In my previous post, I mentioned a couple of the new laws below. I wanted to expand further and include others as well, that may affect real estate investors.
Oregon’s 2026 session delivered a mix of tenant-friendly rules, accessibility mandates, and pro-housing development tweaks. While some measures add compliance costs, others aim to boost supply and protect state funding for affordable housing. Here’s what investors need to know:
1. SB 1523 – No More “Portal-Only” Requirements
Landlords can no longer force tenants or applicants to use a tenant portal exclusively for applications or payments.
- You must provide paper applications and accept non-electronic payments (like checks) upon request.
- You must also offer non-portal access to common areas.
- You can still charge reasonable processing fees for credit card or portal payments.
Impact: This helps older adults, low-income renters, and those uncomfortable with technology, but it means updating your processes and application options to avoid complaints or penalties.
2. SB 1576 – Heightened Accessibility Standards for Subsidized Housing
New multifamily projects receiving state subsidies must now meet stricter federal accessibility rules under Section 504 of the Rehabilitation Act (and related standards).
- This increases the number of “Type A” accessible units with features like 32-inch clear doorways, knee clearance in kitchens, and stepless entries.
- Originally broader, the final version applies only to publicly subsidized developments.
Impact: If you develop or own subsidized multifamily properties, expect higher construction costs and more accessible units. Non-subsidized market-rate projects are unaffected.
3. HB 4128 (Buyers Before Billionaires Act) – Limits on Institutional Investors
Large institutional investors (corporations, funds, etc.) must wait at least 90 days after a single-family home is publicly listed before they can purchase it.
- The goal is to give individual buyers and families a better shot at homeownership.
Impact: This primarily affects investors targeting single-family rentals or build-to-rent portfolios in the single-family space. Multifamily investors are largely untouched.
4. HB 4120 – Easier Smoke-Free Conversions in Multifamily Properties
Multifamily landlords can now convert a building (or portion) to non-smoking with just 90 days’ written notice to existing tenants. The change applies to both new and existing leases.
Impact: A useful tool for improving property appeal, reducing maintenance, and attracting certain tenants — with relatively straightforward implementation.
5. SB 1507 – Partial Tax Disconnect from Federal Changes
Oregon decoupled its state tax code from select federal tax breaks in the recent “Big Beautiful Bill” (H.R. 1) to protect state revenue (estimated $290–$310 million preserved).
- Adds back certain deductions, including 100% bonus depreciation on qualified property (for businesses) and qualified small business stock (QSBS) gains.
- Increases the state Earned Income Tax Credit and adds a limited new job creation tax credit.
Impact for Real Estate Investors:
- Reduced benefit from immediate expensing of certain improvements or equipment.
- Potential higher state taxable income for pass-through entities or investors using bonus depreciation.
- Helps preserve funding for housing programs that many investors rely on indirectly.
This change takes effect for the 2026 tax year in most cases. Consult your tax advisor for how it affects your specific structure.
6. Other Notable Housing & Development Changes
- Senior Housing Push (HB 4082 & related bills): Cities can expand urban growth boundaries for housing targeted at people 55+, manufactured homes, and senior communities — with some restrictions. Good news for developers focused on this demographic.
- Faster Permitting & Incentives (HB 4084): Streamlines state permits for certain high-value developments and expands potential property tax breaks.
- Mixed-Income & Affordable Housing Funding: New authorizations and adjustments to revolving loan programs and preservation funds.
- Ongoing rent stabilization rules remain in place (with annual caps around 7% + inflation, varying by property age).
What This Means for You as a Real Estate Investor
- Increased Compliance Burden — Especially around applications, payments, accessibility in subsidized deals, and tenant privacy/confidentiality rules (HB 4123 limits disclosure of sensitive tenant info with potential statutory damages).
- Opportunities in Supply — Measures to speed development, expand urban growth boundaries for seniors, and protect housing funding could create more projects and stabilize long-term demand.
- Higher Costs in Some Segments — Subsidized multifamily and single-family institutional buying face new hurdles or expenses.
Bottom Line: Oregon continues leaning toward stronger tenant protections and accessibility while trying to encourage housing production. Market-rate multifamily and commercial investors may feel less direct impact than those in subsidized or single-family rental spaces.
Action Steps:
- Review your application, payment, and common-area processes for SB 1523 compliance.
- Factor stricter accessibility into pro formas for any state-subsidized projects.
- Talk to your tax professional about the 2026 disconnect changes.
- Monitor implementation dates — many new rules take effect 91 days after session end (early June 2026) or January 1, 2027.
Politicians feel that a housing crisis remains front and center in Oregon, so expect continued legislative attention in future sessions.