HB 4037 - NYU Furman Center

State Land Use Enacted Legislation

Bill #	State	Year	Party	Topic
HB 4037	OR	2026	D	Accessory dwelling units regulations, Affordable housing incentives and financing, Appeals, Commercial land, Density Increases, Encouraging duplex, triplex, fourplexes and townhomes, Funding, Other streamlining, Planning for climate adaptation and hazards, Planning Requirements, Publicly-owned, Streamline application, Streamline hearings

Provided by Furman

Summary

Clarifies a new definition of “eligible housing project”for city and county housing project funding programs to include:

Constructions of new housing or conversions of nonresidential spaces to housing that is affordable to low and moderable income households.
Rental properties defined as either middle housing, a multifamily dwelling, an ADU, or any other form of affordable or moderate income housing that is rented at a monthly rate that is affordable for those with an annual income less than 120% of are median.
Establishes that the affordability of eligible housing projects must be maintained for at least as long as the agency loan for the property remains outstanding.
Establishes the process for securing a project grant/loan shall be secured by an affordable housing covenant , and be transferred/assumed by subsequent purchasers.

Clarifies other requirements for local governments entering into a project funding agreement with a developer and relating to compliance with associated affordable requirements.
States that the Oregon HCSD, DOJ, or Dept. of Administrative Services shall amend the grant agreements with Network for Oregon Affordable Housing (NOAH) to allow the grants to be used for financing housing project that:

Have an affordability term of no less than five years.
Will be sold or rented as the primary residence for a low income household (with incomes no more than 60%-120% of AMI).

For applications which are subject to objective standards, local governments may provide notice only to the owners of record of the property within 100 feet of the proposed development.

Removes the requirement for a public hearing prior to making a decision on the application.
Local appeal is only available to the applicant.

Amends the applicability of Land Conservation and Development Commission’s (LCDC) enforcement powers for localities who are not meeting state requirements for comprehensive plans, land use regulation, and housing production strategies. Previously LCDC could only issue an order of compliance to cities with a population of 10,000 residents or greater; this bill removes that minimum population.
Amends the procedure for review of housing applications: notice of the application shall only be sent to property owners within 100 feet, or within 500 feet for development of 20 units or more, local governments may not require a public hearing prior to making a decision, and local appeals and appeals at the Land Use Board of Appeals are only granted to the applicant.
Includes tenant protections for residential tenancies impacted by disasters.
Outlines process to provide an opportunities for several entities to acquire surplus state land for the development of housing.
Requires that the LCDC amend its rules to allow local governments to assign lower priority to land where urban expansion would be unreasonable or not cost-effective due to physical/topographical constraints.
Requires that an applicant developing affordable housing within a planned mixed-use development not let the housing reduce the commercial land availability below 80% of the adopted plan amount by amending the planned mixed-use development to allow an additional area for commercial use.