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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3145
Sponsored by Representative MARSH, Senator ANDERSON, Representatives DIEHL, BOWMAN; Representatives
FRAGALA, LEVY E, MANNIX, Senator TAYLOR (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: This Act lets OHCS use LIFT money for prefab homes and makes OHCS hire a con-
tractor to support the prefab home industry. (Flesch Readability Score: 69.1).
Allows the Housing and Community Services Department to use Local Innovation and Fast
Track Housing Program Fund moneys for factory-built housing. Requires the department to hire a
contractor to support the factory-built housing industry. Requires the department to report on out-
comes to the interim committees of the Legislative Assembly related to housing by September 15,
2027.
Sunsets January 2, 2028.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to factory-produced housing; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Sections 2 to 5 of this 2025 Act are added to and made a part of ORS 458.480
to 458.490.
SECTION 2.(1) As used in sections 2 to 5 of this 2025 Act:
(a) “Factory-produced housing” means housing that is produced through off-site con-
struction of the housing or housing components, and that includes manufactured dwellings,
as defined in ORS 446.003, prefabricated structures, as defined in ORS 197A.015, or other
types of housing developed through volumetric modular, panelized modular or other modular
components.
(b) “Low income households” includes, notwithstanding the definition in ORS 458.480, for
housing that may be rented, households of one or more individuals whose combined incomes
are at or below 80 percent of the area median income.
(2) The Housing and Community Services Department shall use moneys available in the
Local Innovation and Fast Track Housing Program Fund to provide funding to acquire or
construct factory-produced housing for low income households consistent with the require-
ments of ORS 458.480 to 458.490.
(3) The department may provide funding for up to five separate recipients or locations
under this section.
(4) In awarding funding under this section, in addition to applying criteria adopted under
ORS 458.485 (4)(a), the department may give preference to funding housing that:
(a) Uses Oregon-based developers;
(b) Is geographically diverse, including coastal and eastern Oregon communities, or is
sited in more than one location;
(c) Can benefit from, and provide a benefit to, the industry support intentions of the ad-
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 1880 HB3145
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visory group under section 4 (2)(b) of this 2025 Act; or
(d) Uses materials that:
(A) Is nontraditional, including mass timber;
(B) Provide energy efficiency, carbon capture or other environmental benefits;
(C) Are produced in Oregon; or
(D) Are raw materials sourced from Oregon.
(5) In developing application criteria or evaluating applications for funding provided under
this section, the department shall consult with the advisory group under section 4 (2)(b) of
this 2025 Act and not the Oregon Housing Stability Council, notwithstanding ORS 458.485 (1).
(6) Recipients of funding under this section must cooperate with the department in pre-
paring the report required under section 5 of this 2025 Act.
SECTION 3. (1) In addition to the uses allowed under ORS 458.490 (3), moneys in the
Local Innovation and Fast Track Housing Program Fund are continuously appropriated to
the Housing and Community Services Department to take actions under section 2 of this 2025
Act.
(2) To the extent that moneys are available in the fund and are not otherwise obligated
and that eligible applications to provide housing are available for funding, it is intended that,
for the biennium beginning July 1, 2025, the amount of $50,000,000 from the fund be used for
purposes described in subsection (1) of this section.
SECTION 4. (1) The Housing and Community Services Department shall contract with
one or more consultants or other organizations to carry out the provisions of this section.
(2) The contractor under this section shall:
(a) Provide engagement, education, training and technical assistance needed throughout
the supply chain, including assistance provided to housing developers, contractors, archi-
tects, engineers, factory operators, local governments, research institutions, capital provid-
ers, transport providers, consumers and the department.
(b) Convene a public-private advisory group to assist applicants for or recipients of
funding described in section 2 of this 2025 Act by:
(A) Providing technical resources to assist with navigating regulatory frameworks, in-
novating project delivery mechanisms, determining technical feasibility, incorporating
sustainability and resiliency into design and supporting equity and inclusion within the in-
dustry.
(B) Providing systems for the transfer of knowledge necessary to set the industry up for
success beyond the housing developed through the use of moneys under section 2 of this 2025
Act.
(c) Support industry and consumer awareness by showcasing factory-produced housing
in multiple Oregon communities and building a constituency for innovative housing methods
and materials.
(d) Identify sources of ongoing funding to continue the activities under this subsection.
(3) The contractor shall assist the department in preparing the report required under
section 5 of this 2025 Act.
(4) All agencies of state government, as defined in ORS 174.111, are directed to assist the
contractor in performance of the duties of the contractor under this section.
SECTION 5. On or before September 15, 2027, the Housing and Community Services De-
partment shall submit a report in the manner provided by ORS 192.245 to the interim com-
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mittees of the Legislative Assembly related to housing on:
(1) The results and findings of moneys spent under section 2 of this 2025 Act, including
information regarding the recipients’ direct construction costs, total development costs,
barriers overcome, barriers identified and ability to secure additional private debt or equity
partnerships;
(2) The activities of the contractor under section 4 of this 2025 Act; and
(3) Recommendations for legislation or funding to support factory-produced housing
within this state.
SECTION 6. Sections 2 to 5 of this 2025 Act are repealed on January 2, 2028.
SECTION 7.In addition to and not in lieu of any other appropriation, there is appropri-
ated to the Housing and Community Services Department, for the biennium beginning July
1, 2025, out of the General Fund, the amount of $650,000 to implement sections 4 and 5 of this
2025Act.
SECTION 8.This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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