Article XI-Q Bonds for Preservation in the Short 2026 Session – “We Cannot Wait for 2027”
By Brian Hoop
The case for preservation and portfolio stabilization was made at a Legislative Days hearing during the House Interim Committee on Housing and Homelessness on September 29, 2025.
Natashia Detweiller-Daby, Director, Affordable Rental Housing Division with OHCS, explained Oregon faces an unprecedented trifecta of housing and preservation challenges including projects with expiring federal rent assistance, projects with expiring rent restrictions, and affordable properties at risk of loss due to urgent physical or financial challenges.
By June of 2029, there will be 3,641 units across 59 properties with rent restrictions expiring. According to an OHCS Affordable Rental Housing Portfolio Financial Report completed this past summer, 39% of OHCS’ portfolio had an unhealthy Debt Coverage Ratio of <1.1 in 2023 with a year over year increase of 44% since 2021.
Bill Van Vliet, Executive Director of the Network for Oregon Affordable Housing (NOAH) summarized a 5-Year operating analysis of their portfolio documenting 36 projects that are on the brink of foreclosure with 120 projects that are losing money each year.
“Unfortunately,” stated Van Vliet, “the $50 million allocated for all preservation needs during the 2025 session is inadequate.” Housing advocates identified $285 million in needs to preserve projects with expiring affordability.
“We’re moving past technical defaults into true defaults.”
Van Vliet along with other Housing Oregon members who spoke all pointed out the primary operating expense cost escalations that are out pacing income from properties including inflation, high mortgage rates, and increasing staffing, maintenance, repair, security and insurance expenses.
“Inflation driven operating costs are unsustainable,” according to Van Vliet, “and dragging down owners, stripping them of liquidity and placing entire organizations at risk and their portfolios at risk.”
“This is not sustainable,” pointed out Sarah Stevenson, Executive Director of Innovative Housing Inc. “We cannot continue to spend millions more that we collect each year. This impacts liquidity and our ability to borrow money, making it increasingly difficult to develop the new affordable housing that elected officials are counting on nonprofits to build.”
“We are going to start losing housing if we don’t find solutions.”
What we Need
In the 2026 short legislative session in February 2026, we need to increase the overall allocation of Article XI-Q bonds to provide funding for preservation.
“These bonds have historically been used for new development under the LIFT program,” noted Van Vliet. “But with the dire need for preservation, finding no alternatives, we believe it is time to tap this resource.”
“We cannot wait for 2027.”
During the 2025 session, Senator Khanh Pham, Chair of the Senate Committee on Housing and Development, sought and received Legislative Counsel confirmation that article XI-Q bonds could be used for many types of preservation applications, including manufactured home parks.
Erica Mills, Executive Director of NeighborWorks Umpqua, noted these are problems we could see coming but with few tools to resolve.
“Rural preservation is not optional for families across rural Oregon,” stated Mills. “It is the difference between stability and homelessness.”