Relating to affordable housing; and declaring an emergency.
SB 829 creates a temporary state program to help eligible owners and operators of affordable housing and certain homeless-serving facilities pay property and liability insurance premiums. The bill defines eligible property to include regulated affordable housing, shelter facilities, Project Turnkey sites, and navigation centers, and directs the Department of Consumer and Business Services (DCBS) to administer premium assistance as an offset paid after premiums are paid to an insurer, including a surplus lines insurer. The department must adopt rules for eligibility, applications, payment amounts, prioritization, waitlists, and program metrics, and must report annually to the Legislature on the program’s performance.
The bill also establishes the Affordable Housing Premium Assistance Fund in the State Treasury and appropriates $2,474,644 from the General Fund for the 2025-27 biennium to capitalize the fund. Payments and claims under the program are limited to the money in the fund, and DCBS may use fund moneys for administrative expenses. In addition to the premium assistance program, SB 829 requires DCBS to study whether Oregon should create a state reinsurance program or another solution to stabilize insurance prices for affordable housing, multifamily housing, and other residences, and to report annually on that study. The bill includes an emergency clause and repeals the new program provisions on December 31, 2028.
SB 829 amends ORS 735.410 to create a special surplus-lines pathway for certain affordable-housing-related coverages that are generally unavailable in the admitted market, allowing those coverages to be placed directly with a surplus lines insurer without first completing a diligent search. It also adds new statutory provisions establishing a premium-assistance program and fund within DCBS, with ongoing appropriations authority limited to the fund balance. The bill primarily affects affordable housing providers, shelter operators, Project Turnkey sites, navigation centers, insurers, and surplus lines producers, while also imposing new rulemaking, reporting, and study duties on DCBS and the Housing and Community Services Department.
The bill appears to have broad support among lawmakers, reflected in strong committee votes and unanimous House passage, with the Senate floor vote also passing comfortably despite some opposition. The overall tone of the measure is pragmatic and problem-solving, focused on addressing rising or unavailable insurance coverage for affordable housing and related facilities. The emergency clause and the temporary nature of the program suggest a sense of urgency around market conditions and the need for near-term relief.
The main policy tension is between providing public financial support to reduce insurance costs for affordable housing and limiting state exposure to a capped fund. Another point of concern is the use of public dollars to subsidize premiums for a specific sector, which may raise questions about fairness, program design, and whether the state should instead pursue broader market reforms such as reinsurance. The bill’s allowance for direct placement with surplus lines insurers for certain coverages also reflects a regulatory tradeoff: easing access to insurance while reducing the usual diligent-search requirement.