Chapter 275 Oregon Laws 1999

Session Law

AN ACT

HB 2636

Relating to subsidized properties located within jurisdiction of local governments; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. As used in this section and sections 2 to 4 of this 1999 Act:

(1) "Federal housing program" means a federal project-based Section 8 subsidized housing program.

(2) "Local government" means a city, county, public corporation, metropolitan service district or other district.

(3) "Participating property" means property that is the subject of a contract between the property owner and the United States Department of Housing and Urban Development for participation in a federal housing program.

SECTION 2. (1) The Legislative Assembly finds and declares that:

(a) The maintenance of a pool of affordable housing for all citizens is a matter of statewide concern.

(b) The contracts for many properties in this state that participate in federal housing programs are about to expire. Local governments need an effective process for assessing these expiring contracts and determining whether to assume ownership of the participating properties. The assessment and determination process should ensure appropriate statewide uniformity while maintaining local flexibility. The process should also ensure the rights of property owners and tenants to fair treatment as the contracts expire.

(2) Sections 3 and 4 of this 1999 Act are intended to provide a framework for addressing the withdrawal of participating property from federal housing programs.

SECTION 3. (1) In establishing a procedure to deal with expiring contracts for participating properties, a local government may:

(a) Require the owner of a participating property to:

(A) Provide notice of the pending contract expiration to each local government that has requested notice and each affected tenant one year prior to the date when the contract for the property to participate in a federal housing program will expire.

(B) Provide notice that the owner intends to withdraw the property from participation in a federal housing program to each local government that has requested notice and each affected tenant up to:

(i) 210 days prior to the expiration of the contract; or

(ii) 150 days prior to the expiration of a one-year extension of the contract, if any.

(C) Consent to reasonable inspection of the property and inspection of the owner reports on file with the Housing and Community Services Department or the United States Department of Housing and Urban Development.

(D) Maintain the contract for property participation in a federal housing program in good standing, if the United States Department of Housing and Urban Development allows that maintenance, during:

(i) The notice periods referred to under this paragraph;

(ii) Any condemnation proceeding commenced; or

(iii) Any alternative procedure agreed to under paragraph (c) of this subsection.

(E) Refrain from taking any action, other than notifying the United States Department of Housing and Urban Development of the owner's intention to not renew the contract, that would preclude the affected local government or its designee from succeeding to the contract or negotiating with the owner for the purchase of the property.

(b) Establish and impose any fine, penalty, tax, fee, charge or assessment upon the owner of participating property for failure to comply with local regulations adopted pursuant to paragraph (a) of this subsection.

(c) Establish an alternative procedure to condemnation, including but not limited to arbitration, mediation or facilitated negotiation. However, an alternative procedure may not be used unless mutually agreed to by the property owner and the local government.

(d) Require an owner to refrain from disturbing tenancies, other than for cause as defined in the contract, for a period of not more than 180 days after expiration of the contract if the local government pays, or arranges for payment, to the owner on the first day of each month, the monthly subsidy that the owner was receiving under the contract.

(2) Any notices provided under subsection (1)(a) of this section shall specify whether the owner:

(a) Intends to withdraw the property from a federal housing program.

(b) Intends to convert the participating property to a nonparticipating use.

(c) Is involved in negotiations with the United States Department of Housing and Urban Development or the Housing and Community Services Department regarding an extension of an expiring participation contract.

(3) Sections 2 to 4 of this 1999 Act do not require a local government to purchase, condemn or otherwise acquire participating property.

SECTION 4. (1) Except as expressly authorized in section 3 (1) of this 1999 Act or as may be provided by contract with the property owner, a local government may not:

(a) Impose any fine, penalty, tax, fee, charge, assessment or other restriction or sanction against a property owner for withdrawing the participating property from a federal housing program.

(b) Except as an exercise of constitutional or statutory powers of condemnation:

(A) Prevent or restrict a property owner from selling or otherwise disposing of participating property.

(B) Require conveyance of participating property to the local government or to another party.

(C) Impose any fine, penalty, tax, fee, charge, assessment or other restriction or sanction against a property owner for refusing an offer by the local government or another party to purchase participating property.

(c) Require a property owner to pay any replacement fee or other fee for tenant relocation from participating property, except as specified in an alternative procedure being used pursuant to section 3 (1)(c) of this 1999 Act.

(2) Subsection (1) of this section does not prohibit a local government that is certified by a federal agency to carry out an agency responsibility or to exercise agency authority from taking any action within the scope of that responsibility or authority.

SECTION 5. This 1999 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 1999 Act takes effect July 1, 1999.

Approved by the Governor June 18, 1999

Filed in the office of Secretary of State June 18, 1999

Effective date July 1, 1999

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