Chapter 625 Oregon Laws 2001

AN ACT

HB 3172

Relating to farmworker housing; creating new provisions; and amending ORS 315.164, 315.167 and 456.550.

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

SECTION 1. 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 the United States Department of Agriculture Rural Housing Service, 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.

SECTION 2. ORS 315.164 is amended to read:

315.164. (1) As used in this section:

(a) “Condition of habitability” means a condition that is in compliance with:

(A) The applicable provisions of the state building code under ORS chapter 455 and the rules adopted thereunder; or

(B) If determined on or before December 31, 1995, sections 12 and 13, chapter 964, Oregon Laws 1989.

(b) “Eligible costs” includes finance costs, construction costs, excavation costs, installation costs and permit costs and excludes land costs.

(c) “Rehabilitation” means to [restore and reinstate a building to a condition of habitability.] make repairs or improvements to a building that improve its livability and are consistent with applicable building codes.

(d) “Relative” means a brother or sister (whether by the whole or by half blood), spouse, ancestor (whether by law or by blood), or lineal descendant of an individual.

(e) “Seasonal farmworker” means any person who, for an agreed remuneration or rate of pay, performs temporary labor for another in the production of farm products or in the planting, cultivating or harvesting of seasonal agricultural crops or in the forestation or reforestation of lands, including but not limited to the planting, transplanting, tubing, precommercial thinning and thinning of trees and seedlings, the clearing, piling and disposal of brush and slash and other related activities.

(f) “Seasonal farmworker housing” means housing limited to occupancy by seasonal farmworkers and their immediate families [which] that is occupied no more than nine months of the year.

(g) “Seasonal farmworker housing project” means construction, installation or rehabilitation of seasonal farmworker housing.

(h) “Year-round farmworker housing” means housing:

(A) Limited to occupancy by farmworkers and their immediate families;

(B) No dwelling unit of which is occupied by a relative of the owner or operator of the farmworker housing; and

(C) Consisting, if located in an exclusive farm use zone, of housing that is in compliance with any applicable local zoning ordinance and that is:

(i) A manufactured dwelling, as that term is defined in ORS 446.003; or

(ii) Any other dwelling unit, if the project for which credit under this section is being claimed consists of the rehabilitation of existing farmworker housing.

(i) “Year-round farmworker housing project” means construction, installation or rehabilitation of farmworker housing.

(2) A resident individual is allowed a credit against the taxes otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, the credit shall be allowed against taxes otherwise due under ORS chapter 317. The amount of the credit shall be equal to 30 percent of the eligible costs actually paid or incurred to complete a seasonal or year-round farmworker housing project, to the extent the eligible costs actually paid or incurred do not exceed the estimate of eligible costs approved by the [Department of Consumer and Business Services] Housing and Community Services Department under ORS 315.167.

(3) The credit allowed under subsection (2) of this section shall be taken in five equal installments over a period of five consecutive tax years beginning in the tax year of the taxpayer during which the project is completed.

(4) The credit shall apply only to a seasonal or a year-round farmworker housing project that is located within this state and physically begun on or after January 1, 1990.

(5)(a) [No] A credit [shall be] is not allowed under this section unless the taxpayer claiming credit under this section:

(A) Obtains a letter of credit approval from the [Department of Consumer and Business Services] Housing and Community Services Department pursuant to ORS 315.167; and

(B) Files with the Department of Revenue an annual certification providing that all occupied units for which credit is being claimed are occupied by seasonal or year-round farmworkers and their immediate families.

(b) The certification described under this subsection shall be made on the form and in the time and manner prescribed by the Department of Revenue.

(6) Except as provided under subsection (7) of this section, the credit allowed in any one year [shall] may not exceed the tax liability of the taxpayer.

(7) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular tax year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in such next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be carried forward for any tax year thereafter.

(8)(a) The credit provided by this section is not in lieu of any depreciation or amortization deduction for the project to which the taxpayer otherwise may be entitled under ORS chapter 316 or 317 for such year.

(b) The taxpayer’s adjusted basis for determining gain or loss shall not be further decreased by any tax credits allowed under this section.

(9)(a) If the taxpayer is a person who is not, and will not be, the owner or operator of the seasonal or year-round farmworker housing, the taxpayer is entitled to the credit allowed under this section only if, upon completion of the seasonal or year-round farmworker housing project and first occupation by farmworkers, the housing complies with all safety or health laws, rules, regulations and standards applicable for farmworker housing.

(b) If the taxpayer is a person who is, or will be, the owner or operator of the seasonal or year-round farmworker housing at any time during the period for which the credit is claimed, the housing must:

(A) Comply with all occupational safety or health laws, rules, regulations and standards;

(B) If registration is required, be registered as a farmworker camp with the Department of Consumer and Business Services under ORS 658.750; and

(C) Upon occupancy and if an indorsement is required, be operated by a person who holds a valid indorsement as a farmworker camp operator under ORS 658.730.

(c) For purposes of this section, “owner” does not include a person whose only interest in the housing is as holder of a security interest.

(10)(a) Pursuant to the procedures for a contested case under ORS 183.310 to 183.550, the Department of Revenue may order the disallowance of the credit allowed under this section if it finds, by order, that:

(A) The credit was obtained by fraud or misrepresentation; or

(B) In the event that an owner or operator claims or claimed the credit:

(i) The taxpayer has failed substantially to comply with the occupational safety or health laws, rules, regulations or standards; [or]

(ii) After occupancy and if registration is required, the seasonal or year-round farmworker housing is not registered as a farmworker camp with the Department of Consumer and Business Services under ORS 658.750; or

(iii) After occupancy and if an indorsement is required, the seasonal or year-round farmworker housing is not operated by a person who holds a valid indorsement as a farmworker camp operator under ORS 658.730.

(b) If the tax credit is disallowed pursuant to this subsection, notwithstanding ORS 314.410 or other law, all prior tax relief provided to the taxpayer shall be forfeited and the Department of Revenue shall proceed to collect those taxes not paid by the taxpayer as a result of the prior granting of the credit.

(c) If the tax credit is disallowed pursuant to this subsection, the taxpayer shall be denied any further credit provided under this section, in connection with the seasonal or year-round farmworker housing project, as the case may be, from and after the date that the order of disallowance becomes final.

(11) In the event that the farmworker housing is destroyed by fire, flood, natural disaster or act of God before all of the credit has been used, the taxpayer may nevertheless claim the credit as if no destruction had taken place. In the event of fire, if the fire chief of the fire protection district or unit determines that the fire was caused by arson, as defined in ORS 164.315 and 164.325, by the taxpayer or by another at the taxpayer’s direction, then the fire chief shall notify the Department of Revenue. Upon conviction of arson, the Department of Revenue shall disallow the credit in accordance with subsection (10) of this section.

(12)(a) A nonresident individual shall be allowed the credit computed in the same manner and subject to the same limitations as the credit allowed a resident by this section. However, the credit shall be prorated using the proportion provided in ORS 316.117.

(b) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.

(c) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

(13) The Department of Revenue may adopt rules for carrying out the provisions of this section.

SECTION 3. ORS 315.167 is amended to read:

315.167. (1) Prior to beginning a seasonal or year-round farmworker housing project for which credit under ORS 315.164 will be claimed, [a taxpayer] an owner shall apply to the [Department of Consumer and Business Services] Housing and Community Services Department for a letter of credit approval.

(2) The application shall be on such form as is prescribed by the [Department of Consumer and Business Services] Housing and Community Services Department and shall provide:

(a) The name, address and taxpayer identification number of the taxpayer;

(b) The location of the proposed farmworker housing;

(c) A description of the project identifying the type of housing that is the subject of the project;

(d) An estimate of the eligible costs of the project; and

(e) Any other information as the [Department of Consumer and Business Services] Housing and Community Services Department may require.

[(3) The Department of Consumer and Business Services shall consider applications in the chronological order in which the applications are filed with the department.]

(3) The Housing and Community Services Department may review applications using any reasonable system of prioritizing review established by department rule.

(4) Applications filed in compliance with this section shall be approved by the [Department of Consumer and Business Services] Housing and Community Services Department to the extent that the total of estimated eligible costs for all approved projects for the calendar year is equal to or less than $3.3 million. No application shall be approved if the addition of the estimated eligible costs of the project to the estimated eligible costs for all approved projects for the calendar year would exceed $3.3 million.

(5) Upon approval of an application, the [Department of Consumer and Business Services] Housing and Community Services Department shall send a letter of credit approval to the taxpayer. The letter of credit approval shall state the approved amount of estimated eligible costs for the project.

(6) At the conclusion of each calendar year, the [Department of Consumer and Business Services] Housing and Community Services Department shall send a list of the names, addresses and taxpayer identification numbers of taxpayers to whom a letter of credit approval has been issued under this section during the calendar year, along with approved amounts of estimated eligible costs for each project, to the Department of Revenue.

(7) Notwithstanding that a letter of credit approval has been issued to a taxpayer under this section, the Department of Revenue may disallow, in whole or in part, a claim for credit under ORS 315.164 upon the Department of Revenue’s determination that under the provisions of ORS 315.164 the taxpayer is not entitled to the credit or is only entitled to a portion of the amount claimed.

SECTION 4. ORS 456.550 is amended to read:

456.550. (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 456.550 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; [and]

(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 Oregon’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.

Approved by the Governor June 26, 2001

Filed in the office of Secretary of State June 26, 2001

Effective date January 1, 2002

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