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HB 4036

Relating to affordable housing; and declaring an emergency.

2026 Regular Session

Creates the HOLD Fund to preserve at-risk affordable housing with bond financing, administered by HCS, plus a 2026 stakeholder review to streamline operations.

Chapter 107, (2026 Laws): Effective date April 7, 2026.
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Bill Summary · HB 4036

Summary: HB 4036 (2026R1) – Relating to Affordable Housing; and Declaring an Emergency (Oregon)

This summary presents the main purpose, key provisions, affected stakeholders, and procedural/timeline aspects of HB 4036 as amended and enacted in the 2026 session.

1) Purpose and intent

  • Establish a dedicated funding mechanism to preserve affordable housing assets at risk of loss and to support administration of programs related to affordable housing preservation.
  • Streamline reporting and regulatory burdens for affordable housing providers where possible, and assess state laws/practices to improve efficiency and effectiveness.
  • The bill is introduced as an emergency measure, signaling urgent action to address housing affordability and preservation needs.

2) Key provisions and changes

  • Establishment of the Housing Opportunity, Longevity and Durability Fund (HOLD Fund)

    • Location: State Treasury, separate from the General Fund.
    • Interest on fund balances credited to the HOLD Fund.
    • Fund source: Moneys deposited into the fund from bonds issued by the State Treasurer under ORS 286A.035, designated for the Housing and Community Services Department to be used for affordable housing preservation.

  • Uses and appropriations from the HOLD Fund

    • Continuous appropriation to the Housing and Community Services Department for:
    • Acquisition, construction, remodeling, repair, equipment, or furnishing of affordable housing at risk of loss (as defined in ORS 456.824(2) and as owned/operated by the State for affordable housing purposes).
    • Administrative costs of the department related to the HOLD Fund.
    • Bond-related costs (as defined in ORS 286A.816).

  • Reporting and stakeholder input (Section 3)

    • By December 1, 2026, the Department must submit a report (per ORS 192.245) to interim housing committees.
    • The report must reflect feedback from key stakeholders (affordable housing providers, finance entities, tenant advocates) and:
    • Evaluate impacts of state laws, practices, policies, or rules that hinder efficiency, cost-effectiveness, or operations (leasing, screening, vacancy filling, wait lists, recertifications, inspections, rent collection, property management, regulatory compliance).
    • Consider opportunities to streamline or reduce reporting requirements for state and federal programs administered by the department.

  • Expanded definition of distress (amended wording)

    • The phrase “physical or financial distress” is modified to: “financial or physical distress, including physical distress that requires rehabilitation, repair or replacement of such building systems, components or materials that have exceeded, or within a reasonable period will exceed, their effective useful lives.”

  • Funding amount and bonding

    • The HOLD Fund is proposed with a dedicated appropriation line in the multifamily rental housing program budget:
    • Fund size: $100,000,000 (in the enacted/amended version).
    • Bonds: Total bonding authorizations adjusted to $2,440,290,000.

  • Adjustments via amendments

    • Several technical amendments were added to align the bill, including similar HOLD Fund language across multiple amendments (HB 4036-2 and HB 4036-A4), minor formatting changes, and adjustments to statutory references.

3) Who/what is affected

  • State government

    • Housing and Community Services Department: Receives ongoing appropriations, administers the HOLD Fund, and oversees programs to preserve affordable housing.
    • State Treasurer and related bond authorities: Issue bonds under ORS 286A.035 and manage bond-related costs under ORS 286A.816.

  • Affordable housing providers and tenants

    • Providers: Potentially benefit from preserved at-risk housing and reduced regulatory/reporting burdens.
    • Tenants: Beneficiaries of preserved or expanded affordable housing stock, with potential improvements in efficiency of service delivery and ongoing affordability.

  • Stakeholders requiring reporting

    • Tenant advocates, finance entities, and other stakeholders are targeted in the mandated review to inform policy improvements.

4) Procedural and timeline aspects

  • Effective date and reporting

    • The bill contemplates a report to interim legislative committees by December 1, 2026, evaluating efficiency, cost of operating affordable housing, and reporting requirements.

  • Funding timeline

    • The HOLD Fund is funded via bonds and designed to provide ongoing capitalization for preservation activities. The $100 million fund appropriation is reflected in the construction/rental housing program budget lines.

  • Legislature action history

    • The bill underwent multiple committee iterations, amendments, and printings (A-engrossed and B-engrossed forms, HB 4036-A4, HB 4036-2). The final action history shows passage and enactment with an emergency clause, effective April 7, 2026 (Chapter 107, 2026 Laws).

5) Bottom-line

HB 4036 creates a dedicated Housing Opportunity, Longevity and Durability Fund to preserve affordable housing stock at risk of loss, financed by state bonds and administered by the Housing and Community Services Department. It also requires a comprehensive 2026 stakeholder review to streamline operations and reporting. The bill reflects an emphasis on both capital preservation of affordable housing and administrative efficiency, with an emergency designation intended to expedite implementation.

Compiled from official sources — confirm details with the bill’s official record.

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