Bill > HB3236

This bill modifies Oregon's existing tax credit program for lending institutions that provide affordable housing loans, expanding the types of loans that qualify for tax credits. The bill introduces a new category called a "qualified mortgage loan fund" that allows tax credits for lending institutions making mortgages to first-time home buyers, homes under land trust mortgages, and households earning 80% or less of the area median income. The bill also adds a new provision that permits tax credits for loans used to preserve or rehabilitate financially or physically distressed housing, without requiring the typical rent reduction requirements. Lenders can claim a tax credit equal to the difference between the reduced interest rate they charge and the market rate for such loans, with a maximum credit of 4% of the loan's average unpaid balance. The tax credits can be carried forward for up to five years if not fully used in a given year. The changes will apply to loans made on or after January 1, 2026, and for tax years beginning on or after that date. The bill takes effect 91 days after the 2025 legislative session adjourns, aiming to provide more financial incentives for lending institutions to support affordable housing initiatives in Oregon.

Budget and Finance, Housing and Urban Affairs

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB3236