Chapter 983 Oregon Laws 1999

Session Law

AN ACT

HB 3446

Relating to community housing for chronically mentally ill persons; creating new provisions; amending ORS 426.010; repealing ORS 426.030; appropriating money; and declaring an emergency.

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

SECTION 1. Sections 2 to 5 of this 1999 Act are added to and made a part of ORS chapter 426.

SECTION 2. As used in sections 2 to 5 of this 1999 Act:

(1) "Chronically mentally ill" has the meaning given that term in ORS 426.495.

(2) "Community housing" means property and related equipment that are used or could be used to house chronically mentally ill persons. "Community housing" includes only multiple-unit residential housing occupied by only chronically mentally ill persons.

(3) "Construct" means to build, install, assemble, expand, alter, convert, replace or relocate. "Construct" includes to install equipment and to prepare a site.

(4) "Division" means the Mental Health and Developmental Disability Services Division.

(5) "Equipment" means furnishings, fixtures or appliances that are used or could be used to provide care in community housing.

(6) "Multiple-unit residential housing" means housing that provides four or more living units and spaces for common use by the occupants in social and recreational activities. "Multiple-unit residential housing" may include nonhousing facilities incidental or appurtenant to the housing that, in the determination of the division, improve the quality of the housing.

SECTION 3. (1) The Mental Health and Developmental Disability Services Division may, through contract or otherwise, acquire, purchase, receive, hold, exchange, demolish, construct, lease, maintain, repair, replace, improve and equip community housing for the purpose of housing chronically mentally ill persons.

(2) The division may dispose of community housing acquired under subsection (1) of this section in a public or private sale, upon such terms and conditions as the division considers advisable to increase the quality and quantity of community housing available for chronically mentally ill persons. In any instrument conveying fee title to community housing, the division shall include language that restricts the use of the community housing to housing for chronically mentally ill persons. Such restriction is not a violation of ORS 93.270.

(3) When exercising the authority granted to the division under this section, the division is not subject to ORS chapter 273 or ORS 270.100 to 270.190, 276.900 to 276.915 or 279.800 to 279.833.

SECTION 4. (1) There is created in the State Treasury, separate and distinct from the General Fund, the Community Mental Health Housing Fund. All earnings on investments of moneys in the Community Mental Health Housing Fund shall accrue to the fund. Interest earned on moneys in the fund shall be credited to the fund. All moneys in the fund are continuously appropriated to the Mental Health and Developmental Disability Services Division to carry out the provisions of section 3 of this 1999 Act.

(2) The Community Mental Health Housing Fund shall be administered by the division to provide housing for chronically mentally ill persons. As used in this subsection, "housing" may include acquisition, maintenance, repair, furnishings and equipment.

(3)(a) There is established within the Community Mental Health Housing Fund a Community Housing Trust Account. Notwithstanding the provisions of ORS 270.150 (1) and (3), the division shall deposit into the account the proceeds, less costs to the state, received by the division from the sale of F. H. Dammasch State Hospital property under section 5 of this 1999 Act. The division may expend, for the purposes set forth in section 3 of this 1999 Act, any earnings credited to the account, including any interest earned on moneys deposited in the account, and up to five percent of the sale proceeds initially credited to the account by the Oregon Department of Administrative Services. At least 95 percent of the sale proceeds shall remain in the account in perpetuity. Proceeds deposited in the account may not be commingled with proceeds from the sale of any surplus real property owned, operated or controlled by the division and used as a state training center.

(b) Interest earned on moneys in the Community Housing Trust Account may be expended in the following manner:

(A) Seventy percent of interest earned on deposits in the account shall be expended for community housing purposes; and

(B) Thirty percent of interest earned on deposits in the account shall be expended for institutional housing purposes.

(c) Interest earned on deposits in the account shall not be used to support operating expenses of the division.

(4) The Community Mental Health Housing Fund shall consist of:

(a) Moneys appropriated to the fund by the Legislative Assembly;

(b) Sale proceeds and earnings from the account under subsection (3) of this section;

(c) Proceeds from the sale, transfer or lease of any surplus real property owned, operated or controlled by the division and used as community housing;

(d) Moneys reallocated from other areas of the division's budget;

(e) Interest and earnings credited to the fund; and

(f) Gifts of money or other property from any source, to be used for the purposes of developing housing for chronically mentally ill persons.

(5) The division shall adopt policies:

(a) To establish priorities for the use of moneys in the Community Mental Health Housing Fund for the sole purpose of developing housing for chronically mentally ill persons;

(b) To match public and private moneys available from other sources for developing housing for chronically mentally ill persons; and

(c) To administer the fund in a manner that will not exceed the State Treasury's maximum cost per transaction.

(6) The division shall collaborate with the Housing and Community Services Department to ensure the highest return and best value for community housing from the Community Mental Health Housing Fund.

(7) The division shall provide a report of revenues to and expenditures from the Community Mental Health Housing Fund as part of its budget submission to the Governor and Legislative Assembly under ORS chapter 291.

SECTION 5. (1) Notwithstanding ORS 421.611 to 421.630 or any actions taken under ORS 421.611 to 421.630, the Department of Corrections shall transfer the real property known as the F. H. Dammasch State Hospital and all improvements to the Oregon Department of Administrative Services to be sold for the benefit of the Mental Health and Developmental Disability Services Division.

(2)(a) Notwithstanding ORS 270.100 to 270.190, and except as provided in subsection (4) of this section, the Oregon Department of Administrative Services shall sell or otherwise convey the real property known as the F. H. Dammasch State Hospital in a manner consistent with the provisions of this section. Conveyance shall not include transfer to a state agency. The sale price of the real property shall equal or exceed the fair market value of the real property. The department shall engage the services of a licensed real estate broker or real estate organization to facilitate the sale of the real property.

(b) The Oregon Department of Administrative Services shall retain from the sale or other conveyance of the real property those costs incurred by the state in selling or conveying the real property, including costs incurred by the Department of Corrections in transferring the real property to the Oregon Department of Administrative Services. The remaining proceeds from the sale or other conveyance shall be transferred to the Community Housing Trust Account created under section 4 (3) of this 1999 Act.

(3) Redevelopment of the real property formerly occupied by the F. H. Dammasch State Hospital shall be consistent with the Dammasch Area Transportation Efficient Land Use Plan developed by Clackamas County, the City of Wilsonville, the Oregon Department of Administrative Services, the Department of Land Conservation and Development, the Department of Transportation, the State Housing Council, the Mental Health and Developmental Disability Services Division and the Division of State Lands.

(4) The Oregon Department of Administrative Services shall reserve from the sale of the real property under subsection (2) of this section not more than 10 acres. The real property reserved from sale shall be transferred to the Mental Health and Developmental Disability Services Division for use by the division to develop community housing for chronically mentally ill persons. The department and the division shall jointly coordinate with the City of Wilsonville to identify the real property reserved from sale under this subsection.

SECTION 6. ORS 426.010 is amended to read:

426.010. Except as otherwise ordered by the Mental Health and Developmental Disability Services Division pursuant to ORS 179.325, the Oregon State Hospital in Salem, Marion County, [the F. H. Dammasch State Hospital authorized to be located within a 20-mile radius of the county courthouse of Multnomah County,] and the Eastern Oregon Psychiatric Center in Pendleton, Umatilla County, shall be used as state hospitals for the care and treatment of mentally ill persons who are assigned to the care of such institutions by the Mental Health and Developmental Disability Services Division or who have previously been committed to such institutions.

SECTION 7. ORS 426.030 is repealed.

SECTION 8. 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 on its passage.

Approved by the Governor August 20, 1999

Filed in the office of Secretary of State August 20, 1999

Effective date August 20, 1999

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