On April 10, 2025, the Oregon State Legislature convened to discuss significant developments in affordable housing, particularly focusing on limited equity cooperative (LEC) housing. This meeting highlighted the ongoing efforts to address the state's housing crisis through innovative solutions that blend homeownership with cooperative elements.

One of the key topics was House Bill 3232, which aims to expand the use of limited equity cooperative housing by including it in the low-income rental housing property tax exemption. Representative Nathanson emphasized the importance of affordable housing in various forms, noting that LECs represent a creative approach to homeownership. These cooperatives allow residents to share ownership of multifamily housing, providing a pathway to affordable living for low-income households.

The bill builds on legislation passed in 2023, which sought to enhance the viability of LECs as a financing tool for building affordable housing. A notable example mentioned was Square 1 Villages, which has successfully launched several cooperative housing projects, including Peace Village, offering 70 new units of resident-owned housing. This initiative is designed to serve households earning under 60% of the area median income, ensuring long-term affordability through a shared ownership structure.

The cooperative model not only fosters financial stability and security for residents but also empowers them by giving them a voice in their housing decisions. Unlike traditional rental agreements, LECs allow residents to function collectively as their own landlords, promoting a sense of pride and responsibility among members.

During the meeting, concerns were raised regarding existing laws that limit property tax exemptions to housing units constructed or converted to LEC ownership only after local governing bodies adopted the exemption program. This restriction has prompted discussions about potential amendments to broaden eligibility and support the growth of cooperative housing.

As the legislature moves forward, the implications of these discussions could significantly impact the availability of affordable housing in Oregon. The anticipated changes aim to create more accessible pathways to homeownership for low-income families, addressing a critical need in the community. The bill is set to take effect 90 days after the adjournment of the 2025 regular session, marking a pivotal step in Oregon's ongoing efforts to tackle housing challenges.