SB 1566

Exempts certain projects for public works, primarily related to affordable housing, from the requirement to pay a prevailing rate of wage.

Bill Text

• Introduced

Modifies Oregon’s prevailing wage exemptions for affordable housing projects to reduce construction costs and accelerate housing development.

Introduced by Sen. Dick Anderson (R-Lincoln City), Vice Chair of the Senate Housing and Development Committee, and co-sponsored by Rep. Vikki Breese Iverson (R-Prineville). To be filed February 2, 2026.

Read the bill on OLIS →

Key Provisions#

The bill would make four main changes to existing prevailing wage exemptions:

1. Commercial Uses: Allow commercial space (such as child care facilities) in affordable housing projects without jeopardizing the project’s prevailing wage exemption

2. Building History: Make a building’s previous use irrelevant to exemption eligibility

3. Height Allowance: Increase the maximum height for affordable housing exemption from four to seven stories in certain counties

4. Infrastructure Clarification: Specify that installation of adjacent streets, sewers, and utilities shouldn’t require prevailing wages for nearby projects

Background#

Studies indicate prevailing wage requirements add 10-20% to project costs. The Oregon Bureau of Labor and Industries has increasingly narrowed exemptions based on commercial inclusions, prior building use, adjacent infrastructure, and state bond funding designations.

According to Sen. Anderson, the bill “aims to provide targeted relief by ensuring that the language in statutes will make sure affordable housing at multiple levels is being built without prevailing wage triggers.”¹

News Coverage

Public Testimony

Legislative History