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Oregon Governor Tina Kotek Signs Landmark Housing Bills Aimed at Alleviating Affordability Crisis

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Published on July 30, 2025
Oregon Governor Tina Kotek Signs Landmark Housing Bills Aimed at Alleviating Affordability CrisisSource: Google Street View

Oregon's Governor Tina Kotek marked a significant shift in housing policy with the signing of a series of bipartisan bills. At a Habitat for Humanity event in Hillsboro, Kotek commemorated the new legislation designed to expedite housing construction and make it more accessible across the state. The suite of bills includes House Bill 2138, House Bill 3031, House Bill 2258, Senate Bill 684, and House Bill 3145, as detailed in a statement from the governor's office.

Among the key measures is House Bill 2138, which legalizes and fast-tracks the development of middle housing to provide more varied and affordable housing options. "Families struggling with the high cost of living are forced to make impossible choices," Governor Kotek said, emphasizing the urgency to alleviate the affordability crisis fueling the state's homelessness issue. The bill is partly a response to historical zoning policies that have excluded and discriminated against segments of the population. Brett Dery, a homeowner in Bend, expressed his appreciation for the legislation, stating, "The legislation Governor Kotek signed will help families like mine find stability, freedom, and a real place in their community."

Furthering the effort, House Bill 2258 aims to simplify the approval processes for building small apartments, single-unit dwellings, duplexes, and townhomes, by providing a selection of pre-approved building plans. This initiative promises to yield both clarity and predictability for developers, cities, and counties involved in housing projects. Standout support for this approach came from Deborah Flagan, VP of Hayden Homes, who acknowledged how past bipartisan zoning reform has enabled their company to build communities accessible to the median wage earner.

Attention is also given to infrastructure with the creation of the Housing Infrastructure Project Fund under House Bill 3031. This fund will bolster development by providing strategic investments meant to tackle transportation, water, and other essential services linked to housing projects. Tillamook County Commissioner Erin Skaar highlighted the significance of the fund, saying, "This work needs a champion. For Oregon, that’s Governor Kotek."

Two other financial mechanisms introduced alongside these bills are the Construction Revolving Loan Fund through Senate Bill 684 and $25 million allocated in House Bill 3145 to accelerate the production of factory-based housing. Senator Khanh Pham heralded the revolving loan fund as a step toward empowering developers eager to build mixed-income residential housing. In a similar vein, Representative Pam Marsh touted modular homes as a cornerstone strategy for the state, stating, "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."

Reflecting on the comprehensive nature of the legislative package, Governor Kotek's administration projects the financing of 2,800 affordable housing units and provision of infrastructure for over 25,000 affordable and market-rate units in the first biennium of her term. With additional tools like the Housing Accountability and Production Office and moderate-income revolving loan fund, Oregon is set on a potent course to address the housing market's needs in a robust and expeditious manner.