Oregon legislation · 2026 Legislative Measures
Oregon HB4037: Relating to housing; and prescribing an effective date.
Status: Chaptered, April 13, 2026
Digest: This Act changes some housing programs, agencies and laws and rules about home building. (Flesch Readability Score: 65.7). Adjusts certain terms of the revolving loan program for cities and counties to fund affordable housing projects. Allows state agencies to adjust terms of a grant made to the Network for Oregon Affordable Housing in the last biennium. Limits the building permit plan review for housing with two or fewer dwelling units. Establishes a local government process for land use approvals for housing subject only to clear and objective standards, conditions and procedures. Becomes operative on July 1, 2026. Establishes responsibilities for landlords and tenants for residential tenancies destroyed by natural disasters. Requires state agencies to give priority to housing providers when transferring surplus real property. Requires the Land Conservation and Development Commission to adopt rules regarding prioritization of lands added to urban reserves. Limits the amount of commercial lands within certain planned areas that may be used for affordable housing. Takes effect on the 91st day following adjournment sine die.
What the bill says
From the enrolled text, March 5, 2026:
83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session House Bill 4037 Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of House Interim Committee on Housing and Homelessness for Representative Pam Marsh) CHAPTER ................................................. Relating to housing; creating new provisions; amending ORS 92.031, 197.320, 197A.140, 197A.400, 197A.445, 270.010, 270.030, 270.100, 307.213, 307.214, 307.216, 307.221, 307.225, 307.227, 307.229, 307.231, 307.233, 455.628 and 458.352 and section 22, chapter 476, Oregon Laws 2025; and prescribing an effective date. CITY AND COUNTY HOUSING PROJECT FUNDING PROGRAMS SECTION 1. Section 2 of this 2026 Act is added to and made a part of ORS 307.213 to 307.237. SECTION 2. (1) As used in ORS 307.213 to 307.237, "eligible housing project" means a project to construct housing, or to convert a building from a nonresidential use to housing, that is: (a) Affordable to households with low income or moderate income as those terms are defined in ORS 458.610; (b) If for-sale property, a single-family dwelling, middle housing as defined in ORS 197A.420 or a multifamily dwelling that is affordable as described in paragraph (a) of this subsection for a period determined in accordance with subsection (2) of this section; or (c) If rental (ii) A multifamily dwelling; (iii) An accessory dwelling unit as defined in ORS 215.501; or (iv) Any other form of affordable …