the Moda Center deal.”

[8] The Source Weekly, Aug. 4, 2026, “Bend City Council to Consider Ways to Spur Housing.”

[9] Portland Business Journal, Aug. 10, 2026, “Hillsboro areas lead Portland’s income gains over last decade.”

[10] CoStar Research, Aug. 3, 2026, “Top property sales recognized for Portland.”

[11] CoStar News, Aug. 3, 2026, “Daimler Truck to move parts distribution to new Prologis warehouse in Oregon.”

[12] U.S. Government Publishing Office, H.R. 9012, Affordable Housing Credit Carryback Act; Rep. Mike Carey, Affordable Housing Credit Carryback Act announcement.

[13] Office of Rep. Alexandria Ocasio-Cortez, Aug. 6, 2026, “Ocasio-Cortez, Sanders, Ramirez Reintroduce the Green New Deal for Public Housing Act.”

 

HFO Investment Real Estate is the largest multifamily-only brokerage in the Pacific Northwest, with 12 brokers focused exclusively on apartment investment sales in Oregon and Washington. Call (503) 241-5541

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