Oregon Passes Affordable Housing Bill

SALEM, OR - Affordable housing advocates worked all through the housing mania to secure a reliable funding source for projects they say Oregon desperately needs. In a touch of irony, they appear to be getting their wish at a time when house prices are finally dropping. The Oregon House on Tuesday approved a bill that would fund affordable housing projects by increasing the real estate document-recording fee to $26 from $11.

The biggest chunk of the money would go toward multifamily affordable housing, which can mean everything from living space for the disabled to work-force housing. The remainder will go to various programs that address homelessness and offer aid to first-time homeowners.

If the Senate passes the legislation, the Oregon Housing and Community Services Department estimates it will collect $15 million during the 2009-11 biennium and$26 million for the following two-year period.

"This brings, for the first time, a sustainable, ongoing revenue source for the development of affordable housing in the state," said Rick Crager, the department's deputy director. "It's a huge investment to meeting our most critical needs throughout the state."

The additional money would mean an increase of 10 to 15 housing projects a year for the department, Crager said. "In this environment, where we're trying to create jobs throughout the state, we think affordable housing is a good deal."

A similar measure made it to the floor two years ago, but supporters couldn't muster the votes for passage. On Tuesday, it passed 44 to 15; not a single representative spoke in opposition.

Rep. David Edwards urged his colleagues to support the bill, saying it offers not only "material help, but lasting social progress."

"The current economic downturn has only deepened the need for affordable housing," said Edwards, D-Hillsboro. "The marginal increase in cost per transaction will have a profound impact on the lives of low-income Oregonians." The new recording fee, which applies to deeds and mortgage records filed with county clerks, won't take effect until 91 days after the current legislative session ends.

Rep. Vic Gilliam, R-Silverton, was one of the 15 representatives who voted against the legislation. "There is a great argument to be made for helping homeless folks," he said. "But it comes at a cost." In this case, he said, the cost is another barrier toward homeownership for those who must pay increased recording fees. "Who pays that? The very people we're trying to encourage," he said. "We just added one more hurdle for them.