Subcommittee approves LIFT‑funded pilot to acquire or construct factory‑produced homes for up to five recipients

The subcommittee advanced House Bill 3145, which would direct the Housing and Community Services Department (OHCS) to use funds in the Local Innovation and Fast Track (LIFT) housing program to acquire or construct factory‑produced housing for up to five recipients or locations in the 2025‑27 biennium.

Legislative staff explained the bill includes a $650,000 General Fund appropriation to OHCS for administration and a professional services contract with the Network for Oregon Affordable Housing to facilitate a program design advisory committee and provide technical assistance to funding recipients. The bill funds one limited‑duration position to manage the advisory committee and program components and requires a report to the legislature on awards, other financing available to recipients, and program recommendations.

The dash A3 amendment specifies a $25,000,000 LIFT allocation to up to five recipients to acquire or construct factory‑produced housing. Representative Smith asked about the source of LIFT funds and was told the funds are Article XI‑Q bonds. She also asked whether concentrating factory production in one location had been discussed; staff said that was a policy committee discussion and did not provide additional detail in the work session. Representative Smith asked whether Oregon companies manufacture factory‑produced homes; committee members confirmed such companies exist in the state.

Representative Dreisen and others raised concerns about the broader use of the LIFT program and the General Fund debt service associated with Article XI‑Q bonds; Dreisen noted that continued reliance on LIFT has long‑term General Fund debt‑service implications. Co‑chairs and LFO staff answered questions about debt service and program requirements. The subcommittee adopted the dash A3 amendment and moved the bill to the full committee with a due‑pass recommendation.