HB 3236
Expands purposes for the corporate excise tax credit allowed for affordable housing lending.
Jurisdiction
Oregon
Session
2025 Regular Session
At the request of
(at the request of Network for Oregon Affordable Housing)
Committee
Tax Expenditures
Take action
Record your position on this measure.
Sign in to record your position, submit testimony, or contact your legislator.
Sign in to take actionPublic sentiment
Support
88%
Oppose
12%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill expands the corporate excise tax credit available to banks for lending on affordable housing projects. It establishes the Affordable Housing Lender Fund and allows tax credits for contributions to this fund, which in turn will be used to finance mortgage loans for eligible homebuyers. The bill also allows credits for preserving or rehabilitating distressed properties without requiring rent reductions and applies to loans made starting January 1, 2026.
Key provisions
- Establishes the Affordable Housing Lender Fund.
- Allows tax credits for contributions to the Affordable Housing Lender Fund.
- Defines ‘eligible home buyer’ as a first-time homebuyer or a buyer with an income of 80% of the area median income or less.
- Allows credits for loans used to preserve or rehabilitate distressed properties.
- Specifies that the fund will be used to fund mortgage loans and related costs for eligible homebuyers.
- Sets a maximum credit amount of 4% of the average unpaid balance of a qualified loan.
- Allows for carryforward of unused tax credits for up to five years.
- Outlines eligibility criteria for loans to manufactured dwelling parks and preservation projects.
Who is affected
- Banks and Lending Institutions
- Homebuyers
- Housing Developers
- State Treasury
- Housing and Community Services Department
Notable changes
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Arguments in favor
Reasons to support this legislation.
Supporters of HB 3236 with amendments aim to expand the Oregon Affordable Housing Tax Credit (OAHTC) program to increase affordable housing options for first-time homebuyers. The proposed amendments, including those from the Oregon Bankers Association and the Housing Authorities of Oregon, would allow the use of mortgage funds like Amplify Oregon's Accelerated Mortgage program, enabling lower interest rates and more accessible credit for low-income renters. By expanding the OAHTC program, supporters hope to address the growing housing crisis in Oregon, preserve affordable housing for vulnerable residents, and provide a safety net against financial threats facing affordable housing providers. This expansion is seen as crucial to protecting existing affordable homes and preventing homelessness.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of HB 3236 express concerns that the bill is discriminatory, targeting specific groups unfairly. They argue that the legislation imposes an undue burden on taxpayers, potentially leading to increased costs for those who are not affected by the bill's provisions. Additionally, critics contend that the bill's impact on federal funding and the state's financial situation could be significant, raising questions about the long-term sustainability of the law. Furthermore, some concerns that the bill may inadvertently affect undocumented immigrants, highlighting a need for more comprehensive and inclusive policy solutions.