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Committee considers SB 50 to set aside LIFT funds for metro acquisitions to convert market housing to affordable units
Summary
Senate Bill 50 received a March 12 hearing proposing a LIFT set‑aside—$60 million from the metro LIFT allocation—to buy recently built multifamily properties in the Portland metro area for conversion to long‑term affordable housing.
Senator Khan Pham opened a public hearing March 12 on Senate Bill 50, which would allow LIFT (the Local Innovation and Fast Track fund) to be used to acquire recently constructed multifamily housing and convert those units to long‑term affordable housing for low‑income households in the Portland metropolitan area.
What the draft does: witnesses described a planned dash‑2 amendment that would direct a one‑time set‑aside of $60,000,000 from the portion of LIFT already allocated to the metro tri‑county region and make that money available for acquisitions in the upcoming biennium. Testimony explained the amendment is intended to be a soft set‑aside: funds reserved for Metro acquisitions that revert to general metro LIFT allocation if unused. Committee members asked whether the set‑aside would shrink non‑metro allocations; presenters said the amendment is written to count only against the metro portion so the overall regional allocation formula (40% metro, 45% Western Oregon, 15% Eastern Oregon) is not changed for other regions.
Why supporters back acquisitions: Christina Dirks, director of policy and planning at Home Forward, said acquisition is substantially faster and cheaper in current Portland market conditions, citing two Home Forward purchases that produced a combined cost savings of about 37% compared with new construction and that could come online three to five years faster. Dirks said acquisitions allowed immediate rent relief for qualifying existing tenants and that sellers’ proceeds often feed back into new development.
Program details and guardrails: OHCS staff explained administrative rules that have guided earlier use of LIFT for acquisitions, including an eligibility requirement that acquisition targets be recently placed in service (generally within the last seven–ten years) and not require significant rehabilitation; OHCS said the administrative approach also seeks to avoid identity‑of‑interest transactions so the mechanism is not used to evade public oversight. Committee members asked whether a developer could intentionally put a project in service to later be acquired; OHCS responded that eligibility rules are designed to prevent gaming and to focus on third‑party transactions in financial distress or distress‑like market circumstances.
Support and equity concerns: supporters included public housing authorities, nonprofit developers, Metro, the Oregon Housing Alliance, Housing Oregon, Multifamily Northwest, and tenant and immigrant advocacy groups. Testifiers argued the dedicated metro set‑aside would allow acquisition projects to compete among themselves under ORCA (the statewide pipeline process) rather than competing directly with new construction projects for LIFT funds, speeding deals that can produce affordable units quickly in high‑opportunity neighborhoods. Advocates urged safeguards so acquisitions serve households with the greatest need and ensure transparency in fund allocations.
No action taken: the March 12 hearing collected testimony but included no formal vote. Several committee members requested follow‑up information on set‑aside language, administrative limits and how the set‑aside would interact with existing LIFT allocation rules.
