[8] The 2009 Oregon legislature eliminated funding for the OSB, with plans to sell the property.

[9][10] However, a group composed of opponents of the school closure and Failing's heirs are suing the State to prevent it from selling the property.

[11] In March 2010, the legislature passed a law that allocated half the proceeds from the sale of the former school site to educating blind students in Oregon.

[12][13] The law settled the lawsuits filed against the state from the descendants of the land donors,[13] and the campus was sold to Salem Hospital for $6 million in August 2010.

[14] Salem Hospital demolished the last remaining historic school building, the John V. Bennes-designed Howard Hall, in 2015.