Oregon Tax Foreclosure HOA Assessments: HB 4064 Clarifications

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 bringing a mix of bills, and House Bill 4064 is one that dives into the nitty-gritty of tax foreclosures—a topic that doesn't come up every day but can hit hard when delinquent taxes lead to a county taking title. Titled "Relating to acquisitions of real property by foreclosure for delinquent taxes; prescribing an effective date," this bill clarifies when homeowners association (HOA) and condominium association assessments accrue on properties deeded to the county through the tax foreclosure process.

https://www.youtube.com/watch?v=1GbDoQ4LYbI

Mr Portland Landlord reports this article

What the Bill Actually Says

As of early February 2026, HB 4064 is newly introduced and referred to the House Committee on Housing and Homelessness. No sponsors are explicitly listed yet, no amendments, and no hearings scheduled—it's in the starting blocks. The full introduced text is available on the Oregon Legislative Information System (OLIS), linked below.

The core provision establishes the timing for when HOA and condo association assessments begin (or continue) to accrue on real property after it's deeded to the county in a tax foreclosure. Oregon's tax foreclosure process allows counties to take title to properties with unpaid property taxes after a redemption period, eventually selling them at auction or otherwise to recover back taxes. During county ownership, questions arise about ongoing assessments from HOAs or condo associations—for maintenance, amenities, or common areas.

This bill aims to clarify that point, likely limiting or defining when those private assessments attach to publicly held (county) property. Without specifics in the short text (common for early introductions), it appears to protect counties from certain accruing liabilities or set a cutoff, making foreclosed properties more manageable or attractive for resale.

Clarifying rules: Oregon tax foreclosure HOA assessments on county-held properties.

Impacts on Landlords and Property Managers

For most rental operators, this is niche—unless you own or manage in an HOA/condo community with a foreclosure risk. If a tenant-owned unit (or your investment condo) goes to tax foreclosure, the bill could affect how association dues pile up while the county holds title. Clearer rules might speed county sales, returning properties to private ownership faster—potentially back to the rental pool or new buyers.

In managed associations, it reduces ambiguity on budgeting for delinquent units. Pitfall: If assessments pause during county ownership, associations lose revenue for common maintenance, shifting burden to paying owners (including landlords with units there).

Impacts on Real Estate Investors

Investors eyeing tax foreclosure auctions (a source of discounted properties in Oregon) benefit from cleaner titles. If the bill limits accruing HOA/condo liens during county hold, buyers face fewer surprises—lower back dues to negotiate or pay off. In condo-heavy areas like Portland or Bend, this could make foreclosed units more viable for flips or holds.

Conversely, if you're invested in association-governed properties, paused assessments might strain reserves, leading to special assessments on remaining owners. Overall, smoother foreclosures add inventory, supporting supply in a constrained market.

Impacts on Developers

Less direct, but developers of new HOA/condo projects note how foreclosure rules affect long-term viability. Clear assessment timing reassures lenders and buyers that associations stay funded even through delinquencies. For rehabbing foreclosed multifamily, reduced lien risks improve pro formas.

Common Scenarios and Pitfalls

Your rental condo in a Lake Oswego association falls behind on taxes—foreclosed, deeded to county. Under new rules for Oregon tax foreclosure HOA assessments, association assessments might not accrue during county ownership. Association struggles with pool maintenance; you (as owner of another unit) face higher fees.

Or you bid on a tax-foreclosed townhome—bill clarifies no massive back HOA dues, closing easier.

Pitfall: Misreading timing—assessments could still lien post-county sale, catching buyers off guard. Another: Associations underfunded during gaps, leading to deferred maintenance visible at purchase.

Best-Practice Tips

Protect yourself in association properties:

• Review governing documents: Understand assessment collection during delinquencies.

• Monitor county tax foreclosure lists (most publish online)—spot risks early.

• For auctions, title search thoroughly—HOA liens survive foreclosures sometimes.

• Budget reserves in associations you control—for covering non-paying units.

• Advise tenant-owners: Property taxes matter—delinquency risks unit loss.

• Partner with title companies experienced in Oregon foreclosures.

Timing matters: How HB 4064 addresses Oregon tax foreclosure HOA assessments accrual.

Related Considerations

Tax foreclosures recover public revenue but disrupt ownership. HOAs/condos rely on assessments for operations—unpaid ones create holes. This bill balances county interests (clean titles for resale) with association needs. Ties into broader delinquency trends post-pandemic or economic dips.

In Oregon, counties handle foreclosures differently—some aggressive, others redemption-friendly. Clarifying private assessments on public-held land avoids disputes, speeding recovery of properties to productive use (rentals included).

The bill's emergency clause suggests quick need, perhaps from recent cases. Expect details or expansions in committee.

Call to Action

HB 4064 could streamline tax-foreclosed HOA/condo properties—share your take.

Track it here: https://olis.oregonlegislature.gov/liz/2026R1/Measures/Overview/HB4064

Download introduced text here: https://olis.oregonlegislature.gov/liz/2026R1/Downloads/MeasureDocument/HB4064/Introduced

Contact legislators here: https://www.oregonlegislature.gov/FindYourLegislator/leg-district-map.html

Let them know how assessment rules affect associations, auctions, or investments. Practical feedback shapes better outcomes.

Foreclosures happen—clear rules help us all navigate. PAROA is watching.

Sources:

• Oregon Legislative Information System (OLIS) - HB 4064 Overview: https://olis.oregonlegislature.gov/liz/2026R1/Measures/Overview/HB4064

• OLIS Introduced Text Download: https://olis.oregonlegislature.gov/liz/2026R1/Downloads/MeasureDocument/HB4064/Introduced

• Oregon Revised Statutes Chapter 312 (Foreclosure of Property Tax Liens): https://www.oregonlegislature.gov/bills_laws/ors/ors312.html