Legislators gave a state housing agency in 2023 more flexibility in the projects it can fund. And this week the Oregon Housing Stability Council may enable the agency to fund more projects without a set ratio of affordable housing.

Oregon Housing and Community Services had been restricted to funding projects where two-thirds of the units were rent restricted to below 120% of average median income.

Legislators tweaked the language with House Bill 2761. The agency can still only help with financing for the restricted units in a project, but the bill let the agency decide what minimum ratio or minimum number of restricted units there may be in a funded project.

The staff recommendation is that the agency be able to have no minimum ratio. There would be, though, a minimum number of five restricted units.

That could allow some affordable units to be created in market rate developments, where it could not happen before. That’s why we support this change. But the agency should regularly report back to the Oregon housing council on what the actual effect of the change has been.

There are more details here: tinyurl.com/ORratio. Go down to page 38.