2007 Oregon Code - Chapter 456 :: Chapter 456 - Housing
Chapter 456 —
Housing
2007 EDITION
HOUSING
PUBLIC HEALTH AND SAFETY
GENERAL PROVISIONS
456.005Â Â Â Â Definitions
for ORS chapters 456 and 458
HOUSING AUTHORITIES LAW
456.055Â Â Â Â General
definitions for ORS 456.055 to 456.235
456.060Â Â Â Â Definition
of “area of operation”; intergovernmental agreements
456.065Â Â Â Â Definition
of “housing project”
456.070Â Â Â Â Declaration
of necessity for establishment of housing authorities
456.075Â Â Â Â Housing
authorities created; declaration of need required before housing authority may
function
456.080Â Â Â Â Determination
of need for housing authority
456.085Â Â Â Â Adopting
resolution declaring need for authority
456.090Â Â Â Â Sufficiency
of resolution; copy as evidence
456.095Â Â Â Â Appointment
and qualification of commissioners of housing authorities
456.100Â Â Â Â Terms
and compensation of commissioners
456.105Â Â Â Â Organization;
officers; quorum; employees; legal services
456.110Â Â Â Â Removal
of commissioner
456.115Â Â Â Â Commissioners
and employees may not have interest in project other than as tenant; disclosure
of interest; duty to act as prudent person
456.118Â Â Â Â Prohibition
against using term; enjoining violations
456.120Â Â Â Â Powers
of housing authority as public corporation
456.122Â Â Â Â Inapplicability
of laws relating to other public bodies
456.125Â Â Â Â Research,
planning, construction and operation of housing projects
456.128Â Â Â Â Housing
authority intellectual property
456.130Â Â Â Â Investigations,
hearings and recommendations of authority
456.135Â Â Â Â Delegation
of powers or duties
456.140Â Â Â Â Joinder
or cooperation of authorities
456.145Â Â Â Â Eminent
domain
456.150Â Â Â Â Housing
projects subject to local laws; consideration of other programs
456.153Â Â Â Â Involvement
in mixed income housing project
456.155Â Â Â Â Policy
regarding profit from projects; reserves
456.160Â Â Â Â Limitations
as to rentals
456.165Â Â Â Â Vested
rights of creditors not affected by restrictions of ORS 456.155 and 456.160
456.171Â Â Â Â Independent
audit of authority
456.175Â Â Â Â Issuance
of bonds; means for payment
456.180Â Â Â Â Liability
on bonds; debt limitation
456.185Â Â Â Â Issuance
of bonds
456.190Â Â Â Â Presumption
of validity of bond
456.200Â Â Â Â Powers
of authority in securing payment of bonds or lease obligations
456.202Â Â Â Â Short-term
bond anticipation notes
456.205Â Â Â Â Enforcing
rights of obligee of an authority
456.210Â Â Â Â Power
of authority to confer additional rights upon obligee
456.215Â Â Â Â Financial
aid and cooperation of federal government
456.220Â Â Â Â Exemption
of property from process or judgment lien
456.230Â Â Â Â Bonds
and income therefrom exempt from personal income taxes
456.233Â Â Â Â Transfer
of housing authority from governing body to separate board
456.235Â Â Â Â Dissolution
of housing authorities
WITHDRAWAL FROM FEDERAL HOUSING PROGRAM
456.250Â Â Â Â Definitions
for ORS 456.250 to 456.265
456.255Â Â Â Â Legislative
findings
456.260Â Â Â Â Local
requirement of property withdrawal notice; contents; violations; condemnation
alternatives; continuation of tenancies
456.265Â Â Â Â Sanctions
against withdrawing property owner prohibited
AFFORDABLE HOUSING COVENANTS
456.270Â Â Â Â Definitions
for ORS 456.270 to 456.295
456.275Â Â Â Â Legislative
findings
456.280Â Â Â Â Covenant
creation, effect, conveyance, duration and termination
456.285Â Â Â Â Permissible
provisions
456.290Â Â Â Â Validity
of covenant
456.295Â Â Â Â Action
affecting covenant
STATE AND LOCAL COOPERATION WITH HOUSING
PROJECTS
456.305Â Â Â Â Definitions
for ORS 456.305 to 456.325
456.310Â Â Â Â Purpose;
additional powers
456.315Â Â Â Â Powers
of state public bodies in aiding or cooperating on housing projects
456.320Â Â Â Â Donations
and loans to housing authority
456.325Â Â Â Â Resolution
to exercise powers
456.355Â Â Â Â Definitions
for ORS 456.355 to 456.370
456.360Â Â Â Â Purpose;
additional powers
456.365Â Â Â Â Powers
of city or county in aiding or cooperating on housing projects
456.370Â Â Â Â Exercise
of powers; authorization by ordinance
VETERANSÂ’ LOCAL HOUSING
456.505Â Â Â Â VeteransÂ’
housing by local agencies
SUBSIDIZED DEVELOPMENT VISITABILITY
456.506Â Â Â Â Findings
456.508Â Â Â Â Definitions
for ORS 456.510 and 456.513
456.510Â Â Â Â Visitability
requirements
456.513Â Â Â Â Exemption
from visitability requirements
456.514Â Â Â Â Rules
HOUSING AND COMMUNITY SERVICES DEPARTMENT
(Definitions)
456.515Â Â Â Â Definitions
for ORS 456.515 to 456.725 and ORS chapter 458
(Elderly and Disabled Housing Bonds)
456.519Â Â Â Â General
obligation bonds authorized
456.530Â Â Â Â Willingness
to make residential loans factor in selecting depositaries
456.535Â Â Â Â Elderly
and Disabled Housing Fund
456.539Â Â Â Â Administration
of Elderly and Disabled Housing Fund; rules
456.541Â Â Â Â Project
applications for housing serving persons with disabilities
456.543Â Â Â Â Elderly
and Disabled Housing Sinking Fund
456.547Â Â Â Â Assistance,
grants and gifts to department for housing purposes
(Administration)
456.548Â Â Â Â Definitions
for ORS 456.548 to 456.725
456.550Â Â Â Â Policy
456.555Â Â Â Â Housing
and Community Services Department established; appointment of director; duties
of housing council and community action directors; rules; fees
456.559Â Â Â Â Powers
and duties of department
456.561Â Â Â Â Loans,
grants and funding awards; review
456.562Â Â Â Â Department
intellectual property; fees
456.565Â Â Â Â Powers
of director
456.567Â Â Â Â State
Housing Council; appointment; term; officers; compensation; staff; budget
duties
456.569Â Â Â Â Authority
of Housing and Community Services Department to require fingerprints
456.571Â Â Â Â Powers
and duties of council
456.572Â Â Â Â State
housing plan; contents; annual update
456.574Â Â Â Â Housing
and Community Services Department Revolving Account; use of moneys;
appropriation
456.576Â Â Â Â Self-Sufficiency
Housing Fund
456.578Â Â Â Â Use
of funds; petty cash fund
456.579Â Â Â Â Mobile
Home Parks Purchase Account; restrictions; other funds
456.581Â Â Â Â Mobile
Home Parks Purchase Account; use; rules
456.582Â Â Â Â Prohibited
acts; civil penalty
456.585Â Â Â Â Farmworker
housing information
456.587Â Â Â Â Electricity
Public Purpose Charge Fund; Low-Income Electric Bill Payment Assistance Fund
(
456.589Â Â Â Â Legislative
findings
456.593Â Â Â Â Use
of bonds for single-family home loans in
(Mortgage Credit Certificates)
456.605Â Â Â Â Mortgage
credit certificate program
(Financing of Low-Income Housing)
456.612Â Â Â Â Declaration
of financing purpose
456.620Â Â Â Â Duties
of department in carrying out housing programs
456.623Â Â Â Â Project
funding notification registry
456.625Â Â Â Â Powers
of department; status of terms of project use contained in recorded instruments
456.627Â Â Â Â Legislative
finding on availability of single-family residential loans
456.630Â Â Â Â Services
to qualified sponsors and institutions
456.635Â Â Â Â Commitments
on residential loans
456.640Â Â Â Â Purchase
of residential loans
456.645Â Â Â Â Revenue
bonds
456.655Â Â Â Â When
bonds not to be issued; debt service reserve; bond declaration
456.661Â Â Â Â Limitation
on revenue bond amount; legislative findings; designation of areas for issuance
of qualified mortgage bonds
456.665Â Â Â Â Status
of revenue bonds; negotiability; interest tax-exempt
456.670Â Â Â Â Bond
maturity; execution
456.675Â Â Â Â Bond
provisions and limits; security for payment
456.680Â Â Â Â Purchase
of bonds by department
456.685Â Â Â Â BondholdersÂ’
remedies
456.690Â Â Â Â Loan
authority of department; rules
456.692Â Â Â Â Loans
financed through bonds secured by specific properties
456.695Â Â Â Â Housing
required to comply with land use plans, zoning and other ordinances
456.697Â Â Â Â Restrictions
on use of financing provided by department; regulation of housing sponsor;
security interests
456.700Â Â Â Â Pledge
and lien
456.705Â Â Â Â Servicing
loans
456.710Â Â Â Â Payment
of advances; use thereof; limitations
456.715Â Â Â Â Insurance
of loans
456.717Â Â Â Â Interim
construction financing for multifamily housing
456.720Â Â Â Â Housing
Finance Fund; Housing Development Account
456.722Â Â Â Â Preferences
in funding grants to low-income housing providers; rules
(Bonding)
456.723Â Â Â Â Legislative
finding on bonding authority of department
DISCRIMINATION
456.725Â Â Â Â 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
     (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 lessorÂ’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 authority, by the appointing authority
for the commissioner. This section does not allow the removal of a member of a
governing body exercising power as a housing authority. A commissioner shall
not be removed until after the commissioner has been given a copy of the
charges at least 10 days prior to the hearing thereon and had an opportunity to
be heard in person or by counsel. In the event of the removal of any
commissioner, a record of the proceedings, together with the charges and
findings thereon, shall be filed in the office of the clerk for each city and
county in the authority. [Amended by 1969 c.630 §4; 1973 c.672 §9; 2001 c.547 §5]
     456.115
Commissioners and employees may not have interest in project other than as
tenant; disclosure of interest; duty to act as prudent person. (1) No commissioner or employee of an
authority shall acquire any interest in any housing project or in any property
included or planned to be included in any project, nor shall the commissioner
or employee of an authority have an interest except as a tenant in any contract
or proposed contract for materials or services to be furnished or used in
connection with any housing project.
     (2) For the purposes of subsection (1) of
this section, the leasehold interest of a tenant appointed to the board or
commission under ORS 456.095 shall not be considered an interest in a project,
property or contract if the leasehold interest is granted on the same basis and
is subject to the same terms and conditions as other leasehold interests of
other tenants of the authority. A tenant-commissioner shall refrain from voting
on any action that affects the individual interest of the tenant-commissioner
as distinguished from the interests of tenants as a class.
     (3) If any commissioner or employee of an
authority owns or controls an interest in any property included or planned to
be included in any housing project, the commissioner or employee immediately
shall disclose the same in writing to the authority. Such disclosure shall be
entered upon the minutes of the authority. Failure so to disclose such interest
shall constitute misconduct in office.
     (4) A commissioner shall discharge the
commissionerÂ’s duties with the care, skill, prudence and diligence under the
circumstances then prevailing that a prudent person acting in a like capacity
and familiar with such matters would use in the conduct of an enterprise of a
like character. [Amended by 1975 c.335 §2; 1995 c.483 §1]
     456.118
Prohibition against using term; enjoining violations. No person other than a housing authority
created under ORS 456.055 to 456.235 may use the term “housing authority” or a
variation of the term “housing authority” in the corporate or other business
name or title of the person. Any housing authority may bring a civil suit to
enjoin a violation of this section, regardless of whether the housing authority
shows that the authority will suffer damage from the violation. [2007 c.606 §3]
     456.120
Powers of housing authority as public corporation. A housing authority shall constitute a
public body corporate and politic, exercising public and essential governmental
functions, and having all the powers necessary or convenient to carry out and
effectuate the purposes of the Housing Authorities Law. These powers shall be
vested in the commissioners of the authority and shall include the following in
addition to others granted in the Housing Authorities Law:
     (1) To sue and be sued.
     (2) To have a seal and to alter the same
at pleasure.
     (3) To have perpetual succession.
     (4) To make and execute contracts and
other instruments necessary or convenient to the exercise of the powers of the
authority.
     (5) To make and from time to time amend
and repeal bylaws, rules and regulations, not inconsistent with the Housing
Authorities Law, to carry into effect the powers and purposes of the authority.
     (6) To arrange or contract for the
furnishing by any person or agency, public or private, of services, privileges,
works or facilities for, or in connection with, a housing project or the
occupants thereof.
     (7) Notwithstanding any laws to the
contrary, to include in any contract let in connection with a project,
stipulations requiring that the contractor and any subcontractors comply with
requirements as to minimum wages and maximum hours of labor, and comply with
any conditions which the federal government attaches to its financial aid of
the project.
     (8) To lease or rent any housing, lands,
buildings, structures or facilities embraced in any housing project and,
subject to the limitations of the Housing Authorities Law, to establish and
revise the rents or charges therefor.
     (9) To own, hold and improve real or
personal property.
     (10) To purchase, buy on contract,
exchange, lease, lease back, obtain options upon, acquire by gift, grant,
bequest, devise or otherwise any real or personal property or any interest
therein and to give its mortgage or trust deed covering any real property or
security agreement covering any personal property or any interest in either.
     (11) To sell, mortgage, lease, rent,
exchange, transfer, assign, pledge or otherwise dispose of any real or personal
property or any interest therein.
     (12) To insure or provide for the
insurance of any real or personal property or operations of the authority
against any risks or hazards.
     (13) To procure insurance or guarantees
from the federal government of the payment of any debts or parts thereof,
whether or not incurred by said authority, secured by mortgages on any property
included in any of its housing projects.
     (14) To invest any funds held in reserves
or sinking funds, or any funds not required for immediate disbursement, in
property or any investment in which an Oregon city may legally invest surplus
funds, and, in addition, to invest bond proceeds and amounts held in bond
payment, reserve and proceeds accounts in investment agreements that:
     (a) Produce a guaranteed rate of return;
     (b) Are fully collateralized by direct
obligations of, or obligations guaranteed by, the
     (c) Require that the collateral be held by
the authority, an agent of the authority or a third-party safekeeping agent.
     (15) To purchase its bonds at a price not
more than the principal amount thereof and accrued interest, all bonds so
purchased to be canceled.
     (16) To exercise all or any part or
combination of powers granted in the Housing Authorities Law.
     (17) To borrow money pursuant to ORS
456.055 to 456.235 or as otherwise allowed and accept advances, loans or grants
or any other form of financial assistance or any combination of these forms of
assistance from the federal government, state, county or other public body, or
from any sources, public or private, for the purpose of undertaking and
carrying out housing projects.
     (18) To enter in a partnership agreement
with or loan money to an individual, partnership, corporation or other
association to finance, plan, undertake, construct, acquire, manage or operate
a housing project.
     (19) To finance, develop, own, operate or
manage a mixed income housing project that meets the following requirements:
     (a) No fewer than 20 percent of the units
in the project so financed shall be rented to households with incomes of 50
percent or less of area median income;
     (b) No fewer than 40 percent of the units
in the project so financed shall be rented to households with incomes of 60
percent or less of area median income; or
     (c) The minimum requirements imposed by
any federal tax law that is applicable to the project.
     (20) To form, finance and have a nonstock
interest in, and to manage or operate, partnerships, nonprofit corporations and
limited liability companies in order to further the purposes of the housing
authority. [Amended by 1987 c.821 §2; 1989 c.874 §3; 1991 c.600 §1; 1995 c.79 §237;
1995 c.445 §6; 1995 c.483 §2; 2007 c.606 §8]
     456.122
Inapplicability of laws relating to other public bodies. Unless specifically provided, no law with
respect to the acquisition, operation or disposition of property by other
public bodies applies to a housing authority.
     456.125
Research, planning, construction and operation of housing projects. Within its area of operation, a housing
authority may:
     (1) Investigate into living, dwelling and
housing conditions and into the means and methods of improving such conditions
by either the housing authority or the private market.
     (2) Determine where blighted areas exist
or where there is a shortage of decent, safe and sanitary housing for persons
or families of lower income.
     (3) Make studies and recommendations
relating to the problem of clearing, replanning and reconstructing blighted
areas to provide affordable housing and the problem of providing housing for
persons or families of lower income. An authority is encouraged to cooperate
with the private market and the city, county or state or any of their political
subdivisions in action taken in connection with identifying and solving such
problems.
     (4) Engage in research, studies and
experimentation on the subject of housing.
     (5) Prepare, carry out, acquire, lease and
operate housing projects.
     (6) Provide for the construction,
reconstruction, improvement, alteration or repair of any housing project or any
part thereof. [Amended by 1973 c.672 §10; 1995 c.445 §7; 2007 c.606 §9]
     456.128
Housing authority intellectual property. (1) As used in this section:
     (a) “Housing authority” means a housing
authority created under ORS 456.075. “Housing authority” includes a person
exercising delegated powers and duties under ORS 456.135, a local government
electing under ORS 456.095 to have the powers of a housing authority and a body
to which powers and authority are transferred under ORS 456.233.
     (b) “Intellectual property” and “person”
have the meanings given those terms in ORS 456.562.
     (2) Subject to any superior patent rights
or copyrights, a housing authority may license, share or otherwise provide for
the use by a person of intellectual property acquired or developed by the
authority. Except as provided in this subsection, the housing authority may
charge fees for licensing, sharing or otherwise providing for the use of the
intellectual property. The housing authority may not charge a fee under this
subsection to a federal, state or local government body.
     (3) A housing authority may take actions
that the authority deems necessary and appropriate to carry out this section,
including but not limited to applying for patents or copyright registration to
perfect or preserve the authorityÂ’s rights in intellectual property. [2003
c.605 §2]
     Note: 456.128 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 456 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     456.130
Investigations, hearings and recommendations of authority. Any authority, acting through one or more
commissioners or other persons designated by the authority, may:
     (1) Conduct examinations and investigations
and hear testimony and take proof under oath at private or public hearings on
any matter material for its information.
     (2) Administer oaths, issue subpoenas
requiring the attendance of witnesses or the production of books and papers and
issue commissions for the examination of witnesses who are outside the state or
unable to attend before the authority or excused from attendance.
     (3) Make available to appropriate
agencies, including those charged with the duty of abating or requiring the
correction of nuisances or like conditions, or of demolishing unsafe or
insanitary structures within the area of operation, its findings and
recommendations with regard to any buildings or property where conditions exist
which are dangerous to the public health, morals, safety or welfare.
     456.135
Delegation of powers or duties.
An authority may delegate to one or more of its agents or employees such powers
or duties as it deems proper.
     456.140
Joinder or cooperation of authorities. Any two or more authorities may join or cooperate with one another in
the exercise of any or all of the powers conferred by the Housing Authorities
Law for the purpose of financing, planning, undertaking, constructing or
operating a housing project or projects located within the area of operation of
one or more of the authorities.
     456.145
Eminent domain. (1) An
authority may acquire, by the exercise of the power of eminent domain, any real
property which it deems necessary for its purposes after adoption by it of a
resolution declaring that the acquisition of the real property described
therein is necessary for such purposes. An authority may exercise the power of
eminent domain in the manner provided for in the laws of this state for the
condemnation of lands or rights of way by public or quasi-public corporations
for public use or for corporate purposes; or in the manner provided by law for
the appropriation of real property, or rights therein or thereto, by private
corporations; or in the manner provided by any other applicable statutory
provisions for the exercise of the power of eminent domain.
     (2) Property already devoted to a public
use may be acquired in like manner, but no real property belonging to the city,
the county, the state or any political subdivision thereof may be acquired
without its consent.
     456.150
Housing projects subject to local laws; consideration of other programs. (1) All housing projects of an authority
shall be subject to the planning, zoning, sanitary and building laws,
ordinances and regulations applicable to the locality in which the housing
project is situated.
     (2) In the planning and location of any
housing project, an authority shall take into consideration the relationship of
the project to any larger plan or long-range program for the development of the
area in which the housing authority functions.
     456.153
Involvement in mixed income housing project. A housing authority may finance, develop, own, manage or operate a
mixed income housing project if:
     (1) The housing authority determines that
a substantial number of persons of eligible income in the area served by the
authority cannot obtain housing for 30 percent or less of their income.
     (2) Based on the determination under
subsection (1) of this section, the housing authority adopts a resolution
declaring the need for additional housing for persons or families of lower
income that can be addressed by the authority financing, developing, owning,
managing or operating a mixed income housing project. [1995 c.445 §9; 2007
c.606 §10]
     456.155
Policy regarding profit from projects; reserves. (1) It hereby is declared to be the policy
of this state that:
     (a) Each housing authority shall manage
and operate its housing projects in an efficient and cost-effective manner so
as to enable it to set the rents for housing units at the lowest possible rates
consistent with providing decent, safe and sanitary housing and fulfilling the
unmet need of affordable housing for persons or families of lower income.
     (b) No housing authority shall construct
or operate any such housing for profit, or as a source of revenue to a city or
a county.
     (2) Notwithstanding any provisions of this
section to the contrary, a housing authority may establish and maintain
reasonable reserves for the purpose of providing additional housing projects
that the authority owns or manages and otherwise administering its programs
pursuant to this chapter. [Amended by 1977 c.343 §1; 1989 c.874 §4; 1995 c.445 §10]
     456.160
Limitations as to rentals.
In the operation or management of housing projects, a housing authority shall
at all times observe the following duties with respect to rentals and tenant
selection:
     (1) A housing authority may rent or lease
the housing only to persons of eligible income, except:
     (a) If the authority owns, operates or
manages the housing and a substantial number of the housing units are required
to be rented or leased to persons of eligible income; or
     (b) If the authority acquires an existing
housing unit that houses a tenant not of eligible income, the tenant may remain
in the unit at the discretion of the authority, unless the tenant is determined
ineligible for reasons other than income qualification.
     (2) A housing authority may rent or lease
the housing at rents no higher than will provide revenue sufficient to give
financial stability to the housing authority. This limitation does not apply to
housing units that are owned, operated or managed as described in subsection
(1) of this section if the units are not occupied by families receiving
assistance from an authority. [Amended by 1973 c.672 §11; 1977 c.667 §3; 1987
c.821 §3; 1995 c.445 §11; 2007 c.606 §11]
     456.165
Vested rights of creditors not affected by restrictions of ORS 456.155 and
456.160. ORS 456.155 and
456.160 do not limit the power of an authority to vest in an obligee the right,
in the event of a default by the authority, to take possession of a housing
project or cause the appointment of a receiver thereof or acquire title thereto
through foreclosure proceedings, free from all the restrictions imposed by
those sections.
     456.170 [Amended by 1973 c.672 §12; repealed by 2007
c.606 §13]
     456.171
Independent audit of authority.
At least once each year, a housing authority shall procure an independent audit
of authority finances and activities for the preceding year, make the audit
available for inspection by the public and provide a copy of the audit to each
governing body that appoints the housing authority commissioners. [2007 c.606 §2]
     456.175
Issuance of bonds; means for payment. An authority may issue bonds from time to time in its discretion upon
the resolution adopted by a majority vote of the commissioners for any of its
corporate purposes. An authority may also issue refunding and advance refunding
bonds for the purpose of paying or retiring bonds previously issued by it. [Amended
by 1989 c.874 §5]
     456.180
Liability on bonds; debt limitation. (1) Neither the commissioners of an authority nor any person executing
the bonds shall be liable personally on the bonds by reason of the issuance thereof.
     (2) The bonds and other obligations of an
authority shall not be a debt of the city, the county, the state or any
political subdivision thereof, and the bonds and obligations shall so state on
their face. Neither the city, the county, nor the state or any political
subdivision thereof shall be liable thereon. Nor, in any event, shall such
bonds or obligations be payable out of any funds or properties other than those
of the authority.
     (3) The bonds shall not constitute an
indebtedness within the meaning of any constitutional or statutory debt
limitation or restriction.
     456.185
Issuance of bonds. Bonds of
an authority must be authorized by its resolution adopted by a vote of a
majority of the commissioners, must be issued as prescribed in ORS chapter 287A
and are not subject to the requirements of ORS 287A.150. [Amended by 1969 c.694
§13; 1973 c.672 §13; 1977 c.188 §5; 1981 c.94 §42; 1989 c.874 §8; 2001 c.215 §11;
2007 c.783 §193]
     456.190
Presumption of validity of bond. In any suit, action or proceedings involving the validity or
enforceability of any bond of an authority or the security therefor, any bond
reciting in substance that it has been issued by the authority to aid in
financing a housing project to provide housing for persons or families of lower
income is conclusively deemed to have been issued for a housing project of such
character and said project is conclusively deemed to have been planned, located
and constructed in accordance with the Housing Authorities Law. [Amended by
1973 c.672 §14; 1995 c.445 §12; 2007 c.783 §194]
     456.195 [Repealed by 1989 c.874 §9]
     456.197 [1969 c.694 §15; 1973 c.672 §15; repealed by
1989 c.874 §9]
     456.200
Powers of authority in securing payment of bonds or lease obligations. In connection with the issuance of bonds or
the incurring of obligations and in order to secure the payment of such bonds
or obligations, an authority may:
     (1) Pledge all or any part of its gross or
net rents, fees or revenues to which its right then exists or thereafter comes
into existence.
     (2) Mortgage its real or personal
property, then owned or thereafter acquired.
     (3) Covenant against pledging all or any
part of its rents, fees and revenues, or against mortgaging all or any part of
its real or personal property to which its right or title then exists or may
thereafter come into existence or against permitting or suffering any lien on
such revenues or property.
     (4) Covenant with respect to limitations
on its right to sell, lease or otherwise dispose of any housing project or any
part thereof.
     (5) Covenant as to what other or
additional debts or obligations may be incurred by it.
     (6) Covenant as to the bonds to be issued
and as to the issuance of such bonds in escrow or otherwise, and as to the use
and disposition of the proceeds thereof.
     (7) Provide for the replacement of lost,
destroyed or mutilated bonds.
     (8) Covenant against extending the time
for the payment of its bonds or interest thereon.
     (9) Redeem the bonds and covenant for
their redemption and provide the terms and conditions thereof.
     (10) Covenant, subject to the limitations
of the Housing Authorities Law, as to the rents and fees to be charged in the
operation of a housing project or projects, the amount to be raised each year
or other period of time by rents, fees and other revenues, and as to the use
and disposition to be made thereof.
     (11) Create or authorize the creation of
special funds for moneys held for construction or operating costs, debt
service, reserves or other purposes, and covenant as to the use and disposition
of the moneys held in such funds.
     (12) Prescribe the procedure, if any, by
which the terms of any contract with bondholders may be amended or abrogated,
the amount of bonds the holders of which must consent thereto and the manner in
which such consent may be given.
     (13) Covenant as to the use, maintenance
and replacement of its real and personal property, the insurance to be carried
thereon and the use and disposition of insurance moneys.
     (14) Covenant as to the rights,
liabilities, powers and duties arising upon the breach by it of any covenant,
condition or obligation.
     (15) Covenant and prescribe as to events
of default and terms and conditions upon which any or all of its bonds or
obligations become or may be declared due before maturity, and as to the terms
and conditions upon which such declaration and its consequences may be waived.
     (16) Vest in a trustee or trustees or the
holders of bonds or any proportion of them the right to enforce the payment of
the bonds or any covenants securing or relating to the bonds.
     (17) Vest in a trustee or trustees the
right, in the event of a default by said authority, to take possession and use,
operate and manage any housing project or part thereof, and to collect the
rents and revenues arising therefrom and to dispose of such moneys in
accordance with the agreement of the authority with said trustee.
     (18) Provide for the powers and duties of
a trustee or trustees and to limit their liabilities.
     (19) Provide the terms and conditions upon
which the trustee or trustees or the holders of bonds or any proportion of them
may enforce any covenant or rights securing or relating to the bonds.
     (20) Exercise all or any part or
combination of the powers granted in this section.
     (21) Make covenants other than and in
addition to the covenants expressly authorized in this section, of like or
different character.
     (22) Make any covenants and do any acts
and things necessary or convenient or desirable in order to secure its bonds,
or, in the absolute discretion of said authority, tending to make the bonds
more marketable although the covenants, acts or things are not enumerated in
this section.
     (23) Purchase letters of credit, bond
insurance or any other credit enhancement device that would establish or
increase marketability of its bonds.
     (24) Pay its obligations with income,
revenues or loan repayments of the housing project financed with the proceeds
of such obligations, or with such proceeds together with a grant from the
federal government or this state in aid of such project. [Amended by 1987 c.821
§5; 1989 c.874 §6; 1991 c.600 §2]
     456.202
Short-term bond anticipation notes. (1) An authority shall have the power to borrow money for the purposes
for which its bonds are to be issued in anticipation of the receipt of proceeds
of the sale of such bonds and within the authorized maximum of such bond issue.
     (2) Bond anticipation notes shall be
issued for all moneys borrowed under the provisions of this section. Such notes
may be issued for a period not exceeding one year and may be renewed from time
to time for periods not exceeding one year, but each such note, including
renewals, shall mature and be paid not later than five years after the date on
which the original note was issued. Such notes shall be authorized by
resolution of the authority, adopted by a majority of the commissioners, and
shall be in such denomination or denominations, shall bear interest at such
rate or rates, shall be in such form, and shall be executed in such manner, all
as a majority of the commissioners shall prescribe. Such notes may be sold at
public or private sale in the manner and at such price or prices or for such
other consideration, including real or personal property, as the authority
shall determine, provided that if such notes be renewal notes, they may be
exchanged for notes then outstanding on such terms as the authority shall
determine. [1977 c.342 §2]
     456.205
Enforcing rights of obligee of an authority. An obligee of an authority, in addition to all other rights conferred
on the obligee, subject only to any contractual restrictions binding upon the
obligee, may:
     (1) By mandamus or other action or
proceeding for legal or equitable remedies, compel the authority and its
commissioners, officers, agents or employees to perform each and every term,
provision and covenant contained in any contract of the authority with or for
the benefit of such obligee, and require the carrying out of all covenants and
agreements of the authority and the fulfillment of all duties imposed upon the
authority by the Housing Authorities Law.
     (2) By action or proceeding, enjoin any
acts or things which may be unlawful, or the violation of any rights of the
obligee. [Amended by 1979 c.284 §149]
     456.210
Power of authority to confer additional rights upon obligee. An authority, by its resolution, trust
indenture, mortgage, lease or other contract, may confer upon any obligee
holding or representing a specified amount in bonds, or holding a lease, the
right, in addition to all rights that may otherwise be conferred, upon the
happening of an event of default as defined in such resolution or instrument,
by suit, action or proceeding in any court of competent jurisdiction:
     (1) To cause possession of any housing
project or any part thereof to be surrendered to an obligee.
     (2) To obtain the appointment of a
receiver of any housing project of the authority or any part thereof and of the
rents and profits therefrom. If a receiver is appointed, the receiver may enter
and take possession of the housing project or any part thereof and operate and
maintain it and collect and receive all fees, rents, revenues or other charges
thereafter arising therefrom, and shall keep such moneys in separate accounts
and apply them in accordance with the obligations of the authority as the court
directs.
     (3) To require the authority and its
commissioners to account as if it and they were the trustees of an express
trust.
     456.215
Financial aid and cooperation of federal government. (1) An authority may:
     (a) Borrow money or accept grants or other
financial assistance from the federal government for or in aid of any housing
project within its area of operation.
     (b) Take over or lease or manage any
housing project or undertaking constructed or owned by the federal government.
     (c) Comply with such conditions and enter
into such mortgages, trust indentures, leases or agreements as may be
necessary, convenient or desirable for the purposes of this subsection.
     (2) It is the purpose and intent of the
Housing Authorities Law to authorize every authority to do all things necessary
or desirable to secure the financial aid or cooperation of the federal
government in the undertaking, construction, maintenance or operation of any
housing project by such authority.
     456.220
Exemption of property from process or judgment lien. All real property of an authority is exempt
from levy and sale by virtue of an execution. No execution or other judicial
process shall issue against such property nor shall any judgment against an
authority be a charge or lien upon its real property. However, this
section does not apply to or limit the right of obligees to foreclose or
otherwise enforce any mortgage of an authority or the right of obligees to
pursue any remedies for the enforcement of any pledge or lien given by an
authority on its rents, fees or revenues.
     456.225 [Amended by 1991 c.851 §1; 1995 c.445 §13;
1997 c.406 §2; renumbered 307.092 in 2003]
     456.230
Bonds and income therefrom exempt from personal income taxes. Bonds of an authority are declared to be
issued for an essential public and governmental purpose and to be public
instrumentalities. The bonds, together with interest thereon and income
therefrom, are exempt from personal income taxes under ORS chapter 316. [Amended
by 2007 c.783 §195]
     456.233
Transfer of housing authority from governing body to separate board. If, pursuant to this chapter, ORS chapter
455 and ORS 446.515 to 446.547, the governing body in a city or a county has
declared, 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, the governing body may thereafter, by resolution, elect to
transfer such powers and the authority to act as the housing authority to any
other body which may be designated by this chapter, ORS chapter 455 and ORS
446.515 to 446.547 to exercise such powers. The governing body of the city or
county may, by resolution, transfer the powers and authority to act as the
housing authority to itself. All duties and obligations of the governing body
as the housing authority of the municipality shall thereafter be assumed and
performed by the body to which such powers and authority are transferred. [1969
c.630 §1; 1975 c.322 §2; 1979 c.621 §17]
     456.235
Dissolution of housing authorities. (1) A housing authority may be dissolved upon a majority vote of its
commissioners at any regular or special meeting of the commission whereof all
the members of the commission have been notified. Except with the consent of
the obligees of the housing authority to dissolution, no authority having
outstanding bonds or indebtedness shall be dissolved unless the assets of the
authority are sufficient to pay such bonds and indebtedness. A copy of the
order or resolution of dissolution shall be filed with the clerk of the city or
the county, as the case may be.
     (2) Upon dissolution of an authority, the
property and assets thereof not required for the liquidation of indebtedness of
the authority shall vest in or be paid over to the city or the county for which
the authority was created or, where a regional authority is dissolved, be paid
over to the cities and counties in the authority in proportion to the
population within each cooperating city and county according to the most recent
determination under ORS 190.510 to 190.610; provided, that if the housing
project be located within an incorporated city, then such property and assets
shall be paid over and delivered to such city, even though the authority may
have been created by a county. Any moneys so received by the clerk shall be
credited to the general fund of the city or the county, as the case may be.
     (3) After voting for dissolution the
authority shall be dissolved for all purposes, excepting, there shall be
allowed a period of not to exceed three years after said vote for the
liquidation of indebtedness and final settlement of its affairs. [1953 c.716 §2;
1973 c.672 §16]
WITHDRAWAL
FROM FEDERAL HOUSING PROGRAM
     456.250
Definitions for ORS 456.250 to 456.265. As used in this section and ORS 456.255 to 456.265:
     (1) “Federal housing program” means a
federal project-based Section 8 subsidized housing program.
     (2) “Local government” means a city,
county, public corporation, metropolitan service district or other district.
     (3) “Participating property” means
property that is the subject of a contract between the property owner and the
United States Department of Housing and Urban Development for participation in
a federal housing program. [1999 c.275 §1]
     Note: 456.250 to 456.265 were enacted into law by
the Legislative Assembly but were not added to or made a part of ORS chapter
456 or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     456.255
Legislative findings. (1)
The Legislative Assembly finds and declares that:
     (a) The maintenance of a pool of
affordable housing for all citizens is a matter of statewide concern.
     (b) The contracts for many properties in
this state that participate in federal housing programs are about to expire.
Local governments need an effective process for assessing these expiring
contracts and determining whether to assume ownership of the participating
properties. The assessment and determination process should ensure appropriate
statewide uniformity while maintaining local flexibility. The process should
also ensure the rights of property owners and tenants to fair treatment as the
contracts expire.
     (2) ORS 456.260 and 456.265 are intended
to provide a framework for addressing the withdrawal of participating property
from federal housing programs. [1999 c.275 §2]
     Note: See note under 456.250.
     456.260
Local requirement of property withdrawal notice; contents; violations;
condemnation alternatives; continuation of tenancies. (1) In establishing a procedure to deal with
expiring contracts for participating properties, a local government may:
     (a) Require the owner of a participating
property to:
     (A) Provide notice of the pending contract
expiration to each local government that has requested notice and each affected
tenant one year prior to the date when the contract for the property to
participate in a federal housing program will expire.
     (B) Provide notice that the owner intends
to withdraw the property from participation in a federal housing program to
each local government that has requested notice and each affected tenant up to:
     (i) 210 days prior to the expiration of
the contract; or
     (ii) 150 days prior to the expiration of a
one-year extension of the contract, if any.
     (C) Consent to reasonable inspection of
the property and inspection of the owner reports on file with the Housing and
Community Services Department or the United States Department of Housing and
Urban Development.
     (D) Maintain the contract for property
participation in a federal housing program in good standing, if the United
States Department of Housing and Urban Development allows that maintenance,
during:
     (i) The notice periods referred to under
this paragraph;
     (ii) Any condemnation proceeding
commenced; or
     (iii) Any alternative procedure agreed to
under paragraph (c) of this subsection.
     (E) Refrain from taking any action, other
than notifying the United States Department of Housing and Urban Development of
the ownerÂ’s intention to not renew the contract, that would preclude the
affected local government or its designee from succeeding to the contract or
negotiating with the owner for the purchase of the property.
     (b) Establish and impose any fine,
penalty, tax, fee, charge or assessment upon the owner of participating property
for failure to comply with local regulations adopted pursuant to paragraph (a)
of this subsection.
     (c) Establish an alternative procedure to
condemnation, including but not limited to arbitration, mediation or
facilitated negotiation. However, an alternative procedure may not be used
unless mutually agreed to by the property owner and the local government.
     (d) Require an owner to refrain from
disturbing tenancies, other than for cause as defined in the contract, for a
period of not more than 180 days after expiration of the contract if the local
government pays, or arranges for payment, to the owner on the first day of each
month, the monthly subsidy that the owner was receiving under the contract.
     (2) Any notices provided under subsection
(1)(a) of this section shall specify whether the owner:
     (a) Intends to withdraw the property from
a federal housing program.
     (b) Intends to convert the participating
property to a nonparticipating use.
     (c) Is involved in negotiations with the
United States Department of Housing and Urban Development or the Housing and
Community Services Department regarding an extension of an expiring
participation contract.
     (3) ORS 456.255 to 456.265 do not require
a local government to purchase, condemn or otherwise acquire participating
property. [1999 c.275 §3]
     Note: See note under 456.250.
     456.265
Sanctions against withdrawing property owner prohibited. (1) Except as expressly authorized in ORS
456.260 (1) or as may be provided by contract with the property owner, a local
government may not:
     (a) Impose any fine, penalty, tax, fee,
charge, assessment or other restriction or sanction against a property owner
for withdrawing the participating property from a federal housing program.
     (b) Except as an exercise of constitutional
or statutory powers of condemnation:
     (A) Prevent or restrict a property owner
from selling or otherwise disposing of participating property.
     (B) Require conveyance of participating
property to the local government or to another party.
     (C) Impose any fine, penalty, tax, fee,
charge, assessment or other restriction or sanction against a property owner
for refusing an offer by the local government or another party to purchase
participating property.
     (c) Require a property owner to pay any
replacement fee or other fee for tenant relocation from participating property,
except as specified in an alternative procedure being used pursuant to ORS
456.260 (1)(c).
     (2) Subsection (1) of this section does
not prohibit a local government that is certified by a federal agency to carry
out an agency responsibility or to exercise agency authority from taking any
action within the scope of that responsibility or authority. [1999 c.275 §4]
     Note: See note under 456.250.
AFFORDABLE
HOUSING COVENANTS
     456.270
Definitions for ORS 456.270 to 456.295. As used in ORS 456.270 to 456.295:
     (1) “Affordable housing covenant” means a
nonpossessory interest in real property imposing limitations, restrictions or
affirmative obligations that encourage development or that ensure continued
availability of affordable rental and owner-occupied housing for low or
moderate income individuals.
     (2) “Area median income” means the median
income for the standard metropolitan statistical area in which the affordable
housing is located, as determined by the Housing and Community Services
Department, adjusted for household size.
     (3) “Eligible covenant holder” means:
     (a) A public body, as defined in ORS
174.109;
     (b) An agency of the
     (c) A public benefit corporation or
religious corporation, as those terms are defined in ORS 65.001, one purpose of
which is to provide affordable housing for low or moderate income households;
     (d) A consumer housing cooperative, as
defined in ORS 456.548;
     (e) A manufactured dwelling park nonprofit
cooperative corporation; or
     (f) A federally recognized Indian tribe.
     (4) “Low income household” means a
household with income less than or equal to 80 percent of the area median
income.
     (5) “Moderate income household” means a
household with income less than or equal to 120 percent and greater than 80
percent of the area median income.
     (6) “Subsidy” includes, but is not limited
to:
     (a) A grant, loan or contract made by a
federal agency, a federally recognized Indian tribe or a public body, as
defined in ORS 174.109;
     (b) A grant, loan or contract made by a
nonprofit corporation or a limited liability company the sole member of which
is a nonprofit corporation;
     (c) A subsidized loan from a lending
institution that makes loans for residential housing; or
     (d) A subsidized private transaction.
     (7) “Third-party right of enforcement”
means a right provided in an affordable housing covenant to a third party to
enforce the terms of the covenant. [2007 c.691 §2]
     Note: 456.270 to 456.295 were enacted into law by
the Legislative Assembly but were not added to or made a part of ORS chapter
456 or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     456.275
Legislative findings. The
Legislative Assembly finds and declares that:
     (1) There is a serious shortage of decent,
safe and sanitary housing available and affordable to low and moderate income
households in the State of
     (2) The inadequacy in the supply of
decent, safe and sanitary affordable housing endangers the public health and
jeopardizes the public safety and general welfare of the state.
     (3) To obtain the benefits of covenants
and restrictions that seek to preserve and maintain affordable housing, the
Legislative Assembly authorizes the creation and enforcement of affordable
housing covenants. [2007 c.691 §1]
     Note: See note under 456.270.
     456.280
Covenant creation, effect, conveyance, duration and termination. (1) A person may create an affordable
housing covenant as a condition of giving or receiving a subsidy during
ownership or upon conveyance of real property, in the form of a covenant,
servitude, easement, condition or restriction in a deed, declaration, land sale
contract, trust deed, mortgage, security agreement, assignment, will, trust,
rental agreement, lease or other written instrument that is:
     (a) Executed by the owner of the real
property and the covenant holder; and
     (b) Recorded in the deed and mortgage
records of the county in which the real property is located.
     (2) The affordable housing covenant
creates a real property right in an eligible covenant holder to:
     (a) Limit the use of real property to
occupancy by low or moderate income households in rental or owner-occupied
housing;
     (b) Restrict the rental rate or sale price
of real property to ensure affordability by future low and moderate income
households; or
     (c) Limit, restrict or condition the use
and enjoyment of real property to create or retain rental or owner-occupied
affordable housing for occupancy by low or moderate income households.
     (3) The affordable housing covenant may be
conveyed, assigned, modified or terminated by a written instrument recorded in
the deed and mortgage records of the county in which the real property is
located. The affordable housing covenant may be:
     (a) Conveyed or assigned by a written
instrument executed by the conveying or assigning covenant holder and the
accepting covenant holder;
     (b) Modified by a written instrument
executed by the covenant holder and the owner of the real property; or
     (c) Terminated by a written instrument
executed by the covenant holder and a third party with the right to enforce the
covenant.
     (4) An affordable housing covenant is not
invalid because a holder of the covenant is not an eligible covenant holder. A
covenant holder who is not an eligible covenant holder may not modify,
terminate or commence an action to enforce the covenant. However, the covenant
holder may convey or assign the covenant to an eligible covenant holder who may
modify or terminate the covenant or commence an action to enforce the covenant.
     (5) An affordable housing covenant is
unlimited in duration unless:
     (a) The instrument creating the covenant
provides otherwise;
     (b) The duration of the covenant is
modified prior to the expiration of its stated term; or
     (c) The covenant is terminated.
     (6) Upon termination of an affordable
housing covenant for any reason prior to the expiration of its stated term, the
covenant holder is entitled to receive the difference between the fair market
value of the real property immediately before termination and the fair market
value of the real property immediately after termination.
     (7) An interest in real property in
existence when an affordable housing covenant is created is not impaired by the
affordable housing covenant unless the owner of the interest is a party to the
affordable housing covenant, subordinates the interest to the affordable
housing covenant or otherwise agrees to be bound by the affordable housing
covenant.
     (8) The instrument creating an affordable
housing covenant may grant the eligible covenant holder, or a designee of the
eligible covenant holder, a right to enter the real property to ensure
compliance with the covenant and, if the right is granted, the instrument shall
designate the time and manner in which the eligible covenant holder or designee
may enter the real property.
     (9) An affordable housing covenant holder
may assign a third-party right of enforcement, by a written instrument executed
by the covenant holder and recorded in the deed and mortgage records of the
county in which the real property is located, to a person that qualifies to be
an eligible covenant holder but that is not the holder of that covenant.
     (10) An affordable housing covenant is
automatically terminated if:
     (a) The only holder of the covenant is a
corporation, as defined in ORS 65.001, that is dissolved without conveying or
assigning the covenant; and
     (b) No person is entitled to exercise a
third-party right of enforcement pursuant to subsection (9) of this section. [2007
c.691 §3]
     Note: See note under 456.270.
     456.285
Permissible provisions. An
affordable housing covenant may:
     (1) Include limitations, restrictions and
affirmative obligations on the sale price or rental rate of real property or
the use of real property or the income or assets of purchasers or tenants;
     (2) Limit the amount of equity
appreciation that a property owner may derive from ownership of the real
property;
     (3) Grant a right of first refusal or an
option to purchase to the eligible covenant holder;
     (4) Restrict the class of persons to whom
real property may be sold, leased or rented according to, but not limited to,
household income, assets, residency and prior homeownership;
     (5) Limit the use of the real property to
residential use as the primary residence of a low or moderate income household;
     (6) Limit, condition or prohibit leasing
or subletting;
     (7) Impose obligations for maintenance and
insurance of the real property;
     (8) Limit, condition or prohibit the owner
from allowing liens on the real property; and
     (9) Make other limitations, conditions or
prohibitions that affect the affordability of real property for low or moderate
income households. [2007 c.691 §4]
     Note: See note under 456.270.
     456.290
Validity of covenant. (1) An
affordable housing covenant is valid and enforceable even though the covenant
is not of a character traditionally recognized at common law or is inconsistent
with a common law doctrine of real property law that might invalidate, impair
enforcement of or cause the termination of the covenant, including but not
limited to common law doctrine that holds that:
     (a) The covenant is not appurtenant to an
interest in the real property.
     (b) The covenant imposes a negative
burden.
     (c) The covenant imposes affirmative
obligations upon the owner of an interest in the burdened real property or the
eligible covenant holder.
     (d) The covenant is held by an eligible
covenant holder that does not have an interest in the real property that is
benefited by enforcement of the covenant against the burdened property.
     (e) The benefit of the covenant does not
touch or concern real property in any other way.
     (f) There is no privity of estate or
privity of contract.
     (g) The covenant can be or has been
conveyed or assigned to a covenant holder.
     (h) The covenant is an unreasonable
restraint on alienability.
     (i) The covenant is a clog on the equity
of redemption.
     (j) The covenant lacks adequate
consideration.
     (2) An affordable housing covenant is valid
and enforceable even if the covenant violates the rule against perpetuities set
forth in ORS 105.950 to 105.975.
     (3) If a court denies equitable
enforcement of an affordable housing covenant because of a change of
circumstances that renders the covenant not in the public interest, the court
may award damages as the only remedy in an action to enforce the affordable
housing covenant.
     (4) The court may not use a comparative
economic test as a basis for a determination that an affordable housing covenant
is not in the public interest. [2007 c.691 §6]
     Note: See note under 456.270.
     456.295
Action affecting covenant.
An action affecting an affordable housing covenant may be commenced or
intervened in by:
     (1) The owner of an interest in the real
property burdened by the covenant;
     (2) An eligible covenant holder of the
benefit of the covenant;
     (3) A person that has a third-party right
of enforcement; or
     (4) A public body, as defined in ORS
174.109, in the jurisdiction of which the real property burdened by the
covenant is located. [2007 c.691 §5]
     Note: Section 9, chapter 691, Oregon Laws 2007,
provides:
     Sec.
9. (1) Sections 1 to 6 of
this 2007 Act [456.270 to 456.295] apply to a covenant:
     (a) Created under sections 1 to 6 of this
2007 Act on or after the effective date of this 2007 Act [January 1, 2008].
     (b) Created before the effective date of
this 2007 Act if the covenant would have been enforceable under sections 1 to 6
of this 2007 Act had it been created on or after the effective date of this 2007
Act.
     (2) Sections 1 to 6 of this 2007 Act do
not invalidate an otherwise enforceable affordable housing covenant, as defined
in section 2 of this 2007 Act [456.270], created before, on or after the
effective date of this 2007 Act. [2007 c.691 §9]
     Note: See note under 456.270.
STATE AND
LOCAL COOPERATION WITH HOUSING PROJECTS
     456.305
Definitions for ORS 456.305 to 456.325. As used in ORS 456.305 to 456.325, unless the context requires
otherwise:
     (1) “Governing body” means the common
council, county court, board of county commissioners, board or other body
having charge of the fiscal affairs of the state public body.
     (2) “Housing project” means any work or
undertaking of a housing authority pursuant to the Housing Authorities Law or
any similar work or undertaking of the federal government.
     (3) “State public body” means any city,
town, county, municipality, commission, district, authority, other subdivision
or public body of the state.
     456.310
Purpose; additional powers.
(1) It hereby is found and declared:
     (a) That the assistance provided in ORS
456.315 and 456.320 for the remedying of the conditions set forth in the
Housing Authorities Law is a matter of state concern and constitutes a public
use and purpose and an essential governmental function for which public moneys
may be spent and other aid given.
     (b) That it is a proper public purpose for
any state public body to aid any housing authority operating within its
boundaries or jurisdiction or any housing project located therein, as the state
public body derives immediate benefits and advantages from such an authority or
project.
     (c) That ORS 456.305 to 456.325 are
necessary in the public interest.
     (2) The powers conferred by ORS 456.305 to
456.325 are in addition and supplemental to the powers conferred by any other
law.
     456.315
Powers of state public bodies in aiding or cooperating on housing projects. (1) For the purpose of aiding and
cooperating in the planning, undertaking, construction or operation of housing
projects located within the area in which it is authorized to act, any state
public body may upon such terms, with or without consideration, as it may
determine:
     (a) Dedicate, sell, convey or lease any of
its property to a housing authority or the federal government.
     (b) Cause parks, playgrounds,
recreational, community, educational, water, sewer or drainage facilities, or
any other works which it may otherwise undertake, to be furnished adjacent to
or in connection with housing projects.
     (c) Furnish, dedicate, close, pave, install,
grade, regrade, plan or replan streets, roads, roadways, alleys, sidewalks or
other places which it may otherwise undertake.
     (d) Plan or replan, zone or rezone any
part of such state public body and make exceptions from building regulations
and ordinances. Any city or town also may change its map.
     (e) Enter into agreements with a housing
authority or the federal government respecting action to be taken by such state
public body pursuant to any of the powers granted by ORS 456.305 to 456.325.
     (f) Do any and all things, necessary or
convenient to aid and cooperate in the planning, undertaking, construction or
operation of such housing projects.
     (g) Purchase or legally invest in any of
the bonds of a housing authority and exercise all the rights of any holder of
such bonds.
     (2) With respect to any housing project
which a housing authority has acquired or taken over from the federal
government and which the housing authority by resolution has found and declared
to have been constructed in a manner that will promote the public interest and
afford necessary safety, sanitation and other protection, no state public body
shall require any changes to be made in the housing project or the manner of
its construction or take any other action relating to such construction.
     (3) In connection with any public
improvements made by a state public body in exercising the powers granted in
this section, a state public body may incur the entire expense thereof. [Amended
by 2003 c.14 §288]
     456.320
Donations and loans to housing authority. (1) When any housing authority becomes authorized to transact business
and exercise its powers, the governing body of the city, town or county, as the
case may be, shall immediately make an estimate of the amount of money
necessary for the administrative expenses and overhead of the housing authority
during the first year thereafter, and shall appropriate such amount to the
authority out of any moneys in such city, town or county treasury not
appropriated to some other purposes. The moneys so appropriated shall be paid
to the authority as a donation.
     (2) Any city, town, municipality or county
located in whole or in part within the area of operation of a housing authority
may lend or donate money to the authority or agree to take such action. The
housing authority, when it has money available therefor, shall make
reimbursements for all loans made to it. The authority may enter into agreement
with the donor setting forth the purposes for which the donation may be used
and the conditions under which such donation must be restored to the donor. [Amended
by 1977 c.341 §1]
     456.325
Resolution to exercise powers.
The exercise by a state public body of the powers granted in ORS 456.305 to
456.325 may be authorized by resolution of the governing body of such state
public body adopted by a majority of the members of its governing body present
at a meeting of the governing body. This resolution may be adopted at the
meeting at which it is introduced. Such a resolution shall take effect
immediately and need not be laid over or published or posted.
     456.355
Definitions for ORS 456.355 to 456.370. As used in ORS 456.355 to 456.370, unless the context requires
otherwise:
     (1) “Governing body” means the governing
body of any city or county.
     (2) “Housing project” means any work or
undertaking of a nonprofit sponsor, limited-dividend housing corporation or a
for-profit developer meeting the requirements of subsection (5) of this section
for the purpose of operating, rehabilitating or constructing decent, safe and
sanitary housing for families and individuals who cannot obtain such shelter in
the open market for 25 percent of the gross family income.
     (3) “Nonprofit housing sponsor” means any
corporation not for profit organized under the provisions of ORS chapter 65 for
the purpose of undertaking, constructing or operating a housing project, or
authorized by its charter to undertake, construct or operate a housing project.
     (4) “Limited-dividend housing corporation”
means any corporation that qualifies as such under the federal Housing and
Urban Development Act of 1968.
     (5) “For-profit developer” means a
developer who agrees to rent housing units at below-market rent over a
substantial period of time to households with income limits stipulated by the
city or county.
     (a) Proposals for such projects shall be
solicited by appropriate direct and indirect invitation.
     (b) Proposals received shall be measured
against stated criteria, and reasons for the choices made shall be recorded.
     (c) The financial stability of the
developer shall be established to the satisfaction of the city or county.
     (d) The Housing and Community Services
Department shall review the documentation for paragraphs (a), (b) and (c) of
this subsection for procedural compliance. The department may comment on the
issue of benefits received against the benefits conferred, but it is not the
intent of the legislature that the department shall substitute its judgment for
that of the city or county in determining whether these benefits are in
balance. [1969 c.185 §2; 1975 c.138 §1]
     456.360
Purpose; additional powers.
(1) It hereby is found and declared:
     (a) That the assistance provided by ORS
456.365 for the remedying of the conditions set forth in the Housing
Authorities Law is a matter of state concern and constitutes a public use and
purpose and an essential governmental function for which public moneys may be
spent and other aid given.
     (b) That it is a proper public purpose for
any city or county to aid any housing project as defined in ORS 456.355 (2)
operating within its boundaries or jurisdiction, as the city or county derives
immediate benefits and advantages from such an authority or project.
     (c) That ORS 456.355 to 456.370 are
necessary in the public interest.
     (2) The powers conferred by ORS 456.355 to
456.370 are in addition and supplemental to the powers conferred by any other
law. [1969 c.185 §3; 1975 c.138 §2]
     456.365
Powers of city or county in aiding or cooperating on housing projects. For the purpose of aiding and cooperating in
the planning, undertaking, construction or operation of housing projects as
defined in ORS 456.355 and located within the area in which it is authorized to
act, any city or county may upon such terms, with or without consideration, as
it may determine:
     (1) Dedicate, sell, convey or lease any of
its property.
     (2) Cause park, playground, recreational,
community, educational, water, sewer or drainage facilities, or any other works
which it may otherwise undertake, to be furnished adjacent to or in connection
with housing projects.
     (3) Furnish, dedicate, close, pave,
install, grade, regrade, plan or replan public streets, roads, roadways,
alleys, sidewalks or other places which it may otherwise undertake.
     (4) Plan or replan, zone or rezone any
part of the area within such city or county and make exceptions from building
regulations and ordinances. Any city also may change its map.
     (5) Enter into agreements respecting
action to be taken by such city or county pursuant to any of the powers granted
by ORS 456.355 to 456.370.
     (6) Do any and all things necessary or
convenient to aid and cooperate in the planning, undertaking, construction or
operation of such housing projects.
     (7) In connection with any public
improvements made by it in exercising the powers granted by this section, incur
the entire expense thereof. [1969 c.185 §4; 1975 c.138 §3]
     456.370
Exercise of powers; authorization by ordinance. The exercise by a city or county of the
powers granted by ORS 456.355 to 456.370 may be authorized by ordinance of the
governing body of the city or county adopted by a majority of the members of
its governing body present at a meeting of the governing body. Persons
particularly interested, and the general public, shall be given an opportunity
to be heard at that meeting, and notice to the public of the time and place of
said meeting and of the subject of the ordinance proposed for enactment shall
be published in the same manner as required prior to final enactment of a
zoning ordinance. The ordinance may be adopted or amended and adopted at such
meeting, and if adopted shall take effect immediately and need not be laid over
or published or posted. [1969 c.185 §5]
     456.405 [Repealed by 1999 c.603 §38]
     456.410 [Repealed by 1999 c.603 §38]
     456.415 [Repealed by 1999 c.603 §38]
     456.420 [Repealed by 1999 c.603 §38]
     456.425 [Amended by 1995 c.445 §16; repealed by 1999
c.603 §38]
     456.430 [Repealed by 1999 c.603 §38]
     456.435 [Repealed by 1999 c.603 §38]
     456.440 [Repealed by 1999 c.603 §38]
     456.445 [Repealed by 1999 c.603 §38]
     456.450 [Repealed by 1999 c.603 §38]
     456.455 [Amended by 1967 c.451 §22; repealed by 1999
c.603 §38]
     456.470 [1975 c.433 §1; repealed by 1975 c.433 §11]
     456.472 [1975 c.433 §2; repealed by 1975 c.433 §11]
     456.475 [1975 c.433 §3; repealed by 1975 c.433 §11]
     456.477 [1975 c.433 §4; repealed by 1975 c.433 §11]
     456.480 [1975 c.433 §5; repealed by 1975 c.433 §11]
     456.482 [1975 c.433 §6; repealed by 1975 c.433 §11]
     456.485 [1975 c.433 §7; repealed by 1975 c.433 §11]
     456.487 [1975 c.433 §8; repealed by 1975 c.433 §11]
     456.490 [1975 c.433 §9; repealed by 1975 c.433 §11]
     456.492 [1975 c.433 §10; repealed by 1975 c.433 §11]
     456.495 [1975 c.433 §11; repealed by 1975 c.433 §11]
VETERANSÂ’
LOCAL HOUSING
     456.505
VeteransÂ’ housing by local agencies. Any lease, agreement or contract under chapter 420, Oregon Laws 1947,
by and between any local agency or agencies and any authority or agency,
federal or otherwise, providing housing facilities remains effective according
to the instrument between the agencies concerned, notwithstanding the
limitations of chapter 143, Oregon Laws 1949.
SUBSIDIZED
DEVELOPMENT VISITABILITY
     456.506
Findings. The Legislative
Assembly finds and declares that:
     (1) People with disabilities and senior
citizens over 85 years of age are the fastest growing population in
     (2) The policy of this state is to
encourage the design and construction of dwellings that enable easy access by
individuals with mobility impairments and that are adaptable to allow continued
use by aging occupants. [2003 c.431 §1]
     Note: 456.506 to 456.514 were enacted into law by
the Legislative Assembly but were not added to or made a part of ORS chapter
456 or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     456.508
Definitions for ORS 456.510 and 456.513. As used in ORS 456.510 and 456.513:
     (1) “Accessible” means that housing
complies with federal accessibility guidelines implementing the Fair Housing
Amendments Act of 1988, 42 U.S.C. 3601 et seq., as amended and in effect on
January 1, 2004.
     (2) “Common living space” means a living
room, family room, dining room or kitchen.
     (3) “Contiguous units” means units that
are on the same tax lot or on contiguous tax lots that have a common boundary.
Tax lots that are separated by a public road are contiguous tax lots for
purposes of this subsection.
     (4) “New” means that the housing being
constructed did not previously exist in residential or nonresidential form. “New”
does not include the acquisition, alteration, renovation or remodeling of an
existing structure.
     (5) “Powder room” means a room containing
at least a toilet and sink.
     (6) “Rental housing” means a dwelling unit
designed for nonowner occupancy under a tenancy typically lasting six months or
longer.
     (7) “Subsidized development” means housing
that receives one or more of the following development subsidies from the
Housing and Community Services Department:
     (a) The federal low-income housing tax
credit under 26 U.S.C. 42(a), if no part of the eligible basis prior to the
application of 26 U.S.C. 42(i)(2)(B) was financed with an obligation described
in 26 U.S.C. 42(h)(4)(A), all as amended and in effect on January 1, 2004;
     (b) A farmworker housing tax credit, as
described in ORS 315.164;
     (c) A loan that qualifies the lending
institution for a subsidized housing loan tax credit, as described in under ORS
317.097;
     (d) Funding under the federal HOME
Investment Partnerships Act, 42 U.S.C. 12721 to 12839, as amended and in effect
on January 1, 2004;
     (e) Moneys from the Oregon Housing Fund
created under ORS 458.620; or
     (f) Moneys from other grant or tax
incentive programs administered by the Housing and Community Services
Department under ORS 456.559.
     (8) “Visitable” means capable of being
approached, entered and used by individuals with mobility impairments,
including but not limited to individuals using wheelchairs. [2003 c.431 §2]
     Note: See note under 456.506.
     456.510
Visitability requirements.
(1) Except as provided in this section and ORS 456.513, the Housing and
Community Services Department may not provide funding for the development of
new rental housing that is a subsidized development unless:
     (a) Each dwelling unit of the housing
meets the following requirements:
     (A) At least one visitable exterior route
leading to a dwelling unit entrance that is stepless and has a minimum
clearance of 32 inches.
     (B) One or more visitable routes between
the visitable dwelling unit entrance and a visitable common living space.
     (C) At least one visitable common living
space.
     (D) One or more visitable routes between
the dwelling unit entrance and a powder room.
     (E) A powder room doorway that is stepless
and has a minimum clearance of 32 inches.
     (F) A powder room with walls that are
reinforced in a manner suitable for handrail installation.
     (G) Light switches, electrical outlets and
environmental controls that are at a reachable height.
     (b) For a development that has a shared
community room or that has 20 or more contiguous units, there is at least one
powder room available for all tenants and guests that is accessible.
     (2) For a multistory structure without an
elevator, this section applies only to dwelling units on the ground floor of
the structure.
     (3) This section does not apply to
farmworker housing located on a farm. [2003 c.431 §3]
     Note: See note under 456.506.
     456.513
Exemption from visitability requirements. The Housing and Community Services Department shall exempt new rental
housing that is a subsidized development from compliance with the requirements
of ORS 456.510 if the department determines that the exemption is warranted by:
     (1) The topography at the construction
site;
     (2) Community and design standards;
     (3) Undue costs or constraints; or
     (4) Conflicting funding requirements of
another government agency if the agency contributes a significant amount of
financial aid for the housing. [2003 c.431 §4]
     Note: See note under 456.506.
     456.514
Rules. The Housing and
Community Services Department shall adopt rules for implementing, administering
and enforcing ORS 456.510 and 456.513. The department shall consult with
advocacy groups representing affordable housing interests and advocacy groups
representing individuals with mobility impairments prior to adopting rules
under this section. [2003 c.431 §5]
     Note: See note under 456.506.
HOUSING AND
COMMUNITY SERVICES DEPARTMENT
(Definitions)
     456.515
Definitions for ORS 456.515 to 456.725 and ORS chapter 458. As used in ORS 456.515 to 456.725 and ORS
chapter 458 unless the context requires otherwise:
     (1) “Community Action Directors of Oregon”
means an organization described in ORS 458.505.
     (2) “Construction” includes, but is not
limited to, new construction or moderate or substantial rehabilitation of
existing structures or facilities.
     (3) “Council” means the State Housing Council
established under ORS 456.567.
     (4) “Department” means the Housing and
Community Services Department established under ORS 456.555.
     (5) “Director” means the Director of the
Housing and Community Services Department.
     (6) “Elderly household” means a household
whose head is over the age of 55, residing in this state.
     (7) “Major life activity” includes but is
not limited to self-care, ambulation, communication, transportation, education,
socialization, employment and ability to acquire, rent or maintain property.
     (8)(a) “Multifamily housing” means a
structure or facility established primarily to provide housing that provides
more than one living unit, and may also provide facilities that are
functionally related and subordinate to the living units for use by the
occupants in social, health, educational or recreational activities:
     (A) For the elderly, including but not
limited to individual living units within such structures, mobile home and
manufactured dwelling parks and residential facilities licensed under ORS
443.400 to 443.455 and other congregate care facilities with or without
domiciliary care.
     (B) For persons with disabilities,
including, but not limited to, individual living units within such structures,
mobile home and manufactured dwelling parks and residential facilities licensed
under ORS 443.400 to 443.455 and other congregate care facilities with or
without domiciliary care.
     (b) “Multifamily housing” does not include
nursing homes, hospitals, places primarily engaged in recreational activities
and single-family, detached dwellings, except manufactured dwellings situated
in a mobile home and manufactured dwelling park.
     (9) “Person with a disability” means a
person who has a physical or mental impairment that substantially limits one or
more major life activities.
     (10) “Target population” means:
     (a) Elderly households; or
     (b) Persons with disabilities. [1977 c.485
§1; 1981 c.504 §1; 1981 c.695 §2; 1987 c.414 §14; 1989 c.224 §120; 1991 c.402 §3;
1991 c.739 §3; 1993 c.511 §1; 1995 c.79 §238; 1997 c.45 §1; 1999 c.59 §129;
2007 c.70 §258; 2007 c.607 §10]
(Elderly and
Disabled Housing Bonds)
     456.519
General obligation bonds authorized. In order to provide funds for the purposes specified in Article
XI-I(2) of the Oregon Constitution, including those specified in ORS 456.539,
the Director of the Housing and Community Services Department may request the
State Treasurer to issue bonds in accordance with the provisions of ORS chapter
286A. [1977 c.485 §2; 1981 c.660 §38; 1993 c.511 §2; 2007 c.783 §196]
     456.524 [1977 c.485 §3; 1979 c.327 §18; repealed by
1981 c.660 §18]
     456.527 [1977 c.485 §4; 1979 c.327 §19; repealed by
1981 c.660 §18]
     456.530
Willingness to make residential loans factor in selecting depositaries. Notwithstanding ORS 293.721 and 293.726 and
subject to the provisions of any agreement with holders of bonds issued
pursuant to ORS 456.519 or 456.524 (1979 Replacement Part), the Housing and
Community Services Department may consider the willingness or commitment of a
lending institution as defined in ORS 456.548 to make loans for residential
housing as a factor in selecting depositaries and otherwise investing funds
held under ORS 456.515 to 456.725 in or through such lending institutions. [1981
c.504 §3; 1995 c.79 §239]
     456.531 [1977 c.485 §5; repealed by 1981 c.660 §18]
     456.535
Elderly and Disabled Housing Fund. The money realized from the sale of each issue of bonds shall be
credited to a special fund in the State Treasury, separate and distinct from
the General Fund, to be designated the Elderly and Disabled Housing Fund.
Moneys in the Elderly and Disabled Housing Fund are continuously appropriated
to the Housing and Community Services Department for the purpose of carrying
out the provisions of ORS 456.515 to 456.725. Moneys in the fund may not be
used for any other purpose, except that the moneys, with the approval of the
State Treasurer, may be invested as provided by ORS 293.701 to 293.820 and the
earnings from the investments shall be deposited into the Elderly and Disabled
Housing Sinking Fund maintained under ORS 456.543. [1977 c.485 §6; 1981 c.695 §3;
1995 c.79 §240; 2005 c.755 §41]
     456.539
Administration of Elderly and Disabled Housing Fund; rules. (1) The Housing and Community Services
Department shall be the agency for the State of
     (2) The department is authorized to use
the Elderly and Disabled Housing Fund to advance funds, by contract, grant,
loan or otherwise, as provided by Article XI-I(2) of the Oregon Constitution to
finance multifamily housing for elderly households, persons with disabilities
and their family members and such other persons who reside therein as are
necessary to maintain the housing or provide services or companionship for
elderly households and persons with disabilities.
     (3) In carrying out the provisions
specified in Article XI-I(2) of the Oregon Constitution, the department shall,
with the concurrence of the State Housing Council, adopt criteria for approval
of projects proposed by qualified housing sponsors to finance multifamily
housing for the target population and their family members and such other
persons who reside therein as are necessary to maintain the housing or provide
services or companionship for elderly households and persons with disabilities.
The criteria shall:
     (a) Assure that health, mental health and
other supportive services as may be necessary to maintain elderly and disabled
households living in the housing are available to the occupants onsite or in
the community;
     (b) Give priority to members of the target
populations; and
     (c) Allow occupancy by such family members
or other persons as the department determines necessary to maintain the housing
and provide services or companionship for elderly households and persons with
disabilities.
     (4) The department shall:
     (a) Adopt criteria consistent with the
maximum household income restrictions in ORS 456.620 (4) for approval of
applications for financing the purchase by elderly households of ownership
interests within a multifamily structure or facility.
     (b) Provide means for allocating funds to
finance multifamily housing units for the target population and to establish
limitations on the interest and fees to be charged on loans made by the
department.
     (c) Adopt rules necessary for efficient
administration of the Elderly and Disabled Housing Fund.
     (d) Adopt rules to assure that each of the
target populations has access to a reasonable portion of the bond authority
under ORS 456.515 to 456.725, and that a reasonable portion of the funds for
elderly households is made available to finance the purchase by elderly
households of ownership interests within multifamily housing structures or
facilities.
     (5) Loans made by the department under
this section for the interim construction financing of multifamily housing
shall be subject to the provisions of ORS 456.717. [1977 c.485 §7; 1979 c.327 §20;
1981 c.504 §4; 1981 c.695 §4; 1993 c.1 §2; 1993 c.511 §3; 1995 c.79 §241; 2007
c.70 §259; 2007 c.607 §11]
     456.541
Project applications for housing serving persons with disabilities. The Housing and Community Services
Department shall and the State Housing Council may consult generally with the
Department of Human Services and such other persons as the council or Housing
and Community Services Department may consider appropriate concerning project
applications for housing for disabled households. The Housing and Community
Services Department shall seek comment on such project applications concerning:
     (1) The need for and design of the project
generally, considering the proposed location of the housing;
     (2) The means proposed for screening
eligibility for occupancy to assure that priority will be given to members of
the target populations of persons with disabilities; and
     (3) The adequacy of the provisions for
assuring the availability of health, mental health and other supportive
services necessary to maintain disabled households in the housing. [1981 c.695 §6;
1991 c.739 §10; 2001 c.900 §201; 2007 c.70 §260]
     456.543
Elderly and Disabled Housing Sinking Fund. (1) The Housing and Community Services Department shall maintain, with
the State Treasurer, an Elderly and Disabled Housing Sinking Fund, separate and
distinct from the General Fund. The Elderly and Disabled Housing Sinking Fund
shall provide for the payment of the principal and interest upon bonds issued
under authority of Article XI-I(2), Oregon Constitution, and ORS 456.515 to
456.725. Moneys in the sinking fund are continuously appropriated to the
department for such purpose. Moneys in the Elderly and Disabled Housing Sinking
Fund may be invested by the State Treasurer as provided by ORS 286A.025 and
293.701 to 293.820 or, with the approval of the State Treasurer, by the
Director of the Housing and Community Services Department through a trustee.
Investment earnings shall be credited to the Elderly and Disabled Housing
Sinking Fund.
     (2) The Elderly and Disabled Housing
Sinking Fund shall consist of:
     (a) All moneys received from contract or
loan proceeds;
     (b) Bond reserves;
     (c) Other funds available for these
purposes; and
     (d) If necessary, state ad valorem taxes
provided by Article XI-I(2), Oregon Constitution, and by ORS 456.515 to
456.725.
     (3) The Elderly and Disabled Housing
Sinking Fund shall not be used for any purpose other than that for which the
fund was created provided, however, that amounts on deposit in the fund may be
applied to the payment of operating and administrative expenses of the
department, including bond issuance, administration and repayment costs,
allocable to its elderly and disabled housing program under ORS 456.515 to
456.725, and for transfers under subsections (4) and (5) of this section.
Should a balance remain therein after the purposes for which the fund was
created have been fulfilled or after a reserve sufficient to meet all existing
obligations and liabilities of the fund has been set aside, the surplus
remaining may be transferred to the Elderly and Disabled Housing Fund at the
direction of the department.
     (4) The Director of the Housing and
Community Services Department may transfer moneys from the Elderly and Disabled
Housing Sinking Fund, with the approval of the State Treasurer, for the purpose
of financing multifamily housing for the elderly and persons with disabilities.
The State Treasurer shall approve such request if:
     (a) The cash flow projection under ORS
286A.010 associated with the bonds shows that, for the term of the bonds
outstanding at the time the director transfers the moneys, remaining moneys in
the sinking fund, together with expected loan proceeds and fund earnings, will
continue to be adequate to pay bond principal, interest and administrative
costs; and
     (b) The transfer will not create the need
for issuance of any bonds.
     (5) The director shall deposit loan
prepayments in the Elderly and Disabled Housing Fund, and lend such prepayments
for the purpose of financing multifamily housing for the elderly and persons
with disabilities for a term not exceeding the term of the bonds associated
with the loan that was prepaid, if the director determines that such a deposit
and loan will not adversely affect the ability of the department to pay
outstanding bonds. [1977 c.485 §8; 1979 c.327 §21; 1981 c.695 §7; 1991 c.357 §1;
1995 c.79 §242; 2005 c.755 §42; 2007 c.70 §261; 2007 c.783 §197]
     456.547
Assistance, grants and gifts to department for housing purposes. The Housing and Community Services
Department may accept assistance, grants and gifts, in the form of money, land,
services or any other thing of value from the United States or any of its
agencies, or from other persons, for any of the purposes contemplated by
Article XI-I(2) of the Oregon Constitution and by ORS 456.515 to 456.725 and
ORS chapter 458. Unless enjoined by the terms and conditions of any such gift
or grant, the department may convert the same or any of them into money through
sale or other disposal thereof. [1977 c.485 §9; 1995 c.79 §243]
(Administration)
     456.548
Definitions for ORS 456.548 to 456.725. As used in ORS 456.548 to 456.725, unless the context requires
otherwise:
     (1) “Bonds” means any bonds, as defined in
ORS 286A.001, or any other evidence of indebtedness, issued under ORS 456.515
to 456.725 or issued in anticipation of bonds and payable from the proceeds of
bonds issued.
     (2) “Capital reserve account” or “capital
reserve accounts” means one or more of the special trust accounts that may be
established by the Housing and Community Services Department within the Housing
Finance Fund.
     (3) “Consumer housing cooperative” means a
cooperative corporation formed under ORS chapter 62 and whose articles of
incorporation provide, in addition to the other requirements of ORS chapter 62,
that:
     (a) The consumer housing cooperative has
been organized exclusively to provide housing facilities for persons and
families of lower income and such social, recreational, commercial and communal
facilities as may be incidental to such housing facilities.
     (b) All income and earnings of the
consumer housing cooperative shall be used exclusively for consumer housing
cooperative purposes and that no unreasonable part of the net income or net
earnings of the cooperative shall inure to the benefit or profit of any private
individual, firm, corporation, partnership or association.
     (c) The consumer housing cooperative is in
no manner controlled or under the direction of or acting in the substantial
interest of any private individual, firm, corporation, partnership or
association seeking to derive profit or gain therefrom or seeking to eliminate
or minimize losses in any transaction therewith, except that such limitation
shall apply to the members of the cooperative only to the extent provided by
rules of the department.
     (d) The operations of the consumer housing
cooperative may be supervised by the department and that the consumer housing
cooperative shall enter into such agreements with the department as the
department may require to provide regulation by the department of the planning,
development and management of any housing project undertaken by the cooperative
and the disposition of the property and other interests of the cooperative.
     (4) “Development costs” means the costs
that have been approved by the department as appropriate expenditures and
includes, but is not limited to:
     (a) Payments for options to purchase
property for the proposed housing project site, deposits on contracts of
purchase, payments for the purchase of property as approved by the department,
legal, organizational and marketing expenses including payment of attorney
fees, managerial and clerical staff salaries, office rent and other incidental
expenses, payment of fees for preliminary feasibility studies, advances for
planning, engineering and architectural work;
     (b) Expenses for surveys as to need and
market analyses; and
     (c) Such other expenses incurred by the
qualified housing sponsor as the department may deem necessary under ORS
456.548 to 456.725.
     (5) “Federally insured security” means an
evidence of indebtedness insured or guaranteed as to repayment of principal and
interest by the
     (6) “Housing development” means a
development that contains housing units for persons or families of lower income
and such other incidental elements of residential, commercial, recreational,
industrial, communal or educational facilities as the department determines
improve the quality of the development as it relates to housing for persons or
families of lower income and the financial feasibility of the development.
     (7) “Housing finance bond declaration”
means a written instrument signed by the Director of the Housing and Community
Services Department and on file with and bearing the certificate of approval of
the State Treasurer or the designee of the State Treasurer, and all housing
finance bond declarations supplemental to that instrument.
     (8) “Housing Finance Fund” means the
Housing Finance Fund established in ORS 456.720 (1).
     (9) “Lending institution” means any bank,
mortgage banking company, trust company, savings bank, savings and loan
association, credit union, national banking association, federal savings and
loan association or federal credit unit maintaining an office in this state, or
any insurance company authorized to do business in this state.
     (10) “Limited dividend housing sponsor”
means a corporation, trust, partnership, association or other entity, or an individual
that is a mortgagor.
     (11) “Manufactured dwelling park nonprofit
cooperative” has the meaning given that term in ORS 62.803.
     (12) “Manufactured housing” means a
dwelling unit manufactured off-site having a minimum width of 10 feet and a
minimum area of 400 square feet built on a permanent chassis and designed to be
used for permanent residential occupancy whether or not on a permanent
foundation, and that contains permanent eating, cooking, sleeping and sanitary
facilities and meets such standards as the department determines, by rule, are
reasonable to maintain the quality, safety and durability of the dwelling, the
sanitary requirements of the communities in which they are located and the
security of the loans that the department may finance for the purchase of the
dwellings.
     (13) “Nonprofit housing corporation” means
an organization formed under ORS chapter 65 and whose articles of incorporation
provide, in addition to the other requirements of ORS chapter 65, that:
     (a) The corporation has been organized
exclusively to provide housing facilities for persons and families of lower
income and such other social, recreational, commercial and communal facilities
as may be incidental to such housing facilities.
     (b) All the income and earnings of the
corporation shall be used exclusively for corporation purposes and that no part
of the net income or net earnings of the corporation may inure to the benefit
of any private individual, firm, corporation, partnership or association.
     (c) The corporation is in no manner
controlled or under the direction or acting in the substantial interest of any
private individual, firm, partnership or association seeking to derive profit
or gain therefrom or seeking to eliminate or minimize losses in transactions
therewith.
     (d) The operations of the corporation may
be supervised by the department and that the corporation shall enter into such
agreements with the department as the department may require to regulate the
planning, development and management of any housing project undertaken by the
corporation and the disposition of the property and other interests of the
corporation.
     (14) “Person of lower income” or “family
of lower income” means:
     (a) A person or family residing in this
state whose income is not more than 80 percent of area median income, adjusted
for family size, as determined by the State Housing Council based upon
information from the United States Department of Housing and Urban Development;
     (b) A person or family residing in this
state whose income, adjusted for family size, is below the level the Housing
and Community Services Department has determined to be necessary in order to
obtain in the open market decent, safe and sanitary housing, including the cost
of utilities and taxes, for not more than 25 percent of the gross income of the
person or family; or
     (c) Any person or family the department
determines is appropriate to treat as a person of lower income or a family of
lower income incidental to the accomplishment of department programs for
persons and families of lower income described in paragraphs (a) and (b) of
this subsection.
     (15) “Project cost” or “costs of the
project” means the sum of all reasonable expenses incurred by a qualified
housing sponsor in undertaking and completing a housing project approved by the
department. “Project costs” or “costs of the project” include but are not
limited to the expenses incurred by a qualified housing sponsor for:
     (a) Studies and surveys;
     (b) Plans, specifications, architectural
and engineering services;
     (c) Legal, organizational and other
special services;
     (d) Financing, acquisition, demolition,
construction, equipment and site development of new and rehabilitated housing
units;
     (e) Movement of existing buildings to new
sites; the cost of acquisition, or estimated fair market value, of land and
other interests in real estate;
     (f) Rehabilitation, reconstruction, repair
or remodeling of existing buildings;
     (g) Estimated carrying charges during
construction and for a reasonable period thereafter;
     (h) Placement of tenants or occupants and
relocation services in connection with the housing project;
     (i) Reasonable builder’s or sponsor’s
profit and risk allowance; and
     (j) Development costs not otherwise
included in this subsection.
     (16) “Qualified housing sponsor” includes,
subject to the approval of the department:
     (a) A consumer housing cooperative;
     (b) A limited dividend housing sponsor;
     (c) A nonprofit housing corporation;
     (d) A for-profit housing sponsor
including, but not limited to, an individual operating in compliance with the
criteria adopted by the department under ORS 456.620 (1);
     (e) A housing authority created by ORS
456.075;
     (f) An urban renewal agency created by ORS
457.035; and
     (g) Any city or county governing body or
agency or department designated by the governing body.
     (17) “Residential housing” means a
specific work or improvement within this state undertaken primarily to provide
dwelling accommodations, including land development and acquisition,
construction or rehabilitation of buildings and improvements thereto, for
residential housing, and such other nonhousing facilities as may be incidental
or appurtenant thereto and as the department determines improve the quality of
the development as it relates to housing for persons or families of lower
income and the financial feasibility of the development. “Residential housing”
includes, but is not limited to, a specific work or improvement within this
state undertaken to provide mobile home or manufactured dwelling parks as
defined in ORS 446.003. As used in this subsection, “land development”
includes, but is not limited to, the improvement of streets and alleys and the
construction of surface drains, sewers, curbing and sidewalks.
     (18) “Residential loan” means any of the
following:
     (a) A loan that is for the acquisition,
construction, improvement or rehabilitation of residential housing and, if the
loan is for acquisition or construction of residential housing, that is secured
by a first lien on real property located in the state and:
     (A) Improved by a newly constructed,
existing or rehabilitated residential structure for persons or families of
lower income; or
     (B) Unimproved if the proceeds of such
loan shall be used for the erection of a residential structure thereon, whether
or not such loan is insured or guaranteed by the United States or any
instrumentality or agency thereof.
     (b) An insured or guaranteed loan for the
acquisition of manufactured housing or for the acquisition of a lot described
in ORS 92.840 by a manufactured dwelling park tenant.
     (c) A loan for the purchase of a
proprietary lease and related cooperative shares in a housing cooperative
formed under ORS chapter 62 secured by a security interest of first priority
and a pledge or an assignment of proprietary leases and related cooperative
shares.
     (19) “Revolving account” means the Housing
and Community Services Department Revolving Account created in ORS 456.574. [Formerly
456.615]
     456.550
Policy. (1) There exists in
this state a seriously inadequate supply of and a pressing need for safe and
sanitary dwelling accommodations within the financial means of persons and
families of lower income, including but not limited to persons and families
displaced by the clearing of slums and blighted areas or by other public
programs;
     (2) Private lending institutions have been
and will continue to be unable to provide necessary financial support for lower
income housing and the resulting shortage of financing has been in whole or in
part responsible for the shortage of lower income housing;
     (3) It is a valid public purpose to
provide for the construction, rehabilitation, purchase, leasing and refinancing
of housing for such persons and families who would otherwise be unable to
obtain adequate dwelling accommodations which they could afford and to aid in
the acquisition of land for present or future developments including such
housing accommodations;
     (4) It is further found that the authority
and powers conferred by ORS 456.548 to 456.725 and ORS chapter 458 upon the
Housing and Community Services Department and the Director of the Housing and
Community Services Department constitute a necessary public program and serve a
valid public purpose;
     (5) To stimulate and increase the supply
of housing for persons and families of lower income it is necessary that a
central source of housing information, planning, educational services and
technical assistance and a revolving fund be established. The Housing and
Community Services Department shall be that central source in this state;
     (6) It is the policy of this state to
increase the amount of and improve the condition of low and moderate income
housing by investing in developing local capacity to build, rehabilitate and
manage housing. A primary vehicle for building such capacity is the formation
and expansion of community development corporations; and
     (7) In that the farmworkers in this state
benefit the social and economic welfare of all of the people in Oregon by their
unceasing efforts to bring a bountiful crop to market, the Legislative Assembly
declares that it is the policy of this state to ensure adequate accommodations
commensurate with the housing needs of OregonÂ’s farm workers that meet decent
health, safety and welfare standards. To accomplish this objective in the interest
of all of the people in this state, it is necessary that:
     (a) Every state and local government
agency that has powers, functions or duties with respect to housing, land use
or enforcing health, safety or welfare standards, under this or any other law,
shall exercise its powers, functions or duties consistently with state policy
and in a manner that will facilitate sustained progress in attaining the
objectives established;
     (b) Every state and local government
agency with jurisdiction over farmworker activities must make every effort to
alleviate insanitary, unsafe and overcrowded accommodations;
     (c) Special efforts should be directed
toward mitigating hazards to families and children; and
     (d) Accommodations must be designed to
provide for the rights of free association to seasonal farmworkers. [1971 c.505
§1; 1973 c.828 §1; 1973 c.832 §3; 1975 c.154 §7; 1989 c.1030 §5; 1995 c.79 §244;
2001 c.625 §4]
     456.553 [1989 c.307 §1 (enacted in lieu of 456.554);
repealed by 1991 c.739 §1 (456.555 enacted in lieu of 456.553)]
     456.554 [Formerly 456.560; 1987 c.414 §15; repealed
by 1989 c.307 §2 (456.553 enacted in lieu of 456.554)]
     456.555
Housing and Community Services Department established; appointment of director;
duties of housing council and community action directors; rules; fees. (1) The Housing and Community Services
Department is established.
     (2) The department shall be under the
supervision and control of a director who is responsible for the performance of
the duties imposed upon the department. The Governor shall appoint the Director
of the Housing and Community Services Department. The director shall hold
office at the pleasure of the Governor. The person appointed as director shall
be a person who, by training and experience, is well qualified to perform the
duties of the office.
     (3) The director shall receive such salary
as may be provided by law, or, if not so provided, as may be fixed by the
Governor. In addition to the salary of the director, the director shall,
subject to the limitations otherwise provided by law, be reimbursed for all
expenses actually and necessarily incurred by the director in the performance
of official duties.
     (4) The director may establish department
divisions including but not limited to divisions for administration, housing
programs and community services programs.
     (5) The State Housing Council shall:
     (a) With the advice of the director, set
policy and approve or disapprove rules and standards for housing programs;
     (b) Approve or disapprove loans, grants
and other funding award proposals under ORS 456.561; and
     (c) Carry out the provisions of ORS
456.571.
     (6) The Community Action Directors of
Oregon shall advise the department and the council on community services
programs as determined by the director and as set forth in ORS 458.505.
     (7) The director shall report regularly to
the council to keep the council informed on progress made by the department in
carrying out the departmentÂ’s responsibilities for housing programs.
     (8) The department may adopt rules to carry
out the programs that the department is charged with administering, including,
but not limited to, rules regarding:
     (a) Administration and enforcement.
     (b) Criteria for the granting of benefits.
     (c) The establishment of fees and charges.
     (d) The identification of housing programs
and community services programs.
     (e) The distinguishing of housing programs
from community services programs.
     (9) Subject to the approval of the
council, the department shall establish by rule a threshold property purchase
price above which a single-family home ownership loan proposed by the
department requires council review and approval under ORS 456.561. In
establishing or modifying a threshold property purchase price under this
subsection, the department shall consider any maximum acquisition cost set
forth in the Internal Revenue Code or federal rules and regulations
implementing the code. [1991 c.739 §2 (enacted in lieu of 456.553); 1995 c.79 §245;
2005 c.74 §3; 2007 c.607 §12]
     456.559
Powers and duties of department. (1) The Housing and Community Services Department shall:
     (a) Maintain current housing data and
information concerning available programs, status of funding, programs planned
or undertaken which might conflict with, overlap, duplicate or supersede other planned
or existing programs and call these to the attention of appropriate state
agencies, governmental bodies and public or private housing sponsors.
     (b) Provide to appropriate state agencies,
governmental bodies and public or private housing sponsors such advisory and
educational services as will assist them in the development of housing plans
and projects.
     (c) Subject to the approval of the State
Housing Council, make noninterest bearing advances, in accordance with ORS
456.710 and the policies of the department to qualified nonprofit sponsors for
development costs of housing projects until mortgage funds are released to
repay the advances as provided in ORS 456.710.
     (d) Advise and assist appropriate state
agencies, governmental bodies and public or private housing sponsors, cities
and counties, in all programs and activities which are designed or might tend
to fulfill the purposes of ORS 456.548 to 456.725 and ORS chapter 458.
     (e) Encourage and assist in the planning,
development, construction, rehabilitation and conservation of dwelling units
for persons and families of lower income.
     (f) Be the central state department to
apply for, receive and distribute, on behalf of appropriate state agencies,
governmental bodies and public or private housing sponsors in the state,
grants, gifts, contributions, loans, credits or assistance from the federal
government or any other source for housing programs except when the donor,
grantor, or lender of such funds specifically directs some other agency to
administer them. Moneys received under this section shall be deposited with the
State Treasurer in an account separate and distinct from the General Fund.
Interest earned by the account shall be credited to the account.
     (g) For the purposes of acquiring moneys,
credits or other assistance from any agency or instrumentality of the
     (h) Assist individuals, appropriate state
agencies, governmental bodies and public or private housing sponsors through a
program which provides housing information, planning, educational services and
technical assistance.
     (i) Comply with the requirements of ORS
443.225 in assisting in the development of any housing for residential care,
training or treatment for persons with mental retardation, developmental
disabilities or mental or emotional disturbances.
     (2) Except as otherwise provided in ORS
456.625 (7), the department may not itself develop, construct, rehabilitate or
conserve housing units; and neither the department nor any housing sponsor,
including but not limited to any association, corporation, cooperative housing
authority or urban renewal agency organized to provide housing and other
facilities pursuant to ORS 456.548 to 456.725, may own, acquire, construct,
purchase, lease, operate or maintain utility facilities, including facilities
for the generation of electricity, for the distribution of gas and electricity,
and for the conveyance of telephone and telegraph messages.
     (3) In accordance with the provisions of
this section and with the advice of the council, the department shall establish
statewide priorities for housing programs. State agencies shall coordinate
their housing programs with the department. All state agencies intending to
apply for federal funds for use in planning, developing or managing housing, or
rendering assistance to governmental bodies or sponsors or individuals involved
therein shall submit a description of the proposed activity to the department
for review not less than 30 days prior to the intended date of submission of
the application to the federal agency. The department shall determine whether
the proposal would result in a program that would overlap, duplicate or
conflict with any other housing program in the state. If the department finds
overlapping or duplication or conflict, it shall recommend modifications in the
application. The Oregon Department of Administrative Services shall consider
these recommendations in making its decision to approve or disapprove the
application. The department shall complete its review and forward its recommendations
within 15 working days after receipt of the notification. Failure of the
department to complete the review within that time shall constitute approval of
the application by the department.
     (4) The director may participate in
discussions and deliberations of the council. The director may suggest policies
and rules to the council, including those necessary to stimulate and increase
the supply of housing for persons and families of lower income. [Formerly
456.570; 1987 c.158 §86a; 1987 c.414 §15a; 1987 c.567 §1; 1989 c.307 §3; 1989
c.966 §50; 1991 c.739 §4; 1995 c.79 §246; 2007 c.70 §262]
     456.560 [1971 c.505 §2; renumbered 456.554]
     456.561
Loans, grants and funding awards; review. (1) The Housing and Community Services Department may effect loans,
grants and other funding awards to accomplish department housing programs,
subject to any requirement under this section for review and approval by the
State Housing Council of proposals for loans, grants or other funding awards.
     (2) The department shall submit a loan,
grant or other funding award proposal arising under ORS 456.515 to 456.725
programs to the council for review if the proposal is for:
     (a) A single-family home ownership loan on
property that has a purchase price in excess of the threshold property purchase
price established by rule under ORS 456.555 (9);
     (b) A housing loan other than a
single-family home ownership loan, if the loan amount exceeds $100,000; or
     (c) A housing grant or other housing
funding award, if the grant or funding award amount exceeds $100,000.
     (3) The council shall review each loan,
grant or other funding award proposal submitted by the department under this
section and approve or disapprove the loan, grant or other funding award
proposal.
     (4) Council review of loan, grant or other
funding award proposals under this section shall be held at a public hearing of
the council. The council meeting notice required by ORS 192.640 shall include
notice of the loan, grant or other funding award proposal review, the names of
the applicants and the subject of the loan, grant or funding award proposal.
The council shall provide notice of a loan, grant or other funding award
proposal review to the loan, grant or other funding award applicant not less
than five days before the review hearing. [2005 c.74 §2]
     Note: 456.561 was added to and made a part of
456.515 to 456.725 by legislative action but was not added to any smaller
series therein. See Preface to Oregon Revised Statutes for further explanation.
     456.562
Department intellectual property; fees. (1) As used in this section:
     (a) “Intellectual property” means computer
programs, software, software tools and data.
     (b) “Person” means a person as defined in
ORS 174.100, a federal, state or local government body, a Native American tribe
or an agent or representative of a tribe.
     (2) Subject to any superior patent rights
or copyrights, the Housing and Community Services Department may license, share
or otherwise provide for the use by a person of intellectual property acquired
or developed by the department.
     (3) Except as provided in this subsection,
the department may charge reasonable fees for licensing, sharing or otherwise
providing for the use of intellectual property under subsection (2) of this
section. The department may not charge a fee under this subsection to a
federal, state or local government body. Moneys from the fees are continuously
appropriated to the department for the purpose of acquiring, developing or
providing for the use of intellectual property.
     (4) The department may take actions that
the department deems necessary and appropriate to carry out the authority
granted under this section, including but not limited to applying for patents
or copyright registration to perfect or preserve the departmentÂ’s rights in intellectual
property.
     (5) ORS 291.042 does not apply to
intellectual property or fees described in this section. [2003 c.605 §1]
     Note: 456.562 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 456 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     456.563 [Formerly 456.580; repealed by 1989 c.307 §8]
     456.565
Powers of director. The
Director of the Housing and Community Services Department, in addition to the
directorÂ’s other powers, shall have the power, subject to the applicable
provisions of the State Personnel Relations Law, to appoint all subordinate
officers and employees of the Housing and Community Services Department and
prescribe their duties and fix their compensation. [1991 c.739 §13]
     456.567
State Housing Council; appointment; term; officers; compensation; staff; budget
duties. (1) The State
Housing Council is established. The council shall consist of seven members
appointed by the Governor subject to confirmation by the Senate under ORS
171.562 and 171.565.
     (2) The term of office of each member is
four years, but a member serves at the pleasure of the Governor. Before the
expiration of the term of a member, the Governor shall appoint a successor
whose term begins on July 1 next following. A member is eligible for
reappointment. If there is a vacancy for any cause, the Governor shall make an
appointment to be immediately effective for the unexpired term.
     (3) The Governor shall appoint the
chairperson of the council.
     (4) The members of the council are
entitled to compensation and expenses as provided in ORS 292.495.
     (5) The Director of the Housing and
Community Services Department shall provide clerical and other necessary
support services to the council.
     (6) The council shall advise the Housing
and Community Services Department regarding the departmentÂ’s biennial budget
proposal prior to its submittal to the Oregon Department of Administrative
Services. The councilÂ’s budget advice shall be limited to personnel, materials
and services, and capital outlay items necessary to implement housing programs.
[Formerly 456.590; 1987 c.414 §16; 1989 c.307 §4; 1991 c.739 §5]
     456.569
Authority of Housing and Community Services Department to require fingerprints. For the purpose of requesting a state or
nationwide criminal records check under ORS 181.534, the Housing and Community
Services Department may require the fingerprints of a person who:
     (1)(a) Is employed or applying for
employment by the department; or
     (b) Provides services or seeks to provide
services to the department as a contractor, vendor or volunteer; and
     (2) Is, or will be, working or providing
services in a position:
     (a) In which the person is providing
information technology services and has control over, or access to, information
technology systems that would allow the person to harm the information
technology systems or the information contained in the systems;
     (b) In which the person has access to
information that state or federal laws, rules or regulations prohibit
disclosing or define as confidential;
     (c) That has payroll functions or in which
the person has responsibility for receiving, receipting or depositing money or
negotiable instruments, for billing, collections or other financial
transactions or for purchasing or selling property or has access to property
held in trust or to private property in the temporary custody of the state;
     (d) That has mailroom duties as a primary
duty or job function;
     (e) In which the person has responsibility
for auditing the department or other business entities;
     (f) That has personnel or human resources
functions as a primary responsibility;
     (g) In which the person has access to
Social Security numbers, dates of birth or criminal background information of
employees or members of the public; or
     (h) In which the person has access to tax
or financial information about individuals or business entities or processes
tax credits. [2007 c.619 §7]
     Note: 456.569 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 456 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     456.570 [1971 c.505 §§4,5; 1973 c.828 §2; 1973 c.832
§4; 1979 c.327 §28; renumbered 456.559]
     456.571
Powers and duties of council.
(1) The State Housing Council shall, with the advice of the Director of the
Housing and Community Services Department, develop policies to aid in
stimulating and increasing the supply of housing for persons and families of
lower income.
     (2) The council shall make special effort
to respond to both private and public actions that may raise the cost of the
housing supply in the open market, as the open market is the source of housing
for the preponderance of lower income households.
     (3) The council is responsible for
studying and commenting upon, and advising, the department, Governor,
Legislative Assembly, other state agencies and local governments concerning
local, state and federal legislation or rules that affect the cost and supply
of housing, both before and after the legislation and rules are enacted. For
purposes of this subsection, “legislation or rules that affect the cost and
supply of housing” includes but is not limited to legislation or rules that
would:
     (a) Provide financing for the construction
or rehabilitation of housing;
     (b) Subsidize new or existing housing
costs for lower income households by income support, tax credit, or support
service methods;
     (c) Regulate the division of land;
     (d) Regulate the use of land;
     (e) Regulate building construction
standards;
     (f) Regulate fees and charges for
inspection services, permits, or professional services related to housing;
     (g) Encourage alternatives that increase
housing choices;
     (h) Create or avert overlapping
jurisdictional functions and the concomitant increased costs that are reflected
in housing prices;
     (i) Create or avoid conflicting state and
federal regulations that deprive lower income households of assistance; and
     (j) Help or hinder compliance with the
housing goals established by the Land Conservation and Development Commission
under ORS 197.240.
     (4) The council, with the approval of the
Governor, may initiate legal proceedings in the name of the council to further
the councilÂ’s purposes under this section.
     (5) The council shall exercise the
responsibilities and powers of the council in a manner that expedites the
acquisition, construction, improvement or rehabilitation of housing. [Formerly
456.600; 1989 c.307 §5; 1991 c.62 §2; 1991 c.739 §6; 1995 c.279 §1; 1999 c.1074
§2; 2005 c.74 §4; 2007 c.607 §13]
     456.572
State housing plan; contents; annual update. (1) The Housing and Community Services Department shall develop a
comprehensive state plan for responding to the needs of very low income, low
income and moderate income Oregonians for housing and services, with the goal
of providing affordable housing. The Housing and Community Services Department
shall insure that the development, annual updating and implementation of this
plan involve substantial interagency coordination among appropriate federal,
state and local entities.
     (2) The state housing plan shall contain,
at a minimum:
     (a) Information on market and inventory
conditions including, but not limited to, population trends, household
composition, housing conditions and an inventory of assisted housing and public
housing;
     (b) A needs assessment that summarizes
data on the housing needs of homeless and income-eligible families and includes
a five-year projection;
     (c) Strategies for a five-year period
based upon a review of need and conditions including, but not limited to,
investment priorities, local and state policies, local institutional structure
and local activities for public housing resident management and ownership;
     (d) A review of resources including, but
not limited to, private, federal and nonfederal resources, tax credits and a
summary table of anticipated funding from each federal program and any state or
local resources available to meet matching requirements;
     (e) A plan for coordination of resources
reviewed under paragraph (d) of this subsection; and
     (f) An implementation program translating
the five-year strategy and resource review into plans and goals for the number
of families to be assisted each year, specifying plans for homeless assistance
and setting forth details on monitoring, fair housing and relocation.
     (3) Before issuing the state housing plan,
and before each annual update of that plan, the Housing and Community Services
Department shall hold at least one public hearing to receive comments from
public and private interests. [1991 c.600 §3]
     456.574
Housing and Community Services Department Revolving Account; use of moneys;
appropriation. (1) There is
created in the General Fund of the State Treasury the Housing and Community
Services Department Revolving Account. All moneys deposited in the account are
continuously appropriated for the purposes of carrying out the programs which
the Housing and Community Services Department is charged with administering
subject to limitations otherwise prescribed by law.
     (2) The Housing and Community Services
Department may transfer to the Housing and Community Services Department
Revolving Account amounts not to exceed $250,000 from funds available to the
department. Such funds hereby are continuously appropriated for:
     (a) The making of advances under ORS
456.559 (1)(c) or 456.710; and
     (b) The use by the department in the
payment of expenses incurred by the department in carrying out ORS 456.548 to
456.725; however, any such funds expended by the department under this
paragraph shall be repaid by the department into the revolving account from the
fees and charges collected under ORS 456.625 (3) and from any other moneys
available for such repayment in accordance with ORS 456.548 to 456.725. [Formerly
456.610; 1987 c.414 §17; 1991 c.62 §3; 1991 c.739 §12; 1993 c.793 §1; 1995 c.79
§247]
     456.576
Self-Sufficiency Housing Fund.
(1) The Housing and Community Services Department Self-Sufficiency Housing Fund
is established separate and distinct from the General Fund. Interest earned by
the Housing and Community Services Department Self-Sufficiency Housing Fund
shall be credited to the fund.
     (2) Net proceeds of lottery bonds issued
pursuant to section 4, chapter 746, Oregon Laws 2007, shall be deposited into
the Housing and Community Services Department Self-Sufficiency Housing Fund.
Moneys in the fund are continuously appropriated to the Housing and Community
Services Department for providing housing to populations at risk of
homelessness. [2007 c.746 §5]
     Note: 456.576 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 456 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     456.578
Use of funds; petty cash fund.
(1) Subject to other applicable laws and agreements entered into with
bondholders, amounts received by, or appropriated to, the Housing and Community
Services Department may be applied to funds and accounts as the Director of the
Housing and Community Services Department determines necessary or appropriate
for the payment of expenses of programs administered by the department and to
provide reserves against losses and security for bonds. All amounts deposited
in the funds or accounts administered by the department under ORS 456.515 to
456.725 and ORS chapter 458, are continuously appropriated for the purposes of
ORS 456.515 to 456.725 and ORS chapter 458.
     (2) The Housing and Community Services
Department may establish and maintain a petty cash fund, in an amount not to
exceed $300, for the purpose of paying minor incidental expenses in the
administration of the department. [1979 c.327 §25; subsection (2) enacted as
1993 c.512 §7; 1995 c.79 §248; 2001 c.738 §5]
     456.579
Mobile Home Parks Purchase Account; restrictions; other funds. (1) There is established separate and
distinct from the General Fund an account to be known as the Mobile Home Parks
Purchase Account. Except as otherwise provided by law, all moneys appropriated
or credited to the Mobile Home Parks Purchase Account are appropriated
continuously for and shall be used by the Director of the Housing and Community
Services Department for the purpose of carrying out the duties and responsibilities
imposed upon the Housing and Community Services Department under ORS 90.100,
90.630, 90.760, 90.800 to 90.840, 308.905, 446.003 and 456.581 and this
section. Interest earned on the account shall be credited to the account.
     (2) Except for loans provided in ORS
90.840, the account described in subsection (1) of this section shall not be
connected to or commingled in any way with the funds described in ORS 456.720.
     (3) For the purpose of carrying out the
provisions of ORS 90.100, 90.630, 90.760, 90.800 to 90.840, 308.905, 446.003
and 456.581 and this section, the Housing and Community Services Department may
seek funds from sources other than that described in ORS 308.905 (1). Such
funds shall be credited to the Mobile Home Parks Purchase Account. [1989 c.919 §4;
1995 c.559 §55; 2007 c.217 §4]
     456.580 [1971 c.505 §3; 1979 c.327 §1; renumbered
456.563]
     456.581
Mobile Home Parks Purchase Account; use; rules. The Mobile Home Parks Purchase Account
established in ORS 456.579 shall be used by the Housing and Community Services
Department to provide:
     (1) Technical assistance to tenants’
associations, manufactured dwelling park nonprofit cooperatives and tenantsÂ’
association supported nonprofit organizations and to facility purchase
associations, as defined in ORS 90.100, and to help tenants in activities
related to the purchase or preservation of a mobile home park or manufactured
dwelling park by a tenantsÂ’ association, manufactured dwelling park nonprofit
cooperative, tenantsÂ’ association supported nonprofit organization or facility
purchase association.
     (2) By rule, loans for initial costs for
purchasing a mobile home park or manufactured dwelling park that the department
determines has a significant percentage of residents who are persons of lower income.
Loans provided under this section may be made only if the department is of the
opinion that the purchase is economically feasible and only to:
     (a) A tenants’ association, manufactured
dwelling park nonprofit cooperative or a tenantsÂ’ association supported
nonprofit organization; or
     (b) A facility purchase association
established pursuant to ORS 90.815 that includes more than 50 percent of the
tenants residing in the park. [1989 c.919 §2; 1999 c.222 §3; 2007 c.607 §14]
     456.582
Prohibited acts; civil penalty.
(1) No person, either personally or by an agent, shall:
     (a) Make any material omission or false
statement in the application for a single-family residential loan financed by
the Housing and Community Services Department; or
     (b) Sell, rent or fail to occupy as a
primary residence a single-family residence subject to an outstanding
residential loan financed by the Housing and Community Services Department
without the express written permission of the Housing and Community Services
Department.
     (2) In addition to any other penalties
provided by law and in addition to any other powers of the Director of the
Housing and Community Services Department, the director may impose a civil
penalty for violation of any of the provisions of subsection (1) of this
section. No civil penalty shall exceed $5,000 per violation.
     (3) Civil penalties under this section
shall be imposed as provided in ORS 183.745.
     (4) All penalties recovered shall be paid
into the Housing Finance Fund established under ORS 456.720. [1979 c.327 §§23,24;
1989 c.706 §16; 1991 c.734 §31]
     456.585
Farmworker housing information.
The Housing and Community Services Department shall serve as the primary state
agency for farmworker housing information. The department shall perform the
following duties related to farmworker housing information:
     (1) Develop an information center for
farmworker housing financing information. The department shall consult with
private organizations and the Farmworker Housing Facilitation Team established
pursuant to subsection (3) of this section in developing and operating the
information center. The information center shall include provision for access
by the Internet.
     (2) To the extent practicable, simplify
the application process for funding farmworker housing projects.
     (3) Establish a Farmworker Housing
Facilitation Team to provide an ongoing discussion forum for state and local
government agencies that are involved with farmworker housing. Team members
shall include the Housing and Community Services Department, the Occupational
Safety and Health Division, the State Department of Agriculture, the Department
of Land Conservation and Development, the Employment Department and the Oregon
State University Extension Service. The Housing and Community Services Department
shall also invite Rural Development and the Farm Service Agency of the United
States Department of Agriculture, the United States Department of Labor, local
planning agencies and other interested persons to be members of the team.
     (4) Ensure that homeowner assistance
programs engage in outreach efforts to contact farmworkers.
     (5) Promote the establishment and use of
individual development accounts by farmworkers and others.
     (6) Use a statewide map of crop diversity
to determine housing needs, and facilitate the development of farmworker
housing in appropriate locations.
     (7) Look at creative ways to provide
housing, including but not limited to time-share housing, cooperative housing,
mobile and portable housing and modular housing.
     (8) Work with private businesses, state
agencies and nonprofit organizations to maximize the development of farmworker
housing.
     (9) To the extent practicable, refer
housing-based conflicts to dispute resolution processes. [2001 c.625 §1; 2007
c.71 §141]
     Note: 456.585 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 456 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     456.587
Electricity Public Purpose Charge Fund; Low-Income Electric Bill Payment
Assistance Fund. (1) The
Housing and Community Services Department Electricity Public Purpose Charge
Fund is established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Housing and Community Services Department
Electricity Public Purpose Charge Fund shall be credited to the fund. Moneys in
the fund are continuously appropriated to the Housing and Community Services
Department to be used for purposes specified in ORS 757.612 (3)(b)(D).
     (2) The Housing and Community Services
Department Low-Income Electric Bill Payment Assistance Fund is established in
the State Treasury, separate and distinct from the General Fund. Interest
earned by the Housing and Community Services Department Low-Income Electric
Bill Payment Assistance Fund shall be credited to the fund. Moneys in the fund
are continuously appropriated to the Housing and Community Services Department
for purposes described in ORS 757.612 (7). [2007 c.217 §8]
     Note: 456.587 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 456 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
(
     456.589
Legislative findings. The
Legislative Assembly finds that cities with a population of 300,000 or more
suffer from a lack of available mortgage financing for the purchase of
single-family homes in the core and inner areas of those cities. There is a
need for low-cost mortgage financing for single-family home purchasers in order
to prevent urban decay and blight and to promote the economic well being of
those core and inner areas. [1979 c.327 §30]
     456.590 [1971 c.505 §6; 1979 c.327 §2; renumbered
456.567]
     456.593
Use of bonds for single-family home loans in
     (2) Notwithstanding any of the provisions
of ORS 456.548 to 456.725 to the contrary:
     (a) Of the $2.5 billion bond authorization
under ORS 456.661, the aggregate principal amount of not to exceed $30 million
is to be made available exclusively for making or participating in making
residential loans for detached single-family homes, including lots described in
ORS 92.840, in any city.
     (b) The bonds under paragraph (a) of this
subsection may be sold as a part of the Housing and Community Services
DepartmentÂ’s overall nongeneral obligation bond issues under ORS 456.548 to
456.725, or separate issues totaling no more than $30 million in an aggregate
principal amount may be sold by the department as required and requested by a
city. The bonds need not be identified by individual loans or transactions but
may include any number of individual loans or transactions or purposes within
any single issue.
     (c) The department may use moneys received
under paragraph (b) of this subsection to purchase, service, sell and make
commitments to purchase, service and sell residential loans meeting all of the
requirements of this paragraph. The loans must be:
     (A) Originated by private lending
institutions or any individual or organization authorized by law to make those
loans, for residential housing;
     (B) For owner-occupied detached
single-family housing, which may include but is not limited to lots described
in ORS 92.840;
     (C) For properties located within an area
of a city where the median income is below the cityÂ’s median family income; and
     (D) To persons whose annual income for the
current and the immediately preceding year does not exceed 105 percent of the
prevailing median income for families within that city.
     (d) Areas eligible under paragraph (c) of
this subsection shall be identified by ordinance of the governing body of that
city. That city shall have sole discretion to designate one or more of those
areas, and the proportionate or approximate actual amount of single-family
residential loans to be made in those areas.
     (e) Fees or charges pursuant to ORS
456.625 (3) shall be assessed or collected in connection with, or for, any
loan, advance, insurance, loan commitments or servicing, by the department
under this section only after consultation with the city. [1979 c.327 §§31,32; 1981
c.504 §5; 1995 c.79 §249; 1999 c.698 §1; 2003 c.743 §1; 2005 c.643 §1; 2007
c.607 §15]
     456.600 [1971 c.505 §7; 1977 c.98 §1; 1979 c.327 §17;
renumbered 456.571]
(Mortgage
Credit Certificates)
     456.605
Mortgage credit certificate program. (1) The Housing and Community Services Department may establish and
implement mortgage credit certificate programs to make available income tax
credits for indebtedness incurred on acquisition, improvement or rehabilitation
of a principal residence. Under this program, the department may issue tax
credit certificates to persons and families with incomes equal to or lower than
the median family income as calculated under ORS 456.620 (4).
     (2) If the department elects to issue
federal income tax credit certificates, the director shall certify that each
mortgage credit certificate program meets the requirements of Section 25 of the
Internal Revenue Code as amended and in effect on December 31, 1996. The
department shall make the determination of the amount of qualified mortgage
bonds that will not be issued so as to allow the issuance of mortgage credit
certificates.
     (3) If the Director of the Housing and
Community Services Department determines that the mortgage credit certificate
program is not effective with the median family income limitation established
in subsection (1) of this section, the director may issue tax credit
certificates to persons and families with incomes up to a percent of median
family income determined appropriate by the Emergency Board, if the person or
families otherwise qualify for the program. [1985 c.501 §2; 1995 c.556 §44;
1997 c.839 §67]
     456.610 [1971 c.505 §10; 1973 c.828 §28; 1979 c.327 §3;
renumbered 456.574]
(Financing of
Low-Income Housing)
     456.612
Declaration of financing purpose. The Legislative Assembly finds and declares that the primary purpose
of financing by the Housing and Community Services Department is to provide
affordable housing for persons and families of lower income. [2001 c.738 §1;
2007 c.607 §16]
     Note: 456.612 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 456 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     456.615 [1973 c.828 §4; 1975 c.154 §1; 1979 c.60 §1;
1979 c.327 §4; 1981 c.504 §6; 1981 c.691 §1; 1987 c.414 §18; 1991 c.738 §1;
1991 c.739 §9; 1995 c.79 §250; 1997 c.302 §1; 2001 c.738 §2; 2003 c.743 §2;
2007 c.607 §17; 2007 c.783 §232e; renumbered 456.548 in 2007]
     456.620
Duties of department in carrying out housing programs. In carrying out housing programs, the
Housing and Community Services Department shall:
     (1) With the approval of the State Housing
Council, adopt standards for the planning, development and management of
housing projects for which qualified housing sponsors receive all or a portion
of any required financing under ORS 456.548 to 456.725, for audits and
inspections to determine compliance with such standards and adopt criteria for
the approval of qualified housing sponsors under ORS 456.548 to 456.725.
     (2) Adopt criteria for the approval of
qualified housing sponsors in ORS 456.548 to 456.725.
     (3) Enter into agreements with qualified
housing sponsors to regulate the planning, development and management of
housing projects constructed with the assistance of the department under ORS
456.548 to 456.725.
     (4) With the approval of the council,
establish maximum household income limits for all or a portion of the units in
housing projects, housing developments or other residential housing financed in
whole or in part by the department. A maximum of one-third of the units in a
housing project, housing development or other residential housing financed by
the department may be rented to households with an income level exceeding 120
percent of the median family income level, as determined by the department. If
the income level in any unit exceeds 120 percent of the median family income,
the department shall, to the extent practicable, require that the project,
development or other housing financed by the department have a percentage of
low income units that is higher than the minimum percentages established in ORS
456.120 (19) for projects financed by local housing authorities or income
limitations that are lower than the limits described in ORS 456.120 (19) or a
combination thereof. Income limits for department programs administered on a
statewide basis may be established by reference to the median family or
personal income in the state, or in various regions in the state, as determined
by the department. This subsection does not restrict the acquisition of
manufactured dwelling parks.
     (5) With the approval of the council,
ensure that financing is provided in the departmentÂ’s programs for manufactured
housing and for the purchase of lots described in ORS 92.840 by manufactured
dwelling park tenants. [1973 c.828 §5; 1979 c.60 §2; 1979 c.327 §5; 1985 c.501 §4;
1991 c.739 §11; 1993 c.511 §4; 1995 c.79 §251; 1995 c.735 §1; 2001 c.738 §3;
2003 c.743 §3]
     456.623
Project funding notification registry. (1) The Housing and Community Services Department shall establish a
registry system for persons requesting to be notified when department-proposed
funding awards are contemplated for multifamily housing projects.
     (2) Any person may register with the
department to receive the notification described in subsection (1) of this
section. A person may request notification for multifamily housing projects on
a statewide basis or may limit the request to projects within specific areas of
the state as identified by the department. The department may charge a
reasonable fee for the registration.
     (3) If the department proposes funding for
a multifamily housing project, the department shall send written notice of the
funding proposal to all persons who are at that time registered to receive the
notice under this section. The department may send notice to persons the
department believes may be interested but who are not registered to receive
notice. The department shall not proceed with awarding funding for a multifamily
housing project prior to the 30th day after the sending of notice to all
persons entitled under this subsection to notice of the funding proposal.
     (4) Notice sent under this section shall
be limited to stating the deadline for filing comments and the type of housing,
number of units, sponsor and location of the proposed project. The notice shall
not include any information made exempt from public disclosure under ORS
192.502 (24).
     (5) During the period after the department
proposes funding for a multifamily housing project and prior to the department
proceeding with awarding the funding, any interested person may file comments
regarding the project with the department.
     (6) At the discretion of the Director of
the Housing and Community Services Department, the department may conduct a
market study or take other actions in response to comments filed in regard to
multifamily housing projects proposed for funding.
     (7) Subsections (3), (5) and (6) of this
section apply only to multifamily housing project funding for construction,
acquisition or rehabilitation loans, grants or tax program awards that
otherwise do not include an independently prepared, project-specific market
study as part of the department review, approval or underwriting process.
     (8) As used in this section, “housing
project” has the meaning given that term in ORS 456.065. [1999 c.471 §1; 2007
c.152 §4]
     Note: 456.623 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 456 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     456.625
Powers of department; status of terms of project use contained in recorded
instruments. The Housing and
Community Services Department may:
     (1) Undertake and carry out studies and
analyses of housing needs within the state and ways of meeting such needs and
make the results of such studies and analyses available to the public,
qualified housing sponsors and the private housing sector.
     (2) Prepare proposals on measures it
considers necessary to address administration, housing programs or community
services programs.
     (3) With the approval of the State Housing
Council, assess fees, charges or interest in connection with housing programs.
     (4) Encourage community organizations to
assist in initiating housing projects for persons and families of lower income.
     (5) Encourage the salvage of usable
housing scheduled for demolition or dislocation because of highway, school,
urban renewal or other public projects by seeking authority for the public
agencies involved in such programs to use the funds provided for the demolition
or relocation of such buildings to enable qualified housing sponsors to
relocate and rehabilitate such buildings for use by persons and families of
lower income.
     (6) Encourage research and demonstration
projects to develop techniques and methods for increasing the supply of
adequate, decent, safe and sanitary housing for persons and families of lower
income.
     (7) Make or participate in the making of
residential loans to qualified individuals or housing sponsors to provide for
the acquisition, construction, improvement, rehabilitation or permanent
financing of residential housing or housing development; undertake commitments
to make residential loans; purchase and sell residential loans at public or
private sale; modify or alter such mortgages or loans; foreclose on any such
mortgage or security interest or commence any action to protect or enforce any
right conferred upon the department by any law, mortgage, security, agreement,
contract or other agreement and to bid for and purchase property that is
subject to such mortgage or security interest at any foreclosure or other sale;
acquire or take possession of any such property and complete, administer,
conserve, improve and otherwise use the property to accomplish the departmentÂ’s
purposes, pay the principal and interest on any obligations incurred in
connection with such property and dispose of such property in such manner as
the department determines necessary to protect its interests under ORS 456.515
to 456.725 and ORS chapter 458.
     (8) Unless specifically exempted by the
State Treasurer, deposit with the State Treasurer any funds held in reserve or
sinking funds under ORS 456.515 to 456.725 and ORS chapter 458 and any other
moneys not required for immediate use or disbursement by the department,
subject to the provisions of any agreement with holders of bonds entered into
prior to October 15, 1983.
     (9) Advise and assist in the creation of
any nonprofit housing corporation, consumer housing cooperative or limited
dividend housing sponsor and give approval of the articles of incorporation and
bylaws of any such organization in carrying out ORS 456.515 to 456.725.
     (10) Cooperate with and exchange services,
personnel and information with any federal, state or local governmental agency.
     (11) With the approval of the State
Treasurer, contract for the services of and consultation with trustees,
investment and financial advisors, paying agents, remarketing agents and other
professional persons or organizations in carrying out ORS 456.515 to 456.725
and ORS chapter 458.
     (12) Contract for, act on or perform any
other duties that the department considers necessary or appropriate to carry
out housing programs and community services programs.
     (13) Purchase, service, sell and make
commitments to purchase, service and sell residential loans to the extent
permitted by ORS 456.635 and 456.640 (1) to (3).
     (14) Initiate or assist appropriate state
agencies, governmental bodies and public or private housing sponsors in the
development, construction, acquisition, ownership, leasing, rehabilitation or
management of housing to carry out the purposes of ORS 456.515 to 456.725 and
ORS chapter 458 where such housing is not otherwise affordable or available in
the area.
     (15) Execute and record written
instruments that contain terms, including but not limited to restrictive
covenants or equitable servitudes, pertaining to the use and enjoyment of
housing projects. Notwithstanding any other provision of law, the executed
instruments shall constitute and create restrictive covenants affecting and
running with the property according to the terms of the instruments when
recorded in the records of the county where the property is located. County
clerks shall accept the instruments for recording when presented by or on
behalf of the department.
     (16) Subject to the provisions of any
agreement then existing with bondholders, make available funds by contract,
grant, loan or otherwise, including loan guarantees, insurance or other
financial leveraging techniques, from moneys made available by the department
to carry out the purposes of ORS 456.515 to 456.725, if such moneys are not
needed for the operations of the department or otherwise determined by the
director to be a necessary or prudent reserve. [1973 c.828 §6; 1975 c.154 §8;
1979 c.60 §3; 1979 c.327 §6; 1981 c.504 §7; 1981 c.691 §2; 1983 c.519 §2; 1985
c.501 §3; 1987 c.567 §2; 1989 c.307 §6; 1991 c.739 §7; 1995 c.79 §252; 1999 c.1074
§3; 2001 c.738 §4; 2007 c.607 §18; 2007 c.783 §199]
     456.627
Legislative finding on availability of single-family residential loans. Notwithstanding the provisions of ORS
456.625 (7), the Housing and Community Services Department shall not make any
single-family residential loan directly to any individual unless the
Legislative Assembly or Emergency Board finds that private lending institutions
are unwilling or unable to participate in the departmentÂ’s single-family
residential loan programs or portions of those programs under ORS 456.548 to
456.725. [1981 c.504 §12; 1995 c.79 §253]
     456.630
Services to qualified sponsors and institutions. The Housing and Community Services
Department may provide qualified housing sponsors and lending institutions with
advisory, consultative training and educational services as necessary to assist
those sponsors. For purposes of this section, advisory and other services
include, but are not limited to:
     (1) Technical and professional planning
assistance;
     (2) Technical assistance for forming and
operating manufactured dwelling park nonprofit cooperatives;
     (3) Preparation and promulgation of
organizational planning and development guidelines;
     (4) Consultation services;
     (5) Training courses, seminars and
lectures; and
     (6) Other services or materials for
assistance of qualified housing sponsors in the planning, development and
management of housing projects under ORS 456.548 to 456.725. [1973 c.828 §7;
1995 c.79 §254; 2007 c.607 §19]
     456.635
Commitments on residential loans. (1) In order to provide additional permanent financing for housing for
persons and families of lower income and for manufactured dwelling park tenant
purchases of lots described in ORS 92.840, the Housing and Community Services
Department may make commitments to purchase and purchase, insure, service and
sell residential loans held by lending institutions for persons and families of
lower income in this state and for manufactured dwelling park tenant purchases
of lots described in ORS 92.840. The department may purchase from lending
institutions securities backed by residential loans.
     (2) Any commitment made by the department
subject to subsection (1) of this section shall be based upon an agreement with
the lending institution that the proceeds received by the lending institution
from the sale of such loans to the department shall be used by the lending
institution only for the financing of residential housing for persons and
families of lower income in this state, including the financing of newly
originated residential loans, or for the financing of loans for the purchase of
lots described in ORS 92.840 by manufactured dwelling park tenants, provided
the loans are made after the date of the department’s commitment. [1973 c.828 §8;
1979 c.60 §4; 1979 c.327 §7; 2003 c.743 §4]
     456.640
Purchase of residential loans.
(1) The Housing and Community Services Department shall prescribe a form for
the application by a lending institution for the purchase of newly originated
or other existing residential loans by the department under ORS 456.635.
     (2) Prior to the submission by it of an
application for the purchase by the department of existing residential loans
under ORS 456.635, a lending institution may request the reservation by the
department of funds.
     (3) The department may grant a reservation
of funds in such amount and subject to such conditions as it considers
necessary under ORS 456.548 to 456.725.
     (4) Upon the decision by the department to
purchase residential loans under ORS 456.635, the department shall issue a
binding letter of commitment subject to such terms and conditions as the
department considers necessary. The letter of commitment shall be binding upon
the department as of the date of its execution subject to the terms and
conditions, if any, included therein. [1973 c.828 §§9,10; 1979 c.60 §5; 1979
c.327 §8; 1995 c.79 §255]
     456.645
Revenue bonds. (1) The State
Treasurer, at the request of the Housing and Community Services Department,
from time to time, may issue and sell bonds in the name of and on behalf of the
State of Oregon in compliance with the applicable provisions of ORS chapter
286A in the principal amount the department considers necessary to carry out
the purposes of ORS 456.548 to 456.725, or for paying or refunding any bonds
previously issued by the department for such purposes.
     (2) All bonds shall be special revenue
obligations of the State of Oregon, and, unless paid from the proceeds of other
bonds, shall be payable as to principal, redemption premium, if any, and interest,
solely from the revenues, assets or funds in the Housing Finance Fund as may be
pledged therefor, subject to existing agreements with the holders of any bonds,
in accordance with any housing finance bond declaration. Bonds may be paid from
any source available under ORS 456.515 to 456.725, including but not limited
to:
     (a) From the income and revenues of the
housing project or projects financed with the proceeds from the sale of such
bonds or with such proceeds together with other moneys available to the
department under ORS 456.548 to 456.725 or other moneys or grants from the
federal government in aid of such projects.
     (b) From the income and revenues of
certain designated housing projects, whether or not financed with the proceeds
from the sale of such bonds, if such housing projects were financed with moneys
available to the department under ORS 456.515 to 456.725.
     (c) From funds held in a capital or other
reserve account.
     (d) From such other funds as deemed
adequate in fulfilling the purposes of ORS 456.515 to 456.725.
     (e) From the revenues of the department
under ORS 456.515 to 456.725, generally.
     (3) The department shall maintain
accounting records and shall prepare annual financial statements for
distribution to existing and potential bond purchasers. [1973 c.828 §11; 1975
c.154 §2; 1979 c.327 §9; 1981 c.660 §39; 1983 c.519 §3; 1995 c.79 §256; 2007
c.783 §200]
     456.650 [1973 c.828 §12; 1981 c.660 §40; 1983 c.519 §4;
1995 c.79 §257; repealed by 2007 c.783 §234]
     456.655
When bonds not to be issued; debt service reserve; bond declaration. (1) Bonds may be secured additionally by a
pledge of amounts in the capital reserve account if provided in the housing
finance bond declaration authorizing their issuance. The State Treasurer shall
not issue bonds secured by a pledge of amounts in the capital reserve account
unless the amount then on deposit in the capital reserve account, together with
the amount of the proceeds of the bonds to be deposited in the account, is
equal to or greater than the required debt service reserve. Subject to existing
agreements with bondholders, the required debt service for any issue reserve
shall be, as determined in the housing finance bond declaration, either (i) the
maximum or (ii) the average of the amounts payable as annual debt service on
all outstanding bonds secured by a pledge of amounts in the capital reserve
account in any one fiscal year during the remaining term of such bonds. The
annual debt service is an amount equal to the aggregate of:
     (a) All interest payable during the fiscal
year on all bonds secured by a pledge of amounts in the capital reserve account
outstanding on the date of computation; and
     (b) The principal amount of such bonds
maturing during the same fiscal year; and
     (c) All amounts as specified in any
housing finance bond declaration or in any contract with bondholders as payable
during such fiscal year as a sinking fund payment with respect to any bond
issues as the Housing and Community Services Department has determined a debt
service shall be required which mature after such fiscal year.
     (2) The required debt service reserve
shall be calculated on the assumption that bonds will after the date of
computation cease to be outstanding by reason of payment of the bonds when due
at their respective maturity, and upon application, in accordance with the
resolution or any contract with bondholders, of all sinking fund payments
payable at or after such date of computation. However, the department may, at
the time of issuance of additional bonds, deposit in the capital reserve
account, from the proceeds of the additional bonds to be issued, or other
sources, an amount, which, together with the amount then in such fund will be
not less than the maximum required debt service reserve.
     (3) No bonds shall be issued by the State
Treasurer unless they are part of an issue described in a written instrument
signed by the Director of the Housing and Community Services Department and
filed in the office of the State Treasurer. Each instrument shall set forth or
otherwise determine or provide for the date of the bonds, the amount, the
maturity or maturities, the rate or rates of interest, the form of bonds, the
place of payment, registration provisions, terms of redemption, and time, place
and manner of sale of the issue. Each instrument, when the State Treasurer
shall have certified approval thereon, shall be known as a “housing finance
bond declaration.” Each housing finance bond declaration shall be deemed to be
and shall constitute conclusive proof of the authorization to issue the bonds
therein described and may contain such further pledges and provisions
concerning bonds. The State Treasurer and the director of the department shall
have and exercise all powers necessary or incidental to carry out the purposes
of this subsection. [1973 c.828 §13; 1975 c.154 §3; 1983 c.519 §5]
     456.660 [1973 c.828 §14; repealed by 1979 c.327 §10
(456.661 enacted in lieu of 456.660)]
     456.661
Limitation on revenue bond amount; legislative findings; designation of areas
for issuance of qualified mortgage bonds. (1) The aggregate principal amount of bonds issued under ORS 456.645
that may be outstanding is $2.5 billion, excluding bonds issued under and
within the limits provided in ORS 456.515 to 456.725 and any bonds that have been
refunded. The amount of $30 million of the total $2.5 billion of bonds
authorized under this section or proceeds from the sale of the bonds shall be
made exclusively available for making or participating in making residential
loans for single-family homes in cities with a population of 300,000 or more in
the manner specified in ORS 456.593. No more than $10 million of the bonds
authorized under this section or proceeds from the sale of the bonds shall be
made available for residential loans for home improvements.
     (2) ORS 286A.095 applies for purposes of
determining limitations under this section.
     (3) The Legislative Assembly finds that:
     (a) Pursuant to ORS 456.515 to 456.725,
the Housing and Community Services Department has served as the sole department
or instrumentality of the state authorized to coordinate and establish
statewide priorities for housing programs and to provide planning and technical
assistance to sponsors of housing for persons and families of lower income
throughout the state.
     (b) The department’s activities have been
instrumental in alleviating the serious shortage of decent, safe and sanitary
housing for lower income persons.
     (c) Continuation of the department’s
programs for financing owner-occupied residential housing to the fullest extent
practicable under the Internal Revenue Code is a matter of paramount concern to
the state.
     (4) The department shall designate areas
of chronic economic distress within the state for the purpose of issuing
qualified mortgage bonds as described in section 143 of the Internal Revenue
Code. [1979 c.327 §11 (enacted in lieu of 456.660); 1981 c.504 §8; 1981 c.691 §3;
1985 c.205 §1; 1995 c.79 §258; 1999 c.698 §2; 2001 c.114 §51; 2005 c.643 §2;
2007 c.783 §201]
     456.665
Status of revenue bonds; negotiability; interest tax-exempt. (1) Neither the State Treasurer, the
Director of the Housing and Community Services Department, the State Housing
Council nor any officer or employee of the Housing and Community Services
Department shall be liable personally on any bonds issued under ORS 456.515 to
456.725 by reason of the issuance thereof.
     (2) All obligations issued by the State
Treasurer under ORS 456.548 to 456.725 shall not constitute a debt, liability
or general obligation of this state or any political subdivision thereof or a
pledge of the faith and credit of this state or any such political subdivision,
but shall be payable solely from the revenues or assets of the department
acquired pursuant to ORS 456.548 to 456.725. Each obligation issued under ORS
456.548 to 456.725 shall contain on the face thereof a statement that the
department shall not be obligated to pay the same nor the interest thereon
except from the revenues or assets pledged therefor and that neither the faith
and credit nor the taxing power of this state or any political subdivision
thereof is pledged to the payment of the principal of or the interest on such
obligation.
     (3) All bonds issued by the State
Treasurer under ORS 456.548 to 456.725 shall be fully negotiable.
     (4) The interest upon all bonds, including
refunding bonds, issued by the State Treasurer under ORS 456.548 to 456.725
shall be exempt from personal income taxation in the State of
     456.670
Bond maturity; execution.
Bonds issued by the State Treasurer shall mature at the time or times not
exceeding 47 years from the date of issue as shall be stated in the housing
finance bond declaration. Notwithstanding the provisions of any other law, the
rates of interest payable and discount, if any, with respect to bonds issued
under ORS 456.548 to 456.725 shall be determined by the State Treasurer, upon
the advice of the department. The bonds shall be executed in the manner set forth
in ORS chapter 286A. [1973 c.828 §16; 1975 c.154 §4; 1979 c.327 §12; 1981 c.23 §4;
1981 c.660 §41; 1983 c.519 §7; 1995 c.79 §260; 2005 c.74 §5; 2007 c.783 §202]
     456.675
Bond provisions and limits; security for payment. (1) The bonds issued by the State Treasurer
under ORS 456.515 to 456.725 and the agreements with the bondholders may:
     (a) Pledge all or any part of the fees and
charges made or received by the Housing and Community Services Department under
ORS 456.548 to 456.725 and all or any part of the moneys received in payment of
residential loans and interest thereon and other moneys received or to be
received by the department under ORS 456.548 to 456.725 to secure payment of
the bonds, subject to the provisions of any agreements with bondholders then
existing.
     (b) Pledge all or any part of the assets
of the department acquired under ORS 456.548 to 456.725, including residential
loans and obligations securing such residential loans to secure the payment of
the bonds, subject to the provisions of any agreements with bondholders then
existing.
     (c) Pledge any moneys, loans or grants
received from the federal government, the state or any city, county or
political subdivision of this state for any housing project financed in whole
or in part from the sale proceeds of bonds.
     (d) Provide for the use and disposition of
the gross income from residential loans held by the department and for the
payment of the principal on residential loans held by the department.
     (e) Limit the purposes for which the
proceeds from the sale of bonds may be applied by the department and pledge
such proceeds to secure payment of the bonds of the department.
     (f) Limit the issuance of additional
bonds, the terms upon which such additional bonds may be issued and the
refunding of outstanding bonds.
     (g) Provide for the procedure, if any, by
which the terms of any contract with bondholders may be amended or rescinded,
the percentage of the bondholders that must consent thereto and the manner of
giving their consent thereto.
     (h) Vest in a trustee appointed by the
director such property, rights, powers and duties in trust as the department
may determine, including the rights, powers and duties of a trustee appointed
for bondholders pursuant to ORS 456.548 to 456.725 or limiting the rights,
powers and duties of any trustee so appointed.
     (i) Provide for other matters affecting
security for the bonds.
     (2) Any pledge made by or pursuant to
subsection (1) of this section shall be valid and binding from the time when
the pledge is made. The revenues, assets and funds pledged pursuant to
subsection (1) of this section shall immediately be subject to the lien or
pledge without physical delivery thereof or further act, and the lien of any
pledge shall be valid and binding against all parties having claims of any kind
in tort, contract or otherwise, irrespective of whether the parties have notice
thereof. No housing finance bond declaration or any other instrument by which
the pledge is created need be recorded or filed except as provided in ORS
456.548 to 456.725 and the department shall not be required to comply with any
of the provisions of the Oregon Uniform Commercial Code. [1973 c.828 §17; 1975
c.154 §5; 1977 c.32 §1; 1979 c.60 §6; 1981 c.504 §9; 1983 c.519 §8; 1995 c.79 §261]
     456.680
Purchase of bonds by department. The Housing and Community Services Department, subject to any existing
agreements with its bondholders, may purchase bonds then outstanding out of any
funds of the department available therefor under ORS 456.515 to 456.725. Any
bonds of the department so purchased shall be canceled. The department may
purchase such bonds whether or not such bonds are redeemable at the time of
such purchase. If the bonds are then redeemable, the department shall purchase
such bonds at a reasonable price not exceeding the redemption price then
applicable plus accrued interest to the date of redemption. [1973 c.828 §18;
1995 c.79 §262]
     456.685
BondholdersÂ’ remedies. (1)
If the Housing and Community Services Department defaults in the payment of the
principal or interest due upon a bond, whether at maturity or upon call for
redemption and such default continues for a period of 30 days thereafter or if
the department fails or refuses to comply with any agreement with the
bondholders or any other provision of ORS 456.548 to 456.725, the holders of 25
percent in aggregate principal amount of bonds then outstanding may instruct
the trustee to represent them as provided in subsection (2) of this section by
filing an appropriate instrument that is acknowledged in the manner provided
for the acknowledgment of deeds in this state with the county clerk for Marion
County.
     (2) A trustee appointed pursuant to
subsection (1) of this section may:
     (a) Enforce all rights of the bondholders
under ORS 456.548 to 456.725 or any agreement with the department by
appropriate proceedings.
     (b) Bring suit upon such bonds.
     (c) By appropriate proceeding, require the
department to account.
     (d) By appropriate judicial proceedings,
enjoin any act of the department that is in violation of ORS 456.548 to 456.725
or in violation of any agreement with the bondholders.
     (e) Exercise any powers necessary or
appropriate for the exercise of any functions under this section or otherwise
incidental to the general representation of the bondholders in the enforcement
and protection of their rights. [1973 c.828 §19; 1995 c.79 §263]
     456.690
Loan authority of department; rules. (1) Upon a finding made by the State Housing Council that the supply
of funds available through lending institutions for the financing of
residential loans for the acquisition, construction, improvement or
rehabilitation of housing units, manufactured dwellings, manufactured dwelling
parks, manufactured dwelling park nonprofit cooperatives or housing projects
for persons and families whose income does not exceed maximum household income
limits established by the Housing and Community Services Department under ORS
456.620 (4) is inadequate, the department may make loans to lending
institutions in this state for the purpose of providing funds to such
institutions for the financing of residential housing units, manufactured
dwellings, manufactured dwelling parks, manufactured dwelling park nonprofit
cooperatives or housing projects, for persons and families whose income does
not exceed maximum household income limits established by the department under
ORS 456.620 (4).
     (2)(a) The department, subject to existing
agreements with bondholders, may make privately or federally insured or
guaranteed loans for the rehabilitation or improvement of existing
single-family homes for persons and families of lower income, manufactured
dwellings for persons and families of lower income or manufactured dwelling
parks and manufactured dwelling park nonprofit cooperatives that the department
determines have a significant percentage of residents who are persons of lower
income, if the department finds that:
     (A) The supply of funds available through
private lending institutions for that purpose is inadequate; and
     (B) The housing may be rehabilitated or
improved to provide adequate, safe and sanitary residential housing.
     (b) The department may cooperate with
qualified housing sponsors in the development and implementation of such loan
programs. Loans made by the department under this subsection shall be made for
single-family homes.
     (3) Prior to the making of any loan under
this section, the department, with the approval of the council, shall adopt
rules governing the making of such loans, including but not limited to:
     (a) Procedures for the submission, review
and approval of requests for loans under this section.
     (b) Standards and requirements for the
allocation of loan moneys available among eligible borrowers and the
determination of the terms, conditions and interest rates for such loans.
     (c) Limitations, if any, on the number of
housing units or projects, type of housing units or projects and any other
characteristics for the eligibility of housing units or projects for such
financing.
     (d) Restrictions, if any, on the interest
rates to be charged by lending institutions on loans made from such loan
proceeds and the return to be realized by the lending institution therefrom.
     (e) Commitment requirements applied to
residential mortgage financing by lending institutions from the proceeds of
such loans.
     (f) Schedules of fees and charges to be
made by the department in accepting, reviewing and acting upon applications for
loans under this section.
     (4) The department shall administer the
loan program for rehabilitation or improvement of existing single-family homes
for persons and families of lower income in accordance with the following
requirements and loan criteria:
     (a) Eligibility for a loan shall be based
on current department income limitations.
     (b) A loan may be assumed only by another
person of lower income.
     (c) The single-family home for which a
loan is made must be owner-occupied.
     (d) The maximum principal amount of a
single loan is $15,000.
     (e) An eligible borrower shall have only
one loan outstanding under this program at any one time.
     (f) An eligible improvement including, but
not limited to, a remodeling project shall be defined by rule and the
provisions of the Revenue Adjustments Act of 1980 (Public Law 96-499), as
adopted December 5, 1980, shall be recognized in that definition.
     (g) Loans shall be made in accordance with
a distribution of population between urban and rural areas that takes the
availability of alternative resources into account.
     (h) The department shall work with
qualified housing sponsors whenever it is appropriate to do so.
     (5) All loans made and all rules adopted
under this section shall be designed by the department, with the approval of
the council, to expand the supply of funds available in this state for the
financing of residential housing units, manufactured dwellings, manufactured
dwelling parks, manufactured dwelling park nonprofit cooperatives and housing
projects, for persons and families whose income does not exceed maximum
household income limits established by the department under ORS 456.620 (4), to
provide an adequate supply of safe and sanitary units of such housing, and to
promote the effective participation of conventional lending institutions in the
financing of such housing and restrict the financial return and benefit to such
lenders to that which is necessary and reasonable to induce their participation
under this section.
     (6) In making loans under this section,
the department, with the approval of the council, may prescribe such terms,
conditions, maturity dates and interest rate provisions as it considers
necessary. [1973 c.828 §20; 1979 c.60 §7; 1979 c.327 §14; 1981 c.691 §4; 1985
c.298 §1; 1989 c.307 §7; 1991 c.739 §8; 2007 c.607 §20]
     456.692
Loans financed through bonds secured by specific properties. (1) As used in this section, “eligible
housing project” means a housing development determined by the Housing and
Community Services Department to be suitable for financing under this section.
     (2) In addition to any other powers
granted by law, including without limitation the powers granted under ORS
456.548 to 456.725, the Housing and Community Services Department may do any of
the following:
     (a) Enter into agreements to finance the
costs of an eligible housing project by lending the proceeds of bonds
authorized under ORS 456.645 (1) to any qualified housing sponsor under such
terms and with such security as the department may approve. However,
notwithstanding ORS 456.645 (2), the proceeds of bonds described in this
paragraph need not be placed in the Housing Finance Fund and bonds described in
this paragraph need not be payable as to principal, redemption premium, if any,
and interest from the revenues, assets or funds in the Housing Finance Fund. In
addition, bonds described in this paragraph to finance eligible housing projects
are not subject to ORS 456.655 and 456.661.
     (b) Lease and sublease eligible housing
projects to a qualified housing sponsor so that rents to be charged for the use
of such projects are established, and revised from time to time as necessary,
to produce income and revenue sufficient to provide for the prompt payment when
due of principal and interest on all bonds described in paragraph (a) of this
subsection. A lease shall provide that the lessee be required to pay all
expenses of the operation and maintenance of the project including, but without
limitation, adequate insurance on the project and insurance against all
liability for injury to persons or property arising from the operation of the
project. The lease shall also provide that the lessee pay all taxes and special
assessments levied upon or with respect to the leased premises and payable
during the term of the lease and that during the term of the lease the lessee
shall pay ad valorem taxes in the same amount and to the same extent as though
the lessee were the owner of all real and personal property comprising the
project.
     (c) Pledge and assign to the holders of
bonds described in paragraph (a) of this subsection or a trustee therefor all
or any part of the revenues of one or more eligible housing projects owned or
to be acquired by the state, and define and segregate such revenues or provide
for the payment thereof to a trustee.
     (d) Mortgage or otherwise encumber
eligible housing projects in favor of the holders of bonds described in
paragraph (a) of this subsection or a trustee therefor.
     (e) Make all contracts, execute and
deliver all instruments and do all things necessary or convenient in the
exercise of the powers granted by this section, or in the performance of its
covenants or duties, or in order to secure the payment of bonds described in
paragraph (a) of this subsection. The authority granted under this paragraph
includes a contract entered into prior to the construction, acquisition and
installation of the eligible housing project authorizing the lessee, subject to
such terms and conditions as the state finds necessary or desirable and proper,
to provide for the construction, acquisition and installation of the buildings,
improvements and equipment to be included in the project by any means available
to the lessee and in the manner determined by the lessee.
     (f) Enter into and perform such contracts
and agreements with qualified housing sponsors as the respective boards of
directors may consider proper and feasible for or concerning the planning,
construction, installation, lease or other acquisition, and the financing of
the facilities of an eligible housing project. The contracts and agreements may
establish a body as may be considered proper for the supervision and general
management of the facilities.
     (g) Accept from an authorized agency of
the federal government loans or grants for the planning, construction,
acquisition, leasing or other provision of an eligible housing project and
enter into agreements with that agency respecting the loans or grants.
     (h) Execute and deliver letters of credit,
municipal bond insurance or other credit enhancement agreements supporting and
securing bonds described in paragraph (a) of this subsection. [2001 c.689 §2]
     456.695
Housing required to comply with land use plans, zoning and other ordinances. All housing units or projects for which
funds are advanced, loaned or otherwise provided by the Housing and Community
Services Department under ORS 456.515 to 456.725 and ORS chapter 458 must be in
compliance with any interim comprehensive land use plan or comprehensive land
use plan and zoning, subdivision and other ordinances and regulations and laws
of this state applicable to the lands upon which such projects are to be
constructed; or, if an interim comprehensive land use plan or comprehensive
land use plan is not in effect with respect to such lands, such units or
projects must be in compliance with generally accepted land use planning
standards. [1973 c.828 §21; 1995 c.79 §264]
     456.697
Restrictions on use of financing provided by department; regulation of housing
sponsor; security interests.
(1) Not more than 50 percent of the total amount of any financing provided by
the Housing and Community Services Department for a particular housing
development may be used to finance commercial, recreational, industrial,
communal or educational facilities. Profits from incidental elements shall be
applied to loans due under ORS 456.548 to 456.725.
     (2) A limited dividend housing sponsor
shall be restricted as to distribution of income and shall be regulated as to
rents, charges, rate of return and methods of operation as the department
determines necessary to carry out the purposes of ORS 456.548 to 456.725.
     (3) Not more than 50 percent of the total
amount of any financing provided by the department for a particular residential
housing development may be used to finance nonhousing facilities.
     (4) An insured or guaranteed residential
loan need not be secured by a first mortgage on real property but, unless the
loan is to a manufactured dwelling park nonprofit cooperative, shall be secured
by a security interest of first priority. If the insured or guaranteed loan is
to a manufactured dwelling park nonprofit cooperative, the loan shall be
secured by a security interest of first or second priority. [2007 c.607 §9]
     456.700
Pledge and lien. Any pledge,
commitment or reservation of funds made by the Housing and Community Services
Department under ORS 456.515 to 456.725 is valid and binding from the date on
which the pledge was executed as provided in ORS 286A.102. The lien of the
pledge is valid and binding as against all parties having any claims in tort,
contract or otherwise against the department whether or not the parties have
notice of the lien. [1973 c.828 §22; 1977 c.32 §2; 1995 c.79 §265; 2007 c.783 §203]
     456.705
Servicing loans. For the
servicing of any residential, manufactured dwelling, manufactured dwelling park
or manufactured dwelling park nonprofit cooperative loan made or acquired by
the Housing and Community Services Department under ORS 456.515 to 456.725 and
ORS chapter 458 the department may:
     (1) Provide for servicing of the loan by
its own staff.
     (2) Contract with the Director of Veterans’
Affairs for the performance of servicing functions for the loan.
     (3) For loans purchased by the department
under ORS 456.635, contract with the lending institution selling such loans or
any other lending institution for the servicing of such loans, subject to such
terms and conditions as the department considers necessary to protect the
interests of the department in such loans. The department may provide for the
payment of such fees for servicing performed by a lending institution under
this subsection as it considers necessary. [1973 c.828 §23; 1979 c.60 §8; 1979
c.327 §15; 1995 c.79 §266; 2007 c.607 §21]
     456.710
Payment of advances; use thereof; limitations. (1) The Housing and Community Services
Department may use moneys in the revolving account to make noninterest-bearing
advances to qualified nonprofit housing sponsors or interest-bearing advances
to other qualified housing sponsors for use in payment by such sponsors of the
development costs of proposed housing units or projects. The department may not
make any advance under this subsection unless the department may reasonably
anticipate that a residential, manufactured dwelling, manufactured dwelling
park or manufactured dwelling park nonprofit cooperative loan may be obtained
by the qualified housing sponsor for the permanent financing of the proposed housing
unit or project.
     (2) The proceeds of any advance granted by
the department under subsection (1) of this section may be used by the
qualified housing sponsor only for the development costs of a proposed housing
unit or project or housing development. Each advance so granted shall be repaid
in full, by the qualified housing sponsor for which the advance was granted, to
the department at the time of the receipt by the housing sponsor of the portion
of the loan paid under the initial indorsement of the loan, unless the
department extends the repayment period. The department may not extend the
repayment period past the date the qualified housing sponsor receives the
portion of the loan paid on final indorsement of the loan. [1973 c.828 §24;
1979 c.60 §9; 1981 c.691 §5; 2007 c.607 §22]
     456.715
Insurance of loans. (1) The
Housing and Community Services Department may insure residential, manufactured
dwelling, manufactured dwelling park and manufactured dwelling park nonprofit
cooperative loans or obtain reinsurance on such loans. All such loans shall be
used only to provide residential housing for persons and families of lower
income and the insured must agree to any restrictions placed upon such
residential housing by the department. The department may establish dedicated
accounts within the Housing Finance Fund to provide reserves against losses in
connection with that insurance.
     (2) All applications for residential loan
insurance under subsection (1) of this section shall be made on such forms and
accompanied by such application fee as the department may prescribe.
     (3) The department shall notify the
applicant of its determinations and the approval or denial of the application.
     (4) Notwithstanding subsection (1) of this
section, the department may insure loans for manufactured dwelling units,
manufactured dwelling parks and manufactured dwelling park nonprofit
cooperatives if the department determines that the unit, park or cooperative
has a significant percentage of residents who are persons of lower income. [1973
c.828 §§25,26; 1979 c.60 §10; 1979 c.327 §16; 2007 c.607 §23]
     456.717
Interim construction financing for multifamily housing. (1) The Housing and Community Services
Department may participate with a lending institution in providing interim construction
financing for multifamily housing projects. Subject to the discretion of the
department, such financing need not be insured or guaranteed.
     (2) As used in this section, “multifamily
housing” means, but is not limited to, projects which provide four or more
living units, which projects may provide spaces for common use by the occupants
in social and recreational activities. Projects under this section may include
such other nonhousing facilities incidental or appurtenant to the project as
the department determines improve the quality of the housing and the financial
feasibility of the project, provided that not more than 50 percent of the total
amount of financing provided by the department for a particular multifamily
housing project shall be used for such nonhousing facilities. [1979 c.327 §27;
1981 c.504 §10; 1993 c.1 §1; 1997 c.302 §2]
     456.720
Housing Finance Fund; Housing Development Account. (1) The Housing Finance Fund is established,
separate and distinct from the General Fund. The fund shall consist of the
proceeds from the sale of bonds issued under ORS 456.645 and related refunding
bonds, fees and other moneys received by the Housing and Community Services
Department under ORS 456.548 to 456.725, moneys appropriated by the state for
use by the department in carrying out ORS 456.548 to 456.725 and moneys made
available from any other source for use by the department under ORS 456.548 to
456.725.
     (2) Except as otherwise provided in this
section, moneys in the fund may be expended by the department for the purposes
authorized in ORS 456.548 to 456.725. Except as otherwise provided in this
section for a capital reserve account, the department may establish one or more
accounts within the fund for use in carrying out ORS 456.548 to 456.725.
     (3) There may be established within the
Housing Finance Fund capital reserve accounts. A capital reserve account shall
consist of the aggregate of moneys retained by the department, pursuant to
existing agreements with the bondholders, as the annual debt service reserve,
as described in ORS 456.655 (1), for each bond issue sold by the department
under ORS 456.645. All moneys in the account for an issue which the department
has determined a debt service reserve is required shall be used solely for the
payment of the principal and interest on the bonds as they mature, the purchase
of such bonds, the payment of interest on such bonds and the payment of any
redemption premium required to be paid by the department when any such bonds
are redeemed prior to maturity. Moneys in the account may not be withdrawn
therefrom at any time in such amount as would reduce the amount of moneys in
the account below the maximum amount of principal and interest maturing and
becoming due in the succeeding fiscal year on all such bonds then outstanding,
except for the purpose of paying principal of and interest and premium, if any,
on the bonds of the department maturing and becoming due and for the payment of
which other moneys in the Housing Finance Fund are not available.
     (4) Except as otherwise provided in
existing agreements with bondholders, any income or interest earned by or
accruing to the capital reserve account because of the investment by the
department of moneys within the account may be retained by the department in
the fund to apply to any future deficiency that may occur or may be used by the
department for the repayment of moneys in the revolving account that were
expended by the department pursuant to ORS 456.574 (2)(b).
     (5) In order to assure the continual
operation and maintenance of the capital reserve account in the Housing Finance
Fund and to carry out ORS 456.548 to 456.725, if the amount of money on deposit
in the capital reserve account in any year is less than the debt service
reserves described in ORS 456.655 (1), the Director of the Housing and
Community Services Department shall certify to the Governor and the Legislative
Assembly or, during the interim, to the Emergency Board the amount needed to
restore the account to its required debt service reserves. The amount so
certified by the director may be appropriated by the Legislative Assembly or,
during the interim, allocated by the Emergency Board and paid to the department
during the then current fiscal year for deposit in the capital reserve account.
     (6) For the purposes of this section, the
department shall annually value investments in the capital reserve account at
the amortized cost of the investments.
     (7) There is established within the
Housing Finance Fund a Housing Development Account. Moneys in this account are
hereby continuously appropriated to carry out the purposes of ORS 456.515 to
456.725 by contract, grant, loan or as otherwise determined necessary by the
department.
     (8)(a) The Housing Development Account
shall consist of moneys deposited or received by the department for the
purposes of this account from whatever source. Of the moneys deposited into the
account:
     (A) The department shall not use moneys
from its own resources for administrative expenses; and
     (B) The department may use moneys from
other sources for administrative expenses only to the extent provided by those
sources.
     (b) The department may return moneys
received or deposited in the account to the original source of the moneys, as
the director determines necessary.
     (9) Except as otherwise stipulated by the
source of funds, any income or interest earned by or accruing to the Housing
Development Account because of the investment by the department of moneys in
the account may be retained by the department for the uses of the account.
     (10) The department may enter into
agreements regarding use of moneys received for the Housing Development Account
with the source of the moneys, and may comply with the provisions of such
agreements. [1973 c.828 §27; 1975 c.97 §1; 1975 c.154 §6; 1987 c.567 §3; 1989
c.966 §51; 1995 c.79 §267; 2007 c.783 §203a]
     456.722
Preferences in funding grants to low-income housing providers; rules. (1)(a) The Housing and Community Services
Department shall, when awarding public funds for low-income rental housing,
give a substantial preference to low-income housing providers that do not
require applicants for such housing to have net income greater than two times
the rent.
     (b) As used in this section, “public funds”
includes all low-income rental housing grants, loans or tax credits
administered or awarded by the department, whether state, federal or otherwise,
but does not include funds derived from the sale of bonds by the department.
     (c) Enforcement of the preference
following an award of funds shall be by complaint to the department.
     (2) The department shall adopt any rules
necessary to implement this section. [1997 c.577 §41]
     Note: 456.722 was added to and made a part of
456.515 to 456.725 by legislative action but was not added to any smaller
series therein. See Preface to Oregon Revised Statutes for further explanation.
(Bonding)
     456.723
Legislative finding on bonding authority of department. The Legislative Assembly finds that:
     (1) There exists a shortage of safe,
affordable and readily available housing in this state, particularly for people
of low income, fixed income or modest means.
     (2) It is in the best interests of the
people of this state to insure that there is an adequate supply of housing for
people of all income levels, particularly low-income people, in order to
reduce:
     (a) The number of people who are homeless
or who live in inadequate housing in this state; and
     (b) Dependence on various state services
that exist because of the needs created by homelessness and inadequate housing.
     (3) The Housing and Community Services
DepartmentÂ’s authority to issue bonds is an effective tool that will increase
funds available to provide safe, affordable housing and reduce homelessness in
this state. [1989 c.719 §1]
     Note: Section 4, chapter 746, Oregon Laws 2007,
provides:
     Sec.
4. (1) Pursuant to ORS
286.560 to 286.580 [renumbered 286A.560 to 286A.585], lottery bonds may be
issued for the Housing and Community Services Department to provide housing for
populations at risk of homelessness through facilitating development, including
funding construction, renovation and supportive services, of housing units.
     (2) The use of lottery bond proceeds is
authorized based on the following findings:
     (a) Individuals who are at risk of
homelessness increase their potential for self-sufficiency, and use
proportionately fewer community-funded resources when they are provided a
stable housing environment including appropriate services.
     (b) Having housing for at-risk populations
is essential to
     (3) The aggregate principal amount of
lottery bonds issued pursuant to subsection (1) of this section by the Housing
and Community Services Department may not exceed the amount of $16 million and
an additional amount estimated by the State Treasurer to be necessary to pay
bond-related costs as defined in ORS 286.560 [renumbered 286A.560]. [2007 c.746
§4]
DISCRIMINATION
     456.725
Discrimination against purchaser with children prohibited; exceptions; rules. (1) Unless the qualified housing sponsor, as
defined in ORS 456.548, has agreed not to discriminate against the initial
dwelling unit purchaser or any tenant who is a parent or legal guardian with
whom a child resides or is expected to reside, the housing sponsor shall not be
entitled to any benefits for the construction, substantial rehabilitation or
permanent financing of multiple unit residential housing or owner occupied
dwelling units in condominiums or cooperatives from any of the following:
     (a) Any state financed or sponsored
housing program.
     (b) Any tax exemption or limited
assessment under ORS 307.600 to 307.637 or 308.450 to 308.481.
     (2) Subsection (1) of this section does
not apply where the dwelling units are occupied exclusively by households, the
heads of which are 58 years or older.
     (3) The Housing and Community Services
Department shall adopt rules to establish and implement a grievance procedure
for any unit purchaser or tenant who alleges violation of subsection (1) of
this section whereby the grievance can be resolved by means of conciliation.
Nothing in this section limits the right of the Housing and Community Services
Department to enforce subsection (1) of this section by other appropriate
remedies.
     (4) The city shall terminate the exemption
under ORS 307.600 to 307.637 upon a finding that the qualified housing sponsor
which has the exemption has violated subsection (1) of this section.
     (5) The governing body shall terminate the
limited assessment under ORS 308.450 to 308.481 upon a finding that the
qualified housing sponsor which has the limited assessment has violated
subsection (1) of this section.
     (6) Nothing in this section prevents the
qualified housing sponsor from limiting the number of occupants in a unit
depending on the number of rooms in compliance with a schedule adopted by rule
by the Housing and Community Services Department or by local ordinance adopted
by the governing body.
     (7) Nothing in this section requires or
prohibits a qualified housing sponsor from providing facilities to accommodate
the children of tenants. [1981 c.451 §1; 1987 c.414 §20]
     456.727 [1987 c.414 §11; repealed by 1993 c.744 §4]
     456.730 [1975 c.676 §1; renumbered 455.510 in 1987]
     456.732 [1987 c.414 §12; repealed by 1993 c.744 §4]
     456.735 [1975 c.676 §2; 1983 c.764 §1; renumbered
455.520 in 1987]
     456.737 [1987 c.414 §13; repealed by 1993 c.744 §4]
     456.740 [1975 c.676 §4; 1981 c.495 §1; renumbered
455.525 in 1987]
     456.741 [1987 c.414 §13a; repealed by 1993 c.744 §4]
     456.742 [Formerly 456.745; renumbered 455.530 in
1987]
     456.744 [1977 c.354 §3; renumbered 455.565 in 1987]
     456.745 [1975 c.676 §5; renumbered 456.742 and then
455.530]
     456.746 [1977 c.354 §2; renumbered 455.560 in 1987]
     456.747 [1977 c.354 §4; renumbered 455.570 in 1987]
     456.748 [1977 c.354 §5; renumbered 455.575 in 1987]
     456.749 [1977 c.354 §6; renumbered 455.580 in 1987]
     456.750 [1973 c.834 §1; renumbered 455.010 in 1987]
     456.752 [1987 c.414 §13b; 1993 c.744 §250a;
renumbered 701.285 in 1993]
     456.753 [1977 c.816 §2; renumbered 456.915 and then
455.310]
     456.755 [1973 c.834 §2; 1979 c.838 §4; 1983 c.740 §179;
renumbered 455.020 in 1987]
     456.756 [1975 c.571 §2; renumbered 455.410 in 1987]
     456.757 [Formerly 670.330; repealed by 1993 c.744 §252]
     456.758 [1975 c.646 §2; renumbered 456.917 and then
455.315]
     456.760 [1973 c.834 §3; 1975 c.607 §35; 1977 c.283 §3;
1979 c.875 §1; 1981 c.421 §3; 1987 c.58 §14; renumbered 455.210 (1) to (5) in
1987]
     456.762 [Formerly 670.340; repealed by 1993 c.744 §252]
     456.763 [1977 c.546 §§2,3; renumbered 455.420 in
1987]
     456.765 [1973 c.834 §4; repealed by 1977 c.283 §6]
     456.770 [1973 c.834 §5; renumbered 455.110 in 1987]
     456.772 [1977 c.422 §§2,3; renumbered 455.425 in
1987]
     456.775 [1973 c.834 §6; 1977 c.283 §5; 1979 c.838 §5;
renumbered 455.040 in 1987]
     456.780 [1973 c.834 §7; renumbered 455.130 in 1987]
     456.785 [1973 c.834 §9; 1977 c.494 §1; renumbered
455.030 in 1987]
     456.787 [1979 c.838 §2; renumbered 455.635 in 1987]
     456.790 [1973 c.834 §10; renumbered 455.100 in 1987]
     456.795 [1973 c.834 §11; repealed by 1987 c.414 §172]
     456.800 [1973 c.834 §12; 1987 c.414 §30d; 1987 c.604
§10; renumbered 455.150 in 1987]
     456.802 [1977 c.396 §1; renumbered 455.080 in 1987]
     456.803 [1981 c.421 §2; renumbered 455.160 in 1987]
     456.805 [1973 c.834 §13; renumbered 455.715 in 1987]
     456.810 [1973 c.834 §14; 1981 c.343 §3; renumbered
455.720 in 1987]
     456.815 [1973 c.834 §15; renumbered 455.725 in 1987]
     456.820 [1973 c.834 §16; 1977 c.748 §2; renumbered
455.730 in 1987]
     456.825 [1973 c.834 §18; renumbered 455.735 in 1987]
     456.830 [1973 c.834 §17; repealed by 1977 c.283 §6]
     456.835 [1973 c.834 §19; renumbered 455.740 in 1987]
     456.837 [Formerly 446.337; renumbered 455.680 in
1987]
     456.840 [1973 c.834 §20; renumbered 455.685 in 1987]
     456.842 [1977 c.283 §2; renumbered 455.070 in 1987]
     456.845 [1973 c.834 §21; renumbered 455.060 in 1987]
     456.850 [1973 c.834 §22; renumbered 455.690 in 1987]
     456.855 [1973 c.834 §23; renumbered 455.700 in 1987]
     456.860 [1973 c.834 §25; 1977 c.283 §4; renumbered
455.220 in 1987]
     456.865 [1973 c.834 §26; repealed by 1977 c.283 §6]
     456.870 [1973 c.834 §27; repealed by 1977 c.283 §6]
     456.875 [1973 c.834 §28; renumbered 455.675 in 1987]
     456.880 [1973 c.834 §29; renumbered 455.430 in 1987]
     456.885 [1973 c.834 §24; 1975 c.418 §1; 1979 c.838 §6;
subsection (1) renumbered 455.450 in 1987; subsection (2) renumbered 455.990 in
1987]
     456.887 [1975 c.466 §24; renumbered 455.050 in 1987]
     456.890 [1973 c.834 §38; 1975 c.721 §11; 1983 c.676 §30;
renumbered 455.230 in 1987]
     456.910 [1974 s.s. c.24 §2; renumbered 455.240 in
1987]
     456.915 [Formerly 456.753; renumbered 455.310 in
1987]
     456.917 [Formerly 456.758; renumbered 455.315 in
1987]
     456.920 [1979 c.838 §3; renumbered 455.320 in 1987]
     456.925 [1979 c.860 §2; renumbered 455.325 in 1987]
     456.930 [1979 c.860 §3; renumbered 455.330 in 1987]
     456.935 [1979 c.860 §4; renumbered 455.335 in 1987]
     456.940 [1979 c.860 §5; renumbered 455.340 in 1987]
     456.945 [1979 c.838 §6; 1979 c.860 §6; renumbered
455.345 in 1987]
     456.950 [1979 c.838 §7; 1979 c.860 §7; renumbered
455.350 in 1987]
     456.965 [Formerly 460.210; renumbered 455.640 in
1997]
     456.970 [Formerly 460.220; renumbered 455.642 in
1997]
     456.975 [Formerly 460.230; renumbered 455.645 in 1997]
_______________
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