New HOA Rules in Oregon: What Condo Buyers and Sellers in Portland Need to Know in 2025

by Lisa Mehlhoff

Portland condo market 2025 infographic showing HOA rule changes affecting buyers and sellers, with Mt. Hood and skyline illustration

If you’ve been hearing whispers about new HOA laws shaking up the Portland condo market, you’re not imagining things. Recent changes—and some still in the works—are affecting how condos are bought, sold, and maintained across Oregon.

As your trusted Portland real estate advisor, I’m here to break it down into plain English. Here’s what’s changing, what it means for you, and how we can navigate this together—whether you're looking to buy or preparing to sell.

🔍 What’s Changing?

1. Reserve Studies Are Now Required and Enforced

HOAs are now legally required to conduct regular reserve studies—these are financial checkups to make sure they have enough money set aside for big repairs (like roofs, elevators, or siding).

🧾 So what?
If an HOA doesn’t have a healthy reserve fund, owners could face surprise “special assessments”—a one-time fee of thousands to cover emergency repairs. These rules are meant to protect owners, but they’re also forcing some buildings to raise monthly dues to play catch-up.

2. New Construction Must Undergo Moisture Inspections

A proposed state law (HB 3746 A) would require moisture-intrusion testing for new condo buildings—first at year two, then again at year six. These inspections look for leaks or water damage that could lead to major problems down the road.

🧾 So what?
If you’re buying in a newer building, you’ll want to know if these inspections have happened—and what they revealed. If you're selling a condo built in the past few years, buyers will be asking these questions, too.

3. Stricter Rules for HOA Lawsuits & Transparency

Some of the new rules make it harder for HOA boards to start lawsuits over construction defects without community approval. There are also tighter notice requirements for meetings and clearer standards around governance and documentation.

🧾 So what?
For buyers, this means more transparency about the building’s history and legal standing. For sellers, it means making sure your HOA is buttoned up—because unclear records or internal disputes can spook buyers (or even disqualify the building from certain loans).

👩‍💼 For Buyers: What to Watch For

You might have seen social media posts saying “the condo market is collapsing.” That’s not the full story—but the fear around these new laws has made buyers more cautious, especially about older buildings or underfunded HOAs.

Here’s how to stay safe and spot smart opportunities:

✅ Ask These Key Questions:

Does the HOA have a current reserve study? Is the reserve fund at least 70% funded?
Has the building completed moisture inspections if it’s under 10 years old?
Are there any pending special assessments or legal disputes?

I help my clients review HOA documents, budgets, and board meeting minutes before making an offer—so there are no surprises after closing.

🏡 For Sellers: What You Should Do Now

If you’re selling a condo in 2025, these new rules might feel like another hurdle—but they’re also a chance to stand out by being prepared.

📦 Here’s How You Can Get Ahead:

Make sure your HOA has updated reserve studies and is in good financial health.
Gather all relevant documents: budgets, bylaws, meeting minutes, and any inspection reports.
Be transparent about upcoming repairs or assessments—buyers appreciate honesty and may still move forward with the right strategy.

💬 Pro Tip: Pricing your condo correctly and highlighting its strengths—like completed inspections or solid reserves—can help ease buyer concerns and lead to a faster, smoother sale.

🧭 Final Thoughts: Navigate with Confidence

These new HOA rules are here to protect homeowners and raise the bar for condo communities—but they do create more complexity. That’s where I come in.

Whether you’re buying your first condo or preparing to list one, I’ll help you: