Chapter 540 Oregon Laws 2001

AN ACT

HB 2270

Relating to historic property; creating new provisions; amending ORS 197.772, 310.160, 310.165, 311.280, 358.475, 358.480, 358.482, 358.487, 358.490, 358.495, 358.499, 358.505, 358.509, 358.511, 358.515, 358.525, 358.528, 358.535, 358.540, 358.543, 358.545, 358.565, 447.145 and 527.710; repealing ORS 358.485 and 358.507; and appropriating money.

Be It Enacted by the People of the State of Oregon:

HISTORIC PRESERVATION POLICY

SECTION 1. ORS 358.475 is amended to read:

358.475. The Legislative Assembly hereby declares that it is in the best interest of the state to maintain, preserve and rehabilitate properties of Oregon historical significance. [Special assessment provides] Historic preservation incentive programs provide a public benefit by encouraging preservation and appropriate rehabilitation of significant historic properties. These historically significant portions of the built environment contain the visual and intellectual record of our irreplaceable cultural heritage. They link us with our past traditions and values, establish standards and perspectives for measuring our present achievements and set goals for future accomplishments. To the extent that Oregon’s [special assessment program encourages] historic preservation incentive programs encourage the preservation and appropriate rehabilitation of significant historical property, [it creates] the programs create a positive partnership between the public good and private property that promotes economic development; tourism; energy and resource conservation; neighborhood, downtown and rural revitalization; efficient use of public infrastructure; and civic pride in our shared historical and cultural foundations.

HISTORIC PROPERTY SPECIAL ASSESSMENT

SECTION 2. ORS 358.480 is amended to read:

358.480. As used in ORS [358.475] 358.480 to 358.545, unless the context requires otherwise:

(1) “Governing body” means the city or county legislative body having jurisdiction over the property for which a limited assessment may be applied for under ORS [358.475] 358.480 to 358.545.

[(2) “Historic property” means real property that is currently listed in the National Register of Historic Places, established and maintained under the National Historic Preservation Act of 1966 (P.L. 89-665) or if the National Register of Historic Places ceases accepting nominations, the property is approved for listing on an Oregon register of historic places, that is open to the public for sight-seeing at least one day in each calendar year in accordance with rules adopted by the State Historic Preservation Officer and that meets the minimum standards of maintenance established by rule of the State Historic Preservation Officer.]

(2) “Historic property” means real property that:

(a) Is currently listed in the National Register of Historic Places established and maintained under the National Historic Preservation Act of 1966 (P.L. 89-665) or, if the National Register of Historic Places ceases accepting nominations, that is approved for listing on an Oregon register of historic places;

(b) Is open to the public for sight-seeing at least one day in each calendar year in accordance with rules adopted by the State Historic Preservation Officer; and

(c) Meets the minimum standards of maintenance established by rule of the State Historic Preservation Officer.

(3) “Maintenance” means action taken to mitigate wear and deterioration of a historic property without altering the historic character of the property, including action taken to protect and repair the condition of the property with the least possible impact on the historic character of the property.

[(3)] (4) “Owner” includes a purchaser under a recorded instrument of sale.

(5) “Preservation:”

(a) Means the act or process of applying measures necessary to sustain the existing form, integrity and materials of a historic property, including but not limited to the ongoing maintenance and repair of historic materials.

(b) Does not include the extensive replacement of historic materials or new construction.

(6) “Rehabilitation” means the process of repairing or altering a historic property in order to return the property to a state of utility in which an efficient contemporary use is possible, while preserving those portions and features of the property that are significant to the historic, architectural and cultural values of the property.

SECTION 3. ORS 358.482 is amended to read:

358.482. (1) As used in ORS [358.475] 358.480 to 358.545:

(a) “Americans with Disabilities Act” means the Americans with Disabilities Act of 1990 (P.L. 101-336), as amended.

(b) “Commercial property” means real property used in a trade or business or held for the production of income, including multifamily residential rental property.

[(c) “Historic property” has the meaning given the term in ORS 358.480 but does not include tertiary property.]

[(d)] (c) “Preservation plan” means a written preservation, maintenance and rehabilitation proposal submitted by the owner with the application for classification and special assessment as historic property[, as approved and] that has been approved by the State Historic Preservation Officer, or as [it may from time to time be] amended and reapproved by the State Historic Preservation Officer, and that is in compliance with standards and guidelines for rehabilitation and rules adopted by the State Historic Preservation Officer.

[(e)] (d) “Renovation plan” means a written proposal submitted by an owner of commercial property in connection with a reapplication for special assessment pursuant to ORS 358.540 (3) that is in compliance with rules adopted by the State Historic Preservation Officer for the submission and content of renovation plans.

[(f)] (e) “Review committee” means the Historic Assessment Review Committee established under ORS 358.511.

[(g)] (f) “Seismic improvement” means construction or other measures that improve the seismic performance or structural stability of property, or that reduce the potential for heavy structural damage to property in the event of an earthquake.

[(h)] (g) “Standards and guidelines for rehabilitation” means the standards and guidelines, based on those developed by the United States Secretary of the Interior, adopted by the State Historic Preservation Officer to determine sufficiency of preservation plans, maintenance, alteration and construction for a specific property.

[(i) “Tertiary property” means any property that does not have a primary contributing, secondary contributing, historic noncontributing or noncontributing ranking in a National Register Historic District or similar property described as tertiary under rules adopted by the State Historic Preservation Officer.]

(2) Except as otherwise specifically provided, the definitions contained in this section apply to property first classified and assessed as historic property on or after July 1, 1996.

SECTION 4. ORS 358.487 is amended to read:

358.487. (1)(a) [Except as provided under paragraph (b) of this subsection, on or before April 1 of an assessment year,] An owner of historic property desiring classification and special assessment under ORS [358.475] 358.480 to 358.545 for the property may make application for the classification and special assessment to the State Historic Preservation Officer on forms approved by the State Historic Preservation Officer. The forms shall include or be accompanied by the written consent of the owner to the viewing of the property by the State Historic Preservation Officer [and by the Historic Assessment Review Committee]. Any application made under this [paragraph] subsection shall include a preservation plan and be sent by the State Historic Preservation Officer to the appropriate county assessor, local landmark commission and governing body. An application must be made during the calendar year preceding the first property tax year for which classification and special assessment as historic property is desired.

(b) Classification and special assessment pursuant to an application made under this [paragraph] subsection shall be granted only for [the tax year beginning in the calendar year in which the application is made and for the 14 tax years immediately following] 15 consecutive property tax years, commencing in the tax year beginning on the July 1 following the calendar year in which the application was made.

[(b) If the property for which the owner desires classification and special assessment as historic property is acquired after March 1 and before July 1 of the first year for which classification and special assessment are desired, the application required under paragraph (a) of this subsection may be made within 30 days after the date of acquisition.]

(2) An owner may make preliminary application for classification of property as historic upon approval by the State Advisory Committee on Historic Preservation of the nomination of the property for listing on the National Register of Historic Places or, if the National Register of Historic Places ceases accepting nominations, the nomination of the property for listing on an Oregon register of historic places. The preliminary application shall be considered an application made or received for purposes of subsection (1) of this section, ORS 358.490 or 358.495 or other law, if the property is actually listed in the National Register of Historic Places or, if the National Register of Historic Places ceases accepting nominations, the property is approved for listing on an Oregon register of historic places by September 15 of the year for which classification and special assessment are first desired. If the property is not listed on the National Register of Historic Places or, if the National Register of Historic Places ceases accepting nominations, the property is not approved for listing on an Oregon register of historic places by September 15 of the year for which classification and special assessment are first desired, then the preliminary application shall be considered an application made or received for purposes of subsection (1) of this section, ORS 358.490 or 358.495 or other law, for the tax year next beginning after the date the property is actually listed.

(3) Immediately upon receipt of a copy of the application under subsection (1) of this section, the county assessor shall review the application for accuracy and completeness of description and other matters within the expertise of the county assessor and shall make recommendations regarding the classification to the State Historic Preservation Officer.

(4) Immediately upon receipt of a copy of the application under subsection (1) of this section, the governing body shall review the application for matters relating to public benefit and shall make recommendations regarding the classification to the State Historic Preservation Officer.

(5) By making application for classification and assessment under this section, the owner consents that the State Historic Preservation Officer has access to the property for inspection at reasonable times to ensure that the terms of the national register or other federal or state laws or requirements are being met.

(6) The application for classification and assessment under ORS [358.475] 358.480 to 358.545 [shall] may not be processed unless accompanied by a nonrefundable fee of [one-fifth of one] one-third of one percent of the real market value of the property for the year in which application is made. The fee shall be deposited in the State Parks and Recreation Department Fund for use by the State Parks and Recreation Director or for transfer to the Oregon Property Management Account established under ORS 358.680 to 358.690, upon the advice of the State Advisory Committee on Historic Preservation.

SECTION 5. ORS 358.490 is amended to read:

358.490. (1) After an application is filed under ORS 358.487, the [Historic Assessment Review Committee] State Historic Preservation Officer shall review the application and may view the premises. [Within 30 days of receipt of a complete application, the review committee] After determining that the application is complete, the State Historic Preservation Officer shall approve, approve with conditions or deny the application. The [review committee shall] State Historic Preservation Officer may not disapprove the application solely because of the potential loss of revenue that may result from granting the application.

(2) During the review process of each application,[:]

[(a)] the State Historic Preservation Officer [and the review committee] shall consider the county assessor’s and governing body’s recommendations submitted under ORS 358.487 (3) and (4)[; and]

[(b) The review committee shall consider the State Historic Preservation Officer’s evaluation of the preservation plan].

(3) The [review committee] State Historic Preservation Officer may approve the application with respect to only part of the property [which] that is the subject of the application. However, if any part of the application is denied, the applicant may withdraw the application.

(4) A preservation plan that has been approved by the State Historic Preservation Officer [as approved by the review committee as part of the application process] may be amended from time to time, either at the request of the owner or at the request of the State Historic Preservation Officer[, and]. The amendments may be approved, approved in part or disapproved by [the review committee under rules adopted by] the State Historic Preservation Officer. To the extent the amendments are approved [by the review committee], amendments shall become part of the preservation plan [which] that must be carried out in order that the property not be disqualified as historic property.

SECTION 6. ORS 358.495 is amended to read:

358.495. (1) Immediately following approval or disapproval of an application under ORS 358.490, the State Historic Preservation Officer shall notify the county assessor, the governing body and the applicant which shall in no event be later than September 15 of the [assessment] tax year for which classification and special assessment are first desired. In no event later than September 15 of the year for which classification and special assessment are desired, the State Historic Preservation Officer shall cause a copy of the preservation plan approved under ORS 358.490 to be delivered or mailed to the county assessor and the governing body. An application not denied on or before September 15 shall be deemed approved, and the property [which] that is the subject of the application shall be considered to be historic property [which] that qualifies under ORS [358.475] 358.480 to 358.545.

(2) [When the Historic Assessment Review Committee] If the State Historic Preservation Officer determines that the historic property qualifies under ORS [358.475] 358.480 to 358.545, the State Historic Preservation Officer shall certify that fact in writing and shall file a copy of the certificate with the county assessor and the governing body. The certificate shall state the facts upon which the approval [or denial] was based and list any condition on which approval is based. The county assessor, as to any [such] historic property, shall assess on the basis provided in ORS 358.505, and each year the historic property is classified and so assessed shall also enter on the assessment and tax roll that the property is being specially assessed as historic property and is subject to potential additional taxes as provided in ORS 358.525 by adding the notation “historic property (potential additional tax).”

(3) If the State Historic Preservation Officer determines that the property does not qualify for classification and assessment under ORS 358.480 to 358.545, the State Historic Preservation Officer shall give written notice of the denial to the applicant. The notice shall state the reasons for the denial.

[(3)] (4)(a) Any owner, governing body or county assessor affected by a determination of the [review committee or] State Historic Preservation Officer made under ORS [358.475 to 358.565] 358.480 to 358.545 may request a contested case hearing [before the State Historic Preservation Officer] according to the provisions of ORS 183.310 to 183.550.

(b) After a contested case hearing has been held, the hearing officer shall present the proposed order to the Historic Assessment Review Committee. The review committee shall determine the final order in the case.

SECTION 7. ORS 358.499 is amended to read:

358.499. (1) Property first classified and specially assessed as historic property for a tax year beginning on or before July 1, 1994, shall continue to be so classified, specially assessed and removed from special assessment as provided under ORS [358.475] 358.480 to 358.545 as those sections were in existence and in effect on December 31, 1992.

[(2) Property shall not be granted classification and special assessment as historic property pursuant to application filed pursuant to ORS 358.485 and first applicable for the tax year 1995-1996.]

[(3)] (2) Property may be classified and specially assessed under ORS [358.475] 358.480 to 358.545 pursuant to application filed under ORS 358.487 on or after September 9, 1995, and first applicable for the tax year 1996-1997 or any tax year thereafter.

[(4)] (3) Property [shall] may not be classified and specially assessed pursuant to application filed under ORS 358.487 if the application is filed on or after July 1, [2002] 2010.

SECTION 8. ORS 358.505 is amended to read:

358.505. (1)(a) The county assessor shall, for the 15 consecutive [assessment] tax years elected under ORS [358.485 or 358.487, whichever is applicable,] 358.480 to 358.545, list on the assessment and tax roll a specially assessed value for property classified as historic property [at] that equals the assessed value of the property at the time application for classification was made.

(b) Notwithstanding paragraph (a) of this subsection, if the property that is the subject of the application was exempt or specially assessed at the time the application for classification was made, the county assessor shall, for the 15 consecutive tax years elected under ORS 358.480 to 358.545, list on the assessment and tax roll a specially assessed value for the property that equals the product of the real market value of the property for the tax year in which the application was made multiplied by the ratio of the average maximum assessed value over the average real market value for that tax year of property in the same area and property class.

[(b)] (c) If a reapplication for classification and special assessment filed pursuant to ORS 358.540 (3) is approved under ORS 358.490, the county assessor shall, for 15 consecutive [assessment] tax years after the date of the filing of the reapplication, list on the assessment and tax roll a specially assessed value for the property that was the subject of the reapplication [at the assessed value of the property, without any adjustment to value made under ORS 358.475 to 358.545, at the time reapplication under ORS 358.540 (3) was made] that equals the product of the real market value of the property for the assessment year in which the reapplication is made multiplied by the ratio of the average maximum assessed value over the average real market value for the assessment year of property in the same area and property class.

(2)(a) For the first tax year of a 15-year period of historic property special assessment, notwithstanding ORS 308.149 (2), the maximum assessed value of property subject to historic property special assessment shall equal the specially assessed value of the property under subsection (1) of this section multiplied by the ratio, not greater than 1.00, of the maximum assessed value the property would have had if the property were not specially assessed over the real market value of the property.

(b) For each tax year after the first tax year in which the property is subject to special assessment as historic property and before the conclusion of the 15-year period of historic property special assessment, the property’s maximum assessed value subject to special assessment shall equal 103 percent of the property’s assessed value from the prior year or 100 percent of the property’s maximum assessed value subject to special assessment from the prior year, whichever is greater.

(3) The assessed value of property that is classified as historic property for the tax year shall equal the lesser of:

(a) The property’s specially assessed value as determined under subsection (1) of this section; or

(b) The property’s maximum assessed value as determined under subsection (2) of this section.

[(2)] (4) Except as provided under ORS 358.487 (2), the entitlement of property to the special assessment provisions of this section shall be determined as of July 1. If the property becomes disqualified on or after July 1, its assessment for that year shall continue as provided in this section.

[(3)] (5) Assessed value, as defined and determined under ORS 308.146 [and 308.205], shall be determined for property classified as historic property by the county assessor each year. The assessed value so determined for any year shall be subject to appeal to the county board of property tax appeals within the time and in the manner provided in ORS chapter 309 and shall be subject to appeal thereafter to the Oregon Tax Court and to the Oregon Supreme Court within the time and in the manner provided for appeals of value determination for purposes of ad valorem property taxation.

[(4)] (6) The Department of Revenue, in consultation with the State Historic Preservation Officer, shall adopt rules within its area of expertise that are necessary to the implementation of ORS [358.475] 358.480 to 358.545.

SECTION 9. ORS 358.509 is amended to read:

358.509. If the county assessor, local landmark commission[,] or governing body [or Historic Assessment Review Committee] has reason to believe that property classified as historic property is not being maintained, rehabilitated or preserved as required under the preservation plan approved for the property, as amended, or as required under rules established by the State Historic Preservation Officer, or otherwise no longer qualifies for classification and special assessment as historic property, the county assessor, local landmark commission[,] or governing body [or review committee] shall request the State Historic Preservation Officer to determine if the property continues to qualify. The request shall be in writing and state the reasons why the continuing qualification is questioned. Upon receipt of the request, the State Historic Preservation Officer may initiate a continuing qualification review. If a review is initiated, the State Historic Preservation Officer or designee of the officer shall inspect the property and may take whatever steps are necessary to determine if the property continues to qualify for special assessment including a request for a report under ORS 358.535. The State Historic Preservation Officer shall notify the county assessor of the determination made pursuant to the request within 60 days after the request is received. A determination by the State Historic Preservation Officer that the property no longer qualifies shall constitute a discovery described in ORS 358.515 (1)(c).

SECTION 10. ORS 358.511 is amended to read:

358.511. (1) There is established an Historic Assessment Review Committee consisting of three members appointed by the Governor. [State Historic Preservation Officer and representing each of the following interests:]

[(a) The interests of the State Historic Preservation Officer;]

[(b) The interests of the Oregon State Association of County Assessors; and]

[(c) The interests of local historic preservation organizations.]

(2) The term of office of each member is four years, but a member serves at the pleasure of the [State Historic Preservation Officer. Before the expiration of the term of a member, the State Historic Preservation Officer shall appoint a successor whose term begins on the July 1 next following] Governor. A member is eligible for reappointment. [If there is a vacancy for any cause, the State Historic Preservation Officer shall make an appointment to become immediately effective for the unexpired term.] A member whose term has expired shall continue to serve until a successor has been appointed.

(3) Appointments to the review committee shall be based on representation of interests of the county assessors, historic preservation interests and local government.

(4) A majority of the members of the review committee constitutes a quorum for the transaction of business.

SECTION 11. ORS 358.515 is amended to read:

358.515. (1) When property has once been classified and assessed as historic property pursuant to application filed under ORS [358.485 or 358.487] 358.480 to 358.545, it shall remain so classified and be granted the special assessment provided by ORS 358.505 until the property becomes disqualified for such classification and assessment by:

(a) Written notice by the taxpayer to the assessor to remove the special assessment.

(b) Sale or transfer to an ownership making it exempt from property taxation.

(c) Removal of the special assessment by the assessor upon discovery that the property no longer qualifies as historic property because it is not in compliance with the preservation plan applicable to the property or for other reason.

(2)(a) The sale or transfer to a new owner or transfer by reason of death of a former owner to a new owner [shall] does not operate to disqualify the property from the special assessment provided by ORS 358.505 so long as the property continues to qualify as historic property.

(b) The new owner shall notify the State Historic Preservation Officer of the sale or transfer of ownership within 60 days after the date that the documents described in ORS 93.040 are recorded.

(3) When, for any reason, the property or any portion thereof ceases to qualify as historic property, the owner at the time of change shall notify the assessor and the State Historic Preservation Officer of the change prior to the next January 1 assessment date.

SECTION 12. ORS 358.525 is amended to read:

358.525. (1) Except as provided in subsection (4) of this section, whenever property [which] that has received special assessment as historic property [pursuant to application filed under ORS 358.485 or 358.487] under ORS 358.480 to 358.545 thereafter becomes disqualified for such assessment as provided in ORS 358.515, there shall be added to the tax extended against the property on the next general property tax roll, to be collected and distributed in the same manner as the remainder of real property tax, additional taxes equal to the difference between the taxes assessed against the property and the taxes that would otherwise have been assessed against the property for each of the last 15 years (or such lesser number of years, corresponding to the years of assessment as historic property applicable to the property) as of January 1 of the assessment year for which the property was disqualified for special assessment plus an amount equal to the sum of the interest on each year’s additional taxes computed under ORS 311.505 from November 15 of the tax year for which back taxes are being added to July 1 of the tax year of disqualification.

(2) Whenever property that has received special assessment as historic property under ORS 358.505 becomes disqualified for such assessment and either notice required by ORS 358.515 (3) is not given, the assessor shall determine the date that the notice should have been given, shall notify the owner thereof and, notwithstanding ORS 311.235, there shall be added to the tax extended against the property on the next general property tax roll, to be collected and distributed in the same manner as the remainder of the real property tax, in full payment of all taxes and penalties accruing from the disqualification, the sum of the following:

(a) Additional taxes equal to the difference between the total amount of taxes that would have been due on the property for each year, not to exceed the last 15 years, in which special assessment under ORS 358.505 was in effect for the property (even though erroneously) and the taxes [which] that would have been due had special assessment not been in effect plus an amount equal to the sum of the interest on each year’s additional taxes computed under ORS 311.505 from November 15 of the tax year for which additional taxes are being added to July 1 of the tax year of disqualification, plus

(b) An additional penalty of 15 percent of the amount in paragraph (a) of this subsection.

(3) Prior to adding to the tax extended against the property on the next general property tax roll of any additional taxes or penalty imposed by subsection (1) or (2) of this section, in the case of disqualification pursuant to ORS 358.515 (1)(c), the assessor shall notify the owner of the property by mail, return receipt requested, of the disqualification.

(4) [No] Additional tax or penalty [shall] may not be imposed under subsection (1) or (2) of this section upon the sale or transfer to an ownership making it exempt from property taxation. [No] Additional tax or penalty [shall] may not be imposed under subsection (1) or (2) of this section if the historic property is destroyed by fire or act of God.

(5) The amount determined to be due under subsection (1) or (2) of this section may be paid to the tax collector prior to the completion of the next general property tax roll, pursuant to ORS 311.370.

(6) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate.

SECTION 12a. Section 12b of this 2001 Act is added to and made a part of ORS 358.480 to 358.545.

SECTION 12b. (1) Notwithstanding ORS 358.525, whenever property that has received special assessment as historic property under ORS 358.480 to 358.545 thereafter becomes disqualified for historic property assessment as the result of a written notice given by the taxpayer pursuant to ORS 358.515 (1)(a), additional taxes shall be added to the tax extended against the property as prescribed in ORS 358.525 (1), but interest may not be added to the additional taxes if within two years following the date of disqualification:

(a) The property has been classified for special assessment as historic property under ORS 358.480 to 358.545; and

(b) The property owner has spent an amount implementing an approved preservation plan for the property that equals or exceeds five times the amount of interest that would otherwise be payable under ORS 358.525 (1).

(2) If the property owner files a written request with the county assessor, for the period of time from the disqualification of the property until the earlier of the time the assessor determines that the requirements of subsection (1) of this section have been met or two years following the date of disqualification, interest that would otherwise be added to the additional taxes due under ORS 358.525 may not be extended against the property but shall remain a potential liability on the assessment and tax roll. If the assessor determines that the requirements of subsection (1) of this section are met, the interest shall be canceled. If the assessor determines that the requirements of subsection (1) of this section have not been met, the interest shall be added to the tax extended against the property as prescribed in ORS 358.525 (1).

SECTION 12c. Section 12b of this 2001 Act applies to property that is both disqualified from historic property special assessment pursuant to ORS 358.515 (1)(a) and subsequently classified as historic property on or after January 1, 2001.

SECTION 13. ORS 358.528 is amended to read:

358.528. When any property has been classified and assessed as historic property under ORS [358.475] 358.480 to 358.545 and the owner or other qualified person applies for a change in the classification under another special assessment program, the applicant shall have 30 days thereafter within which to withdraw the application, by giving written notice to the public official or agency to whom the applicant applied for the change in classification. If no notice of withdrawal is given by the applicant, the application shall be acted upon and the change in classification made, as otherwise provided by law.

SECTION 14. ORS 358.535 is amended to read:

358.535. The State Historic Preservation Officer shall at all times be authorized to demand and receive reports from owners of property classified [pursuant to application filed under ORS 358.485 or 358.487] as historic property under ORS 358.480 to 358.545 as to the continued qualification of the [same for classification as] property for historic property classification. The content of reports and times for reporting shall be determined by the State Historic Preservation Officer. If the owner [shall fail] fails, after 30 days’ written notice by mail, return receipt requested, to comply with such demand, the State Historic Preservation Officer shall immediately notify the assessor and the assessor shall withdraw the property from classification and apply the penalties provided by ORS 358.525.

SECTION 15. ORS 358.540 is amended to read:

358.540. (1) Property classified as historic property [pursuant to application filed under ORS 358.485 or 358.487 shall be] under ORS 358.480 to 358.545 is entitled to any other exemption or special assessment provided by law.

(2) Property that has received special assessment [pursuant to application filed under ORS 358.485 or 358.487] under ORS 358.480 to 358.545 for 15 years, at the completion of the 15-year term, is disqualified from historic property special assessment and is not again eligible for special assessment under ORS [358.475] 358.480 to 358.545.

(3)(a) Notwithstanding subsection (2) of this section, following completion of the initial 15-year period of historic property classification and disqualification under subsection (2) of this section, the owner of commercial property classified as historic property [pursuant to application filed under ORS 358.485 or 358.487] may reapply under ORS 358.487 for one additional 15-year period of special assessment under ORS [358.475] 358.480 to 358.545. Following completion of the second 15-year term of special assessment, the historic commercial property shall be disqualified from historic property special assessment and is not again eligible for special assessment under ORS 358.480 to 358.545.

(b) A reapplication filed under this subsection, in addition to containing all of the information required of an application filed under ORS 358.487, shall be accompanied by a renovation plan detailing measures to be taken for purposes of Americans with Disabilities Act compliance, seismic improvement measures or energy conservation measures, the costs associated with the measures and a schedule of the dates on which work on the measures will be begun and completed.

(c) A reapplication filed under this subsection that in other respects is in compliance with the application requirements of ORS 358.487 may be approved only upon a finding by the State Historic Preservation Officer that the renovation plan submitted with the reapplication will, if implemented, result in a significant investment in the historic property that promotes compliance with Americans with Disabilities Act requirements or that results in seismic improvements or energy conservation improvements to the property. If approved, the renovation plan shall be considered an amendment to and part of the preservation plan filed with the reapplication and in effect for the property.

(d) The State Historic Preservation Officer may adopt rules under this subsection, including rules that provide:

(A) The minimum amount of investment that must be made in order for the investment to be considered a significant investment.

(B) The minimum amount of seismic improvement to the property that must be contemplated in the renovation plan in order for the plan to be approved.

(C) The minimum level of energy conservation improvements that must be contemplated in the renovation plan in order for the plan to be approved.

(D) The maximum amount of time between the date of filing of the reapplication and the date of completion of the measures described in the renovation plan in order for the renovation plan to be approved.

SECTION 16. ORS 358.543 is amended to read:

358.543. (1) Any additions made that are historically accurate reconstructions of once extant features or necessary for safety or disabled access or required by building code requirements may be classified as not being “new construction” by the State Historic Preservation Officer if the State Historic Preservation Officer so determines after request is made by the owner.

(2) A request to have an addition classified as not being “new construction” must be made in writing and must be accompanied by written documentation that demonstrates that the addition is a historically accurate reconstruction of once extant features, necessary for safety or disabled access or required by building code requirements.

[(2)] (3) Except as provided in subsection (4) of this section, if new construction takes place [on or after October 15, 1983,] with respect to property [for which a certificate already has been filed under ORS 358.495 (2) pursuant to application filed under ORS 358.485 or 358.487] classified as historic property under ORS 358.480 to 358.545, the new construction [shall] may not be considered classified as historic [nor shall the new construction] and may not receive the special valuation accorded historic property under ORS 358.505. The new construction shall be valued for ad valorem property tax purposes at its real market value and shall be assessed [at the percentage of its real market value provided in ORS 308.232] as provided in ORS 308.146 (1) to (3).

(4)(a) If new construction takes place on or after the effective date of this 2001 Act with respect to historic property for which a certificate has been filed under ORS 358.495 (2), the new construction shall be subject to the maximum assessed value and assessed value of the historic property under ORS 358.505 if the new construction is approved by the State Historic Preservation Officer and:

(A) Is used primarily for residential purposes; or

(B) Is used primarily for nonresidential purposes. New construction that is used primarily for nonresidential purposes shall be subject to the maximum assessed value and assessed value of the historic property under ORS 358.505 only to the extent the square footage of the new construction, when added to the total net rentable area of the existing historic property, is less than or equal to the total net rentable area of the property that existed prior to the new construction.

(b) New construction that is not approved for historic property assessment under paragraph (a) of this subsection shall be assessed as provided in ORS 308.146 (1) to (3).

(c) The State Historic Preservation Officer may adopt rules establishing procedures for requesting and obtaining the approval of the State Historic Preservation Officer under this subsection.

(d) For purposes of this subsection, net rentable area shall be measured in square feet.

[(3)] (5) Any notice required under ORS 358.528 to be sent by a public official or agency with regard to a change in classification to or from historic property classification shall be given by the county assessor and to the State Historic Preservation Officer.

[(4)] (6) As used in this section, “new construction” includes, but is not limited to:

(a) An additional new building, structure or other improvement outside the building envelope, including but not limited to a parking area to be or in use for commercial purposes.

(b) An enlargement of the exterior perimeters of an existing building, structure or improvement.

(c) Any story or stories added to an existing building, structure or improvement.

SECTION 17. ORS 358.545 is amended to read:

358.545. The [person designated as] State Historic Preservation Officer [under ORS 358.565] shall adopt rules, pursuant to ORS 183.310 to 183.550, with regard to the determination of entitlement of historic properties to the special assessment accorded by ORS [358.475] 358.480 to 358.545 [pursuant to application filed under ORS 358.485 or 358.487]. The rules shall:

(1) Encompass requirements for allowance and substantiation of public sight-seeing of historic property classified under ORS [358.475] 358.480 to 358.545;

(2) Provide minimum maintenance and preservation standards for the property;

(3) Provide standards and guidelines for rehabilitation based on those adopted by the United States Secretary of the Interior;

(4) Delineate any other matters necessary to carry out the purposes of ORS [358.475] 358.480 to 358.545; and

(5) Provide for a review procedure by the State Historic Preservation Officer for compliance with the preservation plan in the [3rd, 6th] 5th, 10th and 14th years of special assessment. If the State Historic Preservation Officer determines that there is lack of compliance with the preservation plan, the State Historic Preservation Officer shall either notify the county assessor under ORS 358.509 or request that the preservation plan be amended as provided under ORS 358.490. If, after a request for amendment is made, the property remains in noncompliance, the State Historic Preservation Officer shall notify the county assessor as described, and with the result described, under ORS 358.509.

SECTION 18. ORS 358.565 is amended to read:

358.565. (1) The Governor shall designate a State Historic Preservation Officer who shall serve at the pleasure of the Governor. In case of vacancy, the Governor shall designate a successor.

(2) The State Historic Preservation Officer shall appoint a staff of persons well qualified in history, architectural history, architecture, archaeology and education as technical assistants and analysts.

(3) In addition to the powers and duties assigned to the State Historic Preservation Officer under ORS [358.475] 358.480 to 358.545, the State Historic Preservation Officer shall perform whatever functions as are authorized by law.

SECTION 19. ORS 197.772 is amended to read:

197.772. (1) Notwithstanding any other provision of law, a local government shall allow a property owner to refuse to consent to any form of historic property designation at any point during the designation process. Such refusal to consent shall remove the property from any form of consideration for historic property designation under ORS [358.475] 358.480 to 358.545 or other law except for consideration or nomination to the National Register of Historic Places pursuant to the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470 et seq.).

(2) No permit for the demolition or modification of property removed from consideration for historic property designation under subsection (1) of this section shall be issued during the 120-day period following the date of the property owner’s refusal to consent.

(3) A local government shall allow a property owner to remove from the property a historic property designation that was imposed on the property by the local government.

SECTION 20. ORS 310.160 is amended to read:

310.160. (1) For purposes of determining whether the taxes on property to be imposed on any property exceed the limits imposed by section 11b, Article XI of the Oregon Constitution, the unit of property to be considered shall consist of all contiguous property within a single code area in the county under common ownership that is used and appraised for a single integrated purpose, whether or not that property is taxed as a single account or multiple accounts.

(2) In the case of real property that is specially assessed under ORS 308A.107, 308A.256, 308A.315 or 321.257 to 321.390 or any other law, or partially exempt from tax under ORS 307.250, 307.370 or [358.485] 358.480 to 358.545 or any other law, the unit of property shall consist of all components of land and improvements in a single operating unit.

(3) In the case of timeshare properties, the unit of property shall consist of all real property components associated with all timeshare property within a timeshare plan as described in ORS 94.808.

(4) In the case of personal property that is not part of an operating unit consisting of both real and personal property, the unit of property shall consist of all items of personal property identified in a single property tax account.

(5) In the case of land upon which an improvement is located, and the land and the improvement are owned by different persons, if the land and improvements are a single operating unit, the unit of property shall consist of the entire improved parcel.

SECTION 21. ORS 310.165 is amended to read:

310.165. (1) For any unit of property partially exempt from tax under ORS 307.250, 307.370, 308.459, 308.670 or [358.485] 358.480 to 358.545 or any other law, the assessor shall determine the maximum amount of taxes on property to be imposed on such property under ORS 310.150, by using the lesser of the real market value or the taxable value of the property after the exemption has been applied.

(2) For any land that is specially assessed for ad valorem tax purposes under ORS 308.670, 308A.050 to 308A.128, 308A.250 to 308A.259, 308A.315, 321.257 to 321.390, 321.705 to 321.765 or 321.805 to 321.825, the assessor shall determine the maximum amount of taxes on property to be imposed on such property under ORS 310.150 by using the lesser of the real market value or the specially assessed value of the property.

(3) In the case of any unit of property of which a part of the unit is exempt from taxation, and that part may be identified both as to value and physical description, the real market value of the unit shall not include the value of the exempt part of the unit.

(4) If any unit of property described in subsection (1) or (2) of this section for which the maximum amount of taxes imposed has been determined under this section is subject to imposition of additional taxes due to disqualification from special assessment or partial exemption, the determination of the maximum amount of additional taxes that may be imposed due to disqualification shall be made on the basis of the real market value of the property for the year to which the additional taxes relate.

SECTION 22. ORS 311.280 is amended to read:

311.280. (1) Any person desiring to pay taxes on any part of any real estate assessed as one parcel or tract may do so by applying to the county assessor or deputy county assessor. The county assessor shall determine the relative or proportionate value such part bears to the value of the whole tract assessed, and shall file a statement thereof with the tax collector, on which basis the assessment shall be divided and taxes shall be collected accordingly.

(2) The assessor or tax collector shall not divide an assessment under this section unless the person calling for the division of assessment owns, or holds a mortgage or other lien on that part only of such area on which the person desires to pay the taxes, and has filed with the assessor a true copy of the deed, contract of sale, mortgage or other instrument evidencing the interest in the part; provided that whenever such instrument is otherwise recorded in the county records, such filing shall not be required.

(3) The assessor or tax collector shall not divide an assessment under this section unless all ad valorem taxes, fees and other charges required to be placed upon the tax roll that have been certified for collection under ORS 311.105 and 311.110 and become a lien upon the entire parcel of property have been paid. However, if the applicant for the division is a public body, only the portion of such taxes, fees and other charges apportionable to the part of the real estate owned by the public body, or on which the public body holds a mortgage or other lien, need be paid. As used in this subsection, “public body” means the United States, its agencies and instrumentalities, the state, a county, city, school district, irrigation or drainage district, a port, a water district and all other public or municipal corporations in the state exempt from tax under ORS 307.040 or 307.090.

(4) In the case of a parcel or tract of real estate which is being assessed under one of the special assessment laws listed in ORS 308A.733 (2) or under ORS [358.475] 358.480 to 358.545, the assessor or tax collector shall not divide the assessment unless the portion of any additional taxes or penalty apportionable to the part of the property disqualified from special assessment is paid.

(5) In the case of property within the jurisdiction of a city or county which has adopted minor land partition regulations pursuant to ORS 92.046, the assessor shall not divide an assessment unless the person calling for the division of assessment has filed with the assessor evidence that the division has been approved as required by such regulations.

(6) Whenever a manufactured structure is assessed as real property under ORS 308.875 or 820.510, and the security interest holder of the manufactured structure is a person different from the owner of the parcel of land upon which it is situated, the security interest holder may apply to the assessor for a division of the value of the entire parcel between the value of the manufactured structure and the value of the remainder of the parcel. Using this value division, the tax collector shall allocate the taxes between the manufacture structure and the remainder of the parcel, and the security interest holder of the manufactured structure may pay the taxes on the value attributable to the manufactured structure and thereby free the manufactured structure from the lien of those taxes. If a division is made and the manufactured structure moved without payment of taxes, the lien of the tax on the manufactured structure is on both the manufactured structure and the parcel from which it was removed; however, payment of taxes on the manufactured structure will reduce, in the amount of taxes paid, the taxes against the remainder of the parcel, and payment of the taxes assessed against the entire parcel will remove the lien of taxes against the manufactured structure.

(7) If protest is filed to the division, the matter shall be heard by the county commissioners or the county court (as defined in ORS 306.005) at its next regular session for transaction of county business, who shall make a final division of the assessment, and the tax collector shall collect and receipt for the taxes as so determined and ordered.

(8) No person shall apply in any year under this section for a division of the assessment of a subdivision made on the assessment roll prepared as of January 1 of the year in which the subdivision is finally approved.

SECTION 23. ORS 447.145 is amended to read:

447.145. (1) All new fixtures approved for installation during construction, reconstruction, alteration and repair of buildings and other structures under ORS 447.020 shall comply with rules adopted by the Director of the Department of Consumer and Business Services. The rules shall be consistent with performance requirements and test procedures established by the American National Standards Institute, or other equivalent recognized North American standards and procedures. Except for used fixtures allowed under subsection (4) of this section, the average amount of water used by new or replacement fixtures under the applicable test procedures shall not exceed:

(a) 1.6 gallons or 6.06 liters per flush for toilets;

(b) 1.0 gallons or 3.785 liters per flush for urinals;

(c) 2.5 gallons or 9.46 liters per minute for shower heads; and

(d) 2.5 gallons or 9.46 liters per minute for interior faucets.

(2) Notwithstanding subsection (1) of this section, the director by rule shall provide for exemptions to the requirements under subsection (1) of this section if:

(a) The reconstruction, alteration or repair of a building does not include the installation of new or replacement toilets or urinals, shower heads or faucets within the building;

(b) Due to the capacity, design or installation of the plumbing or sewage system within an existing building, toilets or urinals required by subsection (1) of this section would, if installed in the building, be unable to meet the performance requirements of the American National Standards Institute or other equivalent recognized North American standards as adopted by rule;

(c) The fixtures and fittings necessary to perform a specialized function, including but not limited to emergency showers and aspirator faucets, cannot meet the requirements;

(d) The installation of fixtures that do not comply with subsection (1) of this section is necessary to maintain the historic character of a structure listed under ORS [358.475 to 358.565] 358.480 to 358.545; or

(e) The fixtures and fittings to be installed are specifically designed to withstand unusual abuse or installation in a penal institution or are located in an area with special needs, such as a laboratory, hospital, nursing home or other health care facility.

(3) No person shall sell or offer for sale any new toilet, urinal, shower head or faucet that has not been approved under ORS 447.020.

(4) On or after December 31, 1995, no person shall sell or offer for sale any used toilet, urinal, shower head or interior faucet that does not meet the conservation standards established in subsection (1) of this section.

(5) The director shall adopt rules and regulations for marking, labeling or otherwise identifying fixtures that meet the standards of this section.

(6) The requirements of subsection (1)(a) of this section do not apply to commercial or industrial installations until January 1, 1997.

SECTION 24. ORS 527.710 is amended to read:

527.710. (1) In carrying out the purposes of ORS 527.610 to 527.770, 527.990 (1) and 527.992, the State Board of Forestry shall adopt, in accordance with applicable provisions of ORS 183.310 to 183.550, rules to be administered by the State Forester establishing standards for forest practices in each region or subregion.

(2) The rules shall ensure the continuous growing and harvesting of forest tree species. Consistent with ORS 527.630, the rules shall provide for the overall maintenance of the following resources:

(a) Air quality;

(b) Water resources, including but not limited to sources of domestic drinking water;

(c) Soil productivity; and

(d) Fish and wildlife.

(3)(a) In addition to its rulemaking responsibilities under subsection (2) of this section, the board shall collect and analyze the best available information and establish inventories of the following resource sites needing protection:

(A) Threatened and endangered fish and wildlife species identified on lists that are adopted, by rule, by the State Fish and Wildlife Commission or are federally listed under the Endangered Species Act of 1973 as amended;

(B) Sensitive bird nesting, roosting and watering sites;

(C) Biological sites that are ecologically and scientifically significant; and

(D) Significant wetlands.

(b) The board shall determine whether forest practices would conflict with resource sites in the inventories required by paragraph (a) of this subsection. If the board determines that one or more forest practices would conflict with resource sites in the inventory, the board shall consider the consequences of the conflicting uses and determine appropriate levels of protection.

(c) Based upon the analysis required by paragraph (b) of this subsection, and consistent with the policies of ORS 527.630, the board shall adopt rules appropriate to protect resource sites in the inventories required by paragraph (a) of this subsection.

(4) Before adopting rules under subsection (1) of this section, the board shall consult with other agencies of this state or any of its political subdivisions that have functions with respect to the purposes specified in ORS 527.630 or programs affected by forest operations. Agencies and programs subject to consultation under this subsection include, but are not limited to:

(a) Air and water pollution programs administered by the Department of Environmental Quality under ORS chapters 468A and 468B and ORS 477.013 and 477.515 to 477.532;

(b) Mining operation programs administered by the Department of Geology and Mineral Industries under ORS 516.010 to 516.130 and ORS chapter 517;

(c) Game fish and wildlife, commercial fishing, licensing, wildlife and bird refuge and fish habitat improvement tax incentive programs administered by the State Department of Fish and Wildlife under ORS 272.060, 315.134 and ORS chapters 496, 498, 501, 506 and 509;

(d) Park land, Willamette River Greenway, scenic waterway and recreation trail programs administered by the State Parks and Recreation Department under ORS [358.475 to 358.565] 358.480 to 358.545, 390.310 to 390.368, 390.805 to 390.925, 390.950 to 390.989 and 390.121;

(e) The programs administered by the Columbia River Gorge Commission under Public Law 99-663 and ORS 196.110 and 196.150;

(f) Removal and fill, natural heritage conservation and natural heritage conservation tax incentive programs administered by the State Land Board and the Division of State Lands under ORS 196.800 to 196.900, 273.553 to 273.591, 307.550, 307.560 and 541.700 to 541.990;

(g) Federal Safe Drinking Water Act programs administered by the Health Division under ORS 448.273 to 448.990;

(h) Natural heritage conservation programs administered by the Natural Heritage Advisory Council under ORS 273.553 to 273.591, 307.550 and 307.560;

(i) Open space land tax incentive programs administered by cities and counties under ORS 308A.300 to 308A.330;

(j) Water resources programs administered by the Water Resources Department under ORS 536.220 to 536.540; and

(k) Pesticide control programs administered by the State Department of Agriculture under ORS chapter 634.

(5) In carrying out the provisions of subsection (4) of this section, the board shall consider and accommodate the rules and programs of other agencies to the extent deemed by the board to be appropriate and consistent with the purposes of ORS 527.630.

(6) The board shall adopt rules to meet the purposes of another agency’s regulatory program where it is the intent of the board to administer the other agency’s program on forestland and where the other agency concurs by rule. An operation performed in compliance with the board’s rules shall be deemed to comply with the other agency’s program.

(7)(a) The board may enter into cooperative agreements or contracts necessary in carrying out the purposes specified in ORS 527.630, including but not limited to stewardship agreements as described in ORS 527.662.

(b) The State Forestry Department shall enter into agreements with appropriate state agencies for joint monitoring of the effectiveness of forest practice rules in protecting forest resources and water quality.

(8) If based upon the analysis required in section 15 (2)(f), chapter 919, Oregon Laws 1991, and as the results become available, the board determines that additional rules are necessary to protect forest resources pursuant to ORS 527.630, the board shall adopt forest practice rules that reduce to the degree practicable the adverse impacts of cumulative effects of forest practices on air and water quality, soil productivity, fish and wildlife resources and watersheds. Such rules shall include a process for determining areas where adverse impacts from cumulative effects have occurred or are likely to occur, and may require that a written plan be submitted for harvests in such areas.

(9)(a) The State Forester, in cooperation with the State Department of Fish and Wildlife, shall identify streams for which restoration of habitat would be environmentally beneficial. The State Forester shall select as a priority those streams where restoration efforts will provide the greatest benefits to fish and wildlife, and to streambank and streambed stability.

(b) For those streams identified in paragraph (a) of this subsection, the State Forester shall encourage landowners to enter into cooperative agreements with appropriate state agencies for conduct of restoration activities.

(c) The board, in consultation with appropriate state agencies, shall study and identify methods for restoring or enhancing fish and wildlife populations through restoration and rehabilitation of sites beneficial to fish and wildlife.

(d) The board shall adopt rules to implement the findings of this subsection.

(10) The board shall adopt rules that provide the State Forester with authority to condition the approval of plans required under ORS 527.670 (2) and (3) when the State Forester makes a determination that there is evidence of a potential threat to resources protected under this section by controlling method, timing and extent of harvest when the forester determines such limitations are necessary to achieve the objectives of ORS 527.630.

(11) In addition to its responsibilities under subsections (1) to (3) of this section, the board shall adopt rules to reduce the risk of serious bodily injury or death caused by a rapidly moving landslide directly related to forest practices. The rules shall consider the exposure of the public to these safety risks and shall include appropriate practices designed to reduce the occurrence, timing or effects of rapidly moving landslides. As used in this subsection, “rapidly moving landslide” has the meaning given that term in ORS 195.250.

SECTION 25. ORS 358.485 is repealed.

SECTION 26. ORS 358.507 is repealed on July 1, 2002.

SECTION 27. (1) The repeal of ORS 358.485 by section 25 of this 2001 Act does not alter the assessment of property classified as historic property pursuant to an application filed under ORS 358.485 prior to January 1, 1994.

(2) The repeal of ORS 358.507 by section 26 of this 2001 Act does not alter the assessment of property classified as historic property under ORS 358.480 to 358.545 for a tax year beginning before July 1, 2002.

SECTION 27a. (1) The amendments to ORS 358.480, 358.482, 358.487, 358.490, 358.495, 358.505, 358.509, 358.511, 358.540, 358.543 and 358.545 by sections 2 to 6, 8 to 10 and 15 to 17 of this 2001 Act apply to tax years beginning on or after July 1, 2001.

(2) Notwithstanding subsection (1) of this section, the amendments to ORS 358.480, 358.482, 358.487, 358.490, 358.495, 358.505, 358.509, 358.511, 358.540, 358.543 and 358.545 by sections 2 to 6, 8 to 10 and 15 to 17 of this 2001 Act do not apply to property for which a reapplication under ORS 358.540 was filed pursuant to section 33, chapter 579, Oregon Laws 1999.

(3) Nothing in the amendments to ORS 358.480, 358.482, 358.487, 358.490, 358.495, 358.505, 358.509, 358.511, 358.540, 358.543 and 358.545 by sections 2 to 6, 8 to 10 and 15 to 17 of this 2001 Act permits a change in the specially assessed value of historic property that has been classified and assessed as historic property pursuant to an application or reapplication filed prior to July 1, 2001.

SECTION 28. (1) As used in this section, “qualified property” means property that was commercial property at the time the property was first classified and assessed as historic property under ORS 358.480 to 358.545 and that, as of July 1 of the 15th tax year of historic property classification and assessment under ORS 358.480 to 358.545, is no longer commercial property.

(2) Notwithstanding ORS 358.505 and 358.540, qualified property that continues to be maintained, rehabilitated or preserved as historic property shall be assessed as provided in ORS 358.505 for one additional tax year following the conclusion of the 15-year period of historic property assessment. The specially assessed value of the property for the 15th tax year of historic property assessment shall apply to the additional tax year.

(3) This section applies to qualified property for which the original 15-year term of historic property classification and assessment concludes after June 30, 2003, and before July 1, 2004.

SECTION 28a. Section 28 of this 2001 Act is added to and made a part of ORS 358.480 to 358.545.

SECTION 28b. Section 28 of this 2001 Act is repealed on December 31, 2006.

HISTORIC PRESERVATION REVOLVING

LOAN FUND

SECTION 29. As used in sections 29 to 37 of this 2001 Act:

(1) “Eligible costs” includes architectural, engineering, material and planning costs, rehabilitation and reconstruction costs, and construction expenses necessary to meet building code requirements.

(2) “Financial need” means the amount of moneys that must be obtained from a lender in order for the proposed project to be completed.

(3) “Historic property” means real property that is:

(a) Listed individually in the National Register of Historic Places established and maintained under the National Historic Preservation Act of 1966 (P.L. 89-665);

(b) A contributing property in a National Register Historic District; or

(c) Designated by local ordinance as an individual historic property or as a contributing property in a historic district and that the State Historic Preservation Officer finds is eligible for listing in the National Register of Historic Places.

(4) “Owner” includes a purchaser under a recorded instrument of sale.

(5) “Standards and guidelines for the rehabilitation of historic property” means the standards and guidelines adopted by the State Historic Preservation Officer under section 31a of this 2001 Act.

SECTION 30. (1) There is established in the State Treasury, separate and distinct from the General Fund, the Historic Preservation Revolving Loan Fund. Moneys in the Historic Preservation Revolving Loan Fund are continuously appropriated to the State Historic Preservation Officer for the following purposes:

(a) To provide loans to owners of historic property, as described in sections 29 to 37 of this 2001 Act.

(b) For administrative expenses of the State Historic Preservation Officer in:

(A) Processing applications for loans made under sections 29 to 37 of this 2001 Act;

(B) Investigating historic property rehabilitation projects funded by loans made under sections 29 to 37 of this 2001 Act; and

(C) Collecting loans made under sections 29 to 37 of this 2001 Act.

(2) The Historic Preservation Revolving Loan Fund shall consist of:

(a) Moneys appropriated to the fund by the Legislative Assembly;

(b) Repayment of moneys loaned from the fund;

(c) Moneys transferred to the fund from the federal government or from private contributions;

(d) Application fees required under section 32 of this 2001 Act; and

(e) Interest and other earnings on moneys in the fund.

(3) If the State Historic Preservation Officer does not make any loan from the Historic Preservation Revolving Loan Fund for a 24-month period, the balance of the Historic Preservation Revolving Loan Fund and any repayments of loans from the Historic Preservation Revolving Loan Fund shall be transferred to the Oregon Property Management Account established under ORS 358.690 and may be spent for any purpose for which Oregon Property Management Account moneys may be spent.

SECTION 31. (1) There is established the Historic Preservation Revolving Loan Fund Review Committee, consisting of three members appointed by the State Historic Preservation Officer and representing each of the following interests:

(a) The interests of the Housing and Community Services Department;

(b) The interests of the State Historic Preservation Officer; and

(c) The interests of banks and other financial institutions.

(2) The review committee shall review applications for loans from the Historic Preservation Revolving Loan Fund, make recommendations for loan approval or disapproval to the State Historic Preservation Officer and establish interest rates to be charged for the loans.

(3) The term of office of each member of the review committee is four years, but a member serves at the pleasure of the State Historic Preservation Officer. Before the expiration of the term of a member, the State Historic Preservation Officer shall appoint a successor whose term begins on the July 1 next following. A member is eligible for reappointment. If there is a vacancy for any cause, the State Historic Preservation Officer shall make an appointment to become immediately effective for the unexpired term.

(4) Successor appointments to the review committee shall be based on representation of interests of the Housing and Community Services Department, the State Historic Preservation Officer and banks and other financial institutions.

(5) A majority of the members of the review committee constitutes a quorum for the transaction of business.

(6) A member of the review committee shall serve without compensation.

(7) The review committee shall meet at least once per year.

SECTION 31a. The State Historic Preservation Officer shall adopt rules establishing standards and guidelines for the rehabilitation of historic property. The standards and guidelines shall include, but need not be limited to, guidance on preservation, maintenance and rehabilitation of historic property, adequacy of rehabilitation plans and proposals, and eligible alterations of and construction associated with historic property. To the extent practicable, the standards and guidelines shall be based on those developed by the United States Secretary of the Interior to determine sufficiency of rehabilitation plans.

SECTION 32. (1) Any of the following persons may apply for a loan from the Historic Preservation Revolving Loan Fund:

(a) An owner of historic property.

(b) A city or county having jurisdiction over the historic property for which the application is being filed.

(c) A nonprofit corporation organized for the purpose of owning, managing or rehabilitating historic property.

(d) A business association organized, in whole or part, for the purpose of historic preservation.

(e) A neighborhood organization representing a neighborhood in which historic property is located.

(f) An economic development agency of this state or of a political subdivision of this state.

(2) A person or other entity described in subsection (1) of this section that intends to rehabilitate historic property and that seeks a loan from the Historic Preservation Revolving Loan Fund to pay for the rehabilitation shall file an application for the loan with the State Historic Preservation Officer. The application shall be on a form prescribed by the State Historic Preservation Officer and shall include or be accompanied by:

(a) The name and address of the loan applicant and of the property owner;

(b) The address and historic name, if any, of the property;

(c) Evidence that the property is historic property;

(d) A description of the proposed rehabilitation project;

(e) Architectural plans, specifications and other materials that facilitate the evaluation of the proposed rehabilitation project for conformance with standards and guidelines for the rehabilitation of historic property;

(f) Color photographs, at least four inches by six inches in size, that depict that portion of the property that is the subject of the application, and duplicates in color slide format or digital or other computer imaging format;

(g) A statement of financial need to complete the project;

(h) An estimate of the eligible costs to be incurred in completing the rehabilitation project;

(i) A schedule setting forth when the rehabilitation project is to be commenced and completed; and

(j) Any other information that the State Historic Preservation Officer may require.

(3) The application shall be accompanied by a fee established pursuant to section 36 of this 2001 Act.

(4) Upon receipt of a complete application, the State Historic Preservation Officer shall forward the application to the Historic Preservation Revolving Loan Fund Review Committee. The review committee shall review the application and make a recommendation to approve or disapprove the loan being sought. The recommendation of the review committee shall be based on the extent to which:

(a) The project meets the standards and guidelines for the rehabilitation of historic property;

(b) The proposed rehabilitation project is feasible;

(c) The requested loan would constitute no more than a reasonable risk and for which there would be a reasonable likelihood of repayment;

(d) The applicant has a financial need for the requested loan;

(e) The applicant’s financial resources are adequate to ensure success of the project; and

(f) There are moneys available in the Historic Preservation Revolving Loan Fund.

(5) The Historic Preservation Revolving Loan Fund Review Committee shall make its recommendation to the State Historic Preservation Officer. The review committee shall include an interest rate for the loan if the loan is issued. The State Historic Preservation Officer must consider the review committee’s recommendation but need not accept the recommendation of the review committee in accepting or disapproving the application. The State Historic Preservation Officer shall consider the factors set forth in subsection (4) of this section in determining whether to approve or disapprove the loan application. If the State Historic Preservation Officer decides to approve the loan, the interest rate for the loan shall be that prescribed by the review committee.

(6) A loan may not be approved in an amount that exceeds the lesser of the applicant’s estimate of eligible costs for the project or the State Historic Preservation Officer’s determination of the expected estimated costs to complete the project.

(7) The State Historic Preservation Officer may request modifications to the rehabilitation project as a condition to loan approval or may approve a loan that is less than the amount requested in the application.

(8) The decision of the State Historic Preservation Officer to disapprove a loan application or reduce the amount of the loan may not be appealed.

(9) If the State Historic Preservation Officer approves a loan application, the approval shall be conditioned on the borrower and the owner of historic property agreeing to the terms of the loan contract set forth in section 33 of this 2001 Act.

(10) The State Historic Preservation Officer shall notify the applicant of the State Historic Preservation Officer’s decision to approve, modify and approve or disapprove a loan application.

SECTION 33. (1) If a loan application is approved by the State Historic Preservation Officer under section 32 of this 2001 Act, the borrower (and the owner of historic property if the owner is a person other than the borrower) must enter into a written loan contract with the State Historic Preservation Officer. Under the terms of the loan contract, the borrower (and the owner of historic property if the owner is a person other than the borrower) must agree to:

(a) Maintain the historic property as restored, rehabilitated or repaired for a period of at least 15 years.

(b) Maintain complete and proper financial records regarding the historic property and allow the State Historic Preservation Officer to review those records upon request.

(c) Complete the proposed rehabilitation of the historic property within two years after the date of entering into the loan contract under this section.

(d) Complete the proposed rehabilitation in conformance with the standards and guidelines for the rehabilitation of historic property.

(e) Provide a collateral security interest in the historic property to this state that meets the standards set forth in rules adopted by the State Historic Preservation Officer for securing loans from the Historic Preservation Revolving Loan Fund.

(f) Use the loan proceeds only to fund eligible costs of the rehabilitation.

(2) The loan contract must state the duration of the loan, which may not exceed five years. The loan contract must state the interest payable on the unpaid balance of the loan, which shall be the interest rate set forth in the loan recommendation of the Historic Preservation Revolving Loan Fund Review Committee but may not exceed five percent per year, compounded daily. The loan contract must provide that the loan is to be repaid in equal installments made at least annually.

(3) The loan contract entered into pursuant to this section must include the following additional provisions:

(a) A loan repayment schedule;

(b) The manner of determining when loan payments are delinquent;

(c) Extensions of time in making repayment if the delinquency is caused by emergency, act of God or economic hardship beyond the control of the borrower and the security for the loan will not be impaired thereby;

(d) Rescission of the loan upon default of the loan, upon failure to complete the proposed rehabilitation in conformance with the standards and guidelines for the rehabilitation of historic property or upon failure to maintain the property as historic property; and

(e) Any other provision the State Historic Preservation Officer considers necessary to ensure expenditure of the moneys loaned for eligible costs and to ensure repayment of the borrowed moneys.

(4) After a loan contract in compliance with this section is entered into by the borrower and the State Historic Preservation Officer (and the owner of historic property if the owner is a person other than the borrower), the State Historic Preservation Officer shall transfer the borrowed moneys from the Historic Preservation Revolving Loan Fund to the borrower in accordance with the terms of the loan contract.

SECTION 34. (1) The State Historic Preservation Officer has a lien upon any historic property that is the subject of a rehabilitation funded in whole or part from a loan from the Historic Preservation Revolving Loan Fund for the entire amount of principal and interest on the loan.

(2) The lien created under this section shall attach as of the day the loan contract is entered into under section 33 of this 2001 Act.

(3) The State Historic Preservation Officer shall file a written notice of claim of lien not later than 120 days after the lien attaches with the recording officer of the county in which the historic property is located.

(4) The notice of claim of lien required under subsection (3) of this section must be a statement in writing verified by the oath of the State Historic Preservation Officer or by the oath of an authorized agent, and must contain:

(a) A statement of the amount of principal and interest of the loan from the Historic Preservation Revolving Loan Fund;

(b) The name of the owner of the historic property to be charged with the lien; and

(c) A description of the property to be charged with the lien sufficient for identification.

(5) The recording officer of the county shall record a notice of claim of lien filed under this section in the county clerk lien records.

(6) A lien described in this section shall be foreclosed in the manner provided in ORS chapter 88.

(7)(a) If a suit to foreclose a lien created under this section is not brought within five years from the date the notice of claim of lien is recorded, the lien shall cease to exist.

(b) Notwithstanding paragraph (a) of this subsection, a lien created under this section may be continued in force for a period longer than described in paragraph (a) of this subsection pursuant to an agreement to extend the period of time for which repayment of the loan is to occur, but may not be continued for a period longer than six months following the period for which the repayment is to occur.

SECTION 35. A loan from the Historic Preservation Revolving Loan Fund may be made for the rehabilitation of a historic property that is classified and specially assessed as provided in ORS 358.480 to 358.545 or any other historic property.

SECTION 36. The State Historic Preservation Officer may adopt rules:

(1) Establishing lending guidelines for loans from the Historic Preservation Revolving Loan Fund.

(2) Establishing loan application procedures.

(3) Establishing loan application and administrative fees.

(4) Facilitating administration of the Historic Preservation Revolving Loan Fund.

SECTION 37. The State Historic Preservation Officer, in consultation with the Historic Preservation Revolving Loan Fund Review Committee, shall report annually to the Governor and to the Legislative Assembly on the financial condition and operation of the Historic Preservation Revolving Loan Fund.

CAPTIONS

SECTION 38. The unit captions used in this 2001 Act are provided only for the convenience of the reader and do not become part of the statutory law of this state or express any legislative intent in the enactment of this 2001 Act.

Approved by the Governor June 22, 2001

Filed in the office of Secretary of State June 25, 2001

Effective date January 1, 2002

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