OR SB1566

Exempts privately owned affordable housing projects from Oregon's prevailing wage requirements when 60% or more of dwelling units serve occupants at or below 60% of area median income (or 80% for owner-occupied units)

Expands height limits for exempt residential construction from four stories to seven stories in Clackamas, Lane, Marion, Multnomah, Polk, Washington, and Yamhill counties

Broadens the definition of "funds of a public agency" to exclude additional items such as loans from public agencies to private entities and infrastructure provision costs

Allows exempt affordable housing projects to include on-site nonprofit child care facilities and up to 15% ground floor commercial space

Amendments become operative January 1, 2027, with the act taking effect on the 91st day following adjournment of the 2026 legislative session