State homeownership tools see strong demand: LIFT oversubscribed, new Amplify mortgage pilot aims to speed equity

SALEM, Ore. — During the Senate Committee on Housing and Development’s Feb. 3 informational session on homeownership, nonprofit developers and state housing officials described how the LIFT Homeownership Program and a new mortgage pilot called Amplify Oregon are expanding permanently affordable ownership options — and how demand is far outpacing available subsidy.

"Homeownership is affordable housing," said Shannon Vilhauer, executive director of Habitat for Humanity of Oregon, opening the session. Vilhauer described how below‑market mortgages and shared‑equity models can make ownership accessible even where market prices are high.

LIFT program: production and changes

Talia Ken‑Kravis, assistant director for homeownership programs at Oregon Housing and Community Services (OHCS), told the committee that LIFT (Local Innovation and Fast‑Tracked Homeownership) has leveraged about $110 million in LIFT funds to fund 62 projects and nearly 1,000 homes in six years; 221 of those homes were complete at the time of her presentation and 413 residents were living in LIFT homes. She described the program’s shared‑equity requirement (commonly implemented through community land trusts and leasehold models) and said OHCS takes a first lien on the land to maintain its operating interest and preserve long‑term affordability.

Demand and program changes: Ken‑Kravis said LIFT historically set loan amounts based on land appraisals, which disadvantaged rural projects because rural land often appraises much lower. The 2025 LIFT notice of funding availability (NOFA) revised the subsidy structure to base subsidy on bedroom size rather than appraised land value, added a $5,000 per‑unit rural supplement (up to $100,000), and created set‑asides for culturally specific developers and counties historically underserved by LIFT. The NOFA opened Jan. 6; OHCS said it had already received roughly $77 million in pre‑applications for $40 million in available LIFT funds, proposing about 445 homes while funding capacity is about 200 homes under the current funding assumptions.

Shannon Vilhauer of Habitat for Humanity emphasized the program’s local impact: "For Habitat Portland region, we tripled production within three years using LIFT homeownership," she said, describing affiliates that grew from a handful of homes to dozens annually when LIFT subsidy was available.

Subsidy depth vs. unit count

OHCS and developers noted the program’s subsidy per home has risen: the average LIFT subsidy historically was just under $100,000 but OHCS expects average subsidies to be closer to $200,000 under the new gap‑funding assumptions. Talia Ken‑Kravis said the change will provide deeper subsidies and more equitable geographic coverage but — because per‑unit subsidy increases — fewer homes can be covered with the same total funding.

Amplify Oregon mortgage pilot

Speakers from DevNW, NOAH (Network for Oregon Affordable Housing), and partner organizations described the Amplify Oregon accelerated mortgage program, a pilot designed to pair community land trust (shared‑equity) homeownership with a blended, below‑market 20‑year mortgage. Karen Sachs of DevNW and Bill Van Vliet of NOAH said the structure is intended to accelerate equity accumulation and reduce lifetime interest paid by borrowers while preserving long‑term affordability in the shared‑equity model.

Bill Van Vliet summarized an example delivered to the committee showing a homeowner using the 20‑year structure would accumulate substantially more equity and save on interest compared with a traditional 30‑year mortgage. He said the initial pilot funding would support roughly 50 CLT homebuyers; NOAH and partners estimated the fund would leverage private bank capital and be able to fund about seven homes per $1 million of state investment. Van Vliet said the proposal is associated with House Bill 3235 and a companion capital request; he said additional legislation (including a capital bill and a bill to allocate certain tax credit proceeds) is being pursued.

Rural‑urban tensions and program design questions

Senators pressed developers and OHCS on whether changes to LIFT would push subsidy toward or away from urban centers and how the program balances rural needs. Developers said appraisal‑based limits had unintentionally suppressed rural applications; OHCS said the new bedroom‑based subsidy structure and rural add‑on are intended to address that imbalance and that HDIP and general funds have been used previously to make rural projects pencil.

What the committee heard and next steps

- LIFT has demonstrable production results but is oversubscribed for 2025; OHCS asked for continued, predictable funding to meet pipeline demand.

- Program changes in the 2025 NOFA aim to make awards more equitable across geographies and project types; they will increase per‑unit subsidy and reduce the number of units possible per dollar of state subsidy.

- The Amplify mortgage pilot would pair below‑market, faster‑amortizing mortgages with shared‑equity resale formulas; pilot funding and companion bills were identified to create a revolving fund.

No committee votes were taken; the session was informational. Program representatives and OHCS said they would continue to provide materials, respond to technical questions and work with committee staff as the legislative session advances.