Committee hears bill to convert state lands for affordable housing with five-year tax break

The Oregon House Committee on Revenue held a public hearing May 15 on House Bill 2316A, a measure to authorize use of underutilized state-owned lands for affordable housing and to exempt those “Home Start Lands” from property tax for up to five years.

Representative Kevin Mannix, sponsor of the bill, told the committee the measure would let the state move parcels inside urban growth boundaries into housing production. “We have an opportunity here. The state … has a tremendous amount of land within the urban growth boundary, which could be made available for housing,” Representative Mannix said. He added that the bill requires the land to be “inside the urban growth boundary” and “for housing.”

The bill includes an A-6 amendment that, according to Mannix, clarifies allowable appraisers for the Department of Administrative Services (DAS), permits DAS to provide grants or loans to further development of affordable housing on Home Start Lands, and allows grants to cities for public services needed for those lands. “It allows rezoning by local government to allow for higher density housing on these state lands,” Mannix said.

Suita Ambati, Governor Tina Kotek’s senior housing advisor, testified in support of HB 2316A and the A-6 amendment. “Home Start Lands offers a practical solution to unlock underutilized state owned or managed lands for housing across the state,” Ambati said, and added the proposal would “help address our state's current 100,000 unit deficit by leveraging public lands for much needed housing and homeownership opportunities.”

Representative Ruskie asked for clarification of definitions in the bill, noting the draft text defines “low income household” as “a household with an income less than or equal to 80% of the area median income.” Ruskie asked what “area median income” referenced. Representative Mannix responded that it would be “within that community area. Median income as designated for that region.”

Committee members and other representatives who spoke during the hearing expressed general support for the policy; Representative Marsh and Representative Brown said the bill had been vetted in the House Housing and Homelessness Committee and that the policy had been validated by housing experts. No committee action or vote was taken; the hearing record closed after the scheduled witnesses testified.

The bill would give DAS authority to sell or develop eligible parcels and to use proceeds to support affordable housing projects under the Home Start Lands program, according to testimony. The A-6 amendment would also permit local rezoning and clarify appraisal processes.

The public hearing record for HB 2316A closed at the session; no formal motion, work session, or committee vote was recorded during the meeting.

What’s next: The committee did not take action at the hearing. If the bill advances it may go to committee work session for consideration of the A-6 amendment and further technical changes before any committee vote.