SALEM, Ore. — Oregon's short legislative session is underway, and Democratic Gov. Tina Kotek has proposed just one piece of legislation focused squarely on increasing housing across the state. But a Senate committee quickly made changes that amount to a scaling back of her sweeping proposal.
The amendment to Senate Bill 1537 passed as part of an emergency housing stability and production package on Tuesday. The bipartisan Senate Housing and Development Committee cut the governor's $500 million bill down by $150 million.
Earlier this week, Kotek discussed the housing bill on Straight Talk with Laurel Porter, admitting it was likely that lawmakers would make changes.
"I said to legislators, 'You might have to make an amendment or two, so get it done,'" Kotek said. "I support legislators doing it; my message to them is, 'Be as bold as you can be.'"
The cuts will greatly impact the governor's revolving loan program, meant to incentivize developers and local governments who build both affordable and moderate-income housing. The newly approved bill dedicates $75 million to this fund as opposed to the governor's request of $200 million.
The committee also reduced the budget meant for building infrastructure like water and sewer systems for new housing projects. $100 million is available for "shovel-ready projects," half of what was originally proposed.
The amended bill also dials back the number of acres a qualifying city can obtain as part of one-time expansion of Urban Growth Boundaries. Instead of allowing the Portland metro area 600 acres for expansion, the committee approved 300 acres.
"I just want to acknowledge that this has been challenging, but I think we landed at a good place; this is a good bill and I appreciate all the efforts," Committee Chair Sen. Kayse Jama, a Democrat, said during Tuesday's meeting.
A spokesperson from the governor's office said Kotek appreciates the committee's help in moving SB 1537 forward, but she doesn't want to compromise when it comes to funding new infrastructure.
"(She) will continue to advocate for deeper investments for the moderate income financing and infrastructure programs in her bill," spokesperson Elisabeth Shepard added. "She hopes to see at least $200 million more than the legislature proposed dedicated to the bill."
Housing affordability is not a new issue for the legislature. Last March, lawmakers passed a $200 million package meant to address the state’s housing and homelessness crisis. It was an early win for Gov. Kotek, who campaigned on her commitment to address the issues of homelessness and lack of housing.
But Kotek has historically faced headwinds in the legislature in attempting to pass legislation similar to SB 1537, particularly when it comes to the urban growth boundary. Lawmakers in her own party led the way in shooting down a bill she championed during last year's session.
The legislative process isn't over for SB 1537. The bill was referred to the Ways and Means Committee before it will make its way to the Senate floor for a vote.