SALEM — The state will likely pay property taxes for more than a thousand seniors who were surprised to find out they were on the hook for their taxes last fall.

Newly proposed legislation would help the 1,664 people with reverse mortgages who were part of the state’s Senior and Disabled Property Tax Deferral Program by granting them a two-year reprieve on their property tax bill.

During a House revenue committee hearing Friday afternoon, David Raphael, co-founder of the Alliance of Vulnerable Homeowners, a group that formed because of the law change, told lawmakers he didn’t have any prepared comments since he was hearing of the solution for the first time.

But, he added, he wanted to “express gratitude and pleasure” at the news.

In the last legislative session, lawmakers restricted the deferral program with the goal of saving the state money. The program’s purpose is to help keep seniors and the disabled in their homes longer by paying their property taxes.

Sen. Chris Telfer, R-Bend, called booting seniors with reverse mortgages an “unintended consequence” of trying to rein in the program. She said she supports the idea of giving seniors two years to plan and prepare.

Reverse mortgages allow homeowners to use equity in their home to receive cash. Repayment is made when the person dies or leaves the home.

“I’m glad we bought some time to look and think about the change,” Telfer said. “It (would) protect a large number of senior citizens who were caught by surprise and not prepared. I don’t want to kick anyone out of their house.”

The news was encouraging for Kenneth Hargis, 71, of Bend, who was worried about how he would scrape together enough for his upcoming property tax bill.

“When you’re on a set income, you don’t have any wiggle room,” he said.

The new legislation would also include giving seniors who paid property taxes in November a partial or full refund.

Hargis said now he’ll have time to plan ahead.

“I’ll be able to save over a two-year period, set something aside, you know, each month as I’m sure others will do,” he said. “Before there wasn’t any time to make plans.”

To qualify for the program, a person needs to be 62 and have an annual taxable income of no more than $39,500. Anyone whose net worth exceeds $500,000 is ineligible. A person needs to have lived in the home at least five years and have homeowners insurance.

Rep. Vicki Berger, R-Salem, said the goal is to “rescue these people” and give them “some breathing room.”

The bill, House Bill 4039, will still need to pass both chambers and be signed by the governor before it becomes law.