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Oregon has launched a groundbreaking $75 million zero-interest loan program to address its critical housing shortage. The Moderate Income Revolving Loan Program (MIRL), a key part of Governor Tina Kotek's 2024 housing package, aims to fund the construction of thousands of homes for middle-income families. With the state needing nearly 30,000 new units annually, this initiative provides direct financial assistance to developers to make projects financially viable. The program is now accepting applications from cities and counties, with the first projects potentially moving forward within 90 days.
The Moderate Income Revolving Loan Program (MIRL) is a state-funded initiative administered by Oregon Housing and Community Services (OHCS). Approved by state lawmakers in 2024, the program allocates $75 million to provide zero-interest loans to local governments. These funds are specifically intended to finance the construction or conversion of housing for households earning up to 120% of the area median income (AMI). For context, with Oregon's median home price at $549,949, this program directly targets the "missing middle" — families who earn a good wage but still struggle to afford homeownership.
Local jurisdictions (cities and counties) that meet specific requirements can apply for a 0% interest loan from OHCS. In turn, they award these funds as grants to developers with eligible housing projects. The key financial incentive for developers is a 10-year property tax exemption on the taxable improvements. Instead of standard property tax payments, the developer pays a predetermined annual program fee. This fee structure is used by the sponsoring jurisdiction to repay the state's no-interest loan over time. Program funds can cover costs related to infrastructure, redevelopment, and construction.
To qualify, housing projects must serve households with incomes at or below 120% of the AMI. The program supports new construction or the conversion of non-residential structures into housing. According to Andrea Bell, Executive Director of OHCS, "Development... is often a one- to three-year process, but cities and counties could start discussing MIRL and passing ordinances in the next 60 to 90 days." This means local governments interested in participating should begin their internal processes immediately. The program is designed to be locally driven, with projects requiring local-level approval before state funding is released.
State Chief Economist Carl Riccadonna highlighted that Oregon requires 29,500 new housing units each year to meet demand, a target currently not being met. The MIRL program is a direct response to this deficit. Andrea Bell estimates her agency will build between 2,000 to 3,000 homes with the initial funding. As loans are repaid through the program fees, the money will be recycled into new loans, creating a self-sustaining, revolving fund for future moderate-income housing development. This model is similar to programs proposed in other states, like New York's recent revolving loan fund initiative.
For developers and local governments, the immediate steps are to review program guidelines and begin local discussions. The combination of zero-interest capital and a decade-long property tax exemption creates a significant opportunity to advance projects that were previously financially marginal. For communities, this program represents a practical tool to increase housing supply where it's needed most.
