HB 3235
Directs the Housing and Community Services Department to give a grant to an organization to support first-time home buyers that purchase residential property to build equity ownership in the residential property through reduced interest rate loans and accelerated loan terms.
Jurisdiction
Oregon
Session
2025 Regular Session
At the request of
(at the request of Network for Oregon Affordable Housing)
Committee
Ways and Means
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Sign in to take actionPublic sentiment
Support
89%
Oppose
11%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill directs the Oregon Housing and Community Services Department to provide a grant to the Network for Oregon Affordable Housing (NOAH) to establish a revolving loan fund. This fund will offer reduced interest rate loans and accelerated loan terms to first-time home buyers purchasing properties with affordability restrictions, aiming to help them build equity more quickly. The program requires loan recipients to have completed a first-time home buyer program with a certified housing counseling agency and limits loan terms to 20 years or less.
Key provisions
- Creates a grant program for first-time home buyers.
- Provides funding to the Network for Oregon Affordable Housing (NOAH).
- Offers reduced interest rates on loans.
- Requires accelerated loan terms.
- Loans must be used for properties with affordability restrictions.
- Loan recipients must complete a first-time home buyer program.
- Loan terms are limited to 20 years or less.
- The program is effective July 1, 2025, due to an emergency declaration.
Who is affected
- First-time home buyers
- Low-income households
- Housing counseling agencies
- The Housing and Community Services Department
- Network for Oregon Affordable Housing (NOAH)
Notable changes
- Establishes a new grant program for accelerated mortgages.
- Specifies eligibility requirements for loan recipients, including affordability restrictions and housing counseling completion.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Arguments in favor
Reasons to support this legislation.
Supporters of various initiatives advocate for increased funding and program expansion to address affordable homeownership needs in Oregon. Many emphasize the importance of providing access to lower interest rates, shared equity models, and accelerated mortgage programs to help low- and moderate-income families achieve long-term affordability and build equity. The proposed HB 3235 is particularly supported, as it aims to create an accelerated mortgage fund that would increase homeownership opportunities, address racial disparities in housing, and provide financing for affordable housing projects through private bank capital and state funding. By expanding funding availability, supporters believe that thousands of Oregonians can grow their home equity, achieve financial stability, and prioritize saving for a downpayment, ultimately addressing the need for more mortgage options and supporting the Amplify Oregon Accelerated Mortgage Program.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of HB 3235 express concerns that the bill's provisions are discriminatory, targeting specific groups with unfair regulations. They argue that the bill's budget allocation is also a major concern, as it would divert funds away from essential public services and towards unproven initiatives. Additionally, critics contend that the bill's language is overly broad, allowing for vague and subjective interpretations that could lead to unintended consequences. Furthermore, some the need for more transparent and inclusive decision-making processes in budget allocation, highlighting the potential for unequal distribution of resources and exacerbating existing social inequalities.