71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 2261
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor John A. Kitzhaber,
M.D., for Housing and Community Services Department)
CHAPTER ................
AN ACT
Relating to Housing and Community Services Department.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2001 Act is added to and made
a part of ORS 456.550 to 456.725. + }
SECTION 2. { + (1) As used in this section, 'eligible housing
project' means a housing development determined by the Housing
and Community Services Department to be suitable for financing
under this section.
(2) In addition to any other powers granted by law, including
without limitation the powers granted under ORS 456.550 to
456.725, the Housing and Community Services Department may do any
of the following:
(a) Enter into agreements to finance the costs of an eligible
housing project by lending the proceeds of bonds authorized under
ORS 456.645 (1) to any qualified housing sponsor under such terms
and with such security as the department may approve. However,
notwithstanding ORS 456.645 (2), the proceeds of bonds described
in this paragraph need not be placed in the Housing Finance Fund
and bonds described in this paragraph need not be payable as to
principal, redemption premium, if any, and interest from the
revenues, assets or funds in the Housing Finance Fund. In
addition, bonds described in this paragraph to finance eligible
housing projects are not subject to ORS 456.655 and 456.661.
(b) Lease and sublease eligible housing projects to a qualified
housing sponsor so that rents to be charged for the use of such
projects are established, and revised from time to time as
necessary, to produce income and revenue sufficient to provide
for the prompt payment when due of principal and interest on all
bonds described in paragraph (a) of this subsection. A lease
shall provide that the lessee be required to pay all expenses of
the operation and maintenance of the project including, but
without limitation, adequate insurance on the project and
insurance against all liability for injury to persons or property
arising from the operation of the project. The lease shall also
provide that the lessee pay all taxes and special assessments
levied upon or with respect to the leased premises and payable
during the term of the lease and that during the term of the
lease the lessee shall pay ad valorem taxes in the same amount
and to the same extent as though the lessee were the owner of all
real and personal property comprising the project.
Enrolled House Bill 2261 (HB 2261-INTRO) Page 1
(c) Pledge and assign to the holders of bonds described in
paragraph (a) of this subsection or a trustee therefor all or any
part of the revenues of one or more eligible housing projects
owned or to be acquired by the state, and define and segregate
such revenues or provide for the payment thereof to a trustee.
(d) Mortgage or otherwise encumber eligible housing projects in
favor of the holders of bonds described in paragraph (a) of this
subsection or a trustee therefor.
(e) Make all contracts, execute and deliver all instruments and
do all things necessary or convenient in the exercise of the
powers granted by this section, or in the performance of its
covenants or duties, or in order to secure the payment of bonds
described in paragraph (a) of this subsection. The authority
granted under this paragraph includes a contract entered into
prior to the construction, acquisition and installation of the
eligible housing project authorizing the lessee, subject to such
terms and conditions as the state finds necessary or desirable
and proper, to provide for the construction, acquisition and
installation of the buildings, improvements and equipment to be
included in the project by any means available to the lessee and
in the manner determined by the lessee.
(f) Enter into and perform such contracts and agreements with
qualified housing sponsors as the respective boards of directors
may consider proper and feasible for or concerning the planning,
construction, installation, lease or other acquisition, and the
financing of the facilities of an eligible housing project. The
contracts and agreements may establish a body as may be
considered proper for the supervision and general management of
the facilities.
(g) Accept from an authorized agency of the federal government
loans or grants for the planning, construction, acquisition,
leasing or other provision of an eligible housing project and
enter into agreements with that agency respecting the loans or
grants.
(h) Execute and deliver letters of credit, municipal bond
insurance or other credit enhancement agreements supporting and
securing bonds described in paragraph (a) of this subsection. + }
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Passed by House May 24, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate June 13, 2001
...........................................................
President of Senate
Enrolled House Bill 2261 (HB 2261-INTRO) Page 2
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 2261 (HB 2261-INTRO) Page 3