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Oregon HB 4036: New Fund to Preserve At-Risk Affordable Housing

  • Feb 2
  • 4 min read

Hey there, fellow Oregon landlords, property managers, and real estate investors. Christian Bryant here from the Portland Area Rental Owners Association (PAROA). The 2026 session is moving fast, and House Bill 4036 is one of those measures aimed squarely at Oregon's affordable housing challenges. Introduced at the request of the House Interim Committee on Housing and Homelessness for Representative Pam Marsh, this bill is titled "Relating to affordable housing; declaring an emergency." It's focused on creating a dedicated fund to help keep existing affordable units from slipping away.

preserve at-risk affordable housing Oregon

https://www.youtube.com/watch?v=oAFP9c4IlZc
Mr Portland Landlord reports this article

What the Bill Actually Says


As of early February 2026, HB 4036 is newly introduced and at the House Desk awaiting first reading. No committee referral or amendments yet—it's early. The introduced text establishes the "Preserve Affordable Homes for Oregon Fund" as a dedicated account in the State Treasury. Proceeds from Article XI-Q bonds (Oregon's general obligation bonds for housing and community development projects) would flow into this fund on a continuing basis. The money would be used specifically to preserve affordable housing that's at risk of loss—think properties with expiring affordability restrictions, deferred maintenance threatening viability, or potential conversion to market-rate.


The bill declares an emergency, meaning if passed, it takes effect immediately upon signature rather than the standard delay. Administration details aren't spelled out deeply in the short text—likely handled by Oregon Housing and Community Services (OHCS) or similar, based on existing bond programs.


Renovation of affordable multifamily building symbolizing HB 4036 preservation efforts.
Protecting what's there: Preserving at-risk units with the proposed Oregon affordable housing preservation fund.

Representative Pam Marsh has long prioritized housing access and preservation initiatives, and this committee-requested bill fits that focus.


Impacts on Landlords and Property Managers


This is mostly indirect for market-rate providers like most of us. Preserving at-risk affordable units keeps them restricted for lower-income households longer, potentially reducing the number that "naturally" convert to market-rate over time. In tight markets like Portland or Eugene, that could mean fewer additions to the open-market pool, keeping upward pressure on rents for unsubsidized units.


On the positive side, stabilized affordable stock supports overall housing stability—fewer households doubling up or facing homelessness, which can ripple into demand for all rentals. If you manage mixed portfolios including affordable, this fund could open grant or loan opportunities to rehab or buy out expiring properties.


Impacts on Real Estate Investors


For investors in affordable or workforce housing, this is potentially good news. Bond-funded preservation programs often involve acquisitions, subsidies for repairs, or partnerships to extend restrictions. If you own properties nearing affordability expiration, selling to a preservation entity backed by this fund could be an exit strategy with social impact—and possibly favorable terms.


Market-rate investors might see slower supply growth from expiring units flipping, supporting values in some submarkets. But if the fund aggressively preserves large complexes, it could limit opportunities to reposition them as higher-rent assets.


Impacts on Developers


Developers working in affordable or mixed-income space stand to benefit most directly. Article XI-Q bonds have funded new construction before; dedicating proceeds to preservation complements that by protecting existing stock. For larger projects, pairing new builds with preservation acquisitions could meet production goals or community needs.


Pure market-rate developers see less direct effect, but overall housing stability aids permitting and community support for new projects.


Common Scenarios and Pitfalls


Picture a 1980s-era 100-unit complex in Beaverton with subsidies expiring soon. Owner considers going market-rate for better returns. With this fund, a nonprofit or mission-driven buyer steps in with bond backing, preserving rents—keeping units affordable but off your acquisition radar.


Or you own a small affordable duplex nearing expiration. Fund resources help refinance or rehab to extend restrictions, stabilizing your income without full market repositioning.

Pitfall: Emergency clause speeds implementation, but bond issuance and program setup take time—don't expect immediate flood of preserved units. Another: Defining "at risk"—vague now, details in administration or future rules.


Bond and housing documents for Oregon affordable preservation program.
Funding preservation: Article XI-Q bonds directed to the Oregon affordable housing preservation fund.

Best-Practice Tips


Stay ahead regardless of passage:

  • Inventory your portfolio: Any properties with expiring restrictions? Explore preservation options early.

  • Build relationships with OHCS and nonprofits—they often lead preservation efforts.

  • For market-rate, monitor local affordability expirations—potential future competition or opportunities.

  • Advocate balanced approaches: Preservation is vital, but new supply matters too.

  • Review insurance and financing: Preserved properties might qualify for special programs.


Related Considerations


Oregon loses thousands of affordable units yearly to expiration or deterioration. Article XI-Q bonds, voter-approved, have funded housing before—this channels them specifically to preservation, a growing need as older subsidized stock ages. It complements tools like property tax exemptions for affordable or relocation assistance requirements.


No major supporting organizations publicly tied yet—it's early—but expect housing advocates to back preservation funding. On the lighter side, preserving affordable homes is like that old truck you keep repairing because it's reliable—sometimes better than buying new, especially when "new" is hard to find in Oregon's market.


The bill could see additions like eligibility criteria or reporting in committee.


Call to Action


HB 4036 aims to protect existing affordable stock—share your perspective now.





Tell them how preservation funding intersects with market-rate supply, investment, or operations. Thoughtful input helps craft effective policy.


Affordable housing affects us all—stay engaged, and PAROA is here.


Sources:

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Portland Area Rental Owners Association

12725 SW Millikan Way
Suite 300
Beaverton, OR 97005

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