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OHCS outlines toolbox of homeownership programs, stresses equity and supply
Summary
Oregon Housing and Community Services told the House Committee on Housing and Homelessness that state programs target increasing supply, expanding equitable pathways, and keeping existing homeowners in place; advocates pushed for continued funding and reforms to expand access, especially for BIPOC and rural communities.
The Oregon Housing and Community Services (OHCS) homeownership team described an array of programs Wednesday as the House Committee on Housing and Homelessness opened a multi-day series of hearings on homeownership. The briefing focused on three goals: increase the supply of affordable homes, create equitable pathways into ownership, and support existing homeowners.
OHCS Director for Homeownership Keeble Jesscomb told the committee, "we understand that the housing market is very difficult and complex" and noted statewide affordability gaps and structural barriers faced by communities of color. Assistant Director of Homeownership Programs Talia Khan Kravis said Oregon must "add half a million new housing units over the next 2 decades" and walked lawmakers through development tools the agency uses.
OHCS officials described four development programs: the Land Acquisition Revolving Loan Program (LAP), the LIFT homeownership funding stream (funded by general obligation bonds under Article 11(q) of the Oregon Constitution), the Homeownership Development Incubator Program (HDIP), and a new narrow use of the Oregon Affordable Housing Tax Credit for certain homeownership projects. Talia Khan Kravis said LIFT is limited to shared-equity models because OHCS maintains a lien on land that requires a steward model such as a community land trust.
The agency reported that LIFT and HDIP together have supported dozens of projects statewide; officials said the programs have leveraged state funds to support roughly 70 projects that will yield more than 1,000 affordable homes for purchase. OHCS said recent rule changes to base some subsidies on bedroom size rather than land appraisals have attracted greater rural interest: the agency reported roughly $82 million in pre-application requests for about $40 million in available funds and said about 40% of those pre-applications are from rural communities.
OHCS described other tools: a network of 15 homeownership centers that provide counseling, education and down-payment assistance (the agency said those centers support more than 3,200 clients annually), mortgage products under the Oregon Residential Bond Program and the newer "Lehi Lending" products (First Home and Next Step), and a Language Access and Community Outreach grant program to improve reach to communities of color and people with limited English proficiency. Director Jesscomb said OHCS supported nearly 600 homebuyers with lending products in the last calendar year and that down-payment assistance from partners helped about 350 Oregonians in just over a year.
On homeowner preservation, the agency outlined manufactured-home programs, dispute-resolution services for park residents and foreclosure assistance. Jesscomb noted a federal COVID-era program that provided roughly $90 million in assistance beginning in February 2021 helped more than 2,500 homeowners (the agency said the program is now sunsetting). Foreclosure-prevention counseling provided through community partners was described as continuing work, with the agency citing an average avoidance rate of immediate foreclosure of about 98 percent for those it assists.
Shannon Vilhauer, executive director of Habitat for Humanity of Oregon, urged lawmakers to continue funding development tools and to consider policy changes that reduce barriers to condominium construction, noting Oregon’s long builder liability rules have depressed condo production. "Home ownership is the key to building household stability, generational wealth, and strong communities," Vilhauer told the committee.
Committee members asked for follow-ups on specific items: Representative Gamba asked for a county-level figure on how many Oregonians could afford homeownership at median incomes; Representative Campbell asked for a concrete example of how limited-equity models affect homeowner wealth accumulation; Representative Anderson asked for sales-price details on a tribal project and clarification on forgivable loan/grant distinctions in down-payment assistance; Representative Reese Iverson asked for data on manufactured-home dispute-resolution caseloads and outcomes. OHCS staff said they would provide the requested figures back to the committee.
The informational session closed after roughly three hours of presentation and Q&A. Committee members said the topic will continue at the next scheduled day of hearings and that several bills on the agenda would follow the informational briefing.
