Chapter 607
AN ACT
HB 2096
Relating to housing; creating new provisions;
and amending ORS 456.515, 456.539, 456.555, 456.571, 456.581, 456.593, 456.612,
456.615, 456.625, 456.630, 456.690, 456.705, 456.710, 456.715, 458.215 and
458.630.
Be It Enacted by the People of
the State of
SECTION 1. Sections 2 to 7 of this 2007 Act are added
to and made a part of ORS chapter 62.
SECTION 2. (1) Sections 2 to 7 of this 2007 Act may be
cited as the Manufactured Dwelling Park Nonprofit Cooperative Corporation Act.
(2) The purpose of
sections 2 to 7 of this 2007 Act is to recognize the cooperative form of
ownership by a nonprofit entity of an interest in real property consisting of a
manufactured dwelling park.
(3) In the event of any
conflict between sections 2 to 7 of this 2007 Act and other provisions of this
chapter, sections 2 to 7 of this 2007 Act control.
SECTION 3. As used in sections 2 to 7 of this 2007 Act,
unless the context requires otherwise:
(1) “Manufactured
dwelling” has the meaning given that term in ORS 446.003.
(2) “Manufactured dwelling park” has the meaning given that term in ORS
446.003.
(3) “Manufactured
dwelling park nonprofit cooperative” means a cooperative corporation that:
(a) Is organized to
acquire or develop, and to own, an interest in one or more manufactured
dwelling parks that are primarily used for the siting of manufactured dwellings
owned and occupied by members of the cooperative;
(b) Limits the use of
all income and earnings to use by the cooperative and not for the benefit or
profit of any individual; and
(c) Elects to be
governed by sections 2 to 7 of this 2007 Act.
SECTION 4. (1) A cooperative organized under this
chapter may elect to become a manufactured dwelling park nonprofit cooperative
by stating that election in the articles of incorporation.
(2) A cooperative may
not revoke an election made under subsection (1) of this section. A
manufactured dwelling park nonprofit cooperative may dissolve as provided in
this chapter.
SECTION 5. (1) A person may become a member of a
manufactured dwelling park nonprofit cooperative if the person:
(a) Is a natural person;
(b) Owns a manufactured
dwelling that is, or is to be, located in a manufactured dwelling park of the
cooperative and occupied by the person;
(c)(A) Pays the
membership fee required by the cooperative; or
(B) Purchases a share of
membership stock issued by the cooperative; and
(d) Meets any additional
membership qualifications established in the articles of incorporation or bylaws
of the cooperative.
(2) A manufactured
dwelling park nonprofit cooperative shall accept as a member any person who
meets the qualifications described in subsection (1) of this section.
(3) Membership in a
manufactured dwelling park nonprofit cooperative entitles the member to rent
space for a manufactured dwelling in a manufactured dwelling park of the
cooperative and to occupy the manufactured dwelling.
(4) A cooperative shall
create or issue one membership or share of membership stock for each manufactured
dwelling that is, or is to be, located in a manufactured dwelling park of the
cooperative and occupied by the dwelling owner. A person may not own more than
one membership or share of membership stock in the same cooperative. A
membership or membership stock may not be issued or transferred to a person
unless the person meets the qualifications for membership described in
subsection (1) of this section.
(5) A cooperative shall
issue memberships or shares of membership stock for a fee determined by the
directors of the cooperative. The directors may periodically adjust the fee
amount as provided in the articles of incorporation or bylaws of the
cooperative. Except for periodic adjustments, the membership fee or membership
stock price charged by the cooperative shall be the same for all members. A
member may not sell, transfer or redeem a membership for more than the amount
the member paid for the membership plus any adjustments approved by the
directors to reflect cost-of-living increases.
(6) The articles of
incorporation or bylaws of the cooperative shall establish the methods for
accepting and terminating membership and for the sale, transfer or redemption
of a membership or share of membership stock.
SECTION 6. (1) As used in this section, “debts,
liabilities and obligations” includes, but is not limited to, the repurchase of
each membership in the cooperative for the amount last charged by the
cooperative as a membership fee or as the purchase price of membership stock.
(2) If a manufactured dwelling
park nonprofit cooperative dissolves, after payment or provision for all debts,
liabilities and obligations of the cooperative, the cooperative shall
distribute the assets of the cooperative to:
(a) Another manufactured
dwelling park nonprofit cooperative;
(b) An organization
organized for a public or charitable purpose;
(c) A religious
corporation;
(d) The
(e) This state;
(f) A local government
in this state;
(g) A housing authority
created under ORS 456.055 to 456.235; or
(h) A person that is
recognized as tax exempt under section 501(c)(3) of
the Internal Revenue Code.
SECTION 7. (1) As used in this section, “business
entity” has the meaning given that term in ORS 62.605.
(2) A manufactured
dwelling park nonprofit cooperative may not:
(a) Notwithstanding ORS
62.225, pay a dividend on stock to members.
(b) Apportion,
distribute or pay net proceeds or savings to members.
(c) Make payments in
redemption or refund of capital credits or retains to an heir of a member.
(d) Merge with a
business entity other than another manufactured dwelling park nonprofit
cooperative.
(e) Convert to another
type of business entity.
SECTION 8. Section 9 of this 2007 Act is added to and
made a part of ORS 456.550 to 456.725.
SECTION 9. (1) Not more than 50 percent of the total
amount of any financing provided by the Housing and Community Services
Department for a particular housing development may be used to finance
commercial, recreational, industrial, communal or educational facilities. Profits
from incidental elements shall be applied to loans due under ORS 456.550 to
456.725.
(2) A limited dividend
housing sponsor shall be restricted as to distribution of income and shall be
regulated as to rents, charges, rate of return and methods of operation as the
department determines necessary to carry out the purposes of ORS 456.550 to
456.725.
(3) Not more than 50
percent of the total amount of any financing provided by the department for a
particular residential housing development may be used to finance nonhousing
facilities.
(4) An insured or
guaranteed residential loan need not be secured by a first mortgage on real
property but, unless the loan is to a manufactured dwelling park nonprofit
cooperative, shall be secured by a security interest of first priority. If the
insured or guaranteed loan is to a manufactured dwelling park nonprofit
cooperative, the loan shall be secured by a security interest of first or
second priority.
SECTION 9a. The Department of Land Conservation and
Development shall report to the Seventy-fifth Legislative Assembly in the
manner described in ORS 192.245 regarding:
(1) The provision of
sites for affordable housing development, including sites for manufactured
dwelling parks or mobile home parks, as those terms are defined in ORS 446.003;
and
(2) Proposals to
streamline land use requirements relating to expansion of urban growth
boundaries to provide affordable housing, manufactured dwelling parks and
mobile home parks.
SECTION 10. ORS 456.515 is amended to read:
456.515. As used in ORS
456.515 to 456.725 and ORS chapter 458 unless the context requires otherwise:
(1) “Community Action
Directors of Oregon” means an organization described in ORS 458.505.
(2) “Construction”
includes, but is not limited to, new construction or moderate or substantial rehabilitation of existing structures or
facilities.
(3) “Council” means the
State Housing Council established under ORS 456.567.
(4) “Department” means
the Housing and Community Services Department established under ORS 456.555.
(5) “Director” means the
Director of the Housing and Community Services Department.
(6) “Disabled person”
means a person who has a physical or mental impairment that substantially
limits one or more major life activities.
(7) “Elderly household”
means a household whose head is over the age of [58] 55, 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 the household].
(8) “Major life activity”
includes but is not limited to self-care, ambulation, communication,
transportation, education, socialization, employment and ability to acquire,
rent or maintain property.
(9)(a) “Multifamily
housing” means a structure or facility established primarily to provide housing
that provides more than one living unit, and may also provide facilities that
are functionally related and subordinate to the living units for use by the
occupants in social, health, educational or recreational activities:
(A) For the elderly,
including but not limited to individual living units within such structures,
mobile home and manufactured dwelling parks and residential facilities licensed
under ORS 443.400 to 443.455 and other congregate care facilities with or
without domiciliary care.
(B) For disabled
persons, including, but not limited to, individual living units within such
structures, mobile home and manufactured dwelling parks and residential
facilities licensed under ORS 443.400 to 443.455 and other congregate care
facilities with or without domiciliary care.
(b) “Multifamily housing”
does not include nursing homes, hospitals, places primarily engaged in
recreational activities and single-family, detached dwellings, except
manufactured dwellings situated in a mobile home and manufactured dwelling park.
(10) “Target population”
means:
(a) Elderly households;
or
(b) Disabled persons.
SECTION 11. ORS 456.539 is amended to read:
456.539. (1) The Housing
and Community Services Department shall be the agency for the State of
(2) The department is
authorized to use the Elderly and Disabled Housing Fund to advance funds, by
contract, grant, loan or otherwise, as provided by Article XI-I(2) of the Oregon Constitution to finance multifamily
housing for elderly households, disabled persons and their family members and
such other persons who reside therein as are necessary to maintain the housing
or provide services or companionship for elderly households and disabled
persons.
(3) In carrying out the
provisions specified in Article XI-I(2) of the Oregon
Constitution, the department shall, with the concurrence of the State Housing
Council, adopt criteria for approval of projects proposed by qualified housing
sponsors to finance multifamily housing for the target population and their
family members and such other persons who reside therein as are necessary to
maintain the housing or provide services or companionship for elderly
households and disabled persons. The criteria shall:
(a) Assure that health,
mental health and other supportive services as may be necessary to maintain
elderly and disabled households living in the housing are available to the
occupants onsite or in the community;
(b) Give priority to
members of the target populations; and
(c) Allow occupancy by
such family members or other persons as the department determines necessary to
maintain the housing and provide services or companionship for elderly
households and disabled persons.
(4) The department
shall:
(a) Adopt criteria[, including
maximum income limitations not to exceed median family income,]
consistent with the maximum household income restrictions in ORS 456.620 (4) for
approval of applications for financing the purchase by elderly households of
ownership interests within a multifamily structure or facility. [The criteria must include a requirement that
the applicants obtain loan cancellation life insurance.]
(b) Provide means for
allocating funds to finance multifamily housing units for the target population
and to establish limitations on the interest and fees to be charged on loans
made by the department.
(c) Adopt rules
necessary for efficient administration of the Elderly and Disabled Housing
Fund.
(d) Adopt rules to
assure that each of the target populations has access to a reasonable portion
of the bond authority under ORS 456.515 to 456.725, and that a reasonable
portion of the funds for elderly households is made available to finance the
purchase by elderly households of ownership interests within multifamily
housing structures or facilities.
(5) Loans made by the
department under this section for the interim construction financing of
multifamily housing shall be subject to the provisions of ORS 456.717.
SECTION 12. ORS 456.555 is amended to read:
456.555. (1) The Housing
and Community Services Department is established.
(2) The 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.
(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.
(4) The director may
establish department divisions including but not limited to divisions for
administration, housing programs and community services programs.
(5) The State Housing
Council shall:
(a) With the advice of
the director, set policy and approve or disapprove rules and standards for
housing programs;
(b) Approve or
disapprove loans, grants and other funding award proposals under ORS 456.561;
and
(c) Carry out the
provisions of ORS 456.571.
(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 and charges.
(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 ORS
456.561. 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 13. 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) The council shall
make special effort to respond to both private and public actions 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.
(3) The council 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 the legislation and rules are
enacted. For purposes of this subsection, “legislation or rules 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;
(c) Regulate the
division of land;
(d) Regulate the use of
land;
(e) Regulate building
construction standards;
(f) Regulate fees and
charges 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 the concomitant increased costs that
are reflected in housing prices;
(i) Create or avoid
conflicting state and federal regulations 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.
(4) The council, with
the approval of the Governor, may initiate legal proceedings in the name of the
council to further the council’s purposes under this section.
(5) The council shall
exercise the responsibilities and powers of the council in a manner that
expedites the acquisition, construction, improvement or rehabilitation of
housing.
SECTION 14. ORS 456.581 is amended to read:
456.581. The Mobile Home
Parks Purchase Account established in ORS 456.579 shall be used by the Housing
and Community Services Department to provide:
(1) Technical assistance
to tenants’ associations, manufactured dwelling park nonprofit cooperatives
and tenants’ association supported nonprofit organizations and to
facility purchase associations, as defined in ORS 90.100, [to assist] and to help tenants in activities related to the
purchase or preservation of a mobile home [and] park or manufactured dwelling park by a tenants’
association, manufactured dwelling park nonprofit cooperative, tenants’
association supported nonprofit organization or facility purchase association.
(2) By rule, loans for
initial costs for purchasing a mobile home [and]
park or manufactured dwelling park [predominantly
occupied by] that the department determines has a significant percentage
of residents who are persons of lower income [persons]. Loans provided under this section may be made only if the
department is of the opinion that the purchase is economically feasible and
only to:
(a) A tenants’
association, manufactured dwelling park nonprofit cooperative or a
tenants’ association supported nonprofit organization; or
(b) A facility purchase
association established pursuant to ORS 90.815 that includes more than 50
percent of the tenants residing in the park.
SECTION 15. ORS 456.593 is amended to read:
456.593. (1) As used in this section, unless the context requires
otherwise, “city” means any city with a population of 300,000 or more.
(2) Notwithstanding any
of the provisions of ORS 456.550 to 456.725 to the contrary:
(a) Of the $2.5 billion
bond authorization under ORS 456.661, the aggregate principal amount of not to
exceed $30 million is to be made available exclusively for making or
participating in making residential loans for detached single-family homes,
including lots described in ORS 92.840, in any city.
(b) The bonds under
paragraph (a) of this subsection may be sold as a part of the Housing and
Community Services Department’s overall nongeneral obligation bond issues under
ORS 456.550 to 456.725, or separate issues totaling no more than $30 million in
an aggregate principal amount may be sold by the department as required and
requested by a city. The bonds need not be identified by individual loans or
transactions but may include any number of individual loans or transactions or
purposes within any single issue.
(c) The department may
use moneys received under paragraph (b) of this subsection to purchase,
service, sell and make commitments to purchase, service and sell residential
loans meeting all of the requirements of this paragraph. The loans must be:
(A) Originated by
private lending institutions or any individual or organization authorized by
law to make those loans, for residential housing;
(B) For owner-occupied
detached single-family housing, which may include but is not
limited to lots described in ORS 92.840;
(C) For properties
located within an area of a city where the median income is below the city’s
median family income; and
(D) To persons whose
annual income for the current and the immediately preceding year does not
exceed 105 percent of the prevailing median income for families within that city.
(d) Areas eligible under
paragraph (c) of this subsection shall be identified by ordinance of the
governing body of that city. That city shall have sole discretion to designate
one or more of those areas, and the proportionate or approximate actual amount
of single-family residential loans to be made in those areas.
(e) Fees or [service] charges pursuant to ORS 456.625
(3) shall be [charged] assessed
or collected in connection with, or for, any loan, advance, insurance, loan
commitments or servicing, by the department under this section only after
consultation with the city.
SECTION 16. ORS 456.612 is amended to read:
456.612. The Legislative
Assembly finds and declares that the primary purpose of financing by the Housing
and Community Services Department is to provide affordable housing for persons
and families of lower income [or very low
income].
SECTION 17. ORS 456.615 is amended to read:
456.615. As used in ORS
456.550 to 456.725, unless the context requires otherwise:
(1) “Bonds” means any
bonds, notes or other evidence of indebtedness, including notes or other
evidence of indebtedness issued in anticipation of the issuance of bonds and
payable from the proceeds of bonds issued, issued under ORS 456.515 to 456.725.
(2) “Capital reserve
account” or “capital reserve accounts” means one or more of the special trust
accounts that may be established by the Housing and Community Services
Department within the Housing Finance Fund.
[(3) “Housing finance bond declaration” means a written instrument
signed by the Director of the Housing and Community Services Department and on
file with and bearing the certificate of approval of the State Treasurer, and
all housing finance bond declarations supplemental thereto.]
[(4)] (3) “Consumer housing cooperative” means a cooperative
corporation formed under ORS chapter 62 and whose articles of incorporation
provide, in addition to the other requirements of ORS chapter 62, that:
(a) The consumer housing
cooperative has been organized exclusively to provide housing facilities for
persons and families of lower income and such social, recreational, commercial
and communal facilities as may be incidental to such housing facilities.
(b) All income and
earnings of the consumer housing cooperative shall be used exclusively for
consumer housing cooperative purposes and that no unreasonable part of the net
income or net earnings of the cooperative shall inure to the benefit or profit
of any private individual, firm, corporation, partnership or association.
(c) The consumer housing
cooperative is in no manner controlled or under the direction of or acting in
the substantial interest of any private individual, firm, corporation,
partnership or association seeking to derive profit or gain therefrom or
seeking to eliminate or minimize losses in any transaction therewith, except
that such limitation shall apply to the members of the cooperative only to the
extent provided by rules of the department.
(d) The operations of
the consumer housing cooperative may be supervised by the department and that
the consumer housing cooperative shall enter into such agreements with the
department as the department may require to provide regulation by the
department of the planning, development and management of any housing project
undertaken by the cooperative and the disposition of the property and other
interests of the cooperative.
[(5)] (4) “Development costs” means the costs that have been
approved by the department as appropriate expenditures and includes, but is not
limited to:
(a) Payments for options to purchase property
for the proposed housing project site, deposits on contracts of purchase,
payments for the purchase of property as approved by the department, legal,
organizational and marketing expenses including payment of attorney fees,
managerial and clerical staff salaries, office rent and other incidental
expenses, payment of fees for preliminary feasibility studies, advances for
planning, engineering and architectural work;
(b) Expenses for
surveys as to need and market analyses; and
(c) Such other
expenses incurred by the qualified housing sponsor as the department may deem
necessary under ORS 456.550 to 456.725.
[(6) “Elderly” means a person or a family whose head of the household is
58 years of age or older, residing in the state, whose income is below the
level that the department has determined to be necessary in order to 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 the household.]
[(7)] (5) “Federally insured security” means an evidence of
indebtedness insured or guaranteed as to repayment of principal and interest by
the
[(8)] (6) “Housing development” means a development that
contains housing units for persons or families of lower income and such other
incidental elements of residential, commercial, recreational, industrial,
communal or educational facilities as the department determines improve the
quality of the development as it relates to housing for persons or families of
lower income and the financial feasibility of the development. [Not more than 50 percent of the total amount
of any financing provided by the department for a particular development may be
used to finance commercial, recreational, industrial, communal or educational
facilities. Profits from incidental elements shall be applied to loans due
under ORS 456.550 to 456.725.]
(7) “Housing finance
bond declaration” means a written instrument signed by the Director of the
Housing and Community Services Department and on file with and bearing the
certificate of approval of the State Treasurer, and all housing finance bond
declarations supplemental to that instrument.
[(9)] (8) “Housing Finance Fund” means the Housing Finance
Fund established in ORS 456.720 (1).
[(10)] (9) “Lending institution” means any bank, mortgage
banking company, trust company, savings bank, savings and loan association,
credit union, national banking association, federal savings and loan
association or federal credit unit maintaining an office in this state, or any
insurance company authorized to do business in this state.
[(11)] (10) “Limited dividend housing sponsor” means a
corporation, trust, partnership, association[,] or other entity, or an
individual[. Such] that is a mortgagor.
[shall be restricted as to distribution
of income and shall be regulated as to rents, charges, rate of return and
methods of operation as the department determines necessary to carry out the
purposes of ORS 456.550 to 456.725.]
[(12) “Lower income families or persons” means the elderly and families
and persons, residing in this state, whose income is below the level that the
department has determined to be necessary in order to 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 family or person. The term may also
include other families or persons where the assistance provided is determined
by the director to be incidental to the accomplishment of the department’s
programs for lower income families or persons. The department, in cooperation
with affected local governments, shall determine what constitutes “decent, safe
and sanitary housing.”]
(11) “Manufactured
dwelling park nonprofit cooperative” has the meaning given that term in section
3 of this 2007 Act.
[(13)] (12) “Manufactured housing” means a dwelling unit
manufactured off-site having a minimum width of 10 feet and a minimum area of
400 square feet built on a permanent chassis and designed to be used for
permanent residential occupancy whether or not on a permanent foundation, and
that contains permanent eating, cooking, sleeping and sanitary facilities and
meets such standards as the department determines, by rule, are reasonable to
maintain the quality, safety and durability of the dwelling, the sanitary
requirements of the communities in which they are located and the security of
the loans that the department may finance for the purchase of the dwellings.
[(14)] (13) “Nonprofit housing corporation” means an
organization formed under ORS chapter 65 and whose articles of incorporation
provide, in addition to the other requirements of ORS chapter 65, that:
(a) The corporation has
been organized exclusively to provide housing facilities for persons and
families of lower income and such other social, recreational, commercial and
communal facilities as may be incidental to such housing facilities.
(b) All the income and earnings
of the corporation shall be used exclusively for corporation purposes and that
no part of the net income or net earnings of the corporation may inure to the
benefit of any private individual, firm, corporation, partnership or
association.
(c) The corporation is
in no manner controlled or under the direction or acting in the substantial
interest of any private individual, firm, partnership or association seeking to
derive profit or gain therefrom or seeking to eliminate or minimize losses in
transactions therewith.
(d) The operations of
the corporation may be supervised by the department and that the corporation
shall enter into such agreements with the department as the department may
require to regulate the planning, development and
management of any housing project undertaken by the corporation and the
disposition of the property and other interests of the corporation.
(14) “Person of lower
income” or “family of lower income” means:
(a) A person or family
residing in this state whose income is not more than 80 percent of area median
income, adjusted for family size, as determined by the State Housing Council
based upon information from the United States Department of Housing and Urban
Development;
(b) A person or family
residing in this state whose income, adjusted for family size, is below the
level the Housing and Community Services Department has determined to be
necessary in order to obtain in the open market decent, safe and sanitary
housing, including the cost of utilities and taxes, for not more than 25
percent of the gross income of the person or family; or
(c) Any person or family
the department determines is appropriate to treat as a person of lower income
or a family of lower income incidental to the accomplishment of department
programs for persons and families of lower income described in paragraphs (a)
and (b) of this subsection.
(15) “Project cost” or “costs
of the project” means the sum of all reasonable expenses incurred by a
qualified housing sponsor in undertaking and completing a housing project
approved by the department. “Project costs” or “costs of the project” include
but are not limited to the expenses incurred by a qualified housing sponsor
for:
(a) Studies and surveys;
(b) Plans,
specifications, architectural and engineering services;
(c) Legal,
organizational and other special services;
(d) Financing,
acquisition, demolition, construction, equipment and site development of new
and rehabilitated housing units;
(e) Movement of existing
buildings to new sites; the cost of acquisition, or estimated fair market
value, of land and other interests in real estate;
(f) Rehabilitation,
reconstruction, repair or remodeling of existing buildings;
(g) Estimated carrying
charges during construction and for a reasonable period thereafter;
(h) Placement of tenants
or occupants and relocation services in connection with the housing project;
(i) Reasonable builder’s
or sponsor’s profit and risk allowance; and
(j) Development costs
not otherwise included in this subsection.
(16) “Qualified housing
sponsor” includes, subject to the approval of the department[,]:
(a) A consumer housing cooperative[,];
(b) A limited dividend housing sponsor[,];
(c) A nonprofit housing corporation[,];
(d) A for-profit housing sponsor including, but
not limited to, an individual operating in compliance with the criteria adopted
by the department under ORS 456.620 (1)[,];
(e) A housing authority created by ORS 456.075[,];
(f) An urban renewal agency created by ORS
457.035; and
(g) Any city or
county governing body or agency or department designated by the governing body.
(17) “Residential
housing” means a specific work or improvement within this state undertaken
primarily to provide dwelling accommodations, including land development and
acquisition, construction or rehabilitation of buildings and improvements
thereto, for residential housing, and such other nonhousing facilities as may
be incidental or appurtenant thereto and as the department determines improve
the quality of the development as it relates to housing for persons or families
of lower income and the financial feasibility of the development. [Not more than 50 percent of the total amount
of any financing provided by the department for a particular development may be
used to finance nonhousing facilities.] “Residential housing” includes, but
is not limited to, a specific work or improvement within this state undertaken
to provide mobile home or manufactured dwelling parks as defined in ORS
446.003. As used in this subsection, “land development” includes, but is not
limited to, the improvement of streets and alleys and the construction of
surface drains, sewers, curbing and sidewalks.
(18) “Residential loan”
means any of the following:
(a) A loan that is for the acquisition,
construction, improvement or rehabilitation of residential housing and, if the
loan is for acquisition or construction of residential housing, that is secured
by a first lien on real property located in the state and:
(A) Improved by a newly constructed, existing or
rehabilitated residential structure for [lower
income] persons or families of lower income[,]; or
(B) Unimproved if
the proceeds of such loan shall be used for the erection of a residential
structure thereon, whether or not such loan is insured or guaranteed by the
United States or any instrumentality or agency thereof.
(b) [“Residential loan” includes] An insured
or guaranteed loan for the acquisition of manufactured housing or for the
acquisition of a lot described in ORS 92.840 by a manufactured dwelling park
tenant. [The insured or guaranteed loan
need not be secured by a first mortgage on real property but shall be secured
by a security interest of first priority. “Residential loan” also includes]
(c) A loan for
the purchase of a proprietary lease and related cooperative shares in a housing
cooperative formed under ORS chapter 62 secured by a security interest of first
priority and a pledge or an assignment of proprietary leases and related
cooperative shares.
(19) “Revolving account”
means the Housing and Community Services Department Revolving Account created
in ORS 456.574.
SECTION 18. ORS 456.625 is amended to read:
456.625. The Housing and
Community Services Department may:
(1) Undertake and carry
out studies and analyses of housing needs within the state and ways of meeting
such needs and make the results of such studies and analyses available to the
public, qualified housing sponsors and the private housing sector.
(2) Prepare proposals on
measures it considers necessary to address administration, housing programs or
community services programs.
(3) With the approval of
the State Housing Council, [charge] assess
fees, charges or interest in connection with housing programs.
(4) Encourage community
organizations to assist in initiating housing projects for persons and families
of lower income.
(5) Encourage the
salvage of usable housing scheduled for demolition or dislocation because of
highway, school, urban renewal or other public projects by seeking authority
for the public agencies involved in such programs to use the funds provided for
the demolition or relocation of such buildings to enable qualified housing
sponsors to relocate and rehabilitate such buildings for use by persons and
families of lower income.
(6) Encourage research
and demonstration projects to develop techniques and methods for increasing the
supply of adequate, decent, safe and sanitary housing for persons and families
of lower income.
(7) Make or participate
in the making of residential loans to qualified individuals or housing sponsors
to provide for the acquisition, construction, improvement, rehabilitation or
permanent financing of residential housing or housing development; undertake
commitments to make residential loans; purchase and sell residential loans at public
or private sale; modify or alter such mortgages or loans; foreclose on any such
mortgage or security interest or commence any action to protect or enforce any
right conferred upon the department by any law, mortgage, security, agreement,
contract or other agreement and to bid for and purchase property that is
subject to such mortgage or security interest at any foreclosure or other sale;
acquire or take possession of any such property and complete, administer,
conserve, improve and otherwise use the property to accomplish the department’s
purposes, pay the principal and interest on any obligations incurred in
connection with such property and dispose of such property in such manner as
the department determines necessary to protect its interests under ORS 456.515
to 456.725 and ORS chapter 458.
(8) Unless specifically
exempted by the State Treasurer, deposit with the State Treasurer any funds
held in reserve or sinking funds under ORS 456.515 to 456.725 and ORS chapter
458 and any other moneys not required for immediate use or disbursement by the
department, subject to the provisions of any agreement with holders of bonds
entered into prior to October 15, 1983.
(9) Advise and assist in
the creation of any nonprofit housing corporation, consumer housing cooperative
or limited dividend housing sponsor and give approval of the articles of
incorporation and bylaws of any such organization in carrying out ORS 456.515
to 456.725.
(10) Cooperate with and
exchange services, personnel and information with any federal, state or local
governmental agency.
(11) Contract for the
services of and consultation with professional persons or organizations, not
otherwise available through federal, state or local governmental agencies, in
carrying out ORS 456.515 to 456.725 and ORS chapter 458.
(12) Contract for, act
on or perform any other duties that the department considers necessary or
appropriate to carry out housing programs and community services programs.
(13) Purchase, service,
sell and make commitments to purchase, service and sell residential loans to
the extent permitted by ORS 456.635 and 456.640 (1) to (3).
(14) Initiate or assist
appropriate state agencies, governmental bodies and public or private housing
sponsors in the development, construction, acquisition, ownership, leasing,
rehabilitation or management of housing to carry out the purposes of ORS
456.515 to 456.725 and ORS chapter 458 where such housing is not otherwise
affordable or available in the area.
(15) Execute and record
written instruments that contain terms, including but not limited to
restrictive covenants or equitable servitudes, pertaining to the use and
enjoyment of housing projects. Notwithstanding any other provision of law, the
executed instruments shall constitute and create restrictive covenants
affecting and running with the property according to the terms of the
instruments when recorded in the records of the county where the property is
located. County clerks shall accept the instruments for recording when
presented by or on behalf of the department.
(16) Subject to the
provisions of any agreement then existing with bondholders, make available
funds by contract, grant, loan or otherwise, including loan guarantees,
insurance or other financial leveraging techniques, from moneys made available
by the department to carry out the purposes of ORS 456.515 to 456.725, if such
moneys are not needed for the operations of the department or otherwise
determined by the director to be a necessary or prudent reserve.
SECTION 19. ORS 456.630 is amended to read:
456.630. The Housing and
Community Services Department may provide [to]
qualified housing sponsors and lending institutions [such] with advisory, consultative training and educational
services as necessary [in assisting such]
to assist those sponsors. [Such] For
purposes of this section, advisory and other services include, but are not
limited to[,]:
(1) Technical and professional planning assistance[,];
(2) Technical assistance
for forming and operating manufactured dwelling park nonprofit cooperatives;
(3) Preparation and promulgation of
organizational planning and development guidelines[,];
(4) Consultation services[,];
(5) Training courses, seminars and lectures;
and
(6) Other
services or materials for assistance of [such]
qualified housing sponsors in the planning, development and management
of housing projects under ORS 456.550 to 456.725.
SECTION 20. ORS 456.690 is amended to read:
456.690. (1) Upon a
finding made by the State Housing Council that the supply of funds available
through lending institutions for the financing of residential loans for the
acquisition, construction, improvement or rehabilitation of housing units,
manufactured dwellings, manufactured dwelling parks, manufactured dwelling park
nonprofit cooperatives or housing projects for persons and families [of lower income] whose income does
not exceed maximum household income limits established by the Housing and
Community Services Department under ORS 456.620 (4) is inadequate, the [Housing and Community Services]
department may make loans to lending institutions in this state for the purpose
of providing funds to such institutions for the financing of residential
housing units, manufactured dwellings, manufactured dwelling parks,
manufactured dwelling park nonprofit cooperatives or housing projects,
for persons and families [of lower income]
whose income does not exceed maximum household income limits established by
the department under ORS 456.620 (4).
(2)(a) The department,
subject to existing agreements with bondholders, may make privately or
federally insured or guaranteed loans for the rehabilitation or
improvement of existing single-family homes for [lower income] persons and families of lower income, manufactured
dwellings for persons and families of lower income or manufactured dwelling
parks and manufactured dwelling park nonprofit cooperatives that the department
determines have a significant percentage of residents who are persons of lower
income, if the department finds that:
(A) The supply of funds
available through private lending institutions for that purpose is inadequate;
and
(B) The housing may be
rehabilitated or improved to provide adequate, safe and sanitary residential
housing.
(b) The department may
cooperate with qualified housing sponsors in the development and implementation
of such loan programs. Loans made by the department under this subsection shall
be made for single-family homes.
(3) Prior to the making
of any loan under this section, the department, with the approval of the council,
shall adopt rules governing the making of such loans, including but not limited
to:
(a) Procedures for the
submission, review and approval of requests for loans under this section.
(b) Standards and
requirements for the allocation of loan moneys available among eligible
borrowers and the determination of the terms, conditions and interest rates for
such loans.
(c) Limitations, if any,
on the number of housing units or projects, type of housing units or projects
and any other characteristics for the eligibility of housing units or projects
for such financing.
(d) Restrictions, if
any, on the interest rates to be charged by lending institutions on loans made
from such loan proceeds and the return to be realized by the lending
institution therefrom.
(e) Commitment
requirements applied to residential mortgage financing by lending institutions
from the proceeds of such loans.
(f) Schedules of fees
and [other] charges to be made by the
department in accepting, reviewing and acting upon applications for loans under
this section.
(4) The department shall
administer the loan program for rehabilitation or improvement of existing
single-family homes for [lower income]
persons and families of lower income in accordance with the following
requirements and loan criteria:
(a) Eligibility for a
loan shall be based on current department income limitations.
(b) A loan may be
assumed only by another [lower income]
person of lower income.
(c) The single-family
home for which a loan is made must be owner-occupied.
(d) The maximum
principal amount of a single loan is $15,000.
(e) An eligible borrower
shall have only one loan outstanding under this program at any one time.
(f) An eligible
improvement including, but not limited to, a remodeling project shall be
defined by rule and the provisions of the Revenue Adjustments Act of 1980
(Public Law 96-499), as adopted December 5, 1980, shall be recognized in that
definition.
(g) Loans shall be made
in accordance with a distribution of population between urban and rural areas
that takes the availability of alternative resources into account.
(h) The department shall
work with qualified housing sponsors whenever it is appropriate to do so.
(5) All loans made and
all rules adopted under this section shall be designed by the department, with
the approval of the council, to expand the supply of funds available in this
state for the financing of residential housing units, manufactured
dwellings, manufactured dwelling parks, manufactured dwelling park nonprofit
cooperatives and housing projects, for persons and families [of lower income] whose income does
not exceed maximum household income limits established by the department under
ORS 456.620 (4), to provide an adequate supply of safe and sanitary units
of such housing, and to promote the effective participation of conventional
lending institutions in the financing of such housing and restrict the
financial return and benefit to such lenders to that which is necessary and
reasonable to induce their participation under this section.
(6) In making loans
under this section, the department, with the approval of the council, may
prescribe such terms, conditions, maturity dates and interest rate provisions
as it considers necessary.
SECTION 21. ORS 456.705 is amended to read:
456.705. [With respect to] For
the servicing of any residential, manufactured dwelling, manufactured
dwelling park or manufactured dwelling park nonprofit cooperative loan made
or acquired by the Housing and Community Services Department under ORS 456.515
to 456.725 and ORS chapter 458 the department may:
(1) Provide for
servicing of the [residential] loan
by its own staff.
(2) Contract with the
Director of Veterans’ Affairs for the performance of servicing functions for
the [residential] loan.
(3) [With respect to residential] For
loans purchased by the department under ORS 456.635, contract with the lending
institution selling such loans or any other lending institution for the
servicing of such loans, subject to such terms and conditions as the department
considers necessary to protect the interests of the department in such loans.
The department may provide for the payment of such fees for servicing performed
by a lending institution under this subsection as it considers necessary.
SECTION 22. ORS 456.710 is amended to read:
456.710. (1) The Housing
and Community Services Department may use moneys in the revolving account to
make noninterest-bearing advances to qualified nonprofit housing sponsors or
interest-bearing advances to other qualified housing sponsors for use in
payment by such sponsors of the development costs of proposed housing units or
projects. The department may not make any advance under this subsection unless
the department may reasonably anticipate that a residential, manufactured
dwelling, manufactured dwelling park or manufactured dwelling park nonprofit
cooperative loan may be obtained by the qualified housing sponsor for the
permanent financing of the proposed housing unit or project.
(2) The proceeds of any
advance granted by the department under subsection (1) of this section may be
used by the qualified housing sponsor only for the development costs of a
proposed housing unit or project or housing development. Each advance so
granted shall be repaid in full, by the qualified housing sponsor for which the advance was granted, to the department at the time
of the receipt by the housing sponsor of the portion of the [residential] loan paid under the initial
indorsement of the [residential]
loan, unless the department extends the repayment period. [In no event shall the time of repayment be extended beyond the date of
the receipt by] The department may not extend the repayment period past
the date the qualified housing sponsor [of]
receives the portion of the [residential]
loan paid on final indorsement of the [residential]
loan.
SECTION 23. ORS 456.715 is amended to read:
456.715. (1) The Housing
and Community Services Department may insure residential, manufactured
dwelling, manufactured dwelling park and manufactured dwelling park nonprofit cooperative
loans or obtain reinsurance on such loans. [However,]
All such loans shall be used only to provide residential housing for persons
and families of lower income and the insured must agree to any restrictions
placed upon such residential housing by the department. The department may
establish dedicated accounts within the Housing Finance Fund to provide
reserves against losses in connection with that insurance.
(2) All applications for
residential loan insurance under subsection (1) of this section shall be made
on such forms and accompanied by such application fee as the department may
prescribe.
(3) The department shall
notify the applicant of its [findings]
determinations and the approval or denial of the application.
(4) Notwithstanding
subsection (1) of this section, the department may insure loans for
manufactured dwelling units, manufactured dwelling parks and manufactured
dwelling park nonprofit cooperatives if the department determines that the
unit, park or cooperative has a significant percentage of residents who are
persons of lower income.
SECTION 24. ORS 458.215 is amended to read:
458.215. The Housing and
Community Services Department may establish a program to build local capacity
to address any or a combination of the following:
(1) Housing needs of
people, with low or moderate incomes, for homeownership and affordable rental
housing;
(2) The problem of
abandoned houses;
(3) The need for
adequate housing for seasonal farm laborers;
(4) Housing problems for
low and moderate income elderly and disabled persons;
(5) The need to
incorporate social service programs as a component of community economic
development; [and]
(6) The preservation
of manufactured dwelling parks that the department determines house a
significant percentage of persons and families of lower income; and
[(6)] (7) The need to incorporate
related jobs for low and moderate income persons as a component of community
economic revitalization.
SECTION 25. ORS 458.630 is amended to read:
458.630. (1)(a) The
Housing and Community Services Department may hold and use the principal that
is credited to the Housing Development and Guarantee Account as the Guarantee
Fund. The department may use the fund 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] 50 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 to decrease by five percent or
more, the interest on the fund shall be deposited only to the principal account
until the amount of the fund principal lost due to payouts on loan guarantees
is restored.
(4) Subject to council
review under subsection (1) of this section, the department shall give
preference for loan guarantees under this section 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 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.
Approved by the Governor June 26, 2007
Filed in the office of Secretary of State June 27, 2007
Effective date January 1, 2008
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