Oregon HOA statutes play a significant role in the governance and operation of community associations. Every now and then, the legislature will introduce new laws that affect these communities. Some of them move through the pipeline and pass, while others never see the light of day.
What are the New Oregon HOA Statutes?
As with any other state, Oregon has laws that regulate homeowners associations and condominiums. Two of the main ones are the Oregon Planned Communities Act, which applies to HOAs, and the Oregon Condominium Act, which applies to condo associations.
Legislators will introduce new laws from time to time. Some of these impose stricter regulations and further support homeowner rights, while others aim to give associations more authority. Not all of these laws pass, but those that do must be understood by both board members and managers.
HB 3746
A major Oregon HOA laws update for 2025 is House Bill 3746. This bill, which addresses construction defects and HOA/condo litigation, was signed by the Governor in July 2025. The statute is set to take effect on January 1, 2026.
The bill affects planned communities that operate under ORS 94 and condominiums that operate under ORS 100. It also affects the developers, contractors, and insurers of these communities.
Here are the key changes that HB 3746 makes:
Shorter Time Window to Sue
The ultimate repose period for construction-defect claims involving planned communities and condos has been shortened from 10 years to 7 years. Extensions are limited to narrow discovery-based ones.
Mandatory Moisture-Intrusion Inspections for Condos
For multifamily condo projects, the association must schedule moisture-intrusion inspections at year 2 and year 6 (approximately) after substantial completion. The association must also report the results of this inspection to unit owners.
New Notice and Voting Rules Before Litigation
Before an HOA or condominium can file or join defect litigation, it must complete the following:
- Notify all affected owners at least 10 days before the filing.
- Describe the nature of the alleged defects and damages.
- Disclose the terms under which the association will act on behalf of the unit owners.
- Allow unit owners to opt out.
- Comply with new owner-approval or supermajority thresholds before pursuing litigation.
Right to Repair / ADR Emphasis
The bill also provides a more structured “right to remedy” method. It also emphasizes alternative dispute resolution, offering more orderly steps.
Critics have pointed out that this change can significantly delay fixes. Meanwhile, the shorter repose period clock will keep ticking.
HB 3144
Effective January 1, 2026, House Bill 3144 addresses manufactured dwellings, prefabricated homes, and ADUs in planned communities.
According to this bill, the new governing documents of a planned community can’t ban the siting of manufactured dwellings or prefabricated homes. This includes accessory dwelling units (ADUs). They must meet applicable standards.
This only applies to new governing documents, such as CC&Rs and bylaws, going forward. Existing communities with covenants that currently ban these structures are not required to retroactively repeal this rule. That said, existing communities can’t impose new restrictions that would prohibit these structures altogether.
Oregon HOA Statutes That Didn’t Pass
Several bills that affect HOAs and condos make their way through the legislature every year. Among them are Senate Bill 59 and House Bill 3545. While notable, these bills did not pass.
SB 59
If passed, SB 59 would have prohibited planned communities from banning gardening, hen-keeping, or beekeeping. Any existing CC&R provisions that prohibited these would have been voided.
The goal of the bill is to support homeowners’ right to produce their own food. While SB 59 didn’t make it to the end of this session, it could signal more efforts to push similar legislation in the future. Many have applauded the bill for its support for sustainability.
HB 3545
If passed, HB 3545 would have addressed HOA or condo fees on tax-foreclosed property. The bill would have given temporary exemptions from dues to properties that transferred hands to the county through tax foreclosure. The exemption would have remained in effect for up to six months.
Community Associations Institute (CAI) was a notable opponent to the bill, as it would have significantly affected the budgets of many communities. It would have cut off revenue, forcing associations to levy special assessments or raise dues for other homeowners in the neighborhood.
What This Means for Communities
Board members and community managers are responsible for ensuring their associations’ legal compliance. This includes drafting or revising policies to keep up with changes to Oregon HOA statutes.
To comply with HB 3746, condo boards should adopt a written policy addressing moisture-intrusion inspections and reporting. It should also include notice requirements. Furthermore, communities must adjust their long-term reserve planning and risk management strategies to accommodate the shortened repose period.
For HB 3144, it is wise to avoid any complete bans on manufactured or prefabricated structures, including ADUs. This applies to new communities drafting new governing documents as well as existing ones looking to amend their CC&Rs and bylaws.
Beyond compliance, board members and managers should also make it a habit to track evolving policies. This is not the first time legislators have passed laws that affect HOAs, and it won’t be the last. Boards should stay up to date on changes to ensure their community stays in the clear.
Furthermore, bills that were introduced but failed to pass signal what the future may hold. These bills may not have reached the finish line this year, but they show a commitment to these changes. Legislators may continue to craft similar bills and push for their enactment years down the road.
Finding Legal Assistance
Keeping up with Oregon HOA statutes can be challenging, especially for self-managed boards without a legal background. Yet, comprehension is integral to ensuring compliance. Sometimes the best solution is to hire a professional HOA management company.
CWD Group helps community associations navigate the ins and outs of legal compliance in Oregon. Call us today at 503-488-2008 or contact us online to learn more!
