US Laws, Codes, Statutes & Cases

Chapter 456 — Housing

 

2007 EDITION

 

HOUSING

 

PUBLIC HEALTH AND SAFETY

 

GENERAL PROVISIONS

 

456.005     Definitions for ORS chapters 456 and 458

 

HOUSING AUTHORITIES LAW

 

456.055     General definitions for ORS 456.055 to 456.235

 

456.060     Definition of “area of operation”; intergovernmental agreements

 

456.065     Definition of “housing project”

 

456.070     Declaration of necessity for establishment of housing authorities

 

456.075     Housing authorities created; declaration of need required before housing authority may function

 

456.080     Determination of need for housing authority

 

456.085     Adopting resolution declaring need for authority

 

456.090     Sufficiency of resolution; copy as evidence

 

456.095     Appointment and qualification of commissioners of housing authorities

 

456.100     Terms and compensation of commissioners

 

456.105     Organization; officers; quorum; employees; legal services

 

456.110     Removal of commissioner

 

456.115     Commissioners and employees may not have interest in project other than as tenant; disclosure of interest; duty to act as prudent person

 

456.118     Prohibition against using term; enjoining violations

 

456.120     Powers of housing authority as public corporation

 

456.122     Inapplicability of laws relating to other public bodies

 

456.125     Research, planning, construction and operation of housing projects

 

456.128     Housing authority intellectual property

 

456.130     Investigations, hearings and recommendations of authority

 

456.135     Delegation of powers or duties

 

456.140     Joinder or cooperation of authorities

 

456.145     Eminent domain

 

456.150     Housing projects subject to local laws; consideration of other programs

 

456.153     Involvement in mixed income housing project

 

456.155     Policy regarding profit from projects; reserves

 

456.160     Limitations as to rentals

 

456.165     Vested rights of creditors not affected by restrictions of ORS 456.155 and 456.160

 

456.171     Independent audit of authority

 

456.175     Issuance of bonds; means for payment

 

456.180     Liability on bonds; debt limitation

 

456.185     Issuance of bonds

 

456.190     Presumption of validity of bond

 

456.200     Powers of authority in securing payment of bonds or lease obligations

 

456.202     Short-term bond anticipation notes

 

456.205     Enforcing rights of obligee of an authority

 

456.210     Power of authority to confer additional rights upon obligee

 

456.215     Financial aid and cooperation of federal government

 

456.220     Exemption of property from process or judgment lien

 

456.230     Bonds and income therefrom exempt from personal income taxes

 

456.233     Transfer of housing authority from governing body to separate board

 

456.235     Dissolution of housing authorities

 

WITHDRAWAL FROM FEDERAL HOUSING PROGRAM

 

456.250     Definitions for ORS 456.250 to 456.265

 

456.255     Legislative findings

 

456.260     Local requirement of property withdrawal notice; contents; violations; condemnation alternatives; continuation of tenancies

 

456.265     Sanctions against withdrawing property owner prohibited

 

AFFORDABLE HOUSING COVENANTS

 

456.270     Definitions for ORS 456.270 to 456.295

 

456.275     Legislative findings

 

456.280     Covenant creation, effect, conveyance, duration and termination

 

456.285     Permissible provisions

 

456.290     Validity of covenant

 

456.295     Action affecting covenant

 

STATE AND LOCAL COOPERATION WITH HOUSING PROJECTS

 

456.305     Definitions for ORS 456.305 to 456.325

 

456.310     Purpose; additional powers

 

456.315     Powers of state public bodies in aiding or cooperating on housing projects

 

456.320     Donations and loans to housing authority

 

456.325     Resolution to exercise powers

 

456.355     Definitions for ORS 456.355 to 456.370

 

456.360     Purpose; additional powers

 

456.365     Powers of city or county in aiding or cooperating on housing projects

 

456.370     Exercise of powers; authorization by ordinance

 

VETERANS’ LOCAL HOUSING

 

456.505     Veterans’ housing by local agencies

 

SUBSIDIZED DEVELOPMENT VISITABILITY

 

456.506     Findings

 

456.508     Definitions for ORS 456.510 and 456.513

 

456.510     Visitability requirements

 

456.513     Exemption from visitability requirements

 

456.514     Rules

 

HOUSING AND COMMUNITY SERVICES DEPARTMENT

 

(Definitions)

 

456.515     Definitions for ORS 456.515 to 456.725 and ORS chapter 458

 

(Elderly and Disabled Housing Bonds)

 

456.519     General obligation bonds authorized

 

456.530     Willingness to make residential loans factor in selecting depositaries

 

456.535     Elderly and Disabled Housing Fund

 

456.539     Administration of Elderly and Disabled Housing Fund; rules

 

456.541     Project applications for housing serving persons with disabilities

 

456.543     Elderly and Disabled Housing Sinking Fund

 

456.547     Assistance, grants and gifts to department for housing purposes

 

(Administration)

 

456.548     Definitions for ORS 456.548 to 456.725

 

456.550     Policy

 

456.555     Housing and Community Services Department established; appointment of director; duties of housing council and community action directors; rules; fees

 

456.559     Powers and duties of department

 

456.561     Loans, grants and funding awards; review

 

456.562     Department intellectual property; fees

 

456.565     Powers of director

 

456.567     State Housing Council; appointment; term; officers; compensation; staff; budget duties

 

456.569     Authority of Housing and Community Services Department to require fingerprints

 

456.571     Powers and duties of council

 

456.572     State housing plan; contents; annual update

 

456.574     Housing and Community Services Department Revolving Account; use of moneys; appropriation

 

456.576     Self-Sufficiency Housing Fund

 

456.578     Use of funds; petty cash fund

 

456.579     Mobile Home Parks Purchase Account; restrictions; other funds

 

456.581     Mobile Home Parks Purchase Account; use; rules

 

456.582     Prohibited acts; civil penalty

 

456.585     Farmworker housing information

 

456.587     Electricity Public Purpose Charge Fund; Low-Income Electric Bill Payment Assistance Fund

 

(Portland Single-Family Housing)

 

456.589     Legislative findings

 

456.593     Use of bonds for single-family home loans in Portland; amount; income and area limits; fees and charges

 

(Mortgage Credit Certificates)

 

456.605     Mortgage credit certificate program

 

(Financing of Low-Income Housing)

 

456.612     Declaration of financing purpose

 

456.620     Duties of department in carrying out housing programs

 

456.623     Project funding notification registry

 

456.625     Powers of department; status of terms of project use contained in recorded instruments

 

456.627     Legislative finding on availability of single-family residential loans

 

456.630     Services to qualified sponsors and institutions

 

456.635     Commitments on residential loans

 

456.640     Purchase of residential loans

 

456.645     Revenue bonds

 

456.655     When bonds not to be issued; debt service reserve; bond declaration

 

456.661     Limitation on revenue bond amount; legislative findings; designation of areas for issuance of qualified mortgage bonds

 

456.665     Status of revenue bonds; negotiability; interest tax-exempt

 

456.670     Bond maturity; execution

 

456.675     Bond provisions and limits; security for payment

 

456.680     Purchase of bonds by department

 

456.685     Bondholders’ remedies

 

456.690     Loan authority of department; rules

 

456.692     Loans financed through bonds secured by specific properties

 

456.695     Housing required to comply with land use plans, zoning and other ordinances

 

456.697     Restrictions on use of financing provided by department; regulation of housing sponsor; security interests

 

456.700     Pledge and lien

 

456.705     Servicing loans

 

456.710     Payment of advances; use thereof; limitations

 

456.715     Insurance of loans

 

456.717     Interim construction financing for multifamily housing

 

456.720     Housing Finance Fund; Housing Development Account

 

456.722     Preferences in funding grants to low-income housing providers; rules

 

(Bonding)

 

456.723     Legislative finding on bonding authority of department

 

DISCRIMINATION

 

456.725     Discrimination against purchaser with children prohibited; exceptions; rules

 

GENERAL PROVISIONS

 

      456.005 Definitions for ORS chapters 456 and 458. As used in ORS chapters 456 and 458:

      (1) “Federal government” includes the United States of America and any agency or instrumentality, corporate or otherwise, of the United States of America.

      (2) “Housing authority” or “authority” means any public corporation created under ORS 456.055 to 456.235.

      (3) “Housing Authorities Law” means ORS 456.055 to 456.235. [Amended by 1989 c.874 §7; 1995 c.79 §235; 1995 c.445 §1]

 

HOUSING AUTHORITIES LAW

 

      456.055 General definitions for ORS 456.055 to 456.235. As used in the Housing Authorities Law, unless the context requires otherwise:

      (1) “Affordable housing” means dwelling units that may be purchased or rented, with or without government assistance, by persons of eligible income.

      (2) “Blighted area” means any area where housing, by reason of neglect and dilapidation, is detrimental to the safety or health of the occupants or of the neighborhood in which the housing is located.

      (3) “Bonds” means any bonds, notes, interim certificates, debentures or other obligations issued by an authority pursuant to the Housing Authorities Law. The giving of a note secured by a mortgage or trust deed will not constitute a bond.

      (4) “The city” means the particular city included within a particular housing authority.

      (5) “Clerk” means the recorder of the city or the clerk of the county, as the case may be, or the officer of the city or the county, respectively, charged with the duties customarily imposed on such clerk.

      (6) “County” means any county in the state. “The county” means a particular county or counties for which a particular housing authority is created.

      (7) “Governing body” means, in the case of a city, the common council or other legislative body thereof, and, in the case of a county, the county court, commission or other legislative body thereof.

      (8) “Housing” means housing of all kinds, including but not limited to single-family dwellings, multifamily dwellings, emergency shelters, dwelling accommodations, living accommodations, manufactured dwelling parks, residential units, housing projects or other dwellings.

      (9) “Housing unit” or “unit” means a single-family dwelling, a single apartment or other single dwelling.

      (10) “Mixed income housing” means a housing project that houses tenants with a mixture of income levels, including those not of lower income, for the purpose of reducing the rents for tenants whose incomes are no greater than 60 percent of the area median income.

      (11) “Obligee of the authority” or “obligee” includes any bondholder or trustee for any bondholder, or lessor demising to the authority property used in connection with a housing project, or any assignee of such lessor’s interest or any part thereof, and the federal government when it is a party to any contract with the authority.

      (12) “Persons of eligible income” means individuals or families who meet the applicable income limits of local, state or federally funded programs or developments.

      (13) “Private market” means those rental housing units owned and operated by nongovernment entities and without government subsidies.

      (14) “Person of lower income” or “family of lower income” means a person or a family, residing in this state, whose income is not greater than 80 percent of the area median income, adjusted for family size, as determined by the Housing and Community Services Department using United States Department of Housing and Urban Development information.

      (15) “Real property” includes all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto, or used in connection therewith, and every estate, interest and right, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise and the indebtedness secured by such liens. [Amended by 1971 c.471 §1; 1973 c.672 §1; 1987 c.821 §1; 1989 c.874 §1; 1995 c.445 §2; 2007 c.606 §5]

 

      456.060 Definition of “area of operation”; intergovernmental agreements. (1) As used in the Housing Authorities Law, unless the context requires otherwise, “area of operation” includes:

      (a) In the case of a housing authority of a city:

      (A) The area within the city;

      (B) If the city has adopted in its comprehensive land use plan an urban growth boundary recognized by the governing bodies of the counties in which it is situated, the area within that urban growth boundary; and

      (C) Unless a county has an existing housing authority which is operating and substantially addressing the need for housing in the county for persons of lower income, the area within 10 miles from the territorial boundaries of the city, excepting any area which lies within the territorial or urban growth boundaries of some other city which has by ordinance prohibited such operation within the city or its urban growth boundaries because the city finds that:

      (i) An existing public agency operating within the area is substantially addressing the need for housing in the city for persons of lower income; or

      (ii) There is no need for housing in the city for persons of lower income.

      (b) In the case of a housing authority of a county, the area within the county which lies:

      (A) Outside the territorial boundaries of any city or, if a city has adopted in its comprehensive land use plan an urban growth boundary recognized by the governing bodies of the counties in which it is situated, that urban growth boundary; and

      (B) Inside the territorial or urban growth boundaries of any city unless the city has by ordinance prohibited such operation within the city or its urban growth boundary because the city finds that:

      (i) An existing public agency operating within the area is substantially addressing the need for housing in the city for persons of lower income; or

      (ii) There is no need for housing in the city for persons of lower income.

      (2) As used in this section, “need” means the condition described in ORS 456.085.

      (3) Nothing in this section shall prevent units of local government from entering into intergovernmental agreements pursuant to ORS 190.003 to 190.130 for the purpose of:

      (a) Establishing areas of operation which are different from the areas specified in this section, including agreements which utilize an urban growth boundary to allocate areas of operation between the housing authorities of a city and a county.

      (b) Permitting a specific housing program or portion of a program to be operated in areas within the corporate limits of a city by an existing housing authority of a county or some other city. [Amended by 1973 c.672 §2; 1977 c.667 §1; 1995 c.445 §14; 2003 c.14 §287]

 

      456.065 Definition of “housing project.” (1) As used in this section:

      (a) “Community services” means services provided by public or private nonprofit organizations or service agencies that may include, but are not limited to, child care, early childhood education, health, human resources, information and referral services, basic life skills and adult literacy classes, support services designed to improve self-sufficiency and recreational programs.

      (b) “Community services facilities” includes, but is not limited to, all buildings, grounds or other real or personal property necessary to provide a public benefit, appurtenances that are necessary, convenient or desirable, streets, sewers, water service and other utilities, parks and gardens.

      (2) As used in the Housing Authorities Law, unless the context requires otherwise, “housing project” means any work or undertaking:

      (a) To provide decent, safe and sanitary urban or rural housing for persons or families of lower income. A work or undertaking described in this paragraph may include buildings, land, equipment, facilities and other real or personal property for necessary, convenient or desirable appurtenances, streets, sewers, water service and other utilities, parks, site preparation, gardening, administrative, community services, leased commercial facilities consistent with mixed residential and commercial communities, health, recreational, educational, welfare or other purposes authorized under ORS 456.055 to 456.235.

      (b) To provide community services facilities for the benefit of the health, recreation, education, culture and welfare of the entire community, without regard to the economic status of the persons or families who may utilize the facilities.

      (c) To demolish, clear or remove buildings from any blighted area. A work or an undertaking described in this paragraph may embrace the adaptation of the area to public purposes, including housing, parks, community services facilities or other recreational, educational, cultural or community purposes.

      (d) To accomplish a combination of the projects described in paragraphs (a), (b) and (c) of this subsection, or accomplish the planning of the buildings and improvements, the acquisition of property, the demolition of existing structures, the construction, reconstruction, alteration and repair of the improvements and all other work in connection with those projects.

      (e) To provide management, administration and contract services between the housing authority and owners of decent, safe and sanitary housing for the purpose of providing affordable housing to persons of eligible income. [Amended by 1973 c.672 §3; 1977 c.667 §2; 1989 c.874 §2; 1993 c.125 §1; 1995 c.79 §236; 1995 c.445 §3; 1997 c.406 §1; 2007 c.606 §6]

 

      456.070 Declaration of necessity for establishment of housing authorities. It hereby is declared:

      (1) That there exists in this state a need for an increase in affordable housing for persons or families of lower income.

      (2) That it is a goal of this state to increase the availability of affordable housing for persons and families of lower income.

      (3) That there is a necessity in the public interest for the Housing Authorities Law. [Amended by 1973 c.672 §4; 1995 c.445 §4]

 

      456.075 Housing authorities created; declaration of need required before housing authority may function. In each city, as defined in ORS 456.055, and county there hereby is created a public body corporate and politic to be known as the “housing authority” of the city or county. However, the housing authority shall not transact any business or exercise its powers until or unless the governing body of the city or the county, by proper resolution, declares that there is need for an authority to function in such city or county. The governing body of the city or the county shall also elect to have the powers of a housing authority exercised in any one of the two ways provided in ORS 456.095 (1). [Amended by 1969 c.630 §2; 1975 c.322 §1]

 

      456.080 Determination of need for housing authority. (1) The determination whether there is a need for a housing authority to function in a city or county may be made either by election as provided in this section or by the governing body of a city or county on its own motion. The governing body of the city or county shall order the election when a petition is filed as provided in this section.

      (2) A petition under this section must state that there is a need for a housing authority to function.

      (3) Except as provided in subsections (4) and (5) of this section, the requirements for preparing, circulating and filing a petition under this section shall be as provided for an initiative petition:

      (a) In the case of a county, in ORS 250.165 to 250.235.

      (b) In the case of a city, in ORS 250.265 to 250.346.

      (4) Notwithstanding ORS 250.325, a city governing body shall submit the question to the electors without first considering its adoption or rejection.

      (5) If ORS 250.155 makes ORS 250.165 to 250.235 inapplicable to a county or if ORS 250.255 makes ORS 250.265 to 250.346 inapplicable to a city, the requirements for preparing, circulating and filing a petition under this section shall be as provided for an initiative petition under the county or city charter or an ordinance adopted under the county or city charter.

      (6) An election under this section shall be conducted under ORS chapters 246 to 260, and:

      (a) In the case of a city, must be held on a date specified in ORS 221.230.

      (b) In the case of a county, must be held on a date specified in ORS 203.085.

      (7) If the electors voting at the election favor the functioning of the housing authority, the governing body shall declare that there is need for such housing authority to function.

      (8) The question of need shall not again be submitted at any election within one year immediately following the election at which the question was voted upon. [Amended by 1983 c.350 §275]

 

      456.085 Adopting resolution declaring need for authority. The governing body shall adopt a resolution declaring that there is need for a housing authority in the city or county, if it finds that there exists a need for additional safe, decent and sanitary affordable housing for persons or families of lower income. [Amended by 1973 c.672 §5; 1995 c.445 §5]

 

      456.090 Sufficiency of resolution; copy as evidence. (1) In any suit, action or proceeding involving the validity or enforcement of or relating to any contract of authority, the authority is conclusively deemed to have become established and authorized to transact business and exercise its powers upon proof of the adoption of a resolution by the governing body declaring the need for the authority. The resolution is deemed sufficient if it declares that there is a need for an authority and finds that the condition described in ORS 456.085 exists in the city or county, in substantially the terms used in that subsection, no further detail being necessary.

      (2) A copy of such resolution duly certified by the clerk shall be admissible in evidence in any suit, action or proceeding. [Amended by 1995 c.445 §15]

 

      456.095 Appointment and qualification of commissioners of housing authorities. (1) When the governing body of a city or county adopts a resolution pursuant to ORS 456.085, the governing body may then elect to have the powers of a housing authority under this chapter, ORS chapter 455 and ORS 446.515 to 446.547 exercised in any of the following ways:

      (a) Appointing by resolution, a commission composed of five, seven or nine persons.

      (b) Declaring, by resolution, that the governing body, itself, shall exercise the powers of a housing authority under this chapter, ORS chapter 455 and ORS 446.515 to 446.547. A governing body that exercises the powers of a housing authority may appoint at least one but not more than two additional commissioners for the housing authority. An appointed commissioner has the same authority as other housing authority commissioners, but may not exercise any powers of the governing body. At least one appointed commissioner must be a resident who receives direct assistance from the housing authority. The second appointed commissioner, if any, at a minimum must live within the jurisdiction of the authority. An appointed commissioner serves a term of office equal in length to the terms of office for governing body members, but not more than four years. An appointed commissioner may be removed only for cause as described in ORS 456.110 or if the commissioner ceases to meet the requirements for being an appointed commissioner. In the event that a housing authority commission consisting of the governing body of a city and one or more appointed commissioners has an even number of members, the mayor shall be included as a member of the commission for the housing authority. An act of a governing body exercising the powers of a housing authority is an act of the commission for the housing authority only and not of the governing body.

      (2) When the governing bodies of two or more authorities join and cooperate with one another and create a regional authority to exercise all the powers conferred by the Housing Authorities Law, as authorized by ORS 456.140, the governing bodies of the cooperating cities and counties shall by resolution appoint a commission for the regional authority consisting of nine persons. The cooperating cities and counties shall each appoint an equal number of the nine commissioners. If nine divided by the number of joining or cooperating cities and counties produces a fraction, then the commissioners appointed by such cities and counties shall appoint one commissioner so that nine commissioners in all are appointed. The nine commissioners appointed by or on behalf of cities or counties may appoint at least one but not more than two additional commissioners for the housing authority. At least one additional commissioner must be a resident who receives direct assistance from the housing authority. The second additional commissioner, if any, at a minimum must live within the jurisdiction of the authority. The term of office for an additional commissioner is equal to the term of office for a commissioner appointed by or on behalf of cities or counties. An additional commissioner may be removed only for cause as described under ORS 456.110 or if the person ceases to meet the requirements for being an additional commissioner.

      (3) A commissioner of an authority may not be an officer or employee of any city or county for which the authority is created, unless the commissioner is a member of the governing body or one of the governing bodies.

      (4) Persons appointed to the commission shall include a variety of occupations. At least one commissioner, but not more than two commissioners, appointed under subsection (1)(a) of this section must be a resident who receives direct assistance from the housing authority.

      (5) A governing body shall adopt a resolution for the appointment or reappointment of a commissioner. A governing body resolution is conclusive evidence that the commissioner was properly appointed. [Amended by 1969 c.630 §3; 1971 c.592 §1; 1973 c.672 §6; 1975 c.335 §1; 2001 c.547 §3; 2007 c.606 §7]

 

      456.100 Terms and compensation of commissioners. (1) The commissioners of a five-member authority who are first appointed shall serve terms as follows:

      (a) One commissioner shall be appointed for a term of one year.

      (b) One commissioner shall be appointed for a term of two years.

      (c) One commissioner shall be appointed for a term of three years.

      (d) Two commissioners shall be appointed for terms of four years.

      (2) The commissioners of a seven-member authority who are first appointed shall serve terms as follows:

      (a) One commissioner shall be appointed for a term of one year.

      (b) Two commissioners shall be appointed for terms of two years.

      (c) Two commissioners shall be appointed for terms of three years.

      (d) Two commissioners shall be appointed for terms of four years.

      (3) The commissioners of a nine-member authority who are first appointed shall serve terms as follows:

      (a) Two commissioners shall be appointed for terms of one year.

      (b) Two commissioners shall be appointed for terms of two years.

      (c) Two commissioners shall be appointed for terms of three years.

      (d) Three commissioners shall be appointed for terms of four years.

      (4) Thereafter, commissioners shall be appointed by resolution in the same manner as their original appointment for a term of office of four years except that all vacancies shall be filled for the unexpired term. A commissioner shall hold office until a successor has been appointed and qualified.

      (5) A commissioner shall receive no compensation for services, but shall be entitled to the necessary expenses, including traveling expenses, incurred in the discharge of the duties of the commissioner. [Amended by 1973 c.672 §7; 2001 c.547 §4]

 

      456.105 Organization; officers; quorum; employees; legal services. (1) A majority of the commissioners of an authority shall constitute a quorum of the authority for the purpose of conducting its business and exercising its powers and for all other purposes.

      (2) Except as otherwise provided in the Housing Authorities Law, action may be taken by the authority upon a vote of a majority of the commissioners present, a quorum being present, unless the bylaws of the authority require a larger number.

      (3) The authority shall select a chairperson and vice chairperson from among its commissioners.

      (4) An authority may employ a secretary (who shall be executive director), technical experts and such other officers, agents and employees, permanent and temporary, as it requires. It shall determine their qualifications, duties and compensation.

      (5) For such legal services as it requires, an authority may, if it is not a regional authority, call upon the chief law officer of the city or the county or it may employ its own counsel and legal staff. [Amended by 1973 c.672 §8]

 

      456.110 Removal of commissioner. For inefficiency or neglect of duty or misconduct in office, a commissioner of an authority appointed pursuant to ORS 456.095 (1) or (2) may be removed by the mayor or, in the case of an authority for a county, by the governing body of the county or, in the case of a regional author