75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
SA to RC to HB 2261
LC 784/HB 2261-1
SENATE AMENDMENTS TO RESOLVE CONFLICTS TO
HOUSE BILL 2261
By COMMITTEE ON FINANCE AND REVENUE
April 22
On page 1 of the printed bill, line 2, before 'and' insert '
repealing sections 25 and 25a, chapter 33, Oregon Laws 2009
(Enrolled House Bill 2065);'.
On page 6, after line 3, insert:
' { + SECTION 1a. + } { + If House Bill 2157 becomes law,
section 1 of this 2009 Act (amending ORS 317.097) is repealed and
ORS 317.097, as amended by section 6, chapter 29, Oregon Laws
2008, section 15, chapter 45, Oregon Laws 2008, and section 25,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read: + }
' 317.097. { + (1) As used in this section:
' (a) 'Annual rate' means the yearly interest rate specified on
the note, and not the annual percentage rate, if any, disclosed
to the applicant to comply with the federal Truth in Lending Act.
' (b) 'Finance charge' means the total of all interest, loan
fees, interest on any loan fees financed by the lending
institution, and other charges related to the cost of obtaining
credit.
' (c) 'Lending institution' means any insured institution, as
that term is defined in ORS 706.008, any mortgage banking company
that maintains an office in this state or any community
development corporation that is organized under the Oregon
Nonprofit Corporation Law.
' (d) 'Manufactured dwelling park' has the meaning given that
term in ORS 446.003.
' (e) 'Nonprofit corporation' means a corporation that is
exempt from income taxes under section 501(c)(3) or (4) of the
Internal Revenue Code as amended and in effect on December 31,
2008.
' (f) 'Preservation project' means housing that was previously
developed as affordable housing with a contract for rent
assistance from the United States Department of Housing and Urban
Development or the United States Department of Agriculture and
that is being acquired by a sponsoring entity.
' (g) 'Qualified assignee' means any investor participating in
the secondary market for real estate loans.
' (h) 'Qualified borrower' means any borrower that is a
sponsoring entity that has a controlling interest in the real
property that is financed by a qualified loan. A controlling
interest includes, but is not limited to, a controlling interest
in the general partner of a limited partnership that owns the
real property.
' (i) 'Qualified loan' means:
' (A) A loan that meets the criteria stated in subsection (5)
of this section or that is made to refinance a loan that meets
the criteria described in subsection (5) of this section; or
' (B) The purchase by a lending institution of bonds, as
defined in ORS 286A.001, issued on behalf of the Housing and
Community Services Department, the proceeds of which are used to
finance or refinance a loan that meets the criteria described in
subsection (5) of this section.
' (j) 'Sponsoring entity' means a nonprofit corporation,
nonprofit cooperative, state governmental entity, local unit of
government as defined in ORS 466.706, housing authority or any
other person, provided that the person has agreed to restrictive
covenants imposed by a nonprofit corporation, nonprofit
cooperative, state governmental entity, local unit of government
or housing authority. + }
' { - (1) A credit against taxes otherwise due under this
chapter for the taxable year shall be allowed to a lending
institution in an amount equal to the difference between: - }
' { + (2) The Department of Revenue shall allow a credit
against taxes otherwise due under this chapter for the taxable
year to a lending institution that makes a qualified loan
certified by the Housing and Community Services Department as
provided in subsection (7) of this section. The amount of the
credit is equal to the difference between: + }
' (a) The amount of finance charge charged by the lending
institution during the taxable year at an annual rate less than
the market rate for a { + qualified + } loan that is made before
January 1, 2020, that complies with the requirements of this
section; and
' (b) The amount of finance charge that would have been charged
during the taxable year by the lending institution for the { +
qualified + } loan for housing construction, development,
acquisition or rehabilitation measured at the annual rate charged
by the lending institution for nonsubsidized loans made under
like terms and conditions at the time the { + qualified + } loan
for housing construction, development, acquisition or
rehabilitation is made.
' { - (2) - } { + (3) + } The maximum amount of credit for
the difference between the amounts described in subsection
{ - (1)(a) - } { + (2)(a) + } and (b) of this section may not
exceed four percent of the average unpaid balance of the
{ + qualified + } loan during the tax year for which the credit
is claimed.
' { - (3) - } { + (4) + } Any tax credit { - otherwise
allowable - } { + allowed + } under this section that is not
used by the taxpayer in a particular year may be carried forward
and offset against the taxpayer's tax liability for the next
succeeding tax year. Any credit remaining unused in the next
succeeding tax year may be carried forward and used in the second
succeeding tax year, and likewise, any credit not used in that
second succeeding tax year may be carried forward and used in the
third succeeding tax year, and any credit not used in that third
succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be carried forward for any tax
year thereafter.
' { - (4) In order to be eligible for the tax credit allowed
under subsection (1) of this section, the loan shall be: - }
' { - (a) Made to an individual or individuals who own the
dwelling, participate in an owner-occupied community
rehabilitation program and are certified by the local government
or its designated agent as having an income level at the time the
loan is made of less than 80 percent of the area median
income; - }
' { - (b)(A) Made to a qualified borrower; - }
' { - (B) Used to finance construction, development,
acquisition or rehabilitation of housing; and - }
' { - (C) Accompanied by a written certification by the
Housing and Community Services Department that the: - }
' { - (i) Housing created by the loan is or will be occupied
by households earning less than 80 percent of the area median
income; and - }
' { - (ii) Full amount of savings from the reduced interest
rate provided by the lending institution is or will be passed on
to the tenants in the form of reduced housing payments,
regardless of other subsidies provided to the housing
project; - }
' { - (c)(A) Made to a qualified borrower; - }
' { - (B) Used to finance construction, development,
acquisition, or acquisition and rehabilitation of housing
consisting of a manufactured dwelling park; and - }
' { - (C) Accompanied by a written certification by the
Housing and Community Services Department that the housing will
continue to be operated as a manufactured dwelling park during
the period for which the tax credit is allowed; or - }
' { - (d)(A) Made to a qualified borrower; - }
' { - (B) Used to finance acquisition, or acquisition and
rehabilitation, of housing consisting of a preservation project;
and - }
' { - (C) Accompanied by a written certification by the
Housing and Community Services Department that the housing
preserved by the loan: - }
' { - (i) Is or will be occupied by households earning less
than 80 percent of the area median income; and - }
' { - (ii) Has a rent assistance contract with the United
States Department of Housing and Urban Development or the United
States Department of Agriculture that will be maintained by the
qualified borrower. - }
' { + (5) To be eligible for the tax credit allowable under
this section, a lending institution must make a qualified loan by
either purchasing bonds, as defined in ORS 286A.001, issued on
behalf of the Housing and Community Services Department, the
proceeds of which are used to finance or refinance a loan that
meets the criteria stated in this subsection, or by making a loan
directly to:
' (a) An individual or individuals who own a dwelling,
participate in an owner-occupied community rehabilitation program
and are certified by the local government or its designated agent
as having an income level when the loan is made of less than 80
percent of the area median income;
' (b) A qualified borrower who:
' (A) Uses the loan proceeds to finance construction,
development, acquisition or rehabilitation of housing; and
' (B) Provides a written certification executed by the Housing
and Community Services Department that the:
' (i) Housing created by the loan is or will be occupied by
households earning less than 80 percent of the area median
income; and
' (ii) Full amount of savings from the reduced interest rate
provided by the lending institution is or will be passed on to
the tenants in the form of reduced housing payments, regardless
of other subsidies provided to the housing project;
' (c) A qualified borrower who:
' (A) Uses the loan proceeds to finance construction,
development, acquisition or rehabilitation of housing consisting
of a manufactured dwelling park; and
' (B) Provides a written certification executed by the Housing
and Community Services Department that the housing will continue
to be operated as a manufactured dwelling park during the period
for which the tax credit is allowed; or
' (d) A qualified borrower who:
' (A) Uses the loan proceeds to finance acquisition or
rehabilitation of housing consisting of a preservation project;
and
' (B) Provides a written certification executed by the Housing
and Community Services Department that the housing preserved by
the loan:
' (i) Is or will be occupied by households earning less than 80
percent of the area median income; and
' (ii) Is the subject of a rent assistance contract with the
United States Department of Housing and Urban Development or the
United States Department of Agriculture that will be maintained
by the qualified borrower. + }
' { - (5) - } { + (6) + } A loan made to refinance a loan
that meets the criteria stated in subsection { - (4) - }
{ + (5) + } of this section { - shall - } { + must + } be
treated the same as a loan that meets the criteria stated in
subsection { - (4) - } { + (5) + } of this section.
' { - (6) In order to be eligible for the tax credit allowed
under subsection (1) of this section, the loan also shall be
accompanied by a written certification by the Housing and
Community Services Department that: - }
' { + (7) For a qualified loan to be eligible for the tax
credit allowable under this section, the Housing and Community
Services Department must execute a written certification for the
qualified loan that: + }
' (a) Specifies the period, { + not to exceed 20 years, + } as
determined by the Housing and Community Services Department,
during which the { + tax credit is allowed for the qualified + }
loan { - is eligible for the tax credit under subsection (1) of
this section - } ; and
' (b) States that the { + qualified + } loan is within the
limitation imposed by subsection { - (7) - } { + (8) + } of
this section.
' { - (7)(a) - } { + (8) + } The Housing and Community
Services Department may certify { + qualified + } loans that are
eligible under subsection
{ - (4) - } { + (5) + } of this section if the total credits
attributable to all { + qualified + } loans eligible for
credits under { - subsection (1) of - } this section and then
outstanding do not exceed $17 million for any fiscal year. In
making loan certifications { + under subsection (7) of this
section + }, the Housing and Community Services Department shall
attempt to distribute the tax credits statewide, but shall
concentrate the tax credits in those areas of the state that are
determined by the State Housing Council to have the greatest need
for affordable housing.
' { - (b) The certification under subsection (6) of this
section shall state the period for which the credit will be
allowed, which may not exceed 20 years. - }
' { - (8) The applicant's receipt of a credit under section 42
of the Internal Revenue Code does not affect the credit allowed
under this section. - }
' { + (9) The tax credit provided for in this section may be
taken whether or not:
' (a) The financial institution is eligible to take a federal
income tax credit under section 42 of the Internal Revenue Code
with respect to the project financed by the qualified loan; or
' (b) The project receives financing from bonds, the interest
on which is exempt from federal taxation under section 103 of the
Internal Revenue Code.
' (10) For a qualified loan defined in subsection (1)(i)(B) of
this section financed through the purchase of bonds, the interest
of which is exempt from federal taxation under section 103 of the
Internal Revenue Code, the amount of finance charge that would
have been charged under subsection (2)(b) of this section is
determined by reference to the finance charge that would have
been charged if the federally tax exempt bonds had been issued
and the tax credit under this section did not apply. + }
' { - (9) - } { + (11) + } { - A loan meeting the
requirements of subsections (4) and (6) of this section may be
sold to a qualified assignee with or without the lending
institution's retaining servicing of the - } { + A lending
institution may sell a qualified loan for which a certification
has been executed to a qualified assignee whether or not the
lending institution retains servicing of the qualified + } loan
so long as a designated lending institution maintains
records { + , + } annually verified by a loan servicer { + , + }
that establish the amount of tax credit earned by the taxpayer
throughout each year of eligibility.
' { - (10) As used in this section: - }
' { - (a) 'Annual rate' means the yearly interest rate
specified on the note, and not the annual percentage rate, if
any, disclosed to the applicant to comply with the federal Truth
in Lending Act. - }
' { - (b) 'Finance charge' means the total of all interest,
loan fees, interest on any loan fees financed by the lending
institution, and other charges related to the cost of obtaining
credit. - }
' { - (c) 'Lending institution' means any insured institution,
as that term is defined in ORS 706.008, any mortgage banking
company that maintains an office in this state or any community
development corporation that is organized under the Oregon
Nonprofit Corporation Law. - }
' { - (d) 'Manufactured dwelling park' has the meaning given
that term in ORS 446.003. - }
' { - (e) 'Nonprofit corporation' means a corporation that is
exempt from income taxes under section 501(c)(3) or (4) of the
Internal Revenue Code as amended and in effect on December 31,
2008. - }
' { - (f) 'Preservation project' means housing that was
previously developed as affordable housing with a contract for
rent assistance from the United States Department of Housing and
Urban Development or the United States Department of Agriculture
and that is being acquired by a sponsoring entity. - }
' { - (g) 'Qualified assignee' means any investor
participating in the secondary market for real estate loans. - }
' { - (h) 'Qualified borrower' means any borrower that is a
sponsoring entity that has a controlling interest in the real
property that is financed by the loan described in subsection (4)
of this section. Such a controlling interest includes, but is not
limited to, a controlling interest in the general partner of a
limited partnership that owns the real property. - }
' { - (i) 'Sponsoring entity' means a nonprofit corporation,
nonprofit cooperative, state governmental entity, local unit of
government as defined in ORS 466.706, housing authority or any
other person, provided that the person has agreed to restrictive
covenants imposed by a nonprofit corporation, nonprofit
cooperative, state governmental entity, local unit of government
or housing authority. - }
' { - (11) - } { + (12) + } Notwithstanding any other
provision of law, a lending institution that is a community
development corporation organized under the Oregon Nonprofit
Corporation Law may transfer
{ - any part or all of any tax credit arising under subsection
(1) of - } { + all or part of a tax credit allowed under + }
this section to one or more other lending institutions that are
stockholders or members of the community development corporation
or that otherwise participate through the community development
corporation in the making of one or more { + qualified + } loans
{ - that generate - } { + for which + } the tax credit under
{ - subsection (1) of - } this section { + is allowed + }.
' { - (12) - } { + (13) + } The lending institution shall
file an annual statement with the Housing and Community Services
Department, specifying that it has conformed with all
requirements imposed by law to qualify for { - this - }
{ + a + } tax credit { + under this section + }.
' { - (13) - } { + (14) + } The Housing and Community
Services Department and the Department of Revenue may adopt rules
to carry out the provisions of this section.
' { + SECTION 1b. + } { + Sections 25 and 25a, chapter 33,
Oregon Laws 2009 (Enrolled House Bill 2065) (amending ORS
317.097), are repealed. + } ' .
In line 4, delete 'section 1' and insert 'sections 1 and 1a'.
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