Bill > HB2968

This bill establishes a new system to help local governments collect deferred system development charges (SDCs) from housing developers by creating the Municipal Development Protection Fund. Under the bill, the Housing and Community Services Department will be authorized to purchase past-due SDC debts from local governments, effectively guaranteeing payment. When a developer fails to pay a deferred SDC, the department can assess a 20% civil penalty and charge interest, and can even assign the debt to the Department of Revenue for collection. The bill allows for SDC deferral for both standard and affordable housing developments, with different timelines for repayment based on the type of housing. A new Municipal Development Protection Fund will be established in the State Treasury, initially funded with a $10 million General Fund appropriation, to support this program. The bill becomes operative on January 1, 2026, and allows the department to prepare rules and model agreements in advance of that date. By declaring an emergency, the bill takes effect immediately upon passage, with the aim of supporting housing development and ensuring local governments can reliably collect infrastructure fees from developers.

Budget and Finance, Housing and Urban Affairs

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2968