71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3212
A-Engrossed
House Bill 3172
Ordered by the House April 23
Including House Amendments dated April 23
Sponsored by COMMITTEE ON BUSINESS, LABOR, AND CONSUMER AFFAIRS
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Expresses state policy regarding farmworker housing. Transfers
control over certification of farmworker housing for tax credit
purposes from Department of Consumer and Business Services to
Housing and Community Services Department. Makes Housing and
Community Services Department primary state agency for farmworker
housing information and specifies related duties.
A BILL FOR AN ACT
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. + }
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