Housing

SB 5701 authorizes the state to issue bonds and certificates for specific capital projects, including Moda Center improvements and Oregon State University's Cascades Student Health and Recreation Center. It modifies previously approved lottery bonding rules and allocates specific funding amounts for projects like community college renovations, housing programs, corrections facility upgrades, and university building projects. The bill requires the OSU Cascades project to meet apprenticeship, outreach, and benefits standards. It does not create new taxes or fees but allows the state to borrow funds for these named improvements.

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.

Requires local governments to approve restoration or replacement of dwellings rendered uninhabitable under an alternative process that is not a land use decision.

Authorizes the Housing and Community Services Department to fund mixed income housing. Requires the department to develop a mixed income housing loan program. Establishes the Mixed Income Development Loan Fund for such purposes. Transfers moneys to the fund from the Housing Project Revolving Loan Fund. Requires the department to adopt initial program rules by January 1, 2027. Takes effect on the 91st day following adjournment sine die.

Prohibits cities and counties within the Portland MSA from enforcing requirements that developers provide affordable units in multiunit dwellings unless the city or county first calculates the developers' average expected losses due to providing affordable housing and the city or county offsets those losses. Becomes operative for rental housing on January 1, 2028. Becomes operative for all housing on January 1, 2029.