74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 339
 
                           B-Engrossed
 
                         House Bill 2095
                  Ordered by the Senate June 4
 Including House Amendments dated March 9 and Senate Amendments
                          dated June 4
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski for Housing and Community Services Department)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
  Allows housing authority to own mixed income housing project.
Allows housing authority to form, finance, have nonstock interest
in and manage or operate partnerships, nonprofit corporations and
limited liability companies to further purposes of housing
authority.
  Replaces requirement for annual housing authority report with
requirement for annual audit. Changes means for proving proper
appointment of housing authority commissioner.
  Revises definitions for affordable housing and for persons
meeting housing authority income criteria. Restricts use of term
' housing authority.  '
  Defines 'property of a housing authority' for tax and special
assessment purposes.
 
                        A BILL FOR AN ACT
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 Oregon:
  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 United States; and
  (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. + }
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