Oregon Governor Tina Kotek has signed House Bill 3589 into law, authorizing the transfer of $23.5 million toward the development, rehabilitation, and preservation of housing for seniors across the state. The measure, passed with broad bipartisan support in the Legislature, is aimed at addressing the state’s growing shortage of affordable and accessible housing for older adults.
The new law directs funds from the state’s Senior Property Tax Deferral Revolving Account, a program that allows qualifying seniors to postpone payment of their property taxes until their home is sold or they move out. Under HB 3589, a portion of the account’s balance will be redirected into a newly created Senior Housing Development Initiative. The program will be administered by the Oregon Housing and Community Services Department (OHCS).
In addition to the $23.5 million set aside for housing development and rehabilitation, the legislation allocates $3 million for home accessibility modifications. These could include features such as wheelchair ramps, grab bars, widened doorways, or other alterations designed to help seniors remain safely in their homes. Another $500,000 is earmarked for technical assistance to housing providers, helping them plan, design, and finance senior-specific housing projects.
Supporters of the bill argue it is a timely response to demographic shifts in Oregon. State and local housing officials have noted that a growing share of the homeless population is over the age of 55, and that many older residents on fixed incomes face difficulty finding affordable rental units or aging in place due to accessibility barriers.
“This legislation ensures that resources are available to develop housing that meets the needs of older Oregonians,” OHCS Director Andrea Bell said in a statement. “It’s about creating safe, stable, and accessible living spaces for people who have contributed to our communities for decades.”
The law also establishes a review process beginning in 2027, in which the Department of Revenue will assess the balance of the Senior Property Tax Deferral Revolving Account annually. Any surplus beyond program requirements may be transferred into the Elderly and Disabled Housing Fund to further support housing development. The program is scheduled to sunset on July 1, 2031, unless lawmakers act to extend it.
HB 3589 was part of a larger set of housing measures considered this session. Lawmakers also advanced HB 3506, which provides $3 million for accessibility improvements in existing homes for seniors and people with disabilities. Together, the two bills are seen as an initial step toward addressing a long-term shortage of affordable and accessible housing stock for Oregon’s aging population.
While the bill drew near-unanimous support in the Legislature, it has faced criticism from some taxpayer advocates who object to diverting funds from the tax deferral program. They warn that the move could affect the long-term stability of the account if property tax deferral participation increases.
Nonetheless, with HB 3589 now signed, OHCS will begin implementing the initiative and working with developers, nonprofit organizations, and local governments to bring new senior housing projects to communities across Oregon.