Advocates Urge Using Article XI‑Q Bonds to Preserve Thousands of Affordable Units; Bill Would Seed $100M Fund

Advocates and housing agencies told the Senate Committee on Housing and Development on Feb. 17 that Oregon faces a sizable affordable‑housing preservation gap and that House Bill 4,036 would create a new preservation fund using Article XI‑Q general obligation bond capacity.

Cameron Harrington of the Oregon Housing Alliance said HB 4,036 would establish a preservation “hold” fund for Article XI‑Q bonds, immediately allocate $100 million into that fund and direct OHCS to report back on options to improve operating efficiency for affordable housing. “We could certainly blaze a trail to housing stability by counting on your support,” Harrington told the committee, noting the bill passed the House Housing Committee unanimously and has moved to the Ways and Means Committee.

OHCS staff described the scale of the preservation risk and where Article XI‑Q money is likely to fit. Tanisha Rojas told legislators that, over the next 10 years, 87 multifamily properties (2,737 units) with expiring federal project‑based rental assistance are at risk, and another 100 properties (5,209 units) face loss when other affordability restrictions expire. OHCS identified physical‑condition challenges (about 38 properties, 2,350 units) and the vulnerability of manufactured‑home parks: 67,413 manufactured homes in 1,205 parks could be affected by market changes.

Rojas explained that Article XI‑Q bond proceeds are constitutionally available for acquiring, remodeling or repairing property the state owns or operates or where the state takes a first‑position financing role. She said preservation efforts that involve acquisition and major rehab or refinancing generally meet the constitutional test; debt buy‑downs that do not create the state ownership/first‑position interest would not qualify.

Speakers gave examples of preservation work. Jessica Blakely, deputy director of the Salem Housing Authority, cited WoodSpring (172 units) and Orchard Park (224 units) as cases where state support and local advocacy preserved homes and allowed rehabilitation without displacing residents. Peter Henley, executive director of CASA of Oregon, described resident‑owned community conversions for manufactured‑home parks and contrasted the relative costs: about $60,000 per unit in state subsidy for park conversions versus roughly $200,000 per unit for new apartment construction. Henley said CASA has fielded inquiries from 18 communities (nearly 1,200 units) since April 2025 but lacks sufficient bridge funding for timely acquisitions.

Committee discussion touched on prevailing‑wage rules for rehabilitations that use bond proceeds; OHCS said prevailing‑wage applicability depends on program income thresholds and project structure and that mixed‑income calculations can change whether prevailing wage applies. OHCS and advocates asked the committee to consider Article XI‑Q as a scalable, constitutionally vetted resource to preserve at‑risk affordable housing across the state.

Ending: HB 4,036 was discussed as a policy to expand preservation financing by using Article XI‑Q bond capacity; the bill now sits with Ways and Means and OHCS and advocates will provide follow‑up material requested by the committee.