Oregon is taking decisive action to address the senior housing crisis, and real estate investors should pay close attention. House Bill 3589, now awaiting the governor’s signature, directs $24 million to create the Senior Housing Development Initiative, funding accessible, affordable housing for seniors across the state.
Here’s how this bill will impact real estate investors interested in affordable housing investments in Oregon.
What Is House Bill 3589?
House Bill 3589 uses dedicated state funds to build accessible studio and one-bedroom units for seniors earning 60% or less of AMI. This ensures safe, affordable housing (around $800/month) for Oregon’s aging population. The initiative will fund around five projects statewide through 2031 with possible extension.
How This Bill Benefits Real Estate Investors
New Development Opportunities: State grants lower upfront financial risk for investors entering high-demand senior housing markets.
Faster Returns Through Modular Construction: Allows quick builds and lease-ups, accelerating cash flow.
Strong Demand: Steady occupancy and reliable income streams, even with capped rents.
Technical Assistance: $500,000 allocated to help developers navigate processes efficiently.
Key Considerations for Investors
Profitability
Stable returns, modest due to rent caps
Construction Speed
Modular builds lower costs and lease faster
Competition
Limited grants require early action
Community Alignment
Projects benefiting seniors prioritized
Funding Timeline
Runs through 2031, enabling phased planning
Action Steps for Real Estate Investors
Identify sites near transit with appropriate zoning for modular development.
Partner with nonprofits to improve grant competitiveness.
Build a financing plan combining state grants with LIHTC or USDA loans.
Prepare proposals prioritizing accessibility and affordability.
Track program rollout to position projects early.
Why This Matters for Oregon Real Estate Investors
House Bill 3589 is a high-demand, low-risk investment opportunity in Oregon. It provides a path for investors seeking steady, socially impactful investments while addressing Oregon’s senior housing needs.
