72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
HA to HB 3276
 
LC 2790/HB 3276-7
 
                       HOUSE AMENDMENTS TO
                         HOUSE BILL 3276
 
              By JOINT COMMITTEE ON WAYS AND MEANS
 
                             July 25
 
  On page 1 of the printed bill, line 2, after the semicolon
delete the rest of the line and insert 'creating new provisions;
amending ORS 456.593, 456.615, 456.620, 456.635, 458.625, 458.630
and 458.720; and declaring an emergency.'.
  On page 6, after line 7, insert:
  '  { +  SECTION 5. + } ORS 458.625 is amended to read:
  ' 458.625. (1) The Housing and Community Services Department
  { - shall - }  { +  may + } disburse the revenue earned from
investment of the principal in the Housing Development and
Guarantee Account to expand this state's supply of housing for
low and very low income families and individuals, including, but
not limited to, housing for persons over 65 years of age,
disabled persons, farmworkers and Native Americans.   { - For
purposes of this section and ORS 458.630, 'account' means the
Housing Development and Guarantee Account. - }  The State Housing
Council shall have a policy   { - of distributing - }  { +  that
provides for distribution by the department of + } account
investment revenue  { + disbursements + } statewide while
concentrating account investment revenue { +  disbursements + }
in those areas of the state with the greatest need { +  for low
and very low income housing + }, as determined by the council
 { - , for low and very low income housing - } .
  ' (2)  { + The department may disburse + } account investment
revenue { + , + }
  { - shall be disbursed as - }   { + in the form of + } grants
or loans  { - , at the awardee's election, - }   { + as
determined by the department, + } for any or all of the following
purposes:
  ' (a) To organizations as defined in ORS 458.610 and to
for-profit business entities to construct new housing or to
acquire or rehabilitate existing structures, or both, for housing
for persons of low or very low income, or both;
  ' (b) To provide nonprofit organizations, as set forth in ORS
458.210 to 458.240, technical assistance or predevelopment costs,
or both. Predevelopment costs include, but are not limited to,
site acquisition, architectural services and project consultants.
Predevelopment costs do not include costs described in paragraph
(c) of this subsection;
  ' (c) For costs to develop nonprofit organizations that show
sufficient evidence of having strong community support and a
strong likelihood of producing low or very low income housing.
  { - No - }  Account investment revenue   { - shall - }  { +
may not + } be used by an organization for its general
operations;
  ' (d) To match public and private moneys available from other
sources for purposes of production of low or very low income
housing; or
  ' (e) For purposes of administration of the account, not to
exceed five percent of the account investment revenue.
 
  ' (3) The   { - council - }  { +  department + }  { - , in
developing policy, - }  shall give preference in making grants or
loans  { - , at the awardee's election, - }  to those entities
that   { - would propose to - }  { +  the department determines
will + }:
  ' (a) Provide the greatest number of low and very low income
housing units constructed, acquired or rehabilitated for the
amount of account investment revenue expended by matching account
investment revenue with other grant, loan or eligible in-kind
contributions;
  ' (b) Ensure the longest use for the units as low or very low
income housing units; or
  ' (c) Include social services to occupants of the proposed
housing, including but not limited to, programs that address home
health care, mental health care, alcohol and drug treatment and
post-treatment care, child care and case management.
  ' (4)   { - At least 75 percent of the - }  Account investment
revenue derived in any calendar year   { - shall - }  { +
may + } be used to construct, acquire or rehabilitate housing for
 { + low and + } very low income persons  { - . No - }  { +  but
not + } more than 25 percent of the account investment revenue
derived in any calendar year   { - shall - }  { +  may + } be
used to construct, acquire or rehabilitate housing for low income
households. { +  Account investment revenue not disbursed by the
department as grants or loans to construct, acquire or
rehabilitate low or very low income housing may be retained and
credited as account principal. + }
  ' (5) Loans disbursed from account investment revenue shall
bear an interest rate equal to the interest rate paid on United
States Treasury long-term obligations as identified by the
department.
  '  { - (6) Notwithstanding subsections (2), (3) and (5) of this
section, the department shall not disburse account investment
revenue as loans after December 31, 2003. - }
  '  { +  SECTION 6. + } ORS 458.630, as amended by section 1,
chapter 20, Oregon Laws 2003 (Enrolled House Bill 2169), is
amended to read:
  ' 458.630. (1)(a) The Housing and Community Services Department
 { - shall - }  { +  may + } hold and use the principal that is
credited to the Housing Development and Guarantee Account
 { - under ORS 458.620 (3) - }  as the Guarantee Fund. The
department   { - shall - }  { +  may + } use the fund
 { - only - }  to guarantee repayment of loans made to finance
the construction, development, acquisition or rehabilitation of
low income housing, of the commercial component of a structure
that contains both commercial property and low income housing, or
of both. The department, by rule, shall specify the grounds on
which it may deny loan guarantees for a structure that contains
both commercial and low income housing components. The grounds
for denial specified by the department must include, but need not
be limited to, a commercial component that is excessive in scope
or that is designed for commercial activity of a type
incompatible with residential housing. The State Housing Council
shall review loans that are guaranteed by the fund to ensure that
the loans meet prudent underwriting standards.
  ' (b) A guarantee may not be prepared or construed in such a
manner as to violate the provisions of section 7, Article XI of
the Oregon Constitution.
  ' (2) The department may not issue any loan guarantee under
this section that guarantees the repayment of more than 25
percent of the original principal balance of any loan.
  ' (3) The department may not issue a loan guarantee if the
guarantee would cause the aggregate dollar total of all loan
guarantees issued by the department under this section to exceed
two times the total amount then in the Guarantee Fund established
under subsection (1) of this section.  { + Notwithstanding ORS
458.625, + } whenever  { + payouts on loan guarantees cause + }
the fund principal
  { - decreases - }  { +  to decrease + } by five percent or
more, the interest on the fund shall be deposited only to the
principal account until the   { - full - }  amount of the fund
principal  { + lost due to payouts on loan guarantees  + }is
restored.
  ' (4)   { - In developing policy - }  { +  Subject to council
review under subsection (1) of this section, the department shall
give preference + } for loan guarantees under this section  { - ,
the council shall give preference - }  to loans for the
construction, development, acquisition or rehabilitation of low
income housing, or of structures containing both commercial and
low income housing components, that   { - would - }  { +  the
department determines will + }:
  ' (a) Provide the greatest number of low income housing units
constructed, acquired, developed or rehabilitated for the amount
of guarantee allowed;
  ' (b) Ensure the longest possible use for the units as low
income housing units. Pursuant to this end, the State Housing
Council may adopt a formula that optimizes the interests of the
lender and the developer and the working life of the low income
units; or
  ' (c) Include a program of services for the occupants of the
proposed housing including, but not limited to, programs that
address home health care, mental health services, alcohol and
drug treatment and post-treatment care, child care and case
management.
  ' (5) The council may adopt a policy that gives loan guarantee
preference to loans for low income housing, or structures
containing both commercial and low income housing components, for
which the department has provided a grant, loan, tax credit or
other investment.
  '  { +  SECTION 7. + } ORS 458.720 is amended to read:
  ' 458.720. (1) Pursuant to ORS 286.560 to 286.580 and 348.716,
lottery bonds may be issued to make grants or loans to Oregon
municipalities, businesses and individuals to encourage real
estate developments that promote downtown and community center
areas, provide affordable housing and other infill developments,
and fund projects that promote business opportunities in Oregon's
distressed areas and rural communities.
  ' (2) The use of lottery bond proceeds is authorized based on
the following findings:
  ' (a) The grants and loans made will be used to fund projects
that assist Oregon communities in managing growth, thereby
attracting industry and workers and improving Oregon's labor
market; and
  ' (b) The projects will bring jobs and economic diversity to
Oregon's distressed areas and rural communities.
  ' (3) The aggregate principal amount of lottery bonds issued
pursuant to this section   { - shall - }  { +  may + } not exceed
the sum of $25 million and an additional amount estimated by the
State Treasurer to be necessary to pay bond-related costs.
Lottery bonds issued pursuant to this section shall be issued
only at the request of the Director of the Housing and Community
Services Department.
  ' (4) The net proceeds of lottery bonds issued pursuant to this
section shall be deposited in the Community Development Incentive
Project Fund, which is hereby established in the State Treasury
separate and distinct from the General Fund.
  ' (5) The proceeds of lottery bonds issued pursuant to this
section shall be used only for the purposes set forth in
subsection (1) of this section and for bond-related costs.
  ' (6) Interest earned by the Community Development Incentive
Project Fund shall be credited to the fund { +  or to the Housing
Development and Guarantee Account, as determined by the
director + }.  In addition to any other moneys specifically
designated by law, the fund shall consist of any amounts
appropriated by the Legislative Assembly and any gifts, grants or
donations.
  '  { +  SECTION 8. + }  { + Notwithstanding any limitation on
the purposes for which moneys deposited in the Housing
Development and Guarantee Account created in ORS 458.620 may be
expended, the amount of $5,530,000 is transferred from the
Housing Development and Guarantee Account to the General Fund to
be used for general governmental purposes. + }
  '  { +  SECTION 9. + }  { + The amendments to ORS 456.593,
456.615, 456.620, 456.635, 458.625, 458.630 and 458.720 by
sections 1 to 7 of this 2003 Act become operative on January 1,
2004. + }
  '  { +  SECTION 10. + }  { + This 2003 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2003 Act
takes effect on its passage. + } ' .
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