OR HB2968

Housing and Community Services Department (OHCS) must purchase past-due system development charge debts from local governments when developers default on deferred payment agreements, paying the full unpaid balance to the local government

Local governments may defer system development charges until 180 days after occupancy certification, or up to one year for affordable housing projects, with no interest or fees charged to developers during the deferral period

Defaulting developers face a 20% civil penalty plus interest on the debt, with the Department of Revenue authorized to pursue collections

Establishes the Municipal Development Protection Fund with a $10,000,000 General Fund appropriation for the 2025-2027 biennium; administrative costs capped at 4% of fund balance (or $200,000 for first biennium)

Becomes operative January 1, 2026; declared an emergency measure effective upon passage