Bill would fund conversion of scattered‑site public homes into community land trust ownership

Representative April Dobson opened public testimony March 3 in support of House Bill 3,503, a bill that would appropriate $4,200,000 to the Oregon Housing and Community Services (OHCS) Department for a pilot to convert scattered‑site public housing into permanently affordable community land trust homes.

"I am passionate about preserving the affordable housing we already have as a key plank in our strategy, and that is what this bill is about," said Rep. April Dobson (R‑HD 39), who described the pilot as focused on homes the Clackamas County Housing Authority is ready to divest. Clackamas County Commissioner Paul Savas told the committee the housing authority owns 145 scattered single‑family homes under the federal Section 9 public housing program; HB 3,503 would fund converting 70 of those units into permanently affordable ownership opportunities for first‑time buyers earning up to 80 percent of area median income (AMI), with higher thresholds (up to 120 percent AMI) for households displaced by wildfires.

Karen Saxon of DevNW, which operates Community Lending Works, described the operational plan: nonprofit community land trust developers would acquire batches of housing from the housing authority, perform necessary rehabilitation (for example, roof replacement or ductless heat pumps and insulation), provide homebuyer education and counseling, and convert purchased homes to a CLT model at sale using deed restrictions and a ground lease. Saxon said current estimates put the average total cost per home — acquisition, rehab, holding and one‑time conversion — at around $400,000, and that the project anticipates a financing gap of about $60,000 per home to reach a proposed average sales price around $275,000 that would be affordable to a family of four at 80 percent of AMI in Clackamas County.

"This pilot project will ensure that these homes don't become unaffordable overnight," Commissioner Savas said, adding that the bill would also provide funds for repairs and homeowner education to make units "mortgage ready." Rebecca Markley of the Oregon Housing Alliance and Kevin Cronin of Housing Oregon offered written and in‑room support, saying the proposal would preserve affordable homeownership in perpetuity through the CLT structure and that housing authorities across the state are pursuing disposition under HUD's Section 18 process.

Committee members asked practical questions about shared‑equity mechanics and deed restrictions. Saxon explained that CLTs vary in how they share appreciation but that homeowners retain equity from paid‑down principal; typically, a portion of appreciation is shared between the seller and the CLT, with the CLT's share returning to maintain long‑term affordability. The committee also discussed priority for current residents and wildfire survivors as part of buyer outreach.

No formal vote was held at the hearing; the committee closed public testimony and will consider the bill in future action.

Ending: Supporters portrayed HB 3,503 as a narrowly focused pilot to preserve 70 scattered single‑family public homes in Clackamas County as permanently affordable CLT ownership, using a $4.2 million state appropriation to close financing gaps, fund rehabs, and provide homebuyer services. The committee received technical and local government testimony and paused for further consideration.