Chapter 606
AN ACT
HB 2095
Relating to housing authorities; creating new provisions; amending ORS
307.092, 456.055, 456.065, 456.095, 456.120, 456.125, 456.153, 456.160 and
457.190; and repealing ORS 456.170.
Be It Enacted by the People of
the State of
SECTION 1. Sections
2 and 3 of this 2007 Act are added to and made a part of ORS 456.055 to
456.235.
SECTION 2. At
least once each year, a housing authority shall procure an independent audit of
authority finances and activities for the preceding year, make the audit
available for inspection by the public and provide a copy of the audit to each
governing body that appoints the housing authority commissioners.
SECTION 3. No
person other than a housing authority created under ORS 456.055 to 456.235 may
use the term “housing authority” or a variation of the term “housing authority”
in the corporate or other business name or title of the person. Any housing
authority may bring a civil suit to enjoin a violation of this section, regardless
of whether the housing authority shows that the authority will suffer damage
from the violation.
SECTION 4.
ORS 307.092 is amended to read:
307.092. (1) As used
in this section, “property of a housing authority” includes, but is not limited
to:
(a) Property that is
held under lease or lease purchase agreement by the housing authority; and
(b) Property of a
partnership, nonprofit corporation or limited liability company for which the
housing authority is a general partner, limited partner, director, member,
manager or general manager, if the property is leased or rented to persons of
lower income for housing purposes.
[(1)]
(2) Except as provided in subsection [(2)]
(3) of this section, the property of a housing authority[, including property held under lease or
lease purchase agreement by the authority, or property of a partnership wherein
the authority is general partner or general manager, which partnership property
is leased or rented to persons of lower income for housing purposes,] is
declared to be public property used for essential public and governmental
purposes and such property and an authority shall be exempt from all taxes and
special assessments of the city, the county, the state or any political
subdivision thereof. In lieu of such taxes or special assessments, an authority
may agree to make payments to the city, county or any such political
subdivision for improvements, services and facilities furnished by such city,
county or political subdivision for the benefit of a housing project, but in no
event shall such payments exceed the estimated cost to the city, county or
political subdivision of the improvements, services or facilities to be so
furnished.
[(2)] (3) The provisions of subsection [(1)] (2) of this section regarding exemption from taxes and
special assessments shall not apply to property of the housing authority that
is commercial property leased to a taxable entity.
SECTION 5.
ORS 456.055 is amended to read:
456.055. As used in the
Housing Authorities Law, unless the context requires otherwise:
(1) “Affordable housing”
means [housing for which persons or
families pay 30 percent or less of their gross income for housing, including
necessary and essential utilities.] dwelling units that may be purchased
or rented, with or without government assistance, by persons of eligible
income.
(2) “Blighted area”
means any area where housing, by reason of neglect and dilapidation, is
detrimental to the safety or health of the occupants or of the neighborhood in
which the housing is located.
[(2)] (3) “Bonds” means any bonds, notes, interim
certificates, debentures or other obligations issued by an authority pursuant
to the Housing Authorities Law. The giving of a note secured by a mortgage or
trust deed will not constitute a bond.
[(3)] (4) “The city” means the particular city included
within a particular housing authority.
[(4)] (5) “Clerk” means the recorder of the city or the clerk
of the county, as the case may be, or the officer of the city or the county,
respectively, charged with the duties customarily imposed on such clerk.
[(5)] (6) “County” means any county in the state. “The county”
means a particular county or counties for which a particular housing authority
is created.
[(6)] (7) “Governing body” means, in the case of a city, the
common council or other legislative body thereof, and, in the case of a county,
the county court, commission or other legislative body thereof.
[(7)] (8) “Housing” means housing of all kinds, including but
not limited to single-family dwellings, multifamily dwellings, emergency
shelters, dwelling accommodations, living accommodations, manufactured
dwelling parks, residential units, housing projects or other dwellings.
[(8)] (9) “Housing unit” or “unit” means a single-family
dwelling, a single apartment or other single dwelling.
[(9)] (10) “Mixed income housing” means a housing project
that houses tenants with a mixture of income levels, including those not of
lower income, for the purpose of reducing the rents for tenants whose incomes
are no greater than 60 percent of the area median income.
[(10)] (11) “Obligee of the authority” or “obligee” includes
any bondholder or trustee for any bondholder, or lessor demising to the
authority property used in connection with a housing project, or any assignee
of such lessor’s interest or any part thereof, and the federal government when
it is a party to any contract with the authority.
(12) “Persons of
eligible income” means individuals or families who meet the applicable income
limits of local, state or federally funded programs or developments.
[(11)] (13) “Private market” means those rental housing units
owned and operated by nongovernment entities and without government subsidies.
[(12)] (14) “Person of lower income” [and] or “family of lower income” means a person or a family,
residing in this state, [who cannot
obtain in the open market, decent, safe and sanitary housing, including the
costs of utilities and taxes, for 25 percent of the gross income of such person
or family.] whose income is not greater than 80 percent of the area
median income, adjusted for family size, as determined by the Housing and
Community Services Department using United States Department of Housing and
Urban Development information.
[(13) “Person of very low income” or “family of very low income” means a
person or a family whose income is no greater than 50 percent of the area
median income, adjusted for family size, as determined by the Housing and
Community Services Department.]
[(14)] (15) “Real property” includes all lands, including
improvements and fixtures thereon, and property of any nature appurtenant
thereto, or used in connection therewith, and every estate, interest and right,
legal or equitable, therein, including terms for years and liens by way of judgment,
mortgage or otherwise and the indebtedness secured by such liens.
[(15) “Slum” means any area where housing, by reason of neglect and
dilapidation, is detrimental to the safety or health of the occupants, or the
neighborhood in which it is located.]
SECTION 6.
ORS 456.065 is amended to read:
456.065. (1) As used
in this section:
(a) “Community services”
means services provided by public or private nonprofit organizations or service
agencies that may include, but are not limited to, child care, early childhood
education, health, human resources, information and referral services, basic
life skills and adult literacy classes, support services designed to improve
self-sufficiency and recreational programs.
(b) “Community services
facilities” includes, but is not limited to, all buildings, grounds or other
real or personal property necessary to provide a public benefit, appurtenances
that are necessary, convenient or desirable, streets, sewers, water service and
other utilities, parks and gardens.
[(1)] (2) As used in the Housing Authorities Law, unless the
context requires otherwise, “housing project” means any work or undertaking:
[(a) To demolish, clear or remove buildings from any slum area. Such
work or undertaking may embrace the adaptation of such area to public purposes,
including housing, parks, community services facilities or other recreational,
educational, cultural or community purposes.]
[(b)] (a) To provide decent, safe and sanitary urban or rural
housing for persons or families of lower income. [Such] A work or undertaking described in this paragraph
may include buildings, land, equipment, facilities and other real or personal
property for necessary, convenient or desirable appurtenances, streets, sewers,
water service and other utilities, parks, site preparation, gardening,
administrative, community services, leased commercial facilities consistent
with mixed residential and commercial communities, health, recreational,
educational, welfare or other purposes authorized under ORS 456.055 to 456.235.
[(c)] (b) To provide community services facilities for the
benefit of the health, recreation, education, culture and welfare of the entire
community, without regard to the economic status of the persons or families [which] who may utilize [them] the facilities. [Community services facilities may include,
but not be limited to, all necessary real or personal property, buildings and
grounds together with all necessary, convenient or desirable appurtenances,
streets, sewers, water service and other utilities, parks and gardens.]
(c) To demolish,
clear or remove buildings from any blighted area. A work or an undertaking
described in this paragraph may embrace the adaptation of the area to public
purposes, including housing, parks, community services facilities or other
recreational, educational, cultural or community purposes.
(d) To accomplish a
combination of the projects [listed] described
in paragraphs (a), (b) and (c) of this subsection, [but it may also be applied to] or accomplish the planning of
the buildings and improvements, the acquisition of property, the demolition of
existing structures, the construction, reconstruction, alteration and repair of
the improvements and all other work in connection [therewith] with those projects.
(e) To provide
management, administration and contract services between the housing authority
and owners of decent, safe and sanitary housing for the purpose of providing [housing assistance payments to owners on
behalf of eligible families] affordable housing to persons of eligible
income.
[(2) For purposes of this section, “community services” means services
provided by public or private nonprofit organizations or service agencies that
may include, but are not limited to, child care, early childhood education, health,
human resources, information and referral services, basic life skills and adult
literacy classes, support services designed to improve self-sufficiency, and
recreational programs.]
SECTION 7.
ORS 456.095 is amended to read:
456.095. (1) When the
governing body of a city or county adopts a resolution pursuant to ORS 456.085,
the governing body may then elect to have the powers of a housing authority
under this chapter, ORS chapter 455 and ORS 446.515 to 446.547 exercised in any
of the following ways:
(a) Appointing by
resolution, a commission composed of five, seven or nine persons.
(b) Declaring, by
resolution, that the governing body, itself, shall exercise the powers of a
housing authority under this chapter, ORS chapter 455 and ORS 446.515 to
446.547. A governing body that exercises the powers of a housing authority may
appoint at least one but not more than two additional commissioners for the
housing authority. An appointed commissioner has the same authority as other
housing authority commissioners, but may not exercise any powers of the
governing body. At least one appointed commissioner must be a resident who
receives direct assistance from the housing authority. The second appointed
commissioner, if any, at a minimum must live within the jurisdiction of the
authority. An appointed commissioner serves a term of office equal in length to
the terms of office for governing body members, but not more than four years.
An appointed commissioner may be removed only for cause as described in ORS 456.110
or if the commissioner ceases to meet the requirements for being an appointed
commissioner. In the event that a housing authority commission consisting of
the governing body of a city and one or more appointed commissioners has an
even number of members, the mayor shall be included as a member of the
commission for the housing authority. An act of a governing body exercising the
powers of a housing authority is an act of the commission for the housing
authority only and not of the governing body.
(2) When the governing
bodies of two or more authorities join and cooperate with one another and
create a regional authority to exercise all the powers conferred by the Housing
Authorities Law, as authorized by ORS 456.140, the governing bodies of the
cooperating cities and counties shall by resolution appoint a commission for
the regional authority consisting of nine persons. The cooperating cities and
counties shall each appoint an equal number of the nine commissioners. If nine
divided by the number of joining or cooperating cities and counties produces a
fraction, then the commissioners appointed by such cities and counties shall
appoint one commissioner so that nine commissioners in all are appointed. The
nine commissioners appointed by or on behalf of cities or counties may appoint
at least one but not more than two additional commissioners for the housing
authority. At least one additional commissioner must be a resident who receives
direct assistance from the housing authority. The second additional commissioner,
if any, at a minimum must live within the jurisdiction of the authority. The
term of office for an additional commissioner is equal to the term of office
for a commissioner appointed by or on behalf of cities or counties. An
additional commissioner may be removed only for cause as described under ORS
456.110 or if the person ceases to meet the requirements for being an
additional commissioner.
(3) A commissioner of an
authority may not be an officer or employee of any city or county for which the
authority is created, unless the commissioner is a member of the governing body
or one of the governing bodies.
(4) Persons appointed to
the commission shall include a variety of occupations. At least one
commissioner, but not more than two commissioners, appointed under subsection
(1)(a) of this section must be a resident who receives direct assistance from
the housing authority.
[(5) A certificate of appointment or reappointment of any commissioners
shall be filed with the clerk of each of the cities and counties included in
the authority. Such certificate shall be conclusive evidence of the due and
proper appointment of a commissioner.]
(5) A governing body
shall adopt a resolution for the appointment or reappointment of a
commissioner. A governing body resolution is conclusive evidence that the
commissioner was properly appointed.
SECTION 8.
ORS 456.120 is amended to read:
456.120. A housing
authority shall constitute a public body corporate and politic, exercising
public and essential governmental functions, and having all the powers
necessary or convenient to carry out and effectuate the purposes of the Housing
Authorities Law. These powers shall be vested in the commissioners of the
authority and shall include the following in addition to others granted in the
Housing Authorities Law:
(1) To sue and be sued.
(2) To have a seal and
to alter the same at pleasure.
(3) To have perpetual
succession.
(4) To make and execute
contracts and other instruments necessary or convenient to the exercise of the
powers of the authority.
(5) To make and from
time to time amend and repeal bylaws, rules and regulations, not inconsistent
with the Housing Authorities Law, to carry into effect the powers and purposes
of the authority.
(6) To arrange or
contract for the furnishing by any person or agency, public or private, of
services, privileges, works or facilities for, or in connection with, a housing
project or the occupants thereof.
(7) Notwithstanding any
laws to the contrary, to include in any contract let in connection with a
project, stipulations requiring that the contractor and any subcontractors
comply with requirements as to minimum wages and maximum hours of labor, and
comply with any conditions which the federal government attaches to its
financial aid of the project.
(8) To lease or rent any
housing, lands, buildings, structures or facilities embraced in any housing
project and, subject to the limitations of the Housing Authorities Law, to
establish and revise the rents or charges therefor.
(9) To own, hold and
improve real or personal property.
(10) To purchase, buy on
contract, exchange, lease, lease back, obtain options upon, acquire by gift,
grant, bequest, devise or otherwise any real or personal property or any
interest therein and to give its mortgage or trust deed covering any real
property or security agreement covering any personal property or any interest
in either.
(11) To sell, mortgage,
lease, rent, exchange, transfer, assign, pledge or otherwise dispose of any
real or personal property or any interest therein.
(12) To insure or
provide for the insurance of any real or personal property or operations of the
authority against any risks or hazards.
(13) To procure
insurance or guarantees from the federal government of the payment of any debts
or parts thereof, whether or not incurred by said authority, secured by
mortgages on any property included in any of its housing projects.
(14) To invest any funds
held in reserves or sinking funds, or any funds not required for immediate
disbursement, in property or any investment in which an Oregon city may legally
invest surplus funds, and, in addition, to invest bond proceeds and amounts
held in bond payment, reserve and proceeds accounts in investment agreements
that:
(a) Produce a guaranteed
rate of return;
(b) Are fully
collateralized by direct obligations of, or obligations guaranteed by, the
(c) Require that the
collateral be held by the authority, an agent of the authority or a third-party
safekeeping agent.
(15) To purchase its
bonds at a price not more than the principal amount thereof and accrued
interest, all bonds so purchased to be canceled.
(16) To exercise all or
any part or combination of powers granted in the Housing Authorities Law.
(17) To borrow money pursuant
to ORS 456.055 to 456.235 or as otherwise allowed and accept advances, loans or
grants or any other form of financial assistance or any combination of these
forms of assistance from the federal government, state, county or other public
body, or from any sources, public or private, for the purpose of undertaking
and carrying out housing projects.
(18) To enter in a
partnership agreement with or loan money to an individual, partnership,
corporation or other association to finance, plan, undertake, construct,
acquire, manage or operate a housing project.
(19) To finance,
develop, own, operate or manage a mixed income housing project that [will not be owned by the authority and]
meets the following requirements:
(a) No fewer than 20
percent of the units in the project so financed shall be rented to households
with incomes of 50 percent or less of area median income;
(b) No fewer than 40
percent of the units in the project so financed shall be rented to households
with incomes of 60 percent or less of area median income; or
(c) The minimum
requirements imposed by any federal tax law that is applicable to the project.
(20) To form, finance
and have a nonstock interest in, and to manage or operate, partnerships,
nonprofit corporations and limited liability companies in order to further the
purposes of the housing authority.
SECTION 9.
ORS 456.125 is amended to read:
456.125. Within its area
of operation, a housing authority may:
(1) Investigate into
living, dwelling and housing conditions and into the means and methods of
improving such conditions by either the housing authority or the private
market.
(2) Determine where [slum] blighted areas exist or
where there is a shortage of decent, safe and sanitary housing for persons or
families of lower income.
(3) Make studies and
recommendations relating to the problem of clearing, replanning and
reconstructing [slum] blighted
areas to provide affordable housing and the problem of providing housing for
persons or families of lower income. An authority is encouraged to cooperate
with the private market and the city, county or state or any of their political
subdivisions in action taken in connection with identifying and solving such
problems.
(4) Engage in research,
studies and experimentation on the subject of housing.
(5) Prepare, carry out,
acquire, lease and operate housing projects.
(6) Provide for the
construction, reconstruction, improvement, alteration or repair of any housing
project or any part thereof.
SECTION 10.
ORS 456.153 is amended to read:
456.153. A housing
authority may finance, develop, own, manage or operate a mixed income
housing project if:
(1) The housing
authority determines that a substantial number of persons [or families of very low] of eligible income in the area
served by the authority cannot obtain housing for 30 percent or less of their
income.
(2) Based on the
determination under subsection (1) of this section, the housing authority
adopts a resolution declaring the need for additional housing for persons or
families of lower income that can be addressed by the [provision of financing for] authority financing, developing,
owning, managing or operating a mixed income housing project.
SECTION 11.
ORS 456.160 is amended to read:
456.160. In the
operation or management of housing projects, a housing authority shall at all
times observe the following duties with respect to rentals and tenant
selection:
(1) [It] A housing authority may rent
or lease the housing only to persons [or
families of lower] of eligible income, except:
(a) [Where an authority enters into a lease
agreement under which the authority manages housing for the owner thereof,]
If the authority owns, operates or manages the housing and a substantial
number of the housing units [shall]
are required to be rented or leased to persons [or families of lower] of eligible income; or
(b) [When an acquisition of] If the
authority acquires an existing housing unit that houses a tenant not
of [lower] eligible income,
the tenant may remain in the unit at the discretion of the authority, unless
the tenant is determined ineligible for reasons other than income
qualification.
(2) [It] A housing authority may rent
or lease the housing at rents no higher than will provide revenue sufficient to
give financial stability to the housing authority. [However,] This limitation [shall]
does not apply to housing units that are owned, operated or managed as
described in subsection (1) of this section if the units are not occupied
by families receiving assistance from an authority [where an authority manages such units pursuant to a lease agreement
with the owner thereof in accordance with subsection (1) of this section].
SECTION 12.
ORS 457.190 is amended to read:
457.190. (1) An urban
renewal agency may borrow money and accept advances, loans, grants and any
other form of financial assistance from the federal government, the state,
county or other public body, or from any sources, public or private, for the
purposes of undertaking and carrying out urban renewal projects.
(2) An urban renewal
agency may do all things necessary or desirable to secure such financial aid,
including obligating itself in any contract with the federal government for
federal financial aid to convey to the federal government the project to which
the contract relates upon the occurrence of a substantial default thereunder,
in the same manner as a housing authority may do to secure such aid in
connection with [slum] blighted area
clearance and housing projects under the Housing Authorities Law.
(3)(a) Each urban
renewal plan adopted by ordinance on or after July 14, 1997, that provides for
a division of taxes pursuant to ORS 457.440 shall include in the plan the
maximum amount of indebtedness that may be issued or incurred under the plan.
Notwithstanding subsection (1) of this section, if a maximum amount of
indebtedness is not included in the plan, the urban renewal agency may not
issue indebtedness for which taxes divided under ORS 457.440 are to be pledged
to carry out the plan.
(b) Each urban renewal
plan adopted by ordinance on or after December 6, 1996, and before July 14,
1997, that provides for a division of taxes pursuant to ORS 457.440 but does
not include a maximum amount of indebtedness that may be issued or incurred
under the plan shall be changed, by substantial plan amendment pursuant to ORS
457.220, to include the maximum amount of indebtedness that may be issued or
incurred under the plan before July 1, 2000. Notwithstanding subsection (1) of
this section, if a maximum amount of indebtedness is not included in the plan
on or before July 1, 2000, the urban renewal agency may not on or after July 1,
2000, issue indebtedness for which taxes divided under ORS 457.440 are to be
pledged to carry out the plan.
(c)(A) Each existing
urban renewal plan that provides for a division of taxes pursuant to ORS
457.420 to 457.460 may be changed by substantial amendment no later than July
1, 1998, to include a maximum amount of indebtedness that may be issued or
incurred under the plan determined as described in subparagraph (B) of this
paragraph. The additional notices required under ORS 457.120 are not required
for an amendment adopted pursuant to this paragraph.
(B) The maximum amount
of indebtedness that may be issued or incurred under the plan, as determined for
purposes of meeting the requirements of this paragraph, shall be based upon
good faith estimates of the scope and costs of projects, including but not
limited to increases in costs due to reasonably anticipated inflation, in the
existing urban renewal plan and the schedule for their completion as completion
dates were anticipated as of December 5, 1996. The maximum amount of
indebtedness shall be specified in dollars and cents.
(C) Notwithstanding
subsection (1) of this section, if a maximum amount of indebtedness is not
adopted for an existing urban renewal plan as described in this paragraph
before July 1, 1998, the urban renewal agency may not collect funds under ORS
457.435.
SECTION 13. ORS
456.170 is repealed.
Approved by the Governor June 26, 2007
Filed in the office of Secretary of State June 27, 2007
Effective date January 1, 2008
__________