Chapter 283 Oregon Laws 1999

Session Law

AN ACT

HB 2084

Relating to housing; amending ORS 458.625.

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

SECTION 1. ORS 458.625 is amended to read:

458.625. (1) The Housing and Community Services Department shall disburse the revenue earned from investment of the principal in the Housing Development and Guarantee Account to expand this state's supply of 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, farmworkers and Native Americans. For purposes of this section and ORS 458.630, "account" means the Housing Development and Guarantee Account. The State Housing Council shall have a policy of distributing [funds] account investment revenue statewide while concentrating [funds] account investment revenue in those areas of the state with the greatest need, as determined by the council, for low and very low income housing.

(2) [Revenue earnings from investment of the principal in the account] Account investment revenue shall be disbursed as grants or loans, at the awardee's election, for any or all of the following purposes:

(a) To organizations as defined in ORS 458.610 and to for-profit business entities to construct new housing or to acquire or rehabilitate existing structures, or both, for housing for persons of low or very low income, or both;

(b) To provide nonprofit organizations, as set forth in ORS 458.210 to 458.240, technical assistance or predevelopment costs, or both. Predevelopment costs include, but are not limited to, site acquisition, architectural services and project consultants. Predevelopment costs do not include costs described in paragraph (c) of this subsection;

(c) For costs to develop nonprofit organizations that show sufficient evidence of having strong community support and a strong likelihood of producing low or very low income housing. No account investment revenue shall be used by an organization for its general operations;

(d) To match public and private moneys available from other sources for purposes of production of low or very low income housing; or

(e) For purposes of administration of the account, not to exceed five percent of the account investment revenue.

(3) The council, in developing policy, shall give preference in making grants or loans, at the awardee's election, to those entities that would propose to:

(a) Provide the greatest number of low and very low income housing units constructed, acquired or rehabilitated for the amount of account [money] investment revenue expended by matching account [funds] investment revenue with other grant, loan or eligible in-kind contributions;

(b) [Insure] Ensure the longest use for the units as low or very low income housing units; or

(c) Include social services to 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 and case management.

(4) At least 75 percent of the account investment revenue derived [from the account] in any calendar year shall be used to construct, acquire or rehabilitate housing for very low income persons. No more than 25 percent of the account investment revenue derived [from the account] in any calendar year shall be used to construct, acquire or rehabilitate housing for low income households.

(5) Loans disbursed from account investment revenue shall bear an interest rate equal to the interest rate paid on United States Treasury long-term obligations as identified by the department.

(6) Notwithstanding subsections (2), (3) and (5) of this section, the department shall not disburse account investment revenue as loans after December 31, 2003.

Approved by the Governor June 18, 1999

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

Effective date October 23, 1999

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