Chapter 74 Oregon Laws 2005

AN ACT

HB 2054

Relating to housing; creating new provisions; amending ORS 456.555, 456.571 and 456.670; and declaring an emergency.

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

SECTION 1. Section 2 of this 2005 Act is added to and made a part of ORS 456.515 to 456.725.

SECTION 2. (1) The Housing and Community Services Department may effect loans, grants and other funding awards to accomplish department housing programs, subject to any requirement under this section for review and approval by the State Housing Council of proposals for loans, grants or other funding awards.

(2) The department shall submit a loan, grant or other funding award proposal arising under ORS 456.515 to 456.725 programs to the council for review if the proposal is for:

(a) A single-family home ownership loan on property that has a purchase price in excess of the threshold property purchase price established by rule under ORS 456.555 (9);

(b) A housing loan other than a single-family home ownership loan, if the loan amount exceeds $100,000; or

(c) A housing grant or other housing funding award, if the grant or funding award amount exceeds $100,000.

(3) The council shall review each loan, grant or other funding award proposal submitted by the department under this section and approve or disapprove the loan, grant or other funding award proposal.

(4) Council review of loan, grant or other funding award proposals under this section shall be held at a public hearing of the council. The council meeting notice required by ORS 192.640 shall include notice of the loan, grant or other funding award proposal review, the names of the applicants and the subject of the loan, grant or funding award proposal. The council shall provide notice of a loan, grant or other funding award proposal review to the loan, grant or other funding award applicant not less than five days before the review hearing.

SECTION 3. ORS 456.555 is amended to read:

456.555. (1) The Housing and Community Services Department is established.

[(2) The department shall adopt the rules necessary to carry out the programs which the department is charged with administering, including administration, enforcement, establishment of criteria for granting of benefits and establishment of fees, not to exceed the cost of administration.]

[(3)] (2) The [Housing and Community Services] department shall be under the supervision and control of a director who is responsible for the performance of the duties imposed upon the department. The Governor shall appoint the Director of the Housing and Community Services Department. The director shall hold office at the pleasure of the Governor. The person appointed as director shall be a person who, by training and experience, is well qualified to perform the duties of the office.

[(4)] (3) The director shall receive such salary as may be provided by law, or, if not so provided, as may be fixed by the Governor. In addition to the salary of the director, the director shall, subject to the limitations otherwise provided by law, be reimbursed for all expenses actually and necessarily incurred by the director in the performance of official duties.

[(5)(a)] (4) The director may establish department divisions including but not limited to divisions for administration, housing programs and community services programs.

[(b) Notwithstanding any other provisions of this section, the department shall adopt rules to:]

[(A) Identify housing programs and community services programs; and]

[(B) Distinguish between housing programs and community services programs.]

[(6)(a)] (5) The State Housing Council shall:

[(A)] (a) With the advice of the director, set policy and approve or disapprove rules and standards for housing programs;

[(B) Approve or disapprove loans and grants as set forth in ORS 456.571; and]

(b) Approve or disapprove loans, grants and other funding award proposals under section 2 of this 2005 Act; and

[(C)] (c) Carry out the provisions of ORS 456.571.

[(b)] (6) The Community Action Directors of Oregon shall advise the department and the council on community services programs as determined by the director and as set forth in ORS 458.505.

(7) The director shall report regularly to the council to keep the council informed on progress made by the department in carrying out the department’s responsibilities for housing programs.

(8) The department may adopt rules to carry out the programs that the department is charged with administering, including, but not limited to, rules regarding:

(a) Administration and enforcement.

(b) Criteria for the granting of benefits.

(c) The establishment of fees.

(d) The identification of housing programs and community services programs.

(e) The distinguishing of housing programs from community services programs.

(9) Subject to the approval of the council, the department shall establish by rule a threshold property purchase price above which a single-family home ownership loan proposed by the department requires council review and approval under section 2 of this 2005 Act. In establishing or modifying a threshold property purchase price under this subsection, the department shall consider any maximum acquisition cost set forth in the Internal Revenue Code or federal rules and regulations implementing the code.

SECTION 4. ORS 456.571 is amended to read:

456.571. (1) The State Housing Council shall, with the advice of the Director of the Housing and Community Services Department, develop policies to aid in stimulating and increasing the supply of housing for persons and families of lower income.

[(2)(a) The council shall review each single-family home ownership loan in excess of $150,000 and all other housing loans or grants in excess of $100,000 proposed to be made by the Director of the Housing and Community Services Department under the Housing and Community Services Department’s housing programs. The council may approve or disapprove any loan or grant the council reviews. The director shall submit each single-family home ownership loan in excess of $150,000, and all other housing loans or grants in excess of $100,000 the department proposes to make, to the council for review. The director shall not make any single-family home ownership loans in excess of $150,000 or any other housing loans or grants in excess of $100,000 that have not been approved by the council.]

[(b) Council review of loan or grant proposals shall be held at a public hearing of the council. notice of a loan or grant review shall be provided the loan or grant applicant not less than five days before the review hearing. The loan or grant review, naming the subject of and parties to the loan or grant, shall be included in the published notice required by ORS 192.640.]

[(3)] (2) The council shall make special effort to respond to both private and public actions [which] that may raise the cost of the housing supply in the open market, as the open market is the source of housing for the preponderance of lower income households.

[(4)] (3) The council [shall be] is responsible for studying and commenting upon, and advising, the department, Governor, Legislative Assembly, other state agencies and local governments concerning local, state and federal legislation or rules that affect the cost and supply of housing, both before and after [they] the legislation and rules are enacted. [Such] For purposes of this subsection, “legislation or rules [include but are not limited to those which] that affect the cost and supply of housing” includes but is not limited to legislation or rules that would:

(a) Provide financing for the construction or rehabilitation of housing;

(b) Subsidize new or existing housing costs for lower income households by income support, tax credit, or support service methods;

(d) Regulate the use of land;

(e) Regulate building construction standards;

(f) Regulate fees for inspection services, permits, or professional services related to housing;

(g) Encourage alternatives that increase housing choices;

(h) Create or avert overlapping jurisdictional functions and [their] the concomitant increased costs [which] that are reflected in housing prices;

(i) Create or avoid conflicting state and federal regulations [which] that deprive lower income households of assistance; and

(j) Help or hinder compliance with the housing goals established by the Land Conservation and Development Commission under ORS 197.240.

[(5)] (4) The council, with the approval of the Governor, may initiate legal proceedings in [its own] the name of the council to further [its] the council’s purposes under this section.

[(6)] (5) The council shall exercise [its] the responsibilities and powers of the council in a manner [which] that expedites the acquisition, construction, improvement or rehabilitation of housing.

SECTION 5. ORS 456.670 is amended to read:

456.670. Bonds issued by the State Treasurer shall mature at the time or times not exceeding [42] 47 years from the date of issue as shall be stated in the housing finance bond declaration. Notwithstanding ORS 286.056 and 286.058, bonds issued by the State Treasurer may be sold at private or public sale at such price or prices as the State Treasurer, upon the advice of the Housing and Community Services Department, may prescribe. Notwithstanding the provisions of any other law, the rates of interest payable and discount, if any, with respect to bonds issued under ORS 456.550 to 456.725 shall be determined by the State Treasurer, upon the advice of the department. The bonds shall be executed by the Governor, the Secretary of State and the State Treasurer in the manner set forth in ORS 286.031 to 286.061.

SECTION 6. Section 2 of this 2005 Act and the amendments to ORS 456.555 and 456.571 by sections 3 and 4 of this 2005 Act apply to loans, grants and other funding awards proposed by the Housing and Community Services Department on or after January 1, 2006.

SECTION 7. This 2005 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2005 Act takes effect on its passage.

Approved by the Governor May 25, 2005

Filed in the office of Secretary of State May 25, 2005

Effective date May 25, 2005

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