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 3842
House Bill 3551
Sponsored by Representatives BOONE, HOLVEY, NOLAN, Senators
CARTER, DECKERT (at the request of Housing Alliance:
Association of Oregon Community Development Organizations,
Association of Oregon Housing Authorities, CASA of Oregon,
Central City Concern, City Club of Portland, City of Ashland,
City of Beaverton, City of Medford Housing and Community
Development Commission, City of Portland, City of Talent,
Clackamas Land Trust, Clackamas Housing Action Network,
Coalition for a Livable Future, Community Action Directors of
Oregon, Community Alliance of Tenants, Community Development
Network, Community Housing Fund, Community Partners for
Affordable Housing, Ecumenical Ministries of Oregon, Enterprise
Community Partners Inc., Habitat for Humanity of Oregon,
Homeless Families Coalition, Housing Advocacy Group of
Washington County, Housing Development Center, Interfaith
Committee on Homelessness, Jackson County Housing Coalition,
Lane County Legal Aid and Advocacy Center, League of Oregon
Cities, League of Women Voters of Oregon, Lincoln County,
METRO, Multnomah County, Neighborhood Economic Development
Corp., Neighborhood Partnership Fund, Network for Oregon
Affordable Housing, Northwest Community Land Trust Coalition,
Northwest Housing Alternatives, Oregon Action, Oregon Council
on Developmental Disabilities, Oregon Coalition on Housing and
Homelessness, Oregon Food Bank, Portland Community Land Trust,
Portland Community Reinvestment Initiatives Inc., Portland
Impact, REACH CDC, Rogue Valley CDC, Rose CDC, St. Vincent
DePaul of Lane County, Shelter Care)
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 as
introduced.
Establishes fee for recording of documents in deed and mortgage
records of county. Directs county clerk to transfer amounts
collected to Housing and Community Services Department to fund
housing programs of department.
Modifies affordable housing programs and requires rulemaking.
A BILL FOR AN ACT
Relating to public programs for housing; amending ORS 205.323,
294.184, 294.187, 306.815, 456.720, 458.610 and 458.655; and
providing for revenue raising that requires approval by a
three-fifths majority.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 205.323 is amended to read:
205.323. (1) In addition to and not in lieu of the fees charged
and collected under ORS 205.320 and other fees, the { + county
clerk shall charge and collect the + }following fees { - shall
be charged and collected - } for the recording or filing of any
instrument described in ORS 205.130:
(a) A fee of $1, to be credited as provided in subsection
{ - (3)(a) - } { + (4)(a) + } of this section; { - and - }
(b) A fee of $10, to be credited as provided in subsection
{ - (3)(b) - } { + (4)(b) + } of this section { + ; and
(c) A fee of $15, to be credited as provided in subsection
(4)(c) of this section + }.
(2) Subsection (1) of this section does not apply to the
recording or filing of the following:
(a) Instruments that are otherwise exempt from recording or
filing fees under any provision of law;
(b) Any satisfaction of judgment or certificate of satisfaction
of judgment; or
(c) Internal county government instruments not otherwise
charged a recording or filing fee.
{ + (3) Subsection (1)(c) of this section does not apply to
the recording or filing of instruments required under ORS 517.210
to maintain mining claims. + }
{ - (3) - } { + (4) + } Of the amounts charged and
collected under this section:
(a) The recording or filing fee charged and collected under
subsection (1)(a) of this section { - shall - } { + must + }
be deposited and credited to the Oregon Land Information System
Fund established under ORS 306.132 { - ; and - } { + . + }
(b) { - Of the recording or filing fee charged and collected
under subsection (1)(b) of this section, - } { + The recording
or filing fee charged and collected under subsection (1)(b) of
this section shall be credited as follows:
(A) + } Five percent { - shall - } { + of the fee must + }
be credited for the benefit of the county { - , - } { + ;
(B) + } Five percent { - shall - } { + of the fee must + }
be credited for the benefit of the county clerk for the purposes
described in ORS 205.320 (18) { + ; + } and
{ + (C) + } 90 percent { - shall be deposited and - }
{ + of the fee must be + } credited to { + and deposited in + }
the County Assessment and Taxation Fund created under ORS
294.187.
{ + (c) The recording or filing fee charged and collected
under subsection (1)(c) of this section must be credited to and
deposited in the County Assessment and Taxation Fund created
under ORS 294.187. + }
SECTION 2. ORS 294.184 is amended to read:
294.184. (1) There is created under ORS 293.445 a suspense
account to be known as the County Assessment Function Funding
Assistance Account. The account shall consist of:
(a) All moneys paid over by the county treasurers as provided
under ORS 294.187 { + (2)(a) + }; and
(b) All interest earned upon any moneys in the account.
(2) Of the moneys in the account as of the last day of each
fiscal quarter, the moneys necessary to pay the following
Department of Revenue expenses shall be transferred to a suspense
account of the department created under ORS 293.445 and are
continuously appropriated to the department for:
(a) Expenses incurred in carrying out the purposes of ORS
294.175 to 294.184; and
(b) Appraisal expenses incurred by the department in appraising
principal and secondary industrial properties identified under
ORS 306.126 and property of centrally assessed companies under
ORS 308.505 to 308.665.
(3) The total amount of moneys transferred to the suspense
account of the department under subsection (2) of this section
may not exceed 10 percent of the moneys in the account as of the
last day of the fiscal quarter for which the transfer is being
made.
(4) The remainder of the moneys in the account as of the last
day of the fiscal quarter shall be used for the purpose of making
the grant payments to counties as required under ORS 294.178 and
are continuously appropriated to the department for that purpose.
SECTION 3. ORS 294.187 is amended to read:
294.187. (1) There is created in the county treasury of each
county a fund to be known as the County Assessment and Taxation
Fund. The fund shall consist of:
(a) Moneys deposited { + in + } and credited to the fund under
ORS 311.508.
(b) Moneys deposited { + in + } and credited to the fund under
ORS 205.323 { + (4)(b)(C).
(c) Moneys deposited in and credited to the fund under ORS
205.323 (4)(c) + }.
{ - (c) - } { + (d) + } Interest earned upon moneys
credited to the fund.
(2) The county treasurer shall pay over the moneys in the fund,
determined as of the last day of the fiscal quarter, { - to the
State Treasurer - } on or before the 10th day of the month
following the last day of the fiscal quarter { - . - } { + as
follows:
(a) Moneys collected under subsection (1)(a) and (b) of this
section and interest earnings on those moneys must be paid over
to the Department of Revenue for deposit in the County Assessment
Function Funding Assistance Account created under ORS 294.184.
(b) Moneys collected under subsection (1)(c) of this section
and interest earnings on those moneys must be paid over to the
Housing and Community Services Department for housing-related
programs as follows:
(A) 76.75 percent of the moneys must be deposited in the
Housing Development Account established under ORS 456.720;
(B) 10 percent of the moneys must be deposited in the Emergency
Housing Account created under ORS 458.620; and
(C) 13.25 percent of the moneys must be deposited in the Home
Ownership Assistance Account created under ORS 458.620. + }
{ - (3) The State Treasurer shall deposit and credit the
moneys received under subsection (2) of this section to the
County Assessment Function Funding Assistance Account referred to
in ORS 294.184. - }
{ - (4) - } { + (3) + } If the county treasurer fails to
pay over moneys, as required under subsection (2) of this
section, then any unpaid moneys shall be a debt due and owing by
the county to the state and the county shall pay the legal rate
of interest thereon from the due date until paid. Payment of
interest under this section shall not relieve the county
treasurer from any penalty imposed by law for failure to make the
payments, and in addition, the county treasurer shall be liable
under ORS 311.375 (4)(a) and (b).
{ - (5) - } { + (4) + } ORS 294.305 to 294.565 do not apply
to a fund created under this section.
SECTION 4. ORS 306.815 is amended to read:
306.815. (1) A city, county, district or other political
subdivision or municipal corporation of this state shall not
impose, by ordinance or other law, a tax or fee upon the transfer
of a fee estate in real property, or measured by the
consideration paid or received upon transfer of a fee estate in
real property.
(2) A tax or fee upon the transfer of a fee estate in real
property does not include any fee or charge that becomes due or
payable at the time of transfer of a fee estate in real property,
unless that fee or charge is imposed upon the right, privilege or
act of transferring title to real property.
(3) Subsection (1) of this section does not apply to any fee
established under ORS 203.148.
(4) Subsection (1) of this section does not apply to any tax if
the ordinance or other law imposing the tax is in effect and
operative on March 31, 1997.
(5) Subsection (1) of this section does not apply to any tax or
fee that is imposed upon the transfer of a fee estate in real
property if the fee that is imposed under ORS 205.323, for the
recording or filing of the instrument conveying the real property
being transferred { + , + } is less than { - $11 - }
{ + $27 + }.
SECTION 5. ORS 458.610 is amended to read:
458.610. For purposes of ORS 458.600 to 458.655:
(1) 'Council' means the State Housing Council established in
ORS 456.567.
(2) 'Department' means the Housing and Community Services
Department established in ORS 456.555.
(3) 'Disabled' means those persons described as such by the
Fair Housing Amendments Act of 1988.
(4) 'Low income' means individuals or households that receive
more than 50 percent but less than 80 percent of the area median
income as determined by the council based on information from the
United States Department of Housing and Urban Development.
{ + (5) 'Minority' means an individual who is:
(a) An individual who has origins in one of the black racial
groups of Africa but who is not Hispanic;
(b) An individual of Hispanic culture or origin;
(c) An individual having origins in any of the original peoples
of the Far East, Southeast Asia, the Indian subcontinent or the
Pacific Islands; or
(d) An American Indian or Alaskan Native having origins in one
of the original peoples of North America. + }
{ - (5) - } { + (6) + } 'Organization' means a:
(a) Nonprofit corporation established under ORS chapter 65;
(b) Housing authority established under ORS 456.055 to 456.235;
or
(c) Local government as defined in ORS 197.015.
{ - (6) - } { + (7) + } 'Very low income' means individuals
or households which receive less than 50 percent of the area
median income as determined by the council based on information
from the United States Department of Housing and Urban
Development.
SECTION 6. ORS 456.720 is amended to read:
456.720. (1) The Housing Finance Fund is established, separate
and distinct from the General Fund. The fund shall consist of the
proceeds from the sale of bonds issued under ORS 456.645 and
456.650, fees and other moneys received by the Housing and
Community Services Department under ORS 456.550 to 456.725,
moneys appropriated by the state for use by the department in
carrying out ORS 456.550 to 456.725 and moneys made available
from any other source for use by the department under ORS 456.550
to 456.725.
(2) Except as otherwise provided in this section, moneys in the
fund may be expended by the department for the purposes
authorized in ORS 456.550 to 456.725. Except as otherwise
provided in this section for a capital reserve account, the
department may establish one or more accounts within the fund for
use in carrying out ORS 456.550 to 456.725.
(3) There may be established within the Housing Finance Fund
capital reserve accounts. A capital reserve account shall consist
of the aggregate of moneys retained by the department, pursuant
to existing agreements with the bondholders, as the annual debt
service reserve, as described in ORS 456.655 (1), for each bond
issue sold by the department under ORS 456.645 or 456.650. All
moneys in the account for an issue which the department has
determined a debt service reserve is required shall be used
solely for the payment of the principal and interest on the bonds
as they mature, the purchase of such bonds, the payment of
interest on such bonds and the payment of any redemption premium
required to be paid by the department when any such bonds are
redeemed prior to maturity. Moneys in the account may not be
withdrawn therefrom at any time in such amount as would reduce
the amount of moneys in the account below the maximum amount of
principal and interest maturing and becoming due in the
succeeding fiscal year on all such bonds then outstanding, except
for the purpose of paying principal of and interest and premium,
if any, on the bonds of the department maturing and becoming due
and for the payment of which other moneys in the Housing Finance
Fund are not available.
(4) Except as otherwise provided in existing agreements with
bondholders, any income or interest earned by or accruing to the
capital reserve account because of the investment by the
department of moneys within the account may be retained by the
department in the fund to apply to any future deficiency that may
occur or may be used by the department for the repayment of
moneys in the revolving account that were expended by the
department pursuant to ORS 456.574 (2)(b).
(5) In order to assure the continual operation and maintenance
of the capital reserve account in the Housing Finance Fund and to
carry out ORS 456.550 to 456.725, if the amount of money on
deposit in the capital reserve account in any year is less than
the debt service reserves described in ORS 456.655 (1), the
Director of the Housing and Community Services Department shall
certify to the Governor and the Legislative Assembly or, during
the interim, to the Emergency Board the amount needed to restore
the account to its required debt service reserves. The amount so
certified by the director may be appropriated by the Legislative
Assembly or, during the interim, allocated by the Emergency Board
and paid to the department during the then current fiscal year
for deposit in the capital reserve account.
(6) For the purposes of this section, the department shall
annually value investments in the capital reserve account at the
amortized cost of the investments.
(7) There is established within the Housing Finance Fund a
Housing Development Account. Moneys in this account are
{ - hereby - } continuously appropriated to carry out the
purposes of ORS 456.515 to 456.725 by contract, grant, loan or as
otherwise determined necessary by the department. { + The
department shall adopt rules that:
(a) Govern the allocation of moneys deposited in the account to
best meet critical housing needs and build organizational
capacity of partners across the state; and
(b) Require equitable distribution of resources over time based
on objective measures of need, including the number and
percentage of low and very low income households. + }
(8)(a) The Housing Development Account shall consist of moneys
deposited or received by the department for the purposes of this
account from whatever source. Of the moneys deposited into the
account:
(A) The department shall not use moneys from its own resources
for administrative expenses; and
(B) The department may use moneys from other sources for
administrative expenses only to the extent provided by those
sources.
(b) The department may return moneys received or deposited in
the account to the original source of the moneys, as the director
determines necessary.
(9) Except as otherwise stipulated by the source of funds, any
income or interest earned by or accruing to the Housing
Development Account because of the investment by the department
of moneys in the account may be retained by the department for
the uses of the account.
(10) The department may enter into agreements regarding use of
moneys received for the Housing Development Account with the
source of the moneys, and may comply with the provisions of such
agreements.
SECTION 7. ORS 458.655 is amended to read:
458.655. (1) The Home Ownership Assistance Account shall be
administered by the Housing and Community Services Department to
expand the state's supply of homeownership housing for low and
very low income families and individuals, including, but not
limited to, housing for persons over 65 years of age, disabled
persons, { + racial and ethnic minority households, + }
farmworkers and Native Americans. The State Housing Council shall
have a policy of distributing funds statewide while concentrating
funds in those areas of the state with the greatest need, as
determined by the council, for low and very low income
homeownership housing. However, the council's policy of
distributing funds may differ from the distribution policy for
the Housing Development and Guarantee Account.
(2) Funds in the Home Ownership Assistance Account shall be
granted to organizations { - , as defined in ORS 458.610
(5), - } that both sponsor and manage low income homeownership
programs, including lease-to-own programs, for the construction
of new homeownership housing or for the acquisition or
rehabilitation of existing structures for homeownership housing
for persons of low or very low income, or both.
(3) The council shall develop a policy for disbursing grants
for any or all of the following purposes:
(a) To aid low income homeownership programs, including program
administration, in purchasing land, providing assistance with
down payment costs, or providing homeownership training and
qualification services or any combination thereof. { - No - }
{ + Funds in the + } Home Ownership Assistance Account
{ - funds shall be - } { + may not be + } used by an
organization { + to pay + } for its general operations or
{ - for a substantial portion - } { + to pay for more than 25
percent + } of construction or rehabilitation costs;
(b) To match public and private moneys available from other
sources for purposes of the provision of low or very low income
homeownership housing; or
(c) To administer the Home Ownership Assistance Account, not to
exceed five percent of the revenue.
(4) The council, in developing policy under subsection (3) of
this section, shall give preference in making grants to those
entities that propose to:
(a) Provide the greatest number of low and very low income
homeownership housing units constructed, acquired or
rehabilitated for the amount of account money expended by
matching account funds with other grant, loan or eligible in-kind
contributions;
(b) Ensure the longest use for the units as low or very low
income homeownership housing units, such as by including some
form of equity recapture, { + land trust or shared equity
provisions, + } as determined by the council; { - and - }
(c) Include social services for occupants and proposed
occupants of the proposed housing, including but not limited to,
programs that address home health care, mental health care,
alcohol and drug treatment and post-treatment care, child care,
homeownership training, mortgage qualification service, credit
repair and case management { + ; and
(d) Support a comprehensive strategy to reverse the decreasing
rates of homeownership among racial and ethnic minority
households, giving priority to activities that support
comprehensive community plans that incorporate recognized best
practices or demonstrate proven success in increasing
homeownership for racial and ethnic minorities + }.
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