SALEM:  Mortgage tax deduction may take a dive

SALEM: Mortgage tax deduction may take a dive

A bill being considered in the Oregon Legislature may mean that residents will see a decreased deduction on home mortgage taxes. Lawmakers are saying it’s being considered as a means to raise money for affordable housing and care for the homeless population.

Rep. Alyssa Keny-Guyer (D-Portland) says Oregon has the fifth-lowest homeownership rate in the country. Her bill would phase out state mortgage deductions for households making more than $200,000 annually, and it would do away with any deductions for a second home when someone already owns a primary residence.

“There are multiple factors for this,” Keny-Guyer said, “including a lack of adequate, on-going funding for affordable housing.” She says the money saved would be used “for programs that build affordable homeownership and prevent homelessness.”

Those programs would include a loan fund to build affordable housing, and money for critical home repairs, weatherization, and seismic upgrades.