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HB 4051
This proposal did not become law. The bill would have created a three-year, capped program allowing eligible first-time homebuyers to receive deferred loans covering up to one percent of a home's purchase price or actual closing costs, whichever is lower. Borrowers pay six percent simple interest annually, and the loan plus accrued interest becomes due upon sale, loss of homestead status, or relocation of a manufactured home out of state. Failure to repay within ninety days of the due date triggers foreclosure proceedings under Oregon law. The program is funded by reallocating resources from the Senior Property Tax Deferral Revolving Account and would have expired on January 2, 2030.
Generated explanation · Introduced · Analyzed 8/19/2026 · Open official Introduced text
This proposal did not become law.
Affected groups have not been established in a brief for the latest available text. Check the official text for eligibility and exceptions.
No upcoming event is verified in the available records.
Plain-language analysis
Generated analysis, not an official summary or legal advice. Confirm with linked Oregon documents.
This proposal did not become law. The generated effects below describe what it would have required if enacted.
The bill would have created a three-year, capped program allowing eligible first-time homebuyers to receive deferred loans covering up to one percent of a home's purchase price or actual closing costs, whichever is lower. Borrowers pay six percent simple interest annually, and the loan plus accrued interest becomes due upon sale, loss of homestead status, or relocation of a manufactured home out of state. Failure to repay within ninety days of the due date triggers foreclosure proceedings under Oregon law. The program is funded by reallocating resources from the Senior Property Tax Deferral Revolving Account and would have expired on January 2, 2030.
Basis: Inferred · Source: Introduced
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The measure appears designed to lower immediate cash barriers to homeownership for income-qualified first-time buyers by deferring closing costs, while using a revolving account and a strict three-year sunset to contain long-term fiscal exposure. This structure suggests an attempt to stimulate entry-level housing demand without permanently altering state tax or borrowing frameworks.
Basis: Inferred · Source: Introduced
Potential effect if enacted: Gain access to deferred closing cost financing with a recorded lien, six percent simple interest accrual, and a clear repayment trigger tied to property transfer or homestead loss.
Basis: Inferred · Source: Introduced
Potential effect if enacted: Assumes administrative duties for claim processing, rulemaking, lien recording, quarterly disbursements, and foreclosure coordination under ORS chapter 88.
Basis: Inferred · Source: Introduced
Potential effect if enacted: Receive statutory priority alignment with ORS chapter 311 deferrals, potentially affecting subordination negotiations during property transfers.
Basis: Inferred · Source: Introduced
Potential effect if enacted: Face potential liquidity shifts as program funds are drawn from that account, which is statutorily designated for senior and disabled property tax deferrals.
Basis: Inferred · Source: Introduced
Eligible buyers would have had to file a sworn claim with the Department of Revenue within 180 days of purchase, subject to a strict annual cap of 500 loans distributed on a first-come, first-served basis. Borrowers accrue six percent simple interest annually and might have repayed early without penalty. The loan would have created a recorded lien with priority equal to existing property tax deferral liens. If the triggering event occurs (sale, loss of homestead status, or out-of-state relocation), repayment is due by August 15 of the following calendar year. Nonpayment within ninety days converts the debt to delinquent status and would have authorized foreclosure under ORS chapter 88, including potential attorney fees and costs. The Department of Revenue would have established claim review timelines and might have adopted administrative rules to govern disbursement.
Basis: Inferred · Source: Introduced
Potential effect if enacted: The homestead definition and income/net worth eligibility limits are incorporated by reference to Oregon statutes (ORS 311.666 and ORS 311.668(2)), meaning the program operates strictly under Oregon law and does not adopt federal, county, or municipal definitions for qualification.
Basis: Inferred · Source: Introduced
Qualified first-time buyer in a high-cost county
Potential effect if enacted: Uses the deferred loan to cover substantial closing costs, avoiding private mortgage insurance and securing a lower conventional mortgage rate. The borrower maintains homestead status for twelve years, sells the property at significant appreciation, repays the principal plus accrued interest in full at closing, and successfully transitions into homeownership without default or foreclosure risk.
Basis: Inferred · Source: Introduced
Borrower purchasing a manufactured home near the county median RMV limit
Qualifies under income thresholds and receives the maximum deferred loan. After three years, an extended medical absence would have caused the property to lose homestead status outside the statutory health or military exceptions. The full principal plus twelve years of simple interest becomes due immediately upon relocation out of state. With declining local property values and insufficient liquid assets, the borrower defaults, triggering a foreclosure action under ORS chapter 88 that results in loss of the property and a recorded delinquent lien.
Basis: Inferred · Source: Introduced
The statute would have granted broad administrative discretion for claim review timelines and rule adoption, but does not mandate cross-jurisdictional title searches or real-time income verification. Without statutory audit requirements or external data matching, misclassification of eligibility could have occured, creating unlawful diversion of senior-deferral funds.
Sources · Introduced
Potential effect if enacted: The measure trades immediate liquidity for first-time buyers against long-term repayment risk and potential strain on a dedicated senior property tax deferral fund.
Would have reduced upfront cash barriers to homeownership for income-qualified buyers
Basis: Inferred · Source: Introduced
Would have provided a clear, time-limited pathway to entry-level housing demand
Basis: Inferred · Source: Introduced
Would have allowed early repayment without penalty and includes statutory lien priority protections
Basis: Inferred · Source: Introduced
Would have imposed six percent simple interest that compounds over time, increasing total repayment burden
Basis: Inferred · Source: Introduced
Potential effect if enacted: Redirects capital from the Senior Property Tax Deferral Revolving Account, potentially affecting senior deferral capacity
Basis: Inferred · Source: Introduced
Would have created foreclosure risk for borrowers who lose homestead status or face property value declines before repayment
Basis: Inferred · Source: Introduced
Model self-rating: high. The bill text provides explicit eligibility criteria, funding mechanisms, repayment triggers, lien priority, and administrative procedures. No legislative intent statements or fiscal analyses are included in the provided version. This is the model’s assessment of its own analysis, not independent verification or human review.
8 records currently loaded
Records available in the current snapshot.
Earliest loaded signal
Introduced bill text posted
Posted Jan 28, 2026, 3:25 PM PST
Not a qualifying replacement
The introduced version remains the only adopted text; no qualifying replacement is established by the amendment history.
AI assessment dated 2026-09-29. This classification is separate from enactment and legal effect.
Evidence snapshot: 2026-09-29. Later legislative records are not automatically reassessed.
Policy purpose: broadly retained.
Reviewer: /root/review_recent_a · 2026-09-29
Not a qualifying replacement
The introduced version remains the only adopted text; no qualifying replacement is established by the amendment history.
Policy purpose: broadly retained.
“SECTION 1. (1)(a) Deferred loans shall be made in accordance with subsection (4) of this 5 section to individuals determined to be eligible under subsection (2) of this section in an 6 amount equal to the lesser of the actual closing costs on the purchase of”
Introduced
“SECTION 1. (1)(a) Deferred loans shall be made in accordance with subsection (4) of this 5 section to individuals determined to be eligible under subsection (2) of this section in an 6 amount equal to the lesser of the actual closing costs on the purchase of”
Introduced
Reviewer: /root/review_recent_b · 2026-09-29
Not a qualifying replacement
No replacement event is documented.
Policy purpose: broadly retained.
“SECTION 1. (1)(a) Deferred loans shall be made in accordance with subsection (4) of this 5 section to individuals determined to be eligible under subsection (2) of this section in an 6 amount equal to the lesser of the”
Introduced
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No deeper official pre-number history was found.
Chief sponsors: Representative E. Werner Reschke, Senator Christine Drazan
Regular sponsors: Representative Anna Scharf, Representative Court Boice
Records already listed in Activity are not repeated here.
Official origin records are incomplete; missing facts are not inferred.
8 events
Full timeline
8 entries shown.
In committee upon adjournment.
Informational Meeting held.
Informational Meeting
Heard · Agenda item 3 · Room HR 40 · Creates a program for deferred loans to first-time home buyers in an amount not greater than the lesser of the closing costs on the purchase or one percent of the purchase price.
Informational Meeting cancelled.
Informational Meeting · Cancelled
Agenda item 2 · Room HR 40 · Creates a program for deferred loans to first-time home buyers in an amount not greater than the lesser of the closing costs on the purchase or one percent of the purchase price.
Referred to Housing and Homelessness with subsequent referral to Revenue.
First reading. Referred to Speaker's desk.
“Creates a program for deferred loans to first-time home buyers in an amount not greater than the lesser of the closing costs on the purchase or one percent of the purchase price.”
Confirm with the official record.
Supplemental, source-linked analysis from project researchers and community contributors. It is separate from Oregon's official record.