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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
A-Engrossed
House Bill 3145
Ordered by the House March 28
Including House Amendments dated March 28
Sponsored by Representative MARSH, Senator ANDERSON, Representatives DIEHL, BOWMAN, GAMBA; Repre-
sentatives ANDERSEN, DOBSON, FRAGALA, LEVY E, MANNIX, PHAM H, 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. 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, “factory-produced housing”
means housing that is produced through off-site construction of the housing or housing
components, and that includes manufactured dwellings, as defined in ORS 446.003, prefabri-
cated structures, as defined in ORS 197A.015, or other types of housing developed through
volumetric modular, panelized modular or other modular components.
(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; or
(c) Uses materials that:
(A) Are nontraditional, including mass timber;
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 A-Eng. HB 3145
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(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 committee under section 4 (2)(a)
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 and the
contractor described in section 4 of this 2025 Act in preparing 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
the Network for Oregon Affordable Housing (NOAH) to provide the services described in this
section.
(2) The contractor under this section shall:
(a) Convene a public-private advisory committee to offer input and guidance on project
solicitation processes and criteria as outlined in section 2 (5) of this 2025 Act. The committee
must include representation from the Department of Land Conservation and Development,
the building codes division of the Department of Consumer and Business Services, the
Oregon Housing Stability Council and local governments and from private firms and individ-
uals with subject matter expertise related to housing development and finance and modular
and manufactured housing production and installation.
(b) With guidance from the advisory committee, provide the Housing and Community
Services Department with recommendations for criteria for selecting projects to receive
funding and for evaluating the feasibility and appropriateness of proposals under section 2
(5) of this 2025 Act.
(c) With input and direction from the advisory committee, arrange for the provision of
technical assistance to recipients of funding under section 2 of this 2025 Act as may be
needed for the successful implementation of the proposal for developing factory-produced
housing, including assistance in the form of navigating regulatory frameworks, accessing
interim and long-term financial resources, procuring Oregon-sourced sustainable materials,
establishing technical specifications needed for on-site delivery and installation and estab-
lishing systems of compliance related to the use of Local Innovation and Fast Track Housing
Program Fund moneys.
(d) Provide 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.
(e) Support industry and consumer awareness by showcasing factory-produced housing
[2] A-Eng. HB 3145
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in multiple Oregon communities and building a constituency for innovative housing methods
and materials.
(f) Identify potential sources of ongoing funding to continue the activities under this
subsection.
(3) The contractor shall create the portions of the report required under section 5 (2) to
(4) of this 2025 Act.
(4) All agencies of state government, as defined in ORS 174.111, are directed to assist the
department and, at the request of the Director of the Housing and Community Services De-
partment, the contractor in the performance of the duties of the department and contractor
required by sections 2 to 5 of this 2025 Act.
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-
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 and total development costs;
(2) The results and findings of the efforts by the recipients of funds under section 2 of
this 2025 Act related to barriers overcome, barriers identified and ability to secure additional
private debt or equity partnerships;
(3) The activities of the contractor under section 4 of this 2025 Act; and
(4) 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.
[3]