ORS § 456 § 456.776
Applicability; interpretation; rules.
Operative Text
(1) ORS 456.766 to 456.828 do not apply to or restrict the acquisition of property by: (a) A government that acquires the participating property by eminent domain or a negotiated purchase in lieu of eminent domain. (b) A purchaser of the participating property in a foreclosure sale that terminates the affordability restrictions. (c) A purchaser of the participating property by a deed in lieu of foreclosure provided that the contract restrictions are subordinate to the purchaser’s interest eligible for foreclosure and a notice of the deed in lieu is provided to the Housing and Community Services Department by the purchaser or property owner at least 30 days prior to the execution of the deed in lieu. (2) ORS 456.766 to 456.828 may not be interpreted to allow a property owner to terminate or breach a contract or to limit the rights of any tenant of a participating property or any other person who may enforce an affordability restriction against the property owner. (3) ORS 456.766 to 456.828 do not require any local government or the department to purchase or condemn any property or to maintain the affordability restrictions of any property. (4) Except as required by contract and ORS 456.766 to 456.828, a property owner may not take any action before the termination date that would materially interfere with a qualified purchaser’s ability to continue maintaining the participating property as publicly supported housing. (5) The termination date may not occur, and the publicly supported housing remains subject to affordability restrictions, until the property is eligible for withdrawal from publicly supported housing under ORS 456.814 (4) and any contract requirements for the withdrawal of the property. (6) The department shall adopt rules to implement ORS 456.766 to 456.828.
ORS § 456.776 sets out several important boundaries for the Oregon affordable housing preservation statutes (ORS 456.766–456.828). The rules do not apply when a government acquires property through eminent domain or when a foreclosure sale or qualifying deed-in-lieu extinguishes affordability restrictions, but they cannot be used by a property owner to end or breach a contract or to undermine tenant rights. Affordability restrictions remain in place until a property lawfully qualifies for withdrawal under ORS 456.814(4), and the Housing and Community Services Department is authorized to adopt rules implementing the entire statutory scheme.
Plain English — not legal advice.
Under ORS § 456.776, operators of participating properties are generally expected to refrain from any action before the termination date that would materially interfere with a qualified purchaser's ability to continue operating the property as publicly supported housing. Compliant operators typically ensure that any deed-in-lieu transaction is structured so that the contract restrictions are subordinate to the foreclosing interest and that written notice is delivered to the Housing and Community Services Department at least 30 days before execution. Owners should also be aware that the statute expressly prohibits using these provisions as a basis to terminate or breach an affordability contract.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
ORS § 456.776 makes clear that the affordable housing preservation statutes cannot be interpreted to limit the rights of tenants living in participating properties or of any other person entitled to enforce an affordability restriction against a property owner. Tenants who believe an owner is taking actions that interfere with the property's status as publicly supported housing may have grounds to raise that concern as a legal matter, and consulting a tenant-rights organization familiar with Oregon housing law can help clarify available options. The Housing and Community Services Department, which administers and enforces ORS 456.766–456.828, is also a potential point of contact for questions about whether affordability restrictions remain in effect on a specific property.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 7, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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