2026 Oregon Short Session Recap

The Multifamily NW Advocacy Team rode a fast, stressful and ultimately victorious 2026 Legislative “short session.” It’s the nature of the even-year sessions, which are constitutionally limited to no more than 35 days. It’s been since 2011 that Oregon has had annual sessions. Conversely, in the odd-numbered years the session is significantly longer at 160 days.

The good news is that despite several bills whose initial versions were problematic for the industry, we were able to have them swiftly amended to significantly reduce their likelihood of causing undue harm to housing providers. It is difficult as the 35-day session shot clock unfortunately leaves very little time to ensure the best bill language moves forward.

The summary below highlights the bills with the most immediate effect on the rental housing industry, bills that we supported that aim to increase the supply of housing and one that did not make it through the short session, and likely will return. 

HB 4120 – Smoking Conversion

This necessity of this bill concept may furrow your eyebrows, but even in 2026 there are still multifamily properties that have permitted indoor smoking, and this bill allows for a 180-day notice to initiate a building’s conversion to nonsmoking. This conversion process must allow for an outdoor designated smoking area to accommodate smoking renters. Other caveats include this conversion does not apply to Type A accessible units and is limited to lit tobacco products only – vaping, cannabis products are not applicable. Multifamily NW deeply appreciates the opportunity to work with Chief Sponsors Rep. Darcey Edwards and Rep. Ricki Ruiz who championed this bill and gathered an impressive group of bipartisan sponsors whose voices helped ensure its passage through the tricky, tight timeframe of the short session. Gov. Kotek signed HB 4120 into law on March 31. It takes effect on January 1, 2027.

HB 4123 – Disclosure of Confidential Information

This bill had a controversial start. Unfortunately common for tenant protection legislation, the bill failed to adequately consider the full point of view of the housing provider. It sought to codify common renter information from the application process and rental agreement as confidential, creating a penalty to housing providers who knowingly share that information. It’s already property management best practice, and in some examples mandated fair housing compliance to ensure renter information is kept confidential. Despite these realities, there was overwhelming political will by a majority in the Legislature to add this confidentiality expectation into the landlord and tenant law statues. Multifamily NW ensured the best possible outcome of this concept making sure only a knowing violation is enforceable – security breaches, data hacks would not be applicable. To the authors’ credit, there were already many exemptions written into the bill anticipating when renter information is routinely used during standard property management operations. Multifamily NW additionally ensured the critical component that renter contact information could be disclosed to facilitate repairs, maintenance, utilities or services to the tenancy.

Governor Kotek signed HB 4123 into law on March 31 and it becomes effective on June 5, 2026.

SB 1523 – Restrictions on Technology

The Multifamily NW Advocacy team was very busy fixing this complicated bill, countering misinformation and striving to not allow populist anti-technology sentiment to force property management operations back to the pre-internet 1990’s. Long story short the worst-case scenarios were averted with SB 1523. Instead of requiring Reasonable Accommodation to request a paper application, a housing provider has 7 days upon a written request to supply a paper application in lieu of a standard online application. Additionally, if requested, general tenant communication can be texted or emailed, rather than defaulting to sending messages via an apartment community “tenant portal.”

Other elements of the bill again codify what is already property management best practice or already specified in law:

• Building amenities access cannot solely be from a renter’s mobile device. Housing providers are required to provide a fob, keycard, passcode, physical key, etc. and
• Renters cannot be required to make electronic payments via tenant portal or website.

SB 1523 is a cautionary tale of how NOT to create meaningful and productive policy. Technology barriers to the application process could have been far better understood and addressed by active dialogue with housing providers and housing advocates assisting those with technology barriers. Pushing a one-sided bill via a short session that yields no time for a collaborative process was irresponsible. Renters and housing providers deserve better. Governor Kotek signed SB 1523 into law on March 5 and the bill becomes effective on June 5, 2026.

HB 4037 – Natural Disasters affecting Rental Housing

This bill was another example of quick action at the start of the session to amend problematic language. Multifamily NW advocacy team worked with the bill’s authors to fix language that mandates how rental tenancies automatically end when a dwelling unit is destroyed by a natural disaster. Rent obligations cease and held security deposits, pre-paid rent are to be refunded. The bill also stipulates that if an occupant or renter remains in the affected dwelling unit in these circumstances the housing provider may issue a termination notice. Governor Kotek signed HB 4037 on April 7 and is slated to become effective on June 5, 2026.

SB 1521 – Portland Metro Area Inclusionary Zoning (IZ)

In the last 20+ years more than 10,000 sanctioned “affordable housing” units have been built across Oregon by housing developers and local jurisdictions working together. Developers built units dedicated to be rented under the market rate – in exchange for local jurisdictions ensuring various construction or operational subsidies to offset the costs of providing those units under the market rate.  This collaboration to ensure the development’s affordable component was voluntary, and required the goodwill and tenacity of all parties to create and ensure the unique funding parameters that ultimately overcame obstacles to build the affordable units. This camaraderie changed in 2017, when the Oregon Legislature overturned their prohibition on IZ – local government mandating quotas units to be rented under market rate, without a corresponding mandate for subsidies. Portland was the only local government to seize the new ability to mandate IZ and require affordable units without subsidy.  Fast forward nearly 10 years and Portland is suffering from a lack of housing and development. This year the Legislature seems to understand the failings of Portland’s inclusionary zoning laws and passed SB 1567 that requires other jurisdictions in the Portland Metro Area who enact these inclusionary zoning to offset all of the developer’s expected losses from compliance with their inclusionary zoning policy. This bill does not affect the city of Portland, however it certainly sends a message on how their program can be improved. Governor Kotek signed HB 1521 on March 31 and the bill goes into effect on January 1, 2028 for new rental housing developments, and January 1, 2029 for all other new developments.

HB 4128 – Limits on Investors’ Purchase of Single-Family Homes

This bill was sponsored by Democratic leaders who wanted to ensure the vast majority of single-family homes on the market remain accessible to entry-level, first-time home buyers. Multifamily NW worked with the bill sponsors prior to session and during session to make sure the bill effectively identifies the very large institutional real estate entities they’re targeting – and not local housing providers that already provide multibedroom single family home rentals across Oregon. The bill now focuses on entities who have at least 10% ownership in 2,500 or more single family homes or manage $1 billion or more in net value assets. Housing authorities, non-profit organizations, community land trusts, resident owned cooperatives, etc. are exempted. Governor Kotek signed HB 4128 on March 31 and the bill goes into effect on January 1, 2027.

SB 1576 – Accessibility Standards

This bill sought to raise the number of Type A accessibility units, designed for mobility of wheelchair users, from the current federal rule of 2% of units in a building to 10% of units in a building. The bill was amended to only apply to designated affordable properties administered via Oregon Housing and Community Services. The Governor signed the bill on March 31 and the bill comes into effect on June 5, 2026.

SB 1567 – Mixed Income Housing Loan Program

This bill authorizes Oregon Housing and Community Services (OHCS) to fund and develop a mixed income housing loan program to help facilitate housing production in Oregon. Governor Kotek signed SB 1567 on March 31 and becomes effective on June 5, 2026.

HB 4082 – UGB addition for Seniors & Workforce Housing

Expands housing opportunities by allowing cities and Metro to add land to their Urban Growth Boundaries specifically for senior and workforce housing (manufactured dwellings, prefabricated structures or manufactured dwelling parks) within the existing review process buy the Department of Land Conservation and Development (DLCD) created by SB 1537 from 2024.  Governor Kotek signed HB 4082 on March 31, and becomes effective on June 5, 2026.

HB 4080 – Portable Solar Panels in Rental Housing

This bill did not pass the 2026 Session. It would have mandated housing providers allow renters to install portable solar photovoltaic energy devices to be installed outside of a window or balcony. This new technology is already on the market and once these devices are better understood and their fire risk deemed abated, this concept will likely come back in 2027.