The Oregon State Legislature convened on March 25, 2025, to discuss House Bill 3031, a significant piece of legislation aimed at addressing the state's housing crisis. Proposed at the request of Governor Tina Kotek and the Oregon Business Development Department, the bill seeks to enhance infrastructure financing to support new home construction across Oregon.

House Bill 3031 establishes a housing infrastructure financing program under the Oregon Infrastructure Finance Authority (OIFA). This program will provide financial assistance in the form of grants, loans, or forgivable loans to various entities, including cities, counties, and tribal councils, for projects that facilitate housing development. Key provisions of the bill include funding for the development or improvement of essential infrastructure such as transportation, water, wastewater, and stormwater systems, which are critical for supporting new housing projects.

A notable aspect of the bill is its focus on urban growth boundaries, prioritizing projects that meet specific density requirements. For instance, developments within the Metro urban growth boundary must achieve a minimum density of 17 dwelling units per net residential acre. This provision aims to encourage higher-density housing solutions in urban areas, addressing both housing shortages and urban sprawl.

The bill also mandates the Housing and Community Services Department to conduct a study on housing, with findings to be submitted to legislative committees by September 15, 2026. This study is expected to provide valuable insights into the housing landscape in Oregon and inform future legislative actions.

During discussions, some legislators expressed concerns regarding the potential financial implications of the bill, particularly in terms of long-term funding sustainability for the proposed infrastructure projects. However, supporters argue that the bill is a necessary step toward alleviating the housing crisis and stimulating economic growth through increased housing availability.

House Bill 3031 is set to take effect on July 1, 2025, and has been declared an emergency measure, underscoring the urgency of addressing Oregon's housing challenges. As the bill progresses through the legislative process, its implications for housing development and infrastructure financing will be closely monitored by stakeholders across the state.