Bill would fund community‑land‑trust purchases of scattered public homes in Clackamas County

The House Committee on Housing and Homelessness heard public testimony March 3 on House Bill 3503, which would create a pilot program to convert scattered‑site public housing in Clackamas County into permanently affordable community land trust (CLT) homes for first‑time homebuyers.

Representative April Dobson, sponsor of the bill, told the committee the pilot targets homes the Clackamas County Housing Authority plans to divest. “This pilot project will ensure that these homes don't become unaffordable overnight,” Dobson said, and described the approach as a way to preserve affordable ownership in desirable communities.

Clackamas County Commissioner Paul Savas testified that the county housing authority owns 145 homes under the federal Section 9 public housing program and that reduced federal funding has forced agencies to reposition inventory. He said HB 3503 would allow conversion of roughly 70 of those homes into permanently affordable units for households earning up to 80 percent of area median income, with up to 120 percent AMI eligibility for wildfire‑displaced households. Savas said the bill would fund essential repairs and homeowner education so homes are mortgage‑ready.

Karen Saxon of DevNW, representing Community Lending Works, described the implementation plan: nonprofit CLT developers including DevNW, Proud Ground and Habitat for Humanity would buy batches of homes from the housing authority, perform necessary rehabs (for example, roof replacement or ductless heat pumps), provide homebuyer counseling, and convert properties to CLT ownership with deed restrictions and ground leases at time of sale. Saxon said the average acquisition, rehab and conversion cost is estimated around $400,000 per home and the program anticipates a financing gap of about $60,000 per unit to reach a target average sales price near $275,000 for a family of four at 80% AMI in Clackamas County.

Rebecca Markley of the Oregon Housing Alliance and Kevin Cronin of Housing Oregon both offered coalition support, arguing the model preserves housing affordability in perpetuity and can serve as a demonstration for other jurisdictions whose housing authorities are pursuing HUD Section 18 dispositions.

The bill would appropriate $4,200,000 to Oregon Housing and Community Services for the 2025‑27 biennium to administer grants to Community Lending Works to purchase and convert the homes. Committee members asked for clarification about shared‑equity rules; DevNW explained that CLTs vary but typically return some portion of appreciation to the seller while retaining affordability for the next buyer.

No vote was taken; the committee closed the public hearing after testimony from county officials, nonprofit developers and housing advocates.