OHCS’ 2026 Legislative session highlights

Agencywide Budget Impacts

One of the main issues the Legislature addressed in the 2026 Legislative Session was the state’s budget. At the beginning of session, the Legislature estimated it needed an additional $750 million to balance the state’s budget for this biennium. Over the course of the session, several actions happened, which dramatically reduced the additional revenue needed. Instead of a $750 million budget deficit, the Legislature faced a $128 million deficit.

While it was good news that the state’s budget gap significantly narrowed, the Legislature still needed to make budget reductions. OHCS, like most state agencies, is taking budget reductions, but they do not impact program funds. The funding for the programs and services OHCS administers will remain unchanged. Instead, OHCS will need to keep a handful positions unfilled for a certain amount of time this biennium in order to achieve what’s known as vacancy savings.

Below are highlights of OHCS investments and bills that passed this session.

• $75 million for Local Innovation and Fast Track (LIFT) Affordable Rental Housing 
• $25 million for preservation of affordable rental housing and manufactured park preservation 
• $20 million transferred from the Moderate Income Revolving Loan Fund to the Mixed Income Revolving Loan Fund

Priority bills impacting OHCS

• HB 4036:Establishes the Housing Opportunity, Longevity, and Durability (HOLD) Fund to be used for preservation of affordable housing. 
• HB 4036 created the technical guidelines for Article XI-Q bonds to be used for preservation and was a partner bill with the $25 million investment made this session in preservation. These funds will be split between preserving affordable rental units and manufactured parks. 
• HB 4037: Makes technical fixes to the Moderate-Income Revolving Loan Fund. 
• The proposed changes reinforce the state's desire to provide cities and counties with discretion about how MIRL loans are repaid (through property tax increment financing or other means) and whether MIRL funding is provided as a grant or loan to developers. 
• HB 4082: Allows each city or metro to add a site for manufactured dwelling parks or for housing for older persons to its urban growth boundary. 
• SB 1567: Establishes the Mixed Income Development Loan Fund. 
• The Legislature transferred $20 million from the Moderate-Income Revolving Loan Fund to the Mixed Income Development Loan Fund. 
• HB 4149: Requires school districts and Oregon Department of Education to help homeless students. 
• Guarantees school enrollment, transportation support, and access to services for homeless students. Also provides clearer guidance for schools and districts across the state and strengthens long-term sustainability for vulnerable youth and their families. 
• HB 1561: Requires local governments to approve restoration or replacement of homes damaged by disaster. 
• If a home becomes unlivable due to disasters like wildfire, flood, etc., local governments must allow the owner to repair it or rebuild it using a faster, simpler process that is not treated as a landuse decision. 
• SB 1576: Prohibits OHCS from funding new rental housing unless the housing meets the Fair Housing Act’s Section 504 accessibility standards.
  

OHCS wants to ensure that everyone has access to its information and programs. If you would like this information in a different language, please email Language.Access@hcs.oregon.gov.