2026 Housing-Related News Coverage

The Oregon Legislature passed HB 4082, allowing cities to expand their Urban Growth Boundary (UGB) to add affordable housing for older adults, resolving a conflict with another UGB expansion bill for Woodburn. The bill, requested by Governor Tina Kotek, passed the House 41-8 and eliminates the typically expensive and lengthy state approval process for UGB expansions when used for senior housing, manufactured homes, and similar developments. Lawmakers also passed Senate Bill 1501 to use $365 million in state bonds to renovate Portland’s Moda Center, with repayment tied to tax revenues from the venue and Trail Blazers.

Multnomah County’s Fiscal Compliance Unit is conducting a routine three-year review of Sunstone Way, a nonprofit shelter provider operating six shelters in the Portland area, following a whistleblower lawsuit filed by former finance director Kate Fulton alleging excessive spending on office space, staff retreats, and a $210,000 overbilling by another nonprofit. The review, already scheduled before Fulton’s February 12 complaint, examines internal controls and expense validity at an organization with a history of accounting issues, including a 2022 overbilling of Multnomah County by $525,000. County auditors visited Sunstone Way this week as part of the ongoing investigation, though the nonprofit claims the review has been completed on their end.

A federal judge barred federal agents at Portland’s ICE facility from using tear gas and chemical munitions that could seep into nearby affordable housing complex Gray’s Landing unless there is an “imminent threat to life,” following a lawsuit by residents and Reach Community Development. U.S. District Judge Amy M. Baggio found federal agents showed “deliberate indifference” after eight months of deploying crowd control munitions during protests that caused residents to experience wheezing, migraines, and trauma, with some sleeping in bathtubs and wearing gas masks to bed. The ruling represents a significant constraint on federal immigration enforcement operations in Portland, with another similar case brought by protesters and journalists represented by the Oregon ACLU expected to be decided by U.S. District Judge Michael Simon by Monday.

Portland’s Housing Bureau and Mayor Keith Wilson launched a “home sharing” program offering homeowners $1,000 to rent spare rooms for 12 months at up to $800/month through PadSplit or Ecumenical Ministries of Oregon. The program aims to increase housing stock and address homelessness, though the $800 rent may be unaffordable for many currently unhoused residents, leaving the target demographic unclear. This follows Multnomah County’s 2022-2024 “Housing Multnomah Now” pilot that housed 311 households by incentivizing landlords to rent to people from streets or shelters.

The Oregon Bureau of Labor and Industries reversed its December 2025 ruling that prevailing wages must be paid for derelict vessel removal, saving the Port of Newport and other ports statewide significant costs on a $19 million state cleanup program. The reversal came after the Oregon Public Ports Association challenged BOLI’s initial determination that boats qualified as “structures” under prevailing wage law, though BOLI provided no explanation for its amended decision. The rare reversal comes amid ongoing controversy over BOLI’s prevailing wage interpretations affecting housing projects, with state Sen. Dick Anderson reportedly considering challenging Labor Commissioner Christina Stephenson’s reelection after SB 1566 (2026), which would have clarified prevailing wage law, died in committee.

The Oregon Senate passed House Bill 4123 on Monday by a 24-3 vote, allowing tenants to collect up to twice their monthly rent if landlords knowingly disclose confidential information like immigration status, Social Security numbers, or medical records. The bipartisan bill, now heading to Gov. Tina Kotek’s desk, strengthens 2025 protections for immigrants without permanent legal status by establishing explicit monetary penalties, with Republican Sen. Dick Anderson calling it a “balanced approach” that protects privacy without burdening landlords. The legislation comes as Oregon Democrats push to bolster immigrant protections during the Trump administration’s immigration crackdown, building on Oregon’s 1987 sanctuary state status.

Oregon relaxed building codes after the 2020 Almeda Fire to ease rebuilding, but state officials and Energy Trust of Oregon used pandemic relief funds and doubled utility-funded incentives to encourage fire survivors to rebuild to current energy-efficiency standards instead. The approach proved successful in Canby’s neighboring communities of Talent, Phoenix, and Ashland, where builder Suncrest Homes and others constructed 35 highly efficient, fire-resistant homes using triple-pane windows, improved insulation, and heat pumps, though manufactured home parks housing low-income and Latine residents have been slower to recover. State Rep. Pam Marsh, whose district includes the fire zone, says the “carrots-instead-of-sticks” strategy demonstrates how to rebuild more resiliently after disasters while meeting climate goals.

Oregon issued permits for only 4,800 multifamily housing units in 2024—the lowest in 12 years—falling far short of Gov. Tina Kotek’s 36,000 annual unit target set in her 2023 homelessness emergency declaration. The state needs 95,000 units immediately and nearly 500,000 over the next 20 years, but despite five new housing laws enacted in July to simplify permitting and expand “middle housing” options, private sector construction remains constrained by cautious lenders, higher interest rates, and out-of-state banks’ negative perceptions of Oregon’s quality of life. While state funding helps stimulate development, experts say it cannot overcome these larger market forces that are driving the housing shortage.

Some members of Governor Tina Kotek’s Prosperity Council, including real estate investor Jordan Schnitzer, have criticized her support for Senate Bill 1507A, which disconnects Oregon from federal “bonus depreciation” tax cuts in Trump’s tax bill, costing businesses $267 million over two years. The bill, which passed along party lines, retains tax cuts on tips and overtime but eliminates accelerated depreciation for business investments, prompting Portland developer Bob Ball and others to warn it will hurt housing production and economic competitiveness. Democrats argue the $900 million in potential revenue losses from fully adopting Trump’s tax cuts would devastate Oregon schools and social services, while business groups contend bonus depreciation incentivizes job-creating investments.

Portland’s Home Forward housing authority is approaching financial distress, with its debt service coverage ratio plummeting from 2.36 in 2020 to 1.14 in 2024—barely above the 1.1 breaking-even threshold required by most lenders. The agency, which owns about 7,000 affordable units, is struggling with units taking an average of 185 days to fill, nearly half of tenants being more than 30 days delinquent on rent, and $8.4 million in lost revenue from vacancies in 2025, forcing it to make interagency loans to cover struggling properties. Despite a projected $30 million budget deficit, Home Forward’s top four executives received salary increases ranging from 59% to 74% between 2022 and 2025, with CEO Ivory Mathews’s compensation rising from $215,001 to $342,849.

A whistleblower complaint alleges that Sunstone Way CEO Andy Goebels charged bar tabs totaling $257 to the nonprofit shelter provider on February 21, 2025, potentially violating Multnomah County contracting rules that prohibit using Homeless Services Department funding for alcohol expenses. Former finance director Kate Fulton, who filed the complaint in Multnomah County Circuit Court after being terminated, documented credit card charges from Paddy’s Bar & Grill, while three anonymous former employees described a “boozy culture” including weekly “Thirsty Thursday” gatherings at Portland bars. The allegations raise questions about compliance with both county funding requirements and Sunstone Way’s own employee handbook, which prohibits charging alcohol to the organization except under specific circumstances.

The Urban League of Portland received an eviction notice from its landlord, Portland Community Reinvestment Initiatives (PCRI), requiring the nonprofit to vacate its longtime headquarters at 10 N Russell St. by March 1, 2026. The dispute stems from disagreements over building conditions and a 2006 agreement in which PCRI bought the building to bail out Urban League financially, with Urban League claiming there was an understanding the building would eventually be sold back. Urban League’s general counsel urged Portland Mayor Keith Wilson and City Council to intervene, calling the eviction “retaliatory” after Urban League publicly highlighted the building’s disrepair and noting PCRI received $1.5 million in city loan dollars.

The Oregon Department of Justice ruled that the Oregon Community Foundation can withhold applications for the $125 million Project Turnkey housing program from public disclosure, despite the program being funded by taxpayer money through the Oregon Legislature. Willamette Week sought the records to investigate Rockwood Community Development Corporation, a major grantee that purchased a Best Western in Portland for $6.7 million but later lost its Multnomah County contract over billing disputes and had a history of governance issues. The DOJ determined OCF doesn’t qualify as the “functional equivalent” of a public body under Oregon’s public records law, though Deputy Attorney General Benjamin Gutman noted this “does not mean that nondisclosure is good governance.”

Gov. Tina Kotek and state lawmakers are addressing Oregon’s affordable housing crisis with hundreds of millions in funding and new programs, including legislation to expand mobile home communities for older residents. Half of Oregon’s 620,000 renting households are “rent burdened” (paying over 30% of pretax income on housing), with 1 in 4 spending 50% or more, according to a 2021 Oregon Law Center report. Coastal counties face particular challenges as seasonal tourism reduces available housing for lower-wage hospitality workers, prompting Tillamook County to restrict new rentals in 2023 to just 1% annual growth.

A Pearl District landlord has filed a tort claim threatening to sue Portland for $5 million over an emergency homeless shelter opened last fall under Mayor Keith Wilson’s direction, alleging the facility has decreased property values and created safety issues. The landlord, who controls the nearby luxury ORO Apartments, hired private security to document drug use, tent camps, and waste around the shelter operated by the Salvation Army in a leased office building at Northwest Northrup Street and 14th Avenue. The tort claim demands the city address the alleged problems by March 15 or face a lawsuit for inverse condemnation, nuisance, and negligence.

A whistleblower lawsuit alleges that Sunstone Way, a nonprofit receiving $13 million annually to operate homeless shelters in Multnomah and Clackamas counties including facilities in Northeast Portland, mismanaged public funds on upscale offices, staff retreats, and bloated contracts before firing its finance director who raised concerns. The Oregon Department of Justice ruled that the Oregon Community Foundation can keep Project Turnkey housing program applications secret despite the $125 million state-funded initiative’s use of public money, blocking transparency into how grantees like Rockwood CDC—which lost its Multnomah County contract over billing issues—qualified for funds. Governor Tina Kotek has reportedly soured on the Made in Old Town shoe manufacturing project after its executive director resigned, following the project’s failure to meet private fundraising requirements tied to its $7 million Prosper Portland loan.

Home Forward, Portland’s housing authority, takes an average of 185 days to fill vacant units in its buildings, according to new data, with its contractor Pinehurst Management averaging 292 days—a timeline affordable housing developers call “egregious” given the city’s housing crisis where 7,500 people sleep homeless nightly. Mayor Keith Wilson, who has recently focused attention on Home Forward’s 11% vacancy rate, is working to strengthen coordination with housing providers to speed up unit turnover, though he does not directly control the agency’s operations. The lengthy turnover times stem from extensive unit repairs, marketing processes, and waitlist management, even as Home Forward continues rapidly developing new affordable housing projects with units at 60% area median income—the same type it struggles to fill.

Home Forward, Portland’s housing authority, faces criticism over tenant screening policies that limit consideration of felony convictions, which readers believe contributed to drug activity moving from Dawson Park into a low-income apartment complex. Critics argue the policy prioritizes ideological goals over tenant safety, with readers calling for better solutions to prevent destructive individuals from endangering other residents in public housing. The controversy highlights ongoing debates about balancing fair housing access with community safety in Portland’s affordable housing programs.

SB 1566 (2026), sponsored by Dick Anderson and Vikki Breese-Iverson, would clarify prevailing wage laws to reduce costs for affordable housing and child care projects, but has stalled after powerful labor leader Robert Camarillo warned lawmakers not to pursue such reforms. The bill emerged from disputes over Oregon Bureau of Labor and Industries interpretations that developers say have increased project costs by 10-20%, preventing child care facilities from being built in affordable housing developments, though unions argue the bill represents a “false choice” that would cut worker wages. Despite Tina Kotek’s housing emergency declaration, Democratic leadership has blocked the bill from advancing, highlighting the rift between affordable housing advocates and labor unions.

The American Federation of State, County and Municipal Employees is organizing a campaign calling for the removal of Sunstone Way’s CEO Andy Goebels and two other executives following a whistleblower complaint alleging financial mismanagement, including profligate spending and contractor overpayments at the Portland-area nonprofit shelter provider. The union, representing 130 Sunstone Way workers, has coordinated 200 letters to the organization’s board and is planning a Feb. 24 rally amid concerns about staff cuts and the closure of the Market Street Shelter. Sunstone Way was Multnomah County’s 11th-largest contractor in fiscal year 2024 but has recently lost major contracts, including the city’s 100-bed pod village in Southwest Portland.

A former finance director at Sunstone Way, a major homeless shelter operator in Portland, has filed a $4.5 million whistleblower lawsuit alleging financial mismanagement, including overspending on office space, staff retreats, and questionable contracts with related organizations, followed by retaliation after she raised concerns. Kate Fulton’s complaint details how CEO Andy Goebel allegedly moved offices while still paying rent on the old space, overbilled the county, paid consulting fees to connected individuals, and failed to disclose transactions, leading to severe cash flow problems that nearly caused payroll to be missed. The lawsuit adds to Sunstone Way’s troubled history with Multnomah County, which previously found the organization overbilled the county by $525,000 in 2022, and comes as the nonprofit has already lost some shelter contracts.

A group of nonprofits, including the Sunnyside Shower Project, has taken over the former Sunnyside United Methodist Church in Portland to provide community services ranging from youth basketball to free showers, clothes, and hygiene supplies for unhoused residents three days a week. Director Lindsay Cogan-Sant says the project, founded by Hannah Wallace during the pandemic, now relies on 70 volunteers who help connect housed and unhoused neighbors to resources they need. The collaborative effort has transformed the historic building into a community hub serving residents who have been coming to the space for decades.

Oregon lawmakers advanced Senate Bill 1523, which would require landlords to offer paper-based alternatives for rental applications, rent payments, and keys to accommodate renters who lack access to or familiarity with technology. Housing advocates testified that online-only portals create barriers for older adults, low-income renters, and people with disabilities, with nearly 1 in 4 seniors lacking smartphones, while landlords opposed the bill citing concerns about processing delays and inefficiency. The bill addresses a gap in the Oregon Fair Housing Act, which doesn’t cover age or income-based accommodations despite existing disability protections.

Multnomah County Commissioner Julia Brim-Edwards announced her candidacy for county chair, challenging Commissioner Shannon Singleton to succeed Jessica Vega Pederson, who is not seeking reelection. Brim-Edwards, a former Nike executive who won a special election representing Southeast Portland in 2023, has been critical of the county’s handling of homelessness and drug deflection programs, promising “greater urgency and action” to achieve measurable results. She secured endorsements from Portland Mayor Keith Wilson and several centrist City Council members, contrasting with Singleton’s more progressive support base.

Portland’s Housing Bureau has $106 million in unspent housing funds, far exceeding the $21 million initially reported and the $40 million figure disclosed by City Councilor Loretta Smith. City Administrator Raymond Lee revealed the total in a Friday memo but offered little explanation for how such a large sum accumulated without being used to address the housing crisis. City councilors are now demanding answers about how the bureau failed to budget and spend these resources.

This article introduces a special edition examining three housing and development challenges across Portland neighborhoods, illustrating how local policy decisions create unintended consequences beyond the downtown core. Editor Aaron Mesh highlights stories about a low-income apartment building in Eliot where city housing authority reforms have led to deteriorating conditions, preservationists blocking the demolition of Cleveland High School in Hosford-Abernethy, and disputes over new fourplex development in the Ashcreek neighborhood. The piece argues that while viral moments downtown capture national attention, these quieter neighborhood dramas reveal the complex realities of Portland’s housing crisis and urban development struggles.

Lloyd Center mall in Northeast Portland is closing permanently after this past holiday season, with developers planning to redevelop the 18-block site into a mixed-use neighborhood with housing, retail, transit connections, and public open space. Tenant Matt Henderson of Virtua art gallery is leading a Save Lloyd campaign with over 5,000 petition signatures, arguing the mall has experienced a creative rebirth with businesses like Floating World Comics and Star Tropics Pinball Museum. A design commission hearing is scheduled for February 5 to allow public testimony on the redevelopment plans.

Portland has found approximately $106 million in unspent Housing Bureau funds—far exceeding the $21 million initially reported in November—which City Administrator Raymond Lee attributed to the old government structure where bureaus accumulated program funding without reporting to city budget leaders. Despite optimism from Mayor Keith Wilson and other officials, the funds cannot simply cover the city’s $67 million budget shortfall because each source has specific designated purposes. Lee said the issue appears unique to the Housing Bureau but pledged to closely analyze funds across all bureaus going forward.

The new owners of Portland’s Lloyd Center, Urban Renaissance Group and KKR Real Estate, unveiled plans to demolish the historic mall and its iconic ice rink to build a mixed-use development featuring park space, walking paths, housing, and businesses. At a public hearing Thursday before Portland’s Design Commission, dozens of community members submitted comments opposing the demolition, defending the importance of the mall and year-round ice rink to those who visit and work there daily.

Developers Urban Renaissance Group and KKR have submitted a master plan to Portland’s Design Commission to demolish Lloyd Center mall and replace it with mixed-use housing, retail, and park spaces, notably excluding the iconic ice rink that has stood since 1960. Dozens of community members testified against the demolition, citing the mall’s role as a multicultural gathering space and criticizing the exclusion of communities of color from the planning process. The Design Commission is accepting public comments through at least February 13 before voting on the plan.

Bandon has imposed a 120-day moratorium on new vacation rental applications to study their impact on local housing availability, as the coastal city faces a shortage of middle-market housing for professionals like doctors and teachers. A 2023 housing needs study projects Bandon will need over 500 new housing units in the next 20 years to serve its roughly 2,000 existing homes. The moratorium, which can be extended up to six months, allows city staff to evaluate whether current vacation rental policies align with projected housing needs, following similar measures adopted by other Oregon coastal communities.

City Administrator Raymond C. Lee III disclosed on February 6, 2026, that Portland’s Housing Bureau has accumulated $106 million in unspent funds—far exceeding the $21 million initially believed available and the roughly $40 million later identified by City Councilor Loretta Smith. Lee’s detailed memo outlined where the “previously unbudgeted housing funds” were found and how they may be legally spent, attributing the accumulation to Portland’s “ongoing shift” to holistic financial management under its new government structure. City councilors have been demanding answers about how the Housing Bureau stockpiled such significant revenue while the city faces an ongoing housing crisis.

A program in Oregon gave homeless youth $1,000 per month for two years. Most participants were able to find housing and improve their living situations by the end of the program.

Oregon’s Direct Cash Transfer Plus program gave 120 homeless youth ages 18-24 $1,000 monthly for two years, and 94% secured housing by the program’s end in January 2025. The program, operating in Multnomah, Clackamas, and Deschutes counties, paired cash assistance with case management and a one-time $3,000 enrichment fund. Oregon became the second state after New York City to implement such a program, and a second cohort began receiving payments in September with expanded coverage to Jackson County.

Sen. Dick Anderson (R-Lincoln City) is introducing Senate Bill 1566 to reform Oregon’s prevailing wage laws for housing projects, including clarifying affordability exemptions, allowing up to 50% commercial ground-floor space, raising height exemptions from four to seven stories, and exempting renovations of previously used buildings. Anderson says current interpretations by the Oregon Bureau of Labor and Industries have inflated costs and stalled development, undermining over $1 billion in state investment and Governor Tina Kotek’s housing priorities.

U.S. Sen. Jeff Merkley proposed legislation in October 2024 to ban hedge fund ownership of single-family homes and force large investors to sell to first-time homebuyers or face tax penalties, a stance that received unexpected support from President Donald Trump in January 2025. Though institutional investors account for less than 5% of home purchases, their ability to pay well above typical prices is seen as driving up housing costs. Nevada’s legislature recently considered similar restrictions through Senate Bill 10, which narrowly failed, and Oregon lawmakers could take up comparable measures as early as 2025.

U.S. Rep. Janelle Bynum launched her “K-30” agenda on January 26, 2026, a 16-bill package targeting affordability challenges for young Oregonians in education, housing, and jobs. Key proposals include a $1.5 billion developer grant program, $200 million for residential construction training, rural student loan relief, federal tax incentives for mass timber, and subsidized child care for semiconductor workers. While at least seven bills have bipartisan support, many rely on federal agencies the Trump administration is actively seeking to eliminate.

Cities across the U.S. are increasingly adopting rental registries—from basic ownership tracking to mandatory licensing with inspections—to monitor rent trends, identify property owners, and enforce habitability standards, with programs now in Denver, Cedar Rapids, Oakland, and other municipalities. Advocates like Allison Pretto of Oakland’s Rent Adjustment Program cite benefits in understanding “rent increase trends, tenant turnover, geographic patterns,” while landlord groups such as the American Apartment Owners Association oppose registries as added costs that discourage investment and raise rents. CityHealth reported in 2023 that 17 of the nation’s 75 largest cities have registries with regular inspection requirements, though no centralized national database exists for comprehensive tracking.

Oregon Sen. Jeff Golden has introduced a bill requiring home insurers to factor in wildfire prevention efforts—such as fire-resistant improvements and defensible landscaping—when setting premiums, following a Colorado model as insurance costs have risen over 27% since 2020. Insurers using catastrophic modeling would need to show their formulas account for these homeowner investments, with rate-setting information filed confidentially with the Oregon Department of Consumer and Business Services. Industry representatives from the Northwest Insurance Council expressed cautious support but said the bill needs refinement on the scope of discounts and which prevention actions would qualify.