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Committee hears push to extend first-time homebuyer savings accounts for five years
Summary
Supporters including Oregon Realtors, credit unions and housing advocates told the House Revenue Committee May 6 that extending the sunset on first-time homebuyer savings accounts will help Oregonians bridge down-payment gaps while housing supply and mortgage rates remain constrained.
The House Committee on Revenue took public testimony May 6 on Senate Bill 101, which would extend two sunset dates for Oregon’s first-time homebuyer savings accounts: it would move the account-opening deadline from Jan. 1, 2027, to Jan. 1, 2032, and extend the overall program sunset from Jan. 1, 2037, to Jan. 1, 2042.
Witnesses including Brock Nation of Oregon Realtors, and Laurie Roe of Oregon State Credit Union, said the accounts encourage disciplined saving by allowing filers to subtract amounts deposited in the year from Oregon taxable income and to grow savings tax deferred. “Extending the tax benefit offered through the first time homebuyers savings account program is vital for Oregonians consumers and the stability of our communities,” Roe said.
Supporters said recent administrative changes have made the accounts easier for financial institutions to offer and that indexing changes now adjust allowable annual subtractions with the consumer price index. Oregon Realtors’ testimony cited data showing a decline in the share of households able to afford an average-priced home and argued the account remains a useful tool while housing production and mortgage-rate conditions evolve.
Credit union witnesses said program visibility has been limited but improving; witnesses reported member savings balances averaging about $4,700 per saver and examples of institutions that have expanded outreach and account sign-ups. Tax Fairness Oregon’s Jody Weiser also supported an extension but urged better promotion and outreach so eligible savers know the program exists.
Committee members asked staff and witnesses about program uptake and whether more financial institutions offer the product; staff said Department of Revenue and Treasury changes have eased administration and that outreach by credit unions and other institutions has increased sign-ups. No committee vote was taken; the hearing was closed and the record remains open for additional materials.
