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Bill to apply Oregon Affordable Housing Tax Credit to targeted mortgages gains backing from lenders and advocates
Summary
Supporters told the committee House Bill 3,236 would expand the Oregon Affordable Housing Tax Credit’s eligible uses to lower interest rates for mortgage funds tied to shared-appreciation models, further increasing affordability for participating borrowers.
House Bill 3,236, as amended, would permit the Oregon Affordable Housing Tax Credit (OAHTC) to be used in certain qualified mortgage funds — notably to lower interest costs on the private bank portion of a blended Amplify Oregon mortgage fund. Proponents told the House Committee on Housing and Homelessness the change would expand affordability for first-time buyers in shared-appreciation models while keeping annual reporting administratively feasible.
Bill Van Vliet, executive director of the Network for Oregon Affordable Housing (NOAH), said the dash-1 amendment refocuses the bill on mortgage-fund eligibility and would allow OHCS to allocate tax credits to the fund rather than to each small individual mortgage. "Applying the OHTC to the bank portion of the capital…will further expand the affordability of the program," Van Vliet said, noting an illustrative example where a 20-year Amplify mortgage might see an additional rate reduction if OAHTC applies at the fund level.
Cameron Harrington of the Oregon Housing Alliance and Kevin Christiansen of the Oregon Bankers Association said lenders are supportive and that the OAHTC has been an effective tool for rental production for decades. Supporters argued the streamlined allocation method would not materially change the total credit claim but would reduce administrative burden for many small mortgages.
Committee members asked technical questions about comparative interest-rate scenarios and program timelines; witnesses said the OAHTC expansion would increase the reach of Amplify Oregon loans and that banks have indicated interest in participating under the expanded rules.
