Lawmakers Seek Public Testimony on Legislation Removing Unintended Barriers to Affordable Housing and On-Site ChildCare Facilities

Senator Dick Anderson and Representative Vikki Breese-Iverson, chief sponsors of Senate Bill 1566, are encouraging Oregonians to provide public testimony on critical legislation designed to remove unintended regulatory barriers that are blocking affordable housing development and on-site child care facilities across the state.
The Senate Committee on Labor and Business will hold a public hearing on Senate
Bill 1566 on Monday, February 9th, 2026, at 1:00 p.m. Members of the public may testify
in person at the Oregon State Capitol in Hearing Room E, remotely by video or phone, or
submit written testimony through the Oregon Legislative Information System.
As currently interpreted by the Bureau of Labor and Industries (BOLI), prevailing wage
requirements have stalled or killed multiple fully funded affordable housing projects.
These interpretations have worsened Oregon’s housing crisis and delayed urgently
needed homes for vulnerable populations, including veterans and working families.
Senate Bill 1566 delivers targeted, common-sense reforms while preserving core
prevailing wage protections for public construction projects. The bill ensures that
prevailing wage requirements do not continue to block solutions to the housing crisis that
Oregonians broadly agree must be addressed.
Key Provisions for Affordable Housing:

Exempts loans and partnerships between public and private entities.
Exempts site infrastructure improvements from triggering prevailing wage on the
entire project.
Allows on-site child care facilities, supporting integrated and family-friendly
developments.
Exempts conversions of former commercial or industrial buildings for affordable
housing use.
Maintains strict income eligibility requirements for affordable housing units.
Additional Reforms for Growth and Protection:
Raises the prevailing wage threshold in rural areas to $250,000, up from
$50,000.
Permits up to seven-story buildings in Metro areas to accommodate parking
needs and modified building codes.
Applies exemptions only to qualifying affordable housing projects, with prevailing
wage still required for traditional public works construction.
Preserves strong worker protections on covered projects.
“A veteran sleeping outside is not a policy trade off. It is a failure we can fix right now,”
said Senator Dick Anderson (R-Lincoln City). “Senate Bill 1566 removes red tape that
is blocking more homes for those who need them most, without eliminating important
worker protections.”
The bill has received broad support from a diverse coalition of organizations, including
the Special Districts Association of Oregon, Oregon State Chamber of Commerce,
Children’s Institute, Oregon Head Start Association, Eugene Area Chamber of
Commerce, Association of Oregon Counties, League of Oregon Cities, and DevNW. The
breadth of this coalition underscores the bill’s appeal across party lines, addressing
homelessness and family needs while reducing unnecessary regulatory barriers and
delivering more housing solutions for all Oregonians.
Who Benefits:
Affordable housing developers and nonprofit organizations through lower
costs and faster timelines for fully funded projects.
Families and veterans through increased housing availability and access to onsite child care.
Communities through reduced homelessness, economic growth, and
revitalization of underused sites.
Workers through preserved protections where they apply.
How to Testify or Submit Comments:
Sign up to testify in person or virtually at the bill’s public hearing on Monday,
February 9th, at 1:00 p.m. here.
Submit written comments here until 48 hours after the start time of the committee
meeting.