Bill > SB58

This bill establishes a pilot program to expand affordable housing in Oregon by creating a grant program for counties to help homeowners develop auxiliary dwelling units (ADUs), which are rental spaces within single-family homes. The Housing and Community Services Department will award grants to up to 10 counties, with each county receiving up to $1,000,000, and each county will then provide grants to homeowners of up to $20,000 to create ADUs. To be eligible, homeowners must have a single-family dwelling within an urban growth boundary or rural residential zone, demonstrate the home is in habitable condition, and not be in default on property taxes or loans. Homeowners who receive grants must agree to rent the ADU to non-family tenants for at least 60 months at a market-rate rent, continue to live in the primary dwelling, and not use the ADU as a vacation rental. The bill creates an Auxiliary Dwelling Unit Fund with an initial $10 million appropriation, prevents the ADU from triggering a property tax reassessment, and includes provisions for prorated repayment if the homeowner does not meet the rental requirements. The program will operate from 2026 to 2034, after which it will be repealed and any remaining funds will be transferred to the General Fund.

Budget and Finance, Housing and Urban Affairs

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB58