Chapter 458 — Housing and Community Services Programs; Individual Development Accounts

2023 EDITION

HOUSING AND COMMUNITY SERVICES PROGRAMS

HOUSING; LOTTERY AND GAMES; ENVIRONMENT

COMMUNITY-BASED HOUSING DEVELOPMENT

458.210 Community development corporations; description

458.215 Local capacity building program

458.220 Community development corporation grants and assistance; rules

458.225 Preference for certain community development corporations

458.235 Rules

458.240 Effect of law on other community development corporations

HOUSING REVITALIZATION PROGRAM

458.305 Legislative findings

458.310 Housing revitalization program; criteria; rules

POST-DISASTER HOUSING RECOVERY

458.315 Supporting residential units damaged or destroyed by disaster; contracting

458.317 Disaster Housing Recovery Fund

458.320 Agency provision of temporary housing or resources in response to emergency

MANUFACTURED DWELLINGS AND PARKS

458.352 Manufactured dwelling park loan program; eligibility; reporting

(Temporary provisions relating to park loan program are compiled as notes following ORS 458.352)

458.356 Definitions; manufactured dwelling replacement loans; eligibility; rules

458.358 Manufactured dwelling decommissioning and disposing grants; eligibility; priorities

458.362 Manufactured housing advisory committee; membership; reporting

458.366 Manufactured Home Preservation Fund

(Temporary provisions relating to funding for modular housing and component capacity are compiled as notes following ORS 458.366)

RESIDENTIAL TENANT ASSISTANCE

458.375 Rental housing assistance for very low income elderly persons; rules

458.390 Rental assistance program for youth and young adults at risk of homelessness

458.392 Long-Term Rent Assistance Fund

458.395 Publication of extreme heat events and landlord cooling programs

USE OF STATE PROPERTY FOR AFFORDABLE HOUSING

458.400 Requirements of public body that distributes rental assistance

458.405 Legislative findings

458.410 Purposes

458.415 Rules

458.420 Conveyance of certain state real property for low-income housing

458.425 Restriction on conveyance of certain state real property

458.430 Authority of state to lease property not owned by state

458.440 Authorization to lease; terms and conditions

458.445 Authority to relinquish title to property; purpose

458.450 Approval required by governing body where property located

458.460 Bidding procedure for multiple applicants

LOCAL INNOVATION AND FAST TRACK HOUSING PROGRAM

458.480 Definitions

458.485 Local Innovation and Fast Track Housing Program; rules

458.490 Local Innovation and Fast Track Housing Program Fund

COMMUNITY SERVICES PROGRAMS

458.505 Community action agency network as delivery system for federal antipoverty programs; duties of Housing and Community Services Department

458.510 Energy Crisis Trust Fund

458.515 Oregon Housing Stability Council to advise and assist department regarding low income home energy assistance

(Temporary provisions relating to funding for affordable housing loan guarantee fund are compiled as notes following ORS 458.515)

HUNGER AND HOMELESSNESS

458.525 Duties of council in coordinating and monitoring homelessness relief efforts

458.528 Policy on homelessness

(Temporary provisions relating to homelessness are compiled as notes following ORS 458.528)

458.530 Policy on hunger

458.532 Hunger Task Force

Note Reappointment of Hunger Task Force--2021 c.236 §§2,3

458.540 Short title for ORS 458.530 to 458.545

458.545 Task force powers and duties

OREGON HOUSING FUND

458.600 Policy and intent

458.605 Findings

458.610 Definitions for ORS 458.600 to 458.665; rules

458.620 Oregon Housing Fund; subaccounts

458.625 Housing Development Grant Program; uses; policies

458.630 Housing Development and Guarantee Account; Guarantee Fund; uses; policies; fund transfers; rules

458.650 Emergency Housing Account; grant policies

458.655 Home Ownership Assistance Account; grant preferences

458.658 Assistance for organizations supporting homeownership for persons of color

458.660 Agricultural Worker Housing Development Account

458.665 General Housing Account; rules

INDIVIDUAL DEVELOPMENT ACCOUNTS

458.670 Definitions for ORS 458.670 to 458.700

458.675 Legislative findings

458.680 Persons qualifying as account holders

458.685 Approved purpose of account; emergency withdrawal; withdrawal upon achievement of account purpose; removal of account holder from program

458.690 Required account features; rules

458.695 Selection of fiduciary organizations

458.700 Authority of fiduciary organizations; rules

COMMUNITY DEVELOPMENT PROJECTS

458.705 Legislative findings

458.715 Duties of Oregon Housing Stability Council regarding Community Development Incentive Project Fund

458.720 Community Development Incentive Project Fund; purpose; lottery bond proceeds

458.725 Fund appropriation and expenditure guidelines

458.730 Department use of financing mechanisms; determination of funding adequacy

458.735 Department review of projects; lending criteria

458.740 Project facilitation

Note: Definitions in 456.005 and 456.515 apply to ORS chapter 458.

458.005 [1989 c.1051 §15; 1993 c.696 §17; 1995 c.377 §1; 2003 c.655 §76a; 2005 c.470 §§1,2; renumbered 307.651 in 2005]

458.010 [1989 c.1051 §14; 2005 c.470 §3; renumbered 307.654 in 2005]

458.015 [1989 c.1051 §16; 2005 c.470 §4; renumbered 307.657 in 2005]

458.020 [1989 c.1051 §17; 1991 c.459 §410; 1997 c.541 §436; 2005 c.470 §6; renumbered 307.664 in 2005]

458.025 [1989 c.1051 §18; 1991 c.459 §411; 1997 c.541 §437; 2005 c.470 §7; renumbered 307.667 in 2005]

458.035 [1989 c.1051 §19; 2005 c.470 §8; renumbered 307.671 in 2005]

458.040 [1989 c.1051 §20; 2005 c.470 §9; renumbered 307.674 in 2005]

458.045 [1989 c.1051 §21; 1991 c.459 §412; 1995 c.377 §2; 1997 c.541 §438; 2005 c.470 §11; renumbered 307.681 in 2005]

458.050 [1989 c.1051 §22; 1991 c.459 §413; 2005 c.470 §12; renumbered 307.684 in 2005]

458.060 [1989 c.1051 §23; 1991 c.459 §414; 1997 c.541 §439; 2005 c.470 §13; renumbered 307.687 in 2005]

458.065 [1989 c.1051 §24; 1991 c.459 §415; 1995 c.377 §3; 1997 c.541 §440; 2005 c.470 §14; renumbered 307.677 in 2005]

COMMUNITY-BASED HOUSING DEVELOPMENT

458.210 Community development corporations; description. For the purposes of ORS 456.550 and 458.210 to 458.240, a community development corporation is:

(1) An organization that:

(a) Is established under the provisions of ORS chapter 65;

(b) Has qualified for tax exempt status under section 501(c)(3) of the Internal Revenue Code;

(c) Has a purpose, stated in the articles of incorporation, to serve low and moderate income people’s need for community development and community self-help;

(d) Has a board of directors, of not fewer than five members, that is locally controlled by including 51 percent of the board members from the service area; and

(e) Has a defined geographic service area; or

(2) A housing entity or housing authority designated by a tribe, as defined in ORS 182.162, to receive funds and administer housing programs. [1989 c.1030 §1; 2023 c.193 §1]

458.215 Local capacity building program. The Housing and Community Services Department may establish a program to build local capacity to address any or a combination of the following:

(1) Housing needs of people, with low or moderate incomes, for homeownership and affordable rental housing;

(2) The problem of abandoned houses;

(3) The need for adequate housing for seasonal farm laborers;

(4) Housing problems for low and moderate income elderly persons and persons with disabilities;

(5) The need to incorporate social service programs as a component of community economic development;

(6) The preservation of manufactured dwelling parks that the department determines house a significant percentage of persons and families of lower income; and

(7) The need to incorporate related jobs for low and moderate income persons as a component of community economic revitalization. [1989 c.1030 §2; 1991 c.907 §1; 1993 c.794 §1; 2007 c.70 §264; 2007 c.607 §24]

458.220 Community development corporation grants and assistance; rules. In carrying out the provisions of ORS 458.215, the Housing and Community Services Department shall provide any or a combination of the following:

(1) Initial planning grants to qualified nonprofit community-based organizations, including but not limited to housing authorities and community action agencies, to initiate community development corporations. To qualify under this subsection, an organization shall obtain matching funds or in-kind contributions in an amount determined by rule;

(2) Grants to community development corporations for projects intended to extend the capacity of the corporation to meet the housing needs of the service area;

(3) Grants to community development corporations for projects that combine community-based social service programs with related jobs for low and moderate income persons to promote community economic revitalization; and

(4) Technical assistance to community-based organizations, developing community development corporations and existing community development corporations to carry out the provisions of ORS 456.550 and 458.210 to 458.240. For purposes of ORS 456.550 and 458.210 to 458.240, technical assistance includes but is not limited to training and assisting community development corporations with:

(a) Conducting needs assessments;

(b) Training boards of directors;

(d) Determining and applying for available assistance;

(e) Conducting feasibility studies;

(f) Financial planning;

(g) Preparing project budgets;

(h) Proposal writing and project packaging;

(i) Organizational structure and design;

(j) Generating local support; and

(k) Obtaining legal and accounting advice. [1989 c.1030 §3; 1991 c.907 §2; 1993 c.794 §2]

458.225 Preference for certain community development corporations. (1) In carrying out the provisions of ORS 456.550 and 458.210 to 458.240, the Housing and Community Services Department shall give preference to a community development corporation described in ORS 458.210 (2) or that:

(a) Has a defined geographic service area outside an entitlement community or county;

(b) Has a defined geographic service area inside an entitlement community or county but does not include more than 50,000 people in the service area;

(d) Can demonstrate support from the community.

(2) As used in this section, “entitlement community or county” means any area within the state that is:

(a) A “metropolitan city” as defined in 42 U.S.C. 5302(4) (1995); or

(b) An “urban county” as defined in 42 U.S.C. 5302(6) (1995). [1989 c.1030 §4; 1997 c.47 §1; 2023 c.193 §2]

458.235 Rules. The Housing and Community Services Department shall adopt rules to carry out the provisions of ORS 456.550 and 458.210 to 458.240, including rules to define “persons of low and moderate income.” [1989 c.1030 §6]

458.240 Effect of law on other community development corporations. Nothing in ORS 456.550 and 458.210 to 458.240 shall limit the authority or powers of community development corporations authorized pursuant to ORS 708A.150. [1989 c.1030 §9; 1997 c.631 §475]

HOUSING REVITALIZATION PROGRAM

458.305 Legislative findings. The Legislative Assembly finds that:

(1) A critical shortage exists of suitable, affordable housing for households with an income below the median income. This shortage is particularly acute with respect to rental housing.

(2) During the past half decade, the supply of rental housing that is affordable to households at or below the median income level has not kept pace with the demand.

(3) The lack of suitable, affordable housing is a barrier to Oregon’s development.

(4) It is in the economic and social interest of the state to encourage public agencies and private parties to efficiently expand the supply of housing in Oregon for households at or below the median income level.

(5) The quantity of public resources available to support the expansion and rehabilitation of low and moderate income housing stock is limited. Consequently, it is the policy of this state to attempt to target the use of these resources so that a maximum amount of usable housing product is delivered to Oregon citizens at the minimum cost required for prudent program administration. [1989 c.1016 §1]

458.310 Housing revitalization program; criteria; rules. (1) The Housing and Community Services Department shall adopt rules to develop and administer a housing revitalization program for low and moderate income housing.

(2) Applicants for revitalization program funds shall be:

(a) A unit of local government;

(b) A housing authority;

(d) An applicant eligible under paragraph (a), (b) or (c) of this subsection who contracts with another entity, including a private for-profit corporation.

(3) Housing revitalization projects shall bring into use vacant and abandoned property or rehabilitate substandard property, or both. Eligible project activities include, but are not limited to:

(a) Purchase of property;

(b) Rehabilitation of housing units;

(d) Mortgage interest subsidies or reduction of principal loan amounts; or

(e) Other activities that have the effect of making properties available to and occupied by persons of lower income, such as loan guarantees.

(4) Projects funded by the housing revitalization program shall be rental or owner-occupied single or multifamily housing.

(5) The housing rehabilitation program shall create affordable housing in which rent levels are no higher than 30 percent of 80 percent of median income levels.

(6) Priority shall be given to projects applied for under subsections (1) to (5) of this section that provide opportunities for low and moderate income persons to own their housing units.

(7) Priority among rental housing projects shall be given to projects applied for under subsections (1) to (5) of this section that:

(a) Have rent levels no higher than 30 percent of 50 percent of the median income level, or less;

(b) Are owned and operated by a nonprofit or a governmental unit; and

(8) In implementing this section and ORS 458.305, the department shall work to ensure a reasonable geographic distribution of funds among different regions of the state and shall place special emphasis on ensuring that funds are available to projects in rural areas. [1989 c.1016 §2; 1995 c.79 §269; 2009 c.11 §64; 2015 c.180 §15; 2023 c.193 §7]

POST-DISASTER HOUSING RECOVERY

458.315 Supporting residential units damaged or destroyed by disaster; contracting. (1) As used in this section:

(a) “Disaster” means a declared disaster or emergency, as defined in ORS 401.685, that resulted in the loss or damage of residential units.

(b) “Residential units” includes recreational vehicles, manufactured dwellings, prefabricated structures, small homes and dwelling units of any type.

(2) Notwithstanding ORS 456.559, the Housing and Community Services Department may:

(a) Provide loans, grants or other forms of assistance to repair, replace, rebuild or address the infrastructure needs for residential units damaged or destroyed during a disaster.

(b) Support residents of residential units that were damaged or destroyed during a disaster, including by providing rental assistance, down payment assistance, housing navigation assistance, intermediate housing and assistance relating to housing or recovery associated with housing loss.

(3) The department may contract with entities to take action under this section, including directly entering into construction contracts with general contractors or others and administering loans or grants to construct or repair damaged or destroyed residential units. [2023 c.435 §2]

458.317 Disaster Housing Recovery Fund. (1) The Disaster Housing Recovery Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Disaster Housing Recovery Fund shall be credited to the fund.

(2) The fund consists of moneys appropriated, allocated, deposited or transferred to the fund by the Legislative Assembly or otherwise.

(3) Moneys in the fund are continuously appropriated to the Housing and Community Services Department to carry out the purposes of ORS 458.315. [2023 c.435 §3]

458.320 Agency provision of temporary housing or resources in response to emergency. (1) As used in this section, “specified agency” means the Oregon Department of Emergency Management, the Housing and Community Services Department or the Department of Human Services.

(2) If a specified agency causes temporary housing to be provided to displaced individuals in response to an emergency, the specified agency shall ensure that such temporary housing is safe and that it is provided in compliance with state and federal laws relating to discrimination, including but not limited to laws relating to housing discrimination, public accommodation discrimination and discrimination in the provision of government programs and services. For purposes of this section, such temporary housing is considered to be a dwelling within the meaning of ORS 659A.421 and the Fair Housing Act, 42 U.S.C. 3602.

(3) If a specified agency administers the distribution of federal resources to an affected community in response to an emergency, and members of the community are ineligible for such resources for any reason, including immigration status, the specified agency may provide similar or equivalent resources to those community members, subject to the availability of funds in the budget of the specified agency. [2023 c.444 §1]

Note: 458.320 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 458 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

458.350 [1989 c.916 §4; 1997 c.801 §35a; repealed by 2011 c.595 §113]

MANUFACTURED DWELLINGS AND PARKS

458.352 Manufactured dwelling park loan program; eligibility; reporting. (1) As used in this section:

(a) “Average income” means an income that complies with income restrictions determined at the advice and consent of the Oregon Housing Stability Council, but not to exceed the greater of 100 percent of the statewide or local area median income adjusted for household size as determined annually by the Housing and Community Services Department using United States Department of Housing and Urban Development information.

(b) “Manufactured dwelling park” has the meaning given that term in ORS 446.003.

(c) “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, 2016.

(2) The Housing and Community Services Department shall provide one or more loans to nonprofit corporations to create manufactured dwelling park preservation and development programs that invest in, and provide loans for, the preservation, development and expansion of affordable manufactured dwelling parks in this state, including through:

(a) The repair or reconstruction of parks destroyed by natural disasters; or

(b) The acquisition and development of land for parks or for the expansion of parks in areas that have been affected by a natural disaster.

(3) To be eligible for a loan under this section, a nonprofit corporation shall demonstrate to the satisfaction of the department that the nonprofit corporation:

(a) Is a community development financial institution operating statewide to support investment in, and acquisition, renovation and construction of, affordable housing;

(b) Has the ability and capacity to provide the services and reporting required of the program described in subsections (4) and (6) of this section; and

(c) Meets other requirements established by the department regarding financial risk and availability or accessibility of additional resources.

(4) An eligible nonprofit corporation, with input from the department, shall develop a manufactured dwelling park development and preservation program that:

(a) Invests in, and loans funds to, other nonprofit corporations, housing authorities, manufactured dwelling park nonprofit cooperatives as defined in ORS 62.803, local units of government as defined in ORS 466.706, agencies as defined in ORS 183.310, or any entity in which a nonprofit corporation has a controlling share, to:

(A) Purchase or refinance manufactured dwelling parks that will maintain the parks as parks long term; or

(B) Construct, develop, expand, repair or reconstruct parks, including parks destroyed by natural disasters;

(b) Emphasizes, when providing loans under paragraph (a) of this subsection, the financing of parks whose residents are predominantly members of households with income less than average income; and

(c) Preserves the affordability of the park space rent to park tenants who are members of households with income less than average income.

(5) An eligible nonprofit corporation shall create a park development and preservation account to be used by the nonprofit corporation for the manufactured dwelling park preservation program and shall deposit the moneys loaned by the department into the account.

(6) An eligible nonprofit corporation shall ensure that all financial activities of the program are paid from and into the park development and preservation account created under subsection (5) of this section. Each nonprofit corporation shall report to the department no less than semiannually, showing the expenses and incomes of the park development and preservation account and the results of the manufactured dwelling park development and preservation program.

(7) A loan made by the department under this section:

(a) May require the nonprofit corporation to pay interest.

(b) May not require the nonprofit corporation to make any loan payments before the maturity date of the loan.

(d) May have its maturity date extended by the department.

(e) Shall have all or part of the unpaid balance forgiven by the department in an amount not to exceed the losses incurred on investments or loans made by the nonprofit corporation under subsection (4)(a) of this section.

(f) May include such agreements by the nonprofit corporation practical to secure the loan made by the department and to accomplish the purposes of the program described in subsection (4) of this section.

(8) The department or the State Treasurer shall deposit moneys received in servicing the loan into the General Housing Account of the Oregon Housing Fund created under ORS 458.620. [2019 c.595 §2; 2021 c.31 §1; 2022 c.54 §20; 2023 c.334 §8]

(Temporary provisions relating to park loan program)

Note: Sections 3 and 4, chapter 595, Oregon Laws 2019, provide:

Sec. 3. Report on program. No later than September 15, 2021, and no later than September 15 of each odd-numbered year thereafter, the Housing and Community Services Department shall report, in the manner provided by ORS 192.245, to the appropriate interim committee or committees of the Legislative Assembly on the implementation of the manufactured dwelling park preservation program created pursuant to section 2 of this 2019 Act [458.352]. [2019 c.595 §3]

Sec. 4. Section 3 of this 2019 Act is repealed on January 2, 2038. [2019 c.595 §4]

Note: Section 9, chapter 334, Oregon Laws 2023, provides:

Sec. 9. Retroactivity of amendments to park loan program. The Housing and Community Services Department may negotiate with nonprofit corporations that received loans under ORS 458.352 (2) before the effective date of this 2023 Act [January 1, 2024] to allow the nonprofit corporation to use those moneys consistent with ORS 458.352, as amended by section 8 of this 2023 Act. [2023 c.334 §9]

458.355 [1989 c.916 §6; 1991 c.716 §3; 1997 c.801 §35b; repealed by 2011 c.595 §113]

458.356 Definitions; manufactured dwelling replacement loans; eligibility; rules. (1) As used in ORS 458.356 to 458.362:

(a) “Manufactured dwelling” means:

(A) A manufactured dwelling, as defined in ORS 446.003; or

(B) A prefabricated structure, as defined in ORS 455.010, that is relocatable, more than eight and one-half feet wide and designed for use as a single-family dwelling.

(b) “Manufactured dwelling park” has the meaning given that term in ORS 446.003.

(2) The Housing and Community Services Department shall establish a program to provide loans to individuals to buy and site manufactured dwellings that replace older and less energy efficient manufactured dwellings, or manufactured dwellings destroyed by a natural disaster. The department may contract with local governments or public or private housing sponsors to carry out the department’s responsibilities under this program.

(3) The department may make loans under the program only to individual borrowers who:

(a) Are members of households with income that complies with income restrictions determined at the advice and consent of the Oregon Housing Stability Council, but not to exceed the greater of 100 percent of the statewide or local area median income adjusted for household size as determined annually by the Housing and Community Services Department using United States Department of Housing and Urban Development information; and

(b) Will purchase a manufactured dwelling that:

(A) Meets energy efficiency standards as prescribed by the Housing and Community Services Department;

(B) Will be sited as required under subsection (4) of this section; and

(4) To be eligible for a loan under this section, the borrower must site the replacement manufactured dwelling on land that is:

(a) Owned by the borrower or being purchased by the borrower under a land sale contract;

(b) In a manufactured dwelling park that has registered with the department and either has entered into a regulatory agreement with the department or is negotiating a regulatory agreement that is at least partially conditioned upon the replacement of the dwelling; or

(c) In any location, provided that the borrower has obtained a waiver from the department and is replacing a manufactured dwelling that was destroyed by a natural disaster.

(5) The department shall prescribe by rule the maximum loan amount per individual, lending requirements and terms for loans made under this program, including:

(a) Interest rates charged to borrowers, if any;

(b) Repayment requirements, if any;

(d) Affordability requirements; and

(e) Remedies upon transfer or default.

(6) In servicing loans under the program, the department shall deposit all moneys received into the Manufactured Home Preservation Fund established in ORS 458.366.

(7) The council may establish priorities for evaluating loan applications and shall give consideration to prioritizing loans to borrowers who are:

(a) From low income households; and

(b) Decommissioning and replacing manufactured dwellings that are older or less resource or energy efficient. [2019 c.595 §6; 2021 c.31 §2; 2022 c.54 §9]

458.358 Manufactured dwelling decommissioning and disposing grants; eligibility; priorities. (1) The Housing and Community Services Department shall establish a program to provide grants to persons for safely decommissioning and disposing of a manufactured dwelling.

(2) The department may award grants under the program only to a person that is:

(a)(A) An individual who owns a manufactured dwelling sited:

(i) In a manufactured dwelling park that has registered with the department and either has entered into a regulatory agreement with the department or is negotiating a regulatory agreement that is at least partially conditioned upon the replacement of the dwelling;

(ii) On land owned by the individual; or

(iii) On land being purchased by the individual under a land sale contract as defined in ORS 18.960; or

(B) An entity described in paragraph (b)(B) of this subsection that has a controlling interest, including a controlling interest in a general partner of a limited partnership, in:

(i) The manufactured dwelling; or

(ii) A manufactured dwelling park where the manufactured dwelling slated for disposal is sited; and

(b)(A) An individual who is a member of a household with income that complies with income restrictions determined at the advice and consent of the Oregon Housing Stability Council, and not exceeding the greater of 100 percent of the statewide or local area median income adjusted for household size as determined annually by the Housing and Community Services Department using United States Department of Housing and Urban Development information; or

(B) A nonprofit corporation as defined in ORS 317.097, a manufactured dwelling park nonprofit cooperative as defined in ORS 62.803, a housing authority as defined in ORS 456.005, a local unit of government as defined in ORS 466.706 or a state governmental entity.

(3) Grants awarded under the program may not exceed $15,000 or the cost of decommissioning and disposing of the manufactured dwelling.

(4) The Oregon Housing Stability Council may establish priorities for the evaluation of grant applications and shall consider prioritizing grant awards:

(a) For the safe remediation of dwellings with environmental and public health hazards and risks, including asbestos, lead paint and mold;

(b) To owners from low income households; and

(c) For the decommissioning of manufactured dwellings that are older or less resource and energy efficient. [2019 c.595 §7; 2021 c.31 §3; 2022 c.54 §21]

458.360 [1989 c.916 §5; repealed by 2011 c.595 §113]

458.362 Manufactured housing advisory committee; membership; reporting. (1) The Director of the Housing and Community Services Department shall appoint an advisory committee on manufactured housing. The director has the discretion to determine the membership of the committee and the terms of committee members, but shall consider for membership representatives from the following groups:

(a) State agencies such as the Housing and Community Services Department, the Department of Land Conservation and Development, the Department of Environmental Quality, the Department of Consumer and Business Services and the Oregon Business Development Department;

(b) The United States Department of Housing and Urban Development and the United States Department of Agriculture Rural Development;

(d) Owners of manufactured dwelling parks that have an interest in providing affordable housing, or nonprofit corporations or cooperative corporations that own manufactured dwelling parks;

(e) Representatives of organizations that have a particular focus on serving people of color and that provide financial counseling, education or the opportunity to purchase affordable housing to individuals and families;

(f) Lenders or other persons that offer financing for manufactured dwelling parks or for purchasing manufactured dwellings; and

(g) Manufactured dwelling park tenants or owners of manufactured dwellings.

(2) The advisory committee shall:

(a) Advise the Housing and Community Services Department and other state agencies with respect to matters of interest and concern that are related to manufactured housing, manufactured dwellings and manufactured dwelling parks;

(b) Develop and promote strategies to maximize long-term preservation of manufactured dwelling parks as affordable housing;

(d) Identify strategies to fund, preserve and improve infrastructure in manufactured dwelling parks;

(e) Develop and propose fair and equitable sources of financing for purchasing manufactured dwellings;

(f) Identify and promote strategies and services for assisting owners of manufactured dwellings to weatherize existing manufactured dwellings or replace deteriorating manufactured dwellings;

(g) Develop, approve or promote courses to counsel home buyers with respect to purchasing manufactured dwellings in this state;

(h) Identify and propose solutions to overcome barriers that prevent using manufactured dwellings as accessory dwelling units;

(i) Encourage the development of capacity for nonprofit corporations and residents of this state to acquire, own and maintain manufactured dwelling parks in fair market transactions;

(j) Conduct annual evaluations of the committee’s efforts and the efforts of the Housing and Community Services Department and other state agencies in achieving the actions, priorities, goals and functions described in this subsection;

(k) Encourage and promote home buyer and homeowner counseling and education; and

(L) Meaningfully engage culturally specific and culturally responsive organizations and their constituents, including federally recognized Indian tribes located within this state.

(3) In undertaking the duties described in subsection (2) of this section, the advisory committee shall take account of the capacity of the department’s staff and resources and the staff and resources of other state agencies.

(4) The advisory committee shall compile and report the results of the committee’s evaluations under subsection (2)(j) of this section to the Oregon Housing Stability Council not later than March 30 of each year. [2019 c.595 §8]

458.365 [1989 c.916 §8; 1991 c.716 §5; 1997 c.801 §36; repealed by 2011 c.595 §113]

458.366 Manufactured Home Preservation Fund. (1) The Manufactured Home Preservation Fund is established within the State Treasury, separate and distinct from the General Fund. Interest earned by the Manufactured Home Preservation Fund shall be credited to the fund.

(2) Moneys in the Manufactured Home Preservation Fund consist of:

(a) Amounts donated to the fund;

(b) Amounts appropriated or otherwise transferred to the fund by the Legislative Assembly;

(d) Income derived from moneys in the fund; and

(e) Other amounts deposited in the fund from any source.

(3) Moneys in the fund are continuously appropriated to the Housing and Community Services Department to:

(a) Carry out the provisions of ORS 458.356 to 458.362; and

(b) Pay the administrative costs associated with the fund and with implementing and maintaining the programs and advisory committee established under ORS 458.356 to 458.362. [2019 c.595 §9]

Note: Sections 46 to 48, chapter 13, Oregon Laws 2023, provide:

Sec. 46. Section 47 of this 2023 Act is added to and made a part of ORS chapter 458. [2023 c.13 §46]

Sec. 47. Funding for modular housing and component capacity. (1) The Housing and Community Services Department shall provide grants or loans to entities to begin or expand production capacity for the development of modular housing and components to support home builders and developers in meeting housing demand.

(2) The department shall establish the terms for any loans under this section.

(3) Entities receiving loans or grants under this section must agree to terms established by the department requiring that the entities prioritize supplying modular housing components to meet demand from:

(a) First, state and local governments following a wildfire or other disaster;

(b) Second, low income housing construction in this state; and

(4) The department may enter into a contract with a third party to award or administer grants under this section.

(5) Loan proceeds and other moneys recovered under this section shall be paid to the Housing and Community Services Department and deposited with the State Treasury for credit to the General Fund and are available for general governmental expenses. [2023 c.13 §47; 2023 c.326 §19]

Sec. 48. Section 47 of this 2023 Act is repealed on January 2, 2026. [2023 c.13 §48]

RESIDENTIAL TENANT ASSISTANCE

458.375 Rental housing assistance for very low income elderly persons; rules. (1) The Housing and Community Services Department shall provide funds to assist very low income elderly persons to defray the cost of rental housing through programs administered by the department including, but not limited to, the Emergency Housing Account created in ORS 458.620 and disbursed pursuant to ORS 458.650.

(2) The department shall adopt rules to carry out the provisions of this section.

(3) For purposes of this section:

(a) “Elderly person” means a person 58 years of age or older.

(b) “Very low income” has the meaning given that term in ORS 458.610. [2015 c.348 §7]

458.377 [2015 c.348 §8; repealed by 2023 c.193 §24]

458.380 [2015 c.812 §9; 2017 c.671 §2; 2021 c.521 §4; repealed by 2021 c.521 §6]

458.385 [2017 c.671 §1; 2021 c.521 §5; renumbered 430.643 in 2021]

458.390 Rental assistance program for youth and young adults at risk of homelessness. (1) The Housing and Community Services Department shall implement a long-term rental assistance program that is available to individuals who are younger than 25 years of age and who are, or have recently been:

(a) Homeless;

(b) In any substitute care program, as defined in ORS 326.575;

(d) Residing in a facility for dependency treatment or rehabilitation or for mental health treatment.

(2) The department shall choose three or four regions in which to operate the program, which must include at least one urban area, one rural area and one coastal area.

(3) In designing the program, the department shall consult with:

(a) The Oregon Housing Stability Council;

(b) The Department of Human Services, including department staff operating programs or services for eligible foster children or former foster children and the department’s advisory committee on runaway and homeless youth under ORS 417.799 (6);

(d) Community-based social service providers serving the population of eligible recipients of the program;

(e) Culturally specific youth providers; and

(f) The Community Action Partnership of Oregon.

(4) The Housing and Community Services Department shall collect data on program participants receiving rental assistance, including:

(a) Demographic data, including race.

(b) Program subsidy amounts.

(d) Types of housing, including roommates or family living situations.

(e) Access to, and utilization of, other support systems, including education, workforce training, health insurance and primary care providers.

(5) The department may contract with housing authorities, community action agencies or community-based social service and housing providers to deliver rental assistance and to collect and report data under the program. [2021 c.517 §2]

458.392 Long-Term Rent Assistance Fund. (1) There is established the Long-Term Rent Assistance Fund, separate and distinct from the General Fund.

(2) The Long-Term Rent Assistance Fund shall consist of moneys credited to the fund from moneys appropriated or transferred to the fund by the Legislative Assembly or received from the federal government or other grants, gifts or donations from any source.

(3) Moneys in the fund are continuously appropriated to the Housing and Community Services Department to carry out the duties under ORS 458.390. [2021 c.517 §3]

458.395 Publication of extreme heat events and landlord cooling programs. The Housing and Community Services Department shall make available on the department’s website:

(1) A list of dates and counties in which there exists an extreme heat event for a forecast zone in this state as defined in ORS 90.355. Dates published on the website must remain on the website for at least one year.

(2) Information regarding relevant programs and services available to landlords to provide adequate cooling under ORS 90.320 (1)(m) or 90.730 (3)(d), including:

(a) Programs administered by the department;

(b) Information provided by the Oregon Health Authority regarding programs administered by the authority, including the list of eligible distribution entities compiled under ORS 431A.430 (5);

(d) Programs administered by the nongovernmental entity that administers public purpose charge moneys under ORS 757.612 (3)(d); and

(e) Federal programs, rebates or incentives, including those administered by the Bonneville Power Administration. [2022 c.86 §10; 2023 c.442 §72]

USE OF STATE PROPERTY FOR AFFORDABLE HOUSING

458.400 Requirements of public body that distributes rental assistance. In distributing rental assistance to residential tenants funded by federal, state or local moneys, a public body, as defined in ORS 174.109, and any designee or grantee of a public body shall:

(1) Promptly provide a dated application receipt to each tenant who applies for assistance. The receipt may be in an electronic format.

(2) Close an application, after providing notice of potential closure to the tenant, if the provider reasonably determines that the tenant is no longer participating.

(3) If, upon qualifying circumstance, an application is approved and payment is made to a person other than the tenant’s landlord, provide a dated notice of payment to the tenant’s landlord at any known address or electronic mail address.

(4) If an application is denied or is otherwise closed without payment, provide a dated notice of the denial or closure to the tenant and to the tenant’s landlord at any known address or electronic mail address. [2023 c.13 §57]

Note: 458.400 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 458 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

458.405 Legislative findings. The Legislative Assembly finds that:

(1) Safe, affordable and readily available housing options for low-income individuals and families do not match the increasing need for such housing in this state.

(2) Much state-owned property is unused and could be made available to increase housing options for low-income individuals and families.

(3) Unused property kept for long periods of time generally decreases in value.

(4) A method to dispose of or transfer such property and have it utilized for a public purpose is in the interests of the people of this state.

(5) It will further the public interest to put unused state-owned real property at the disposal of nonprofit housing providers and housing authorities to address the housing needs of low-income individuals and families in this state. [1989 c.440 §1]

458.410 Purposes. The purposes of ORS 458.405 to 458.460 are to provide low-income housing options including but not limited to:

(1) Transitional and emergency housing for low-income individuals and families as long as this type of housing is accompanied by adequate supporting social services; and

(2) Permanent low-income housing units. [1989 c.440 §2]

458.415 Rules. In carrying out ORS 458.405 to 458.460, the state shall act by and through its duly constituted board, commission or agency. The board, commission or agency may provide rules necessary to carry out ORS 458.405 to 458.460. [1989 c.440 §3; 1995 c.79 §270; 2023 c.193 §28]

458.420 Conveyance of certain state real property for low-income housing. Whenever the state or any state agency possesses or controls real property that might be used to further the public use of providing housing options for low-income individuals and families that is unused for any other public purpose and in which no long-term policy exists to use it for another public purpose, then the state or its agency may sell, convey or lease for a period not to exceed 99 years, all or any part of its interest in the property to a nonprofit organization involved with providing low-income housing options or to a housing authority. The consideration for the transfer may be cash or real property, or both. [1989 c.440 §4]

458.425 Restriction on conveyance of certain state real property. Real property needed for a public use other than low-income housing shall not be sold, exchanged, leased or conveyed under the authority of ORS 458.405 to 458.460. [1989 c.440 §5]

458.430 Authority of state to lease property not owned by state. (1) The authority to lease property granted by ORS 458.420 includes authority to lease property not owned or controlled by the state at the time of entering the lease. Such lease shall be conditioned upon the subsequent acquisition of the interest covered by the lease.

(2) Any lease of state real property to be used for the purposes of ORS 458.405 to 458.460 exceeding five years shall be approved in advance by the Oregon Department of Administrative Services. [1989 c.440 §6]

458.440 Authorization to lease; terms and conditions. Every lease entered into pursuant to ORS 458.405 to 458.460 shall be authorized by order of the state agency executing the lease and shall provide such terms and conditions as may be fixed by the government body executing the lease. [1989 c.440 §7]

458.445 Authority to relinquish title to property; purpose. The state is hereby granted express power to relinquish the title to any of its property not needed for another public purpose to the United States Government or any other governmental body, political subdivision, housing authority or nonprofit organization involved with providing low-income housing, in order to promote the public purpose of increasing housing options for low-income individuals and families in this state. [1989 c.440 §8]

458.450 Approval required by governing body where property located. Before the transfer of any state-owned real property under the provisions of ORS 458.405 to 458.460 to a housing authority or a nonprofit organization involved with providing low-income housing to individuals and families in this state, the state or its agency, board or commission shall obtain approval of the governing body in which such property is located. [1989 c.440 §9]

458.460 Bidding procedure for multiple applicants. In the event that more than one housing authority or appropriate nonprofit organization is interested in a building available for transfer under ORS 458.405 to 458.460, the state or its agency shall conduct a bidding process that takes into account:

(1) The entity most capable of delivering services and housing options to conform with the purpose of ORS 458.405 to 458.460;

(2) The fiduciary obligation of the state and its agencies to bondholders; and

(3) Financial prudence. [1989 c.440 §10]

LOCAL INNOVATION AND FAST TRACK HOUSING PROGRAM

458.480 Definitions. As used in ORS 458.480 to 458.490:

(1) “Affordable housing” means residential housing that may be purchased or rented, with or without government assistance, by persons who meet the applicable income limits of local, state or federally funded programs or developments.

(2) “Area median income” means the median income for the county in which the subject housing is located, adjusted for family size, as determined by the Housing and Community Services Department using United States Department of Housing and Urban Development information.

(3) “Development costs” has the meaning given that term in ORS 456.548.

(4) “Low income households” means:

(a) For affordable housing that may be rented, households of one or more individuals whose combined incomes are at or below 60 percent of the area median income; or

(b) For affordable housing that may be purchased, households of one or more individuals whose combined incomes are at or below 80 percent of the area median income.

(5) “Operate” means to have sufficient direct or indirect control of qualified property that reasonably enables the Housing and Community Services Department, in its determination, to ensure the qualified property’s use for the purpose of providing affordable housing under the Local Innovation and Fast Track Housing Program established in ORS 458.485.

(6) “Own” means to possess one or more interests as described in ORS 458.485 (3) in a qualified property that reasonably enables the Housing and Community Services Department, in its determination, to ensure the qualified property’s use for the purpose of providing affordable housing under the Local Innovation and Fast Track Housing Program established in ORS 458.485.

(7) “Qualified property” means real or personal property, including infrastructure and indebtedness related to the real or personal property. [2016 c.61 §1; 2017 c.214 §1]

458.485 Local Innovation and Fast Track Housing Program; rules. (1) The Housing and Community Services Department shall, after consultation with the Oregon Housing Stability Council, develop and implement the Local Innovation and Fast Track Housing Program for the purpose of expanding the state’s supply of affordable housing for low income households.

(2) The department may use funds available pursuant to Article XI-Q of the Oregon Constitution and deposited in the Local Innovation and Fast Track Housing Program Fund established under ORS 458.490 to:

(a) Acquire, construct, remodel, repair, equip or furnish qualified property that is or will be owned or operated by the State of Oregon for the purpose of providing affordable housing in this state for low income households; and

(b) Pay development costs to develop qualified property that may be considered part of the cost of a capital asset under generally accepted accounting principles.

(3) Interests in real property acquired by the State of Oregon or the department under this section are limited to the following:

(a) A fee simple interest in land or improvements;

(b) A leased fee interest, meaning an ownership interest with the rights of use and occupancy conveyed by lease to others;

(c) A tenancy in common for which the state’s or department’s interest in the property is proportionate to the contribution of the state or department to the property’s purchase price;

(d) A fee simple interest in a condominium; or

(e) An easement, right of way, license or similar interest functionally related to and necessary for the use of qualified property acquired by the state or department.

(4) In funding the acquisition, construction, remodeling, repairing, equipping or furnishing of qualified property under the program, the department may:

(a) Adopt criteria that:

(A) Provide the greatest number of affordable housing units for the amount of funding provided;

(B) Ensure the longest possible use of the qualified property as affordable housing units;

(D) Take into account the means to reduce the cost of the affordable housing project while considering factors such as the quality of construction, durability, location and local design requirements;

(b) Create restrictive covenants and other encumbrances or lien interests, create entities, cooperate or participate with persons or entities and contract with persons and entities; and

(5) Moneys made available through the program must be distributed or used statewide and concentrated in areas of this state with the greatest need for affordable housing, as determined by the department with the advice and consent of the council.

(6) For purposes of implementing the program, the council shall develop strategies to:

(a) Reach historically underserved communities, including communities of color and rural communities;

(b) Reduce the cost of acquiring, constructing, remodeling, repairing, equipping or furnishing qualified property that is owned or operated by the state for the purpose of providing affordable housing; and

(7) The Director of the Housing and Community Services Department shall report regularly to the council regarding the status and progress of the program and of the Housing and Community Services Department’s responsibilities for implementing and administering the program.

(8) The department shall adopt rules to implement the provisions of this section, including but not limited to prescribing requirements for acquiring, constructing, remodeling, repairing, equipping or furnishing qualified property that is owned or operated by the state for the purpose of providing affordable housing under the program. [2016 c.61 §2; 2023 c.193 §9]

458.490 Local Innovation and Fast Track Housing Program Fund. (1) The Local Innovation and Fast Track Housing Program Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned on moneys in the Local Innovation and Fast Track Housing Program Fund shall be credited to the fund.

(2) The fund consists of moneys deposited into the fund pursuant to section 1 (6), chapter 685, Oregon Laws 2015.

(3) Moneys in the fund are continuously appropriated to the Housing and Community Services Department for:

(a) The purposes described in ORS 458.485;

(b) Payment of the costs incurred by the department to administer the fund; and

COMMUNITY SERVICES PROGRAMS

458.505 Community action agency network as delivery system for federal antipoverty programs; duties of Housing and Community Services Department. (1) The community action agency network, established initially under the federal Economic Opportunity Act of 1964, is the delivery system for federal antipoverty programs in Oregon, including:

(a) The Community Services Block Grant;

(b) Low Income Home Energy Assistance Program; and

(2) Funds for such programs shall be distributed to the community action agencies by the Housing and Community Services Department with the advice of the Community Action Partnership of Oregon.

(3) In areas not served by a community action agency, funds other than federal community services funds may be distributed to and administered by organizations that are found by the Housing and Community Services Department to serve the antipoverty purpose of the community action agency network.

(4) In addition to complying with all applicable requirements of federal law, a community action agency shall:

(a) Be an office, division or agency of the designating political subdivision or a not for profit organization in compliance with ORS chapter 65.

(b) Have a community action board of at least nine but no more than 33 members, constituted so that:

(A) One-third of the members of the board are elected public officials currently serving or their designees. If the number of elected officials reasonably available and willing to serve is less than one-third of the membership, membership of appointed public officials may be counted as meeting the one-third requirement;

(B) At least one-third of the members are persons chosen through democratic selection procedures adequate to assure that they are representatives of the poor in the area served; and

(C) The remainder of the members are officials or members of business, industry, labor, religious, welfare, education or other major groups and interests in the community.

(c) If the agency is a private not for profit organization, be governed by the Community Action Board. The board shall have all duties, responsibilities and powers normally associated with such boards, including, but not limited to:

(A) Selection, appointment and dismissal of the executive director of the agency;

(B) Approval of all contracts, grant applications and budgets and operational policies of the agency;

(D) Securing an annual audit of the agency.

(d) If the organization is an office, division or agency of a political subdivision, be administered by the board that shall provide for the operation of the agency and be directly responsible to the governing board of the political subdivision. The administering board at a minimum, shall:

(A) Review and approve program policy;

(B) Be involved in and consulted on the hiring and firing of the agency director;

(D) Ensure the effectiveness of community involvement in the planning process; and

(E) Assume all duties delegated to it by the governing board.

(e) Have a clearly defined, specified service area. Community action service areas may not overlap.

(f) Have an accounting system that meets generally accepted accounting principles and be so certified by an independent certified accountant.

(g) Provide assurances against the use of government funds for political activity by the community action agency.

(h) Provide assurances that no person shall, on the grounds of race, color, sex, sexual orientation, gender identity or national origin be excluded from participation in, be denied the benefits of or be subjected to discrimination under any program or activity funded in whole or in part with funds made available through the community action program.

(i) Provide assurances the community action agency shall comply with any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 or with respect to an otherwise qualified individual with disabilities as provided in section 504 of the Rehabilitation Act of 1973.

(5) For the purposes of this section, the Oregon Human Development Corporation is eligible to receive federal community service funds and low-income energy assistance funds.

(6) The Housing and Community Services Department shall:

(a) Administer federal antipoverty programs listed in subsection (1) of this section.

(b) In conjunction with the Oregon Housing Stability Council, culturally specific organizations, the Community Action Partnership of Oregon and service providers, develop a collaborative role in advocating for, and addressing the needs of, all low income Oregonians.

(c) On a regular basis provide information to service providers on the activities and expenditures of the Housing and Community Services Department.

(d) As resources are available, provide resources for technical assistance, training and program assistance to Community Action Partnership of Oregon, service providers and other eligible entities.

(e) As resources are available, provide resources pursuant to ORS 409.750 for the training and technical assistance needs of service providers.

(f) Fully integrate the Oregon Human Development Corporation into the antipoverty delivery system, which must include a minimum level of services and funding for low income migrant and seasonal agricultural workers from the antipoverty programs administered by the agency.

(g) Limit its administrative budget in an effort to maximize the availability of antipoverty federal and state funds for expenditures by local service providers. [Formerly 184.802; 1997 c.249 §156; 2003 c.14 §289; 2003 c.186 §15; 2007 c.100 §28; 2009 c.64 §3; 2009 c.407 §2; 2021 c.367 §27; 2021 c.448 §3]

458.510 Energy Crisis Trust Fund. (1) There is established an Energy Crisis Trust Fund, separate and distinct from the General Fund, in the State Treasury. As permitted by federal court decisions, federal statutory requirements and administrative decisions, funds from the Petroleum Violation Escrow Fund made available to the Housing and Community Services Department for the Energy Crisis Trust Fund and any gift, grant, appropriation or donation for the purpose of the Energy Crisis Trust Fund shall be deposited by the State Treasurer and credited to the Energy Crisis Trust Fund. The State Treasurer shall credit monthly to the fund any interest or other income derived from the fund or the investing of the fund. All moneys in the fund are continuously appropriated to the Housing and Community Services Department for the purpose of providing low income home energy assistance.

(2) If moneys are donated to the fund for low income energy assistance by a home heating fuel or energy service provider that allows its customers to contribute to the program, that money so donated shall be redistributed through the Energy Crisis Trust Fund only within the service area of that home heating fuel or energy service provider.

(3) The Housing and Community Services Department shall contract with a private nonprofit or public organization or agency for the distribution of moneys in the Energy Crisis Trust Fund. The department or the contractor shall administer and distribute the funds in accordance with:

(a) The Low Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.); and

(b) The Petroleum Violation Escrow Fund regulations. [Formerly 184.803; 1997 c.249 §157; 2015 c.180 §17]

458.515 Oregon Housing Stability Council to advise and assist department regarding low income home energy assistance. The Oregon Housing Stability Council, in conjunction with the Community Action Partnership of Oregon, shall advise and assist the Housing and Community Services Department with rules, policies and programs regarding low income home energy assistance provided for under ORS 458.510. [Formerly 184.804; 1997 c.249 §158; 2007 c.70 §265; 2011 c.566 §1; 2015 c.180 §18]

Note: Sections 44 to 46, chapter 223, Oregon Laws 2023, provide:

Sec. 44. Section 45 of this 2023 Act is added to and made a part of ORS chapter 458. [2023 c.223 §44]

Sec. 45. Funding for affordable housing loan guarantee fund; rules. (1) The Housing and Community Services Department shall provide grants to one or more nonprofit corporations to develop a fund.

(2) The moneys in the fund may be used only to guarantee the repayment of loans to finance the construction of housing subject to an affordable housing covenant for low or moderate income households, as described in ORS 456.270 to 456.295 and as further defined by the Housing and Community Services Department by rule.

(3) The term of a loan guaranteed under this section may not exceed five years.

(4) The department and the state are not guarantors of any loan guaranteed by a nonprofit corporation under this section.

(5) To be eligible for a grant under this section, a nonprofit corporation must:

(a) Be exempt from income taxes under section 501(c)(3) or (4) of the Internal Revenue Code; and

(b) Demonstrate to the satisfaction of the department that the corporation is a community development financial institution that operates statewide to support investment in the construction of affordable housing. [2023 c.223 §45]

Sec. 46. Section 45 of this 2023 Act is repealed on January 2, 2026. [2023 c.223 §46]

HUNGER AND HOMELESSNESS

458.525 Duties of council in coordinating and monitoring homelessness relief efforts. The Oregon Housing Stability Council shall be responsible for receiving the recommendations of any state body relating to the issue of homelessness, and for forwarding the recommendations and proposals to state agencies or other public or private organizations for action that the council deems appropriate:

(1) To ensure the coordination of state agency homelessness relief efforts;

(2) To ensure that homelessness relief efforts operate efficiently and effectively;

(3) To monitor the utilization of federal homelessness relief efforts and provide outreach to expand underutilized programs; and

(4) To encourage the coordination of state and local programs and public and private antipoverty programs. [1993 c.271 §1; 1997 c.249 §159; 2001 c.109 §1; 2001 c.900 §202; 2007 c.145 §1; 2009 c.407 §3; 2009 c.595 §939; 2012 c.37 §65; 2013 c.624 §34; 2015 c.180 §19; 2015 c.366 §94]

458.528 Policy on homelessness. (1) As used in this section, “homelessness” means the lack of a decent, safe, stable and permanent place to live that is fit for human habitation.

(2) The Legislative Assembly finds and declares that:

(a) Homelessness is a detriment to individuals, families and communities. The effects of homelessness impact quality of life, productivity and self-sufficiency, career and educational opportunities, health and wellness. Those effects may also extend to future generations.

(b) Preventing and ending homelessness is important for all levels of government, business and the community.

(3) The Housing and Community Services Department and the Department of Human Services shall serve as the lead agencies in administering the state policy regarding homelessness.

(4) It is the policy of this state that the Housing and Community Services Department, the Department of Human Services, the Oregon Housing Stability Council and the Community Action Partnership of Oregon work to encourage innovation by state, regional and local agencies that will create the comprehensive and collaborative support system and housing resources vital for a successful campaign to end and prevent homelessness. The comprehensive and collaborative support system should include, but not be limited to:

(a) The redesign of existing response systems to homelessness to include a realignment of services with permanent housing.

(b) The inclusion of community-based treatment, outreach services, early intervention strategies, housing and service management and an interagency system that can address individuals with compound needs.

(c) The coordination of multiagency services provided to people with chronic needs, older adults and homeless and runaway youths, including but not limited to criminal justice, housing, public welfare, health, mental health and youth and family services, to create integrated and cost-effective programs that deliver housing and service needs of homeless persons in a seamless and timely manner.

(d) Programs of care for the homeless that have an accompanying set of outcomes to increase accountability and further development of more effective methods in reaching client outcome goals and cost effectiveness. Outcomes for increasing the accountability of programs of care for the homeless include shortening the length of stay in emergency housing, eliminating repeated periods of homelessness and addressing the issue of homelessness in all areas of the state.

(e) An individualized approach to the homeless person that includes an assessment of individual needs, identification of appropriate solutions that may include services, coordination and cost-effective use of support across agencies and appropriate monitoring and evaluation of the homeless person’s individual progress. [2009 c.407 §1; 2015 c.180 §20]

Note: 458.528 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 458 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

Note: Sections 7 and 8, chapter 448, Oregon Laws 2021, provide:

Sec. 7. Task Force on Homelessness and Racial Disparities. (1) The Task Force on Homelessness and Racial Disparities is established.

(2) The task force consists of 19 members appointed as follows:

(a) The President of the Senate shall appoint two members from among members of the Senate;

(b) The Speaker of the House of Representatives shall appoint two members from among members of the House of Representatives;

(d) The Director of the Housing and Community Services Department shall appoint two members to represent the Housing and Community Services Department or Oregon Housing Stability Council; and

(e) The President of the Senate and the Speaker of the House of Representatives shall jointly appoint 12 members that represent organizations with diverse perspectives and experiences, including organizations that focus on street outreach and unsheltered homelessness, shelter, rapid rehousing, homelessness prevention or domestic and sexual violence, organizations that address the needs of various people experiencing housing instability, including youth, children and families, adults or seniors, and organizations representing different communities and geographies across Oregon as follows:

(A) Two members from local governments or representing the interests of local governments;

(B) Two members from community action agencies;

(D) Two members from homeless service providers in urban areas;

(E) Two members from homeless service providers in rural areas; and

(F) Two members who have experienced housing instability.

(3) The task force shall:

(a) Identify and investigate methods by which the state may decrease rates of racial disparity among people experiencing homelessness and receiving services.

(b) Identify and investigate potential changes in this state’s funding structure to address racial disparities among people experiencing homelessness and housing insecurity, including consideration of how housing transition of services delivery could be implemented to avoid service disruptions among people experiencing homelessness or housing insecurity.

(c) Consider existing methods and recommend additional methods by which the Housing and Community Services Department and Oregon Housing Stability Council may receive advice and information about needed services for individuals experiencing homelessness and housing insecurity.

(d) Identify and investigate methods by which the Housing and Community Services Department and Oregon Housing Stability Council may modify contracting process and eligibility for providers of services for individuals experiencing homelessness and housing insecurity.

(e) Recommend solutions regarding the funding of services for individuals experiencing homelessness or housing insecurity, including legislation or rulemaking and modifications to:

(A) The delivery and eligibility requirements for federal and state funds;

(B) The receipt and distribution of information about homelessness and homelessness services by the state; and

(4) The task force may consult experts, form subcommittees or advisory committees, conduct field investigations, hearings and other meetings, receive testimony in any form or format, request or require production of documents and other evidence and otherwise take any lawful action to carry out the purposes set forth in subsection (3) of this section.

(5) A majority of the members of the task force constitutes a quorum for the transaction of business.

(6) Official action by the task force requires the approval of a majority of the members of the task force.

(7) The task force shall elect one or more task force members to serve as a chairperson or cochairs.

(8) If there is a vacancy for any cause, the appointing authority shall make an appointment to become immediately effective.

(9) The task force shall meet in a regular location no less than monthly until January 31, 2022, and at other times and places specified by the call of the chairperson or cochairs or by a majority of the members of the task force.

(10) The task force may adopt rules necessary for the operation of the task force.

(11) The Housing and Community Services Department shall provide staff support to the task force and shall provide a third-party facilitator to assist the chairperson or cochairs with the facilitation of meetings and the operations of the task force. Notwithstanding ORS 279A.025, ORS chapter 279B does not apply to the department’s procurement of a facilitator under this section.

(12) A member of the task force is not entitled to compensation, but in the discretion of the department may be reimbursed for actual and necessary travel and other expenses incurred by the member in the performance of the member’s duties or provided a stipend.

(13) All agencies of state government, as defined in ORS 174.111, are directed to assist the task force in the performance of the task force’s duties and, to the extent permitted by laws relating to confidentiality, to furnish information and advice the members of the task force consider necessary to perform their duties.

(14) No later than January 15, 2022, the task force shall provide a report to an appropriate committee of the Legislative Assembly in the manner provided in ORS 192.245 on the findings and recommendations made under subsection (3) of this section. A copy of the report shall be delivered to the Oregon Housing Stability Council. [2021 c.448 §7]

Sec. 8. Section 7, chapter 448, Oregon Laws 2021, and section 1 of this 2022 Act are repealed on January 2, 2026. [2021 c.448 §8; 2022 c.47 §2]

Note: Sections 1 and 2, chapter 70, Oregon Laws 2022, provide:

Sec. 1. Grants for local coordinated homeless response systems; report to Legislative Assembly. (1) The Oregon Department of Administrative Services shall provide grants to local governments and nonprofit corporations that agree to, within 90 days of receipt of grant funding, enter into an agreement among the member governments and nonprofit corporations, if any, to create a coordinated homeless response system that consists of, at a minimum:

(a) The establishment of a coordinated homeless response office;

(b) An advisory board with representation from the governing body of each member government;

(d) Plans for coordination with any local continuum of care receiving funding under 24 C.F.R. part 578; and

(e) The establishment of a centralized point of contact for the office.

(2) Grants provided under this section shall be used by the coordinated homeless response system to:

(a) Hire necessary staff for the office;

(b) Support coordinated communications and public engagement;

(c) Support community outreach and policy development, including stipends for people with current or recent lived experience of homelessness;

(d) Acquire technical assistance and capacity building, including contracting with consultants; and

(e) Pay for other expenses reasonably necessary to meet the requirements under this section.

(3) Within one year of receiving a grant under this section, a coordinated homeless response system, through the advisory board or each member government to the agreement, shall adopt a five-year strategic plan that will identify and set goals for addressing:

(a) Funding to support the ongoing operations of the coordinated homeless response system;

(b) Increasing or streamlining resources and services to people at risk of or experiencing homelessness within the participating cities and counties;

(d) Eliminating racial disparities within homeless services within the service area; and

(e) Creating pathways to permanent and supportive housing that is affordable to local populations experiencing or at risk of homelessness.

(4) No later than November 15, 2023, and September 15, 2024, each coordinated homeless response system shall provide a report to the Housing and Community Services Department, Oregon Housing Stability Council and one or more appropriate interim committees of the Legislative Assembly in the manner provided in ORS 192.245 on:

(a) The goals adopted in the five-year strategic plan and the progress made in implementing the plan;

(b) Other changes in homelessness services, ordinances of member governments relating to homelessness and partnerships or programs established that are specifically related to member government actions arising out of the agreement; and

(A) Regional coordination of homelessness services and planning;

(B) Needs for technical assistance regarding program development or other programs from the Housing and Community Services Department; and

(C) Addressing racial disparities through partnerships with culturally specific and responsive organizations serving populations overrepresented in experiencing homelessness, including Black, Indigenous, People of Color, federally recognized tribes and tribal members and outreach and engagement with these populations.

(5) In performing tasks under this section, a coordinated homeless response system shall coordinate with and develop partnerships with local and regional stakeholders, including, but not limited to:

(a) Advocates for people experiencing homelessness and for people with lived experience of homelessness;

(b) Community action agencies;

(d) Affordable housing providers;

(e) Behavioral health providers;

(f) Law enforcement;

(g) Educational agency liaisons for homeless children as described in 42 U.S.C. 11432;

(h) Local Department of Human Services offices;

(i) Courts;

(j) Legal aid;

(k) Coordinated care organizations, as described in ORS 414.572;

(L) Emergency shelter providers;

(m) Homeless service providers;

(n) Organizations serving and advocating for veterans, homeless youth, youth exiting the foster care system, individuals exiting the criminal justice system, people with disabilities and aging adults, health care systems, domestic violence and sexual assault survivors, members of lesbian, gay, bisexual, transgender, queer or questioning (LGBTQ) communities, people experiencing behavioral health and substance use disorders, faith communities and business communities; and

(o) The Housing and Community Services Department.

(6) In performing its duties under this section, a coordinated homeless response system shall coordinate with law enforcement, service providers and governing bodies to implement safe and humane processes to maintain public and environmental health and safety, balancing important individual and community rights.

(7) A coordinated homeless response system may use grant funds in excess of those funds needed by the system to accomplish the requirements of the system under subsections (1) to (6) of this section to support the delivery of homeless services and shelter consistent with the five-year strategic plan, including through contracts with service providers. [2022 c.70 §1]

Sec. 2. Section 1 of this 2022 Act is repealed on January 2, 2025. [2022 c.70 §2]

Note: Sections 1 and 2, chapter 116, Oregon Laws 2023, provide:

Sec. 1. Implementation of recommendations from Task Force on Homelessness and Racial Disparities. (1) The Housing and Community Services Department shall engage in efforts under this section to modify the state’s funding structure, based on the recommendations from the Task Force on Homelessness and Racial Disparities under section 7, chapter 448, Oregon Laws 2021.

(2) To implement the recommendations from the Task Force on Homelessness and Racial Disparities, the department may create committees and advisory committees for consideration of rules, as provided under ORS 183.333, to help ensure stakeholder engagement and input, and to assist in designing policy frameworks, including funding mechanisms, allocations or formulas for developing allocations, for programs by:

(a) The nine federally recognized Indian tribes within Oregon, as determined in partnership with each tribe;

(b) Community action agencies, including antipoverty initiatives that intersect with homelessness priorities;

(c) Continuums of care, as defined in 24 C.F.R. part 578, and local planning groups, including coordinated homeless response offices established under section 1 (1), chapter 70, Oregon Laws 2022; and

(d) Organizations that are culturally specific, culturally responsive and culturally based, and other organizations that are focused on reducing disparities where there is a demonstrated overrepresentation in homelessness.

(3) On or before March 15, 2024, the department shall provide a report to a committee of the Legislative Assembly related to housing, in the manner provided in ORS 192.245, on:

(a) Implementing the statutory policy frameworks for changes in the state’s investments for implementation of the recommendations described in this section for the biennium beginning July 1, 2025; and

(b) Recommendations for statutorily modifying other homeless service programs that the department operates as a result of the changes described in paragraph (a) of this subsection.

(4) In implementing the recommendations described in subsection (1) of this section, the department shall utilize outcome-oriented contracting processes or evidence-based and emerging practices for the programs and policies developed under subsection (2) of this section, including evidence-based and emerging practices for serving rural communities. [2023 c.116 §1]

Sec. 2. Section 1 of this 2023 Act is repealed on January 2, 2026. [2023 c.116 §2]

458.530 Policy on hunger. (1) The Department of Human Services shall serve as the lead public body in administering the state policy on hunger.

(2) The Legislative Assembly finds and declares that it is the policy of this state that:

(a) Hunger is defined as the state of being unable to obtain a nutritionally adequate diet from nonemergency food channels. Hunger is not one discrete event. Hunger is a series of events that lead up to and follow a lack of adequate food intake. It is the process in which people become at risk of hunger, attempt to cope with the problem and suffer a variety of health and social consequences.

(b) All persons have the right to be free from hunger.

(c) Freedom from hunger means all persons have food security. Persons lack food security if they are uncertain of having, or being able to acquire in socially acceptable ways, enough acceptable food at all times to meet basic needs because they have insufficient money or other resources for food.

(d) Oregon will strive to rank among the top states in the nation in providing food security without hunger.

(3) The Legislative Assembly declares that the policy of this state is to provide and encourage activities and programs necessary to fulfill the commitment stated in subsection (2) of this section and that the purpose of policies stated in this section is to provide a guide for the establishment, implementation and operation of activities and programs designed to alleviate or eradicate hunger in this state. The Legislative Assembly further declares that the activities and programs shall be initiated, promoted and developed through:

(a) Volunteers and volunteer groups;

(b) Public and private not-for-profit organizations;

(d) Coordinated efforts of state agencies;

(e) Coordination and cooperation with federal programs;

(f) Partnership with private health and social service agencies; and

(g) The Hunger Task Force. [Formerly 411.848; 2007 c.145 §2; 2009 c.407 §4; 2015 c.180 §21]

Note: 458.530, 458.532 and 458.545 were added to and made a part of ORS chapter 411 by legislative action but were not added to or made a part of ORS chapter 458 or any series therein. See Preface to Oregon Revised Statutes for further explanation.

458.532 Hunger Task Force. (1) The Hunger Task Force is established in the Department of Human Services. The task force shall consist of not more than 28 members appointed as follows:

(a) The President of the Senate shall appoint one member from among members of the Senate.

(b) The Senate Minority Leader shall appoint one member from among members of the Senate.

(c) The Speaker of the House of Representatives shall appoint one member from among members of the House of Representatives.

(d) The House Minority Leader shall appoint one member from among members of the House of Representatives.

(e) The President and the Speaker shall coordinate to jointly appoint one member from among the members of the Legislative Assembly who is serving on a committee or interim committee of the Legislative Assembly related to human services.

(f) The Director of Human Services, with the advice of the Director of the Oregon Health Authority, shall appoint the following:

(A) Nine members who represent organizations that serve or advocate for people affected by hunger including organizations from among the following:

(i) Food banks.

(ii) Direct service providers.

(iii) Food systems.

(iv) The migrant community.

(v) The religious community.

(vi) Educational institutions.

(vii) Poverty-related advocacy or public policy groups.

(viii) Culturally specific organizations.

(ix) Mutual aid or emergency disaster response.

(B) Nine members who represent residents of this state who suffer the highest rates of hunger or who currently lack opportunities for food security because of discrimination based on race or ethnicity or inadequate financial resources.

(D) One member representing the Department of Human Services who has experience in the Supplemental Nutrition Assistance Program.

(E) One member representing the Oregon Health Authority who has experience in the Women, Infants and Children program.

(F) One member representing the State Department of Agriculture.

(G) One member representing the Housing and Community Services Department.

(2) When selecting members of the task force under subsection (1)(f) of this section, the Director of Human Services shall take into consideration geographic and demographic diversity.

(3) A member serves for a three-year term. A member may be reappointed. Before the expiration of the term of a member, the appointing authority shall appoint a successor whose term begins on July 1 next following.

(4) If there is a vacancy for any cause, the appointing authority shall make an appointment to become immediately effective for the unexpired term. The appointing authority may appoint a replacement for any member of the task force who misses more than two consecutive meetings of the task force.

(5) A majority of the voting members of the task force membership constitutes a quorum for the transaction of business.

(6) Members of the Legislative Assembly appointed to the task force are nonvoting members of the task force and may act in an advisory capacity only.

(7) The Director of Human Services shall provide for the payment of appropriate task force operating expenses, including but not limited to staff support, based upon the availability of legislatively approved funding for such purposes. [Formerly 411.849; 2001 c.900 §203; 2007 c.145 §3; 2009 c.64 §4; 2009 c.595 §940; 2009 c.599 §21; 2015 c.180 §22; 2021 c.236 §1]

Note: Sections 2 and 3, chapter 236, Oregon Laws 2021, provide:

Sec. 2. Reappointment of Hunger Task Force. (1) On June 30, 2022, the term of office of members of the Hunger Task Force then holding office shall cease. A member whose term of office has been terminated by this subsection is eligible for reappointment to the Hunger Task Force.

(2) Notwithstanding the term of office specified in ORS 458.532, of the members first appointed to the Hunger Task Force who are not members of the Legislative Assembly, on July 1, 2022:

(a) Seven shall serve for a term ending June 30, 2023.

(b) Eight shall serve for a term ending June 30, 2024.

Sec. 3. Section 2 of this 2021 Act is repealed on January 2, 2026. [2021 c.236 §3]

Note: See note under 458.530.

458.535 [2007 c.145 §6; repealed by 2015 c.180 §34]

458.540 Short title for ORS 458.530 to 458.545. ORS 458.530 to 458.545 may be cited as the “Oregon Hunger Relief Act.” [Formerly 411.851; 2005 c.22 §330]

458.545 Task force powers and duties. The Hunger Task Force shall:

(1) Serve within government and in the state at large as an advocate for hungry persons.

(2) Participate in coordinating the effective and efficient provision of services to hungry citizens so that the services will be readily available to the greatest number over the widest geographic area; assure that information on these services is available in each locality, utilizing whenever possible existing information services; and assure that each new service receives maximum publicity at the time it is initiated.

(3) Have authority to study programs and budgets of those public bodies or private entities willing to cooperate, and all state agencies, that provide services or funding directed at the alleviation or eradication of hunger.

(4) Have authority to study any concepts regarding the alleviation or eradication of hunger within this state.

(5) Make recommendations and proposals that the task force deems appropriate to the agencies and entities with member representatives on the task force. The recommendations shall be designed to provide coordination of programs for hungry persons, to avoid unnecessary duplication in provision of services, to point out gaps in provision of services and to recommend ways of filling gaps in services. The task force also shall recommend development of a comprehensive plan for delivery of services to hungry persons. In carrying out these tasks, the task force shall coordinate its efforts with other advisory groups or entities with similar or related responsibilities to avoid duplication of effort. After the recommendations and proposals have been reviewed and approved by the member representatives of the task force, the task force shall submit the recommendations and proposals to the Governor, the Legislative Assembly and others as deemed appropriate by the task force.

(6) Encourage, by expansion of existing activities and programs for the hungry, by school programs, by meals-on-wheels, by counseling or by other means, public and private development of nutrition programs for hungry citizens that prevent or minimize hunger and illness which is related to hunger or nutritional deficiencies.

(7) Conduct research and other appropriate activities to determine:

(a) The dimensions of hunger in the state;

(b) The availability and accessibility of emergency food in all areas of the state;

(d) The participation rates of eligible persons in all federal food programs, especially the Supplemental Nutrition Assistance Program;

(e) The identification of persons needing food and nutrition services who are not eligible under existing programs;

(f) Barriers to the participation of eligible persons in food and nutrition programs; and

(g) The impact of economic changes on food and nutrition programs.

(8) Prepare and disseminate an annual report on the status of hunger in the state, efforts being made to alleviate and eradicate hunger, and proposals and recommendations for strengthening progress toward the eradication of hunger. [Formerly 411.850; 2007 c.145 §8; 2009 c.599 §22; 2015 c.180 §23]

Note: See note under 458.530.

458.555 [2001 c.848 §1; 2005 c.29 §1; 2017 c.725 §9; 2018 c.98 §23; 2021 c.100 §3; renumbered 660.500 in 2021]

458.558 [2001 c.848 §3; 2005 c.29 §2; 2011 c.731 §24; 2012 c.97 §6; 2017 c.630 §10; 2017 c.725 §10; 2021 c.100 §4; renumbered 660.505 in 2021]

458.560 [2001 c.848 §4; 2005 c.29 §3; 2021 c.100 §5; renumbered 660.508 in 2021]

458.563 [2001 c.848 §5; 2003 c.639 §2; 2005 c.29 §4; 2017 c.725 §11; repealed by 2018 c.98 §26]

458.565 [2001 c.848 §7; 2005 c.29 §5; 2021 c.100 §6; renumbered 660.511 in 2021]

458.568 [2001 c.848 §2; 2005 c.29 §6; 2007 c.6 §3; 2012 c.97 §7; 2017 c.630 §11; 2018 c.98 §24; 2021 c.100 §7; renumbered 660.515 in 2021]

458.570 [2001 c.848 §9; 2005 c.29 §7; 2021 c.100 §8; renumbered 660.518 in 2021]

458.573 [2001 c.848 §6; 2005 c.29 §8; 2018 c.98 §25; 2021 c.100 §9; renumbered 660.520 in 2021]

458.575 [2001 c.848 §8; 2005 c.29 §9; 2007 c.6 §4; 2021 c.100 §10; renumbered 660.523 in 2021]

458.577 [2007 c.6 §1; repealed by 2021 c.100 §17]

458.578 [2007 c.6 §2; 2017 c.725 §12; repealed by 2021 c.100 §17]

458.580 [2012 c.97 §3; 2017 c.725 §13; repealed by 2017 c.630 §1]

458.581 [2012 c.97 §4; repealed by 2017 c.630 §1]

458.582 [2012 c.97 §9; repealed by 2017 c.630 §1]

458.584 [2012 c.97 §5; repealed by 2017 c.630 §1]

458.585 [2007 c.82 §1; repealed by 2021 c.100 §17]

458.590 [2007 c.82 §2; repealed by 2021 c.100 §17]

458.595 [2007 c.82 §3; repealed by 2021 c.100 §17]

OREGON HOUSING FUND

458.600 Policy and intent. It is declared to be the policy and intent of the Legislative Assembly that the State of Oregon:

(1) Shall assist in improving the quality of life of homeless persons within this state by insuring the availability of an appropriate range of residential opportunities.

(2) Shall seek to reduce the number of homeless people in this state. [1991 c.736 §1]

458.605 Findings. The Legislative Assembly finds that:

(1) The number of people who are homeless is on the rise in this state, as across the nation.

(2) Homeless people can be found in every county and city in this state.

(3) Family members, including children, represent the majority of the increase in the homeless population.

(4) Facilitating housing for families with children reduces the need for other state services such as foster care and child abuse treatment.

(5) Facilitating shelter so that homeless people do not have to live outdoors or in cars reduces weather-related illness, thereby reducing health care costs and services required for this population.

(6) Developing affordable housing in Oregon is necessary to maintain the quality of life, create jobs and to further economic development. [1991 c.736 §2; subsection (6) enacted as 1991 c.740 §1]

458.610 Definitions for ORS 458.600 to 458.665; rules. For purposes of ORS 458.600 to 458.665:

(1) “Area median income” means the area median income, subject to adjustment for areas with unusually high or low incomes or housing costs, all as determined by the Housing and Community Services Department based on information from the United States Department of Housing and Urban Development.

(2) “Council” means the Oregon Housing Stability Council established in ORS 456.567.

(3) “Department” means the Housing and Community Services Department established in ORS 456.555.

(4) “Low income” means income that is more than 50 percent and not more than 80 percent of the area median income.

(5) “Moderate income” means income that is more than 80 percent and not more than 120 percent of the area median income.

(6) “Organization” means a:

(a) Nonprofit corporation established under ORS chapter 65;

(b) Housing authority established under ORS 456.055 to 456.235;

(d) Federally recognized Indian tribe that owns land in this state.

(7) “Persons of color” has the meaning given that term by rule by the department.

(8) “Persons with disabilities” means persons with handicaps described in 42 U.S.C. 3602(h).

(9) “Very low income” means income that is 50 percent or less of the area median income.

(10) “Veteran” has the meaning given that term by the department by rule. [1991 c.740 §2; 1995 c.79 §271; 2007 c.70 §266; 2009 c.18 §6; 2013 c.646 §2; 2015 c.180 §24; 2015 c.608 §1; 2019 c.88 §2a; 2019 c.576 §3; 2021 c.55 §1; 2021 c.97 §62; 2021 c.170 §3; 2023 c.193 §10]

458.620 Oregon Housing Fund; subaccounts. (1) There is created, separate and distinct from the General Fund of the State Treasury, the Oregon Housing Fund, which consists of five separate revolving accounts:

(a) The Housing Development and Guarantee Account;

(b) The Emergency Housing Account;

(d) The Agricultural Worker Housing Development Account; and

(e) The General Housing Account.

(2) Earnings on investment of moneys in:

(a) The Housing Development and Guarantee Account accrue to that account.

(b) The Emergency Housing Account accrue to that account.

(d) The Agricultural Worker Housing Development Account accrue to that account.

(e) The General Housing Account accrue to that account.

(3)(a) Moneys in the Housing Development and Guarantee Account are continuously appropriated to the Housing and Community Services Department to carry out the provisions of ORS 458.630.

(b) Moneys in the Emergency Housing Account are continuously appropriated to the department to carry out the provisions of ORS 458.650.

(c) Moneys in the Home Ownership Assistance Account are continuously appropriated to the department to carry out the provisions of ORS 458.655.

(d) Moneys in the Agricultural Worker Housing Development Account are continuously appropriated to the department to carry out the provisions of ORS 458.660.

(e) Moneys in the General Housing Account are continuously appropriated to the department to carry out the provisions of ORS 456.515 to 456.725.

(4) Individuals and corporations, both for profit or nonprofit, may make monetary contributions to be credited to:

(a) The Housing Development and Guarantee Account; or

(b) The General Housing Account. [1991 c.740 §§3,8; 1995 c.174 §1; 2001 c.310 §§2,3; 2009 c.18 §8; 2015 c.737 §2; 2019 c.576 §4; 2020 s.s.2 c.10 §39; 2021 c.525 §§23,24]

458.625 Housing Development Grant Program; uses; policies. (1) There is established the Housing Development Grant Program in the Housing and Community Services Department for the purpose of expanding the supply of affordable rental housing for persons with low or very low income.

(2) The program shall pay the costs incurred in the administration of the program and award grants:

(a) To assist organizations and for-profit business entities in constructing new housing, or in acquiring or rehabilitating existing structures, for housing for persons with low or very low income.

(b) To provide nonprofit organizations, as set forth in ORS 458.210 to 458.240, with technical assistance or predevelopment costs. Predevelopment costs include site acquisition, architectural services and project consultants.

(c) To develop nonprofit organizations that show sufficient evidence of having strong community support and a strong likelihood of producing housing for persons with low or very low income. Grants may not be used by an organization for its general operations.

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

(3) The department shall give preference in making grants from the program to those entities that the department determines will:

(a) Construct, acquire or rehabilitate the greatest number per dollar granted of housing units for persons with low or very low income by acquiring matching funds or other grant, loan or eligible in-kind contributions;

(b) Ensure the longest use for the units as housing for persons with low or very low income; or

(c) Offer the occupants of the proposed housing services relevant to identified needs, including services that address home health care, mental health care, alcohol and drug treatment and post-treatment care, child care or case management.

(4) The Oregon Housing Stability Council may adopt policies obligating the department to distribute grants statewide while concentrating grants from the program in those areas of this state with the greatest need, as determined by the council, for housing for persons with low or very low income. [1991 c.740 §5; 1999 c.283 §1; 2003 c.743 §5; 2007 c.70 §267; 2011 c.169 §1; 2011 c.605 §1; 2015 c.180 §25; 2015 c.608 §2; 2019 c.576 §1]

458.630 Housing Development and Guarantee Account; Guarantee Fund; uses; policies; fund transfers; rules. (1) The Housing and Community Services Department may use the Housing Development and Guarantee Account to establish a Guarantee Fund. The department may use the fund to pay the costs and expenses incurred in the administration of the fund and to guarantee repayment of loans made to finance the construction, development, acquisition or rehabilitation of:

(a) Housing for rental or ownership by persons with very low, low or moderate income; or

(b) The commercial component of a structure that contains both commercial property and housing for persons with very low, low or moderate income.

(2) The department shall specify by rule the grounds on which it may deny loan guarantees for a structure described under subsection (1)(b) of this section, including the grounds that the structure contains a commercial component that is excessive in scope or that is of a type incompatible with residential housing.

(3) The Oregon Housing Stability Council shall review and approve policies for underwriting loans guaranteed by the Guarantee Fund to ensure that the loans meet prudent underwriting standards.

(4) A guarantee may not be prepared or construed in such a manner as to violate the provisions of Article XI, section 7, of the Oregon Constitution.

(5) The department may not issue any loan guarantee under this section that:

(a) Guarantees the repayment of more than 50 percent of the original principal balance of any loan; or

(b) Would cause the aggregate dollar amount of all loan guarantees issued by the department under this section to exceed two times the total amount then in the Guarantee Fund.

(6) The council may adopt preferences for using the Guarantee Fund to guarantee loans that the department determines will:

(a) Provide the greatest number of housing units for persons with very low, low or moderate income constructed, acquired, developed or rehabilitated for the amount of guarantee allowed;

(b) Ensure the longest possible use for the units as housing units for persons with very low, low or moderate income; or

(c) Include a program of services for the occupants of the proposed housing including, but not limited to, programs that address home health care, mental health services, alcohol and drug treatment and post-treatment care, child care or case management, if the housing proposed is multifamily rental housing.

(7) The council may adopt a policy that gives loan guarantee preference to loans for housing or structures described in subsection (1) of this section for which the department has provided a grant, loan, tax credit or other investment.

(8) Subject to approval by the council, each fiscal year the department may make a transfer from the Housing Development and Guarantee Account to the Affordable Housing Land Acquisition Revolving Loan Program under ORS 456.502 in an amount not to exceed 50 percent of the difference between the balance of the Guarantee Fund and one-half of the aggregate amount of all outstanding loans guaranteed by the Guarantee Fund. [1991 c.740 §6; 1993 c.2 §1; 1997 c.329 §1; 2003 c.20 §1; 2003 c.743 §6; 2007 c.607 §25; 2015 c.180 §26; 2015 c.608 §3; 2019 c.576 §2]

458.650 Emergency Housing Account; grant policies. (1) The Housing and Community Services Department shall administer the Emergency Housing Account to assist homeless individuals and individuals who are at risk of becoming homeless, through means including the emergency housing assistance program and the state homeless assistance program. Notwithstanding subsection (3)(a) of this section, the state homeless assistance program shall serve individuals experiencing homelessness, especially unsheltered homelessness, without respect to income.

(2) The Oregon Housing Stability Council shall develop a policy for the use of program funds with the advice of:

(a) Persons who have experienced housing instability;

(b) Tribes;

(d) Continuums of care, as defined in 24 C.F.R. part 578;

(e) Local governments;

(f) Nonprofit organizations;

(g) Homeless services providers;

(h) Culturally specific organizations;

(i) Housing providers;

(j) Veterans’ services organizations; and

(k) Other entities identified by the department by rule.

(3) The policy under subsection (2) of this section shall direct that program funds shall be used:

(a) To provide to low and very low income individuals, including but not limited to individuals more than 65 years of age, persons with disabilities, agricultural workers and Native Americans:

(A) Emergency shelters and attendant services;

(B) Transitional housing services designed to assist individuals to make the transition from homelessness to permanent housing and economic independence;

(C) Supportive housing services to enable individuals to continue living in their own homes or to provide in-home services for such individuals for whom suitable programs do not exist in their geographic area;

(D) Programs that provide emergency payment of home payments, rents or utilities;

(E) Support for individuals with companion animals, as defined in ORS 401.977, that includes:

(i) Food for both companion animals and their owners;

(ii) Crates or kennels on-site or off-site that are easily accessible to the companion animal owners;

(iii) Basic veterinary services, including behavioral services; and

(iv) Rules of conduct and responsibility regarding companion animals and their owners; or

(F) Some or all of the services or assistance described in subparagraphs (A) to (E) of this paragraph.

(b) To provide the services and assistance described in paragraph (a) of this subsection to school-aged children enrolled in kindergarten through grade 12, or to their families, who are homeless or at risk of becoming homeless.

(c) To align with federal strategies and resources that are available to prevent and end homelessness, including the requirement of providing culturally responsive services and using evidence-based and emerging practices effective in ending homelessness, including practices unique to rural communities.

(4)(a) The council shall require as a condition of awarding a grant that the organization demonstrate to the satisfaction of the department that the organization:

(A) Has the capacity to deliver any service proposed by the organization;

(B) Is a culturally responsive organization or is engaged in a process to become a culturally responsive organization;

(D) Supports local homelessness system planning efforts.

(b) Any funds granted under this section may not be used to replace existing funds. Funds granted under this section may be used to supplement existing funds. An organization may use funds to support existing programs or to establish new programs.

(5) The department may expend funds from the account for:

(a) The administration of the account as provided for in the legislatively approved budget, as that term is defined in ORS 291.002, for the department in support of directing a statewide policy on homelessness that ensures use of evidence-based and emerging practices, service equity in funding and local planning processes.

(b) The development of technical assistance and training resources for organizations developing and operating emergency shelters as defined in ORS 197.782 and transitional housing accommodations as described in ORS 197.746.

(6) The department shall utilize outcome-oriented contracting processes and evidence-based and emerging practices for account program funds, including evidence-based and emerging practices for serving rural communities.

(7) Twenty-five percent of moneys deposited in the account pursuant to ORS 294.187 are dedicated to the emergency housing assistance program for assistance to veterans who are homeless or at risk of becoming homeless. [1991 c.740 §7; 2007 c.70 §268; 2011 c.605 §2; 2013 c.646 §3; 2015 c.180 §27; 2017 c.350 §1; 2019 c.576 §5; 2021 c.18 §7; 2021 c.448 §5a; 2023 c.13 §42; 2023 c.116 §4; 2023 c.223 §48]

458.655 Home Ownership Assistance Account; grant preferences. (1) The Home Ownership Assistance Account is administered by the Housing and Community Services Department to expand this state’s supply of homeownership housing for families and individuals with income at or below area median income, including persons over 65 years of age, persons of color, indigenous persons, members of federally recognized Indian tribes, persons with disabilities, veterans and agricultural workers. An amount equal to 25 percent of moneys deposited in the account pursuant to ORS 294.187 is dedicated for expenditure to expand this state’s supply of homeownership housing for veterans and families of veterans. The Oregon Housing Stability Council shall have a policy of distributing funds statewide while concentrating funds in those areas of this state with the greatest need, as determined by the council. 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 must be used for:

(a) Grants to organizations that provide down payment assistance;

(b) Grants to organizations that both sponsor and manage homeownership programs for households with income at or below area median income; or

(c) Grants and technical assistance to organizations that, in working with households with income at or below area median income, assist persons of color in obtaining homeownership under ORS 458.658.

(3) The council shall develop a policy for disbursing grants or technical assistance under subsection (2) of this section for any or all of the following purposes:

(a) To aid homeownership programs for households with income at or below area median income, including program administration, providing assistance with down payment costs, or providing homeownership training and qualification services or any combination thereof. Funds in the Home Ownership Assistance Account may not be used by an organization to pay for its general operations that do not support homeownership.

(b) To match public and private moneys available from other sources to provide homeownership assistance for households with income at or below area median income.

(c) To administer the Home Ownership Assistance Account as provided for in the legislatively approved budget, as that term is defined in ORS 291.002, for the Housing and Community Services Department.

(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) Ensure long-term affordability and opportunities for generational wealth building, including through loan forgiveness or shared equity;

(b) Ensure the longest use for the units as homeownership housing units for households with income at or below area median income, such as by including some form of equity recapture, land trust or shared equity provisions, as determined by the council;

(c) Include services for occupants and proposed occupants of housing including homeownership training, mortgage qualification service and financial literacy; and

(d) Support a comprehensive strategy to reverse the decreasing rates of homeownership among persons of color, giving priority to activities that support and incorporate best practices or demonstrate proven success in increasing homeownership for persons of color or receive grants or technical assistance under ORS 458.658. [1995 c.174 §3; 2007 c.70 §269; 2009 c.18 §7; 2011 c.605 §3; 2013 c.646 §4; 2015 c.180 §28; 2018 c.109 §12; 2019 c.88 §1; 2021 c.170 §4]

458.658 Assistance for organizations supporting homeownership for persons of color. (1) The Housing and Community Services Department, in consultation with the Oregon Housing Stability Council, shall provide grants and technical assistance to organizations that, in working with households with income at or below area median income, attempt to increase access for persons of color to programs and services that assist with homeownership, including counseling, financial literacy, post-purchase counseling and down payment assistance.

(2) Technical assistance and grants provided to organizations under this section should prioritize organizations that have an identified commitment and capacity to:

(a) Provide services to persons of color through services that incorporate the cultural values of the persons’ communities;

(b) Support or expand culturally specific homeownership counseling and education programs for those populations with disparities in homeownership;

(d) Leverage funding from other nonprofit sources; or

(e) Identify and use best practices in establishing course content guidelines and in exploring ways to systematically deliver certain services, including language access, program materials and counseling, to both increase service availability and reduce costs to individual providers, especially in rural areas. [2021 c.170 §2]

458.660 Agricultural Worker Housing Development Account. (1) Except as provided in subsection (2) of this section, the Housing and Community Services Department shall disburse the moneys credited to the Agricultural Worker Housing Development Account to expand this state’s supply of housing for low and very low income agricultural workers.

(2) The department may expend funds from the account for administration of the account as provided for in the legislatively approved budget, as that term is defined in ORS 291.002, for the department. [2001 c.310 §1; 2011 c.605 §4; 2021 c.525 §22]

458.665 General Housing Account; rules. (1) The Housing and Community Services Department shall administer the General Housing Account.

(2) The department shall disburse moneys credited to the account to accomplish the purposes described in ORS 456.515 to 456.725, except that 25 percent of moneys deposited in the account pursuant to ORS 294.187 is dedicated for expenditure to meet the critical housing needs of veterans in this state.

(3) The department may disburse moneys in the account by contract, grant, loan or otherwise as the department determines necessary.

(4) The department may set interest rates on loans made with moneys in the account.

(5) The department shall establish guidelines for the types of loans financed with moneys in the account by rule.

(6) The department may use moneys in the account to pay allowable administrative expenses incurred under ORS 456.515 to 456.725.

(7) The department may, in the director’s discretion, return moneys received for deposit in the account to the original source of the moneys.

(8) The department may accept moneys for deposit in the account pursuant to ORS 458.620 (4) and enter into agreements regarding the use of moneys deposited with the original source of the moneys.

(9) The department shall adopt rules that:

(a) Subject to subsection (2) of this section, govern the allocation of moneys deposited in the account to best meet critical housing needs and build organizational capacity of partners throughout this state; and

(b) Consistent with subsection (10) of this section, 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 in an area.

(10) The Oregon Housing Stability Council shall adopt a policy that provides for distribution by the department of account moneys and account investment revenue statewide while concentrating account moneys and account investment revenue in those areas of this state with the greatest need, as determined by the council, for housing for persons with a low or very low income. [2009 c.18 §10; 2013 c.646 §5; 2015 c.608 §4]

458.667 [2015 c.737 §1; 2017 c.661 §1; repealed by 2020 s.s.2 c.10 §40 and 2023 c.435 §6]

INDIVIDUAL DEVELOPMENT ACCOUNTS

458.670 Definitions for ORS 458.670 to 458.700. As used in this section and ORS 458.675 to 458.700, unless the context requires otherwise:

(1) “Account holder” means a resident of this state who:

(a) Is 12 years of age or older;

(b) Is a member of a lower income household; and

(2) “Fiduciary organization” means an organization selected under ORS 458.695 to administer state moneys directed to individual development accounts and that is:

(a) A nonprofit, fund raising organization that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code as amended and in effect on December 31, 2022; or

(b) A federally recognized Oregon Indian tribe that is located, to a significant degree, within the boundaries of this state.

(3) “Financial institution” means:

(a) An organization regulated under ORS chapters 706 to 716 or 723; or

(b) In the case of individual development accounts established for the purpose described in ORS 458.685 (1)(c), a financial institution as defined in ORS 178.300.

(4) “Individual development account” means a contract between an account holder and a fiduciary organization, for the deposit of funds into a financial institution by the account holder and the deposit of matching funds into a designated account by the fiduciary organization, to allow the account holder to accumulate assets for use toward achieving a specific purpose approved by the fiduciary organization.

(5) “Lower income household” means a household having an income equal to or less than the greater of the following:

(a) 80 percent of the median household income for the area as determined by the Housing and Community Services Department. In making the determination, the department shall give consideration to any data on area household income published by the United States Department of Housing and Urban Development.

(b) 200 percent of the poverty guidelines as determined by the Housing and Community Services Department. In making the determination, the department shall give consideration to poverty guidelines published by the United States Department of Health and Human Services and may consider other income data periodically published by other federal or Oregon agencies.

(6)(a) “Net worth” means a calculation based on the net value of assets of a household established by rule by the Housing and Community Services Department.

(b) “Net worth” does not include:

(A) Equity in one residence and in one vehicle.

(B) Holdings in pension accounts valued at less than $120,000.

(7) “Resident of this state” has the meaning given that term in ORS 316.027. [1999 c.1000 §1; 2001 c.648 §3; 2007 c.765 §2; 2008 c.45 §16; 2009 c.5 §26; 2009 c.63 §1; 2009 c.541 §22; 2009 c.909 §29; 2010 c.82 §31; 2011 c.7 §26; 2012 c.31 §26; 2013 c.377 §26; 2014 c.52 §28; 2015 c.442 §20; 2016 c.33 §24; 2017 c.527 §25; 2018 c.101 §25; 2019 c.319 §27; 2021 c.456 §27; 2021 c.525 §8; 2022 c.83 §27; 2023 c.171 §27]

Note: 458.670 to 458.700 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 458 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

458.675 Legislative findings. The Legislative Assembly finds that:

(1) The problem of poverty will not be solved solely by government programs and income subsidies.

(2) Family economic well-being does not come solely from income, spending or consumption, but instead requires savings, investment and the accumulation of assets.

(3) It is appropriate for the state to institute an asset-based antipoverty strategy.

(4) The state has an opportunity to take advantage of private and federal resources by making the transition to an asset-based antipoverty strategy. Those resources may include, but are not limited to, the Assets for Independence Act (42 U.S.C. 604) and the Workforce Innovation and Opportunity Act (29 U.S.C. 3101 et seq.).

(5) Investment through an individual development account system will help lower income households obtain the assets they need to succeed. Communities and this state will experience resultant economic and social benefits accruing from the promotion of the financial stability and resilience of lower income households. [1999 c.1000 §2; 2017 c.185 §12; 2017 c.297 §35; 2021 c.525 §9]

Note: See note under 458.670.

458.680 Persons qualifying as account holders. (1) A person who qualifies to become an account holder may enter into an agreement with a fiduciary organization for the establishment of an individual development account.

(2) To become an account holder a person must, in addition to meeting any other qualifications, be a member of a lower income household that has a net worth of less than $20,000.

(3) Every account holder, with support from the fiduciary organization, shall develop a personal development plan to advance account holder self-reliance. The personal development plan must include appropriate coaching, mentorship, social support, financial adequacy training and asset-specific training designed to increase the independence of the person and the person’s household through achievement of the account’s approved purpose.

(4) Notwithstanding subsection (1) of this section, a fiduciary organization may refuse to allow a qualified person to establish an account if establishment of the account would result in the members of a lower income household having more than one account. Notwithstanding subsection (1) of this section, a fiduciary organization shall refuse to allow a qualified person to establish an account if establishment of the account would result in the members of a lower income household having more than two accounts. [1999 c.1000 §3; 2007 c.765 §3; 2013 c.270 §1; 2021 c.525 §10]

Note: See note under 458.670.

458.685 Approved purpose of account; emergency withdrawal; withdrawal upon achievement of account purpose; removal of account holder from program. (1) A person may establish an individual development account only for a purpose approved by a fiduciary organization. Purposes that the fiduciary organization may approve are:

(a) The acquisition of post-secondary education or job training.

(b) If the account holder has established the account for the benefit of a household member who is under the age of 18 years, the payment of extracurricular nontuition expenses designed to prepare the member for post-secondary education or job training.

(c) If the account holder has established a savings network account for higher education under ORS 178.300 to 178.360 on behalf of a designated beneficiary, the funding of qualified higher education expenses as defined in ORS 178.300 by one or more deposits into a savings network account for higher education on behalf of the same designated beneficiary.

(d) The purchase of a primary residence. In addition to payment on the purchase price of the residence, account moneys may be used to pay any usual or reasonable settlement, financing or other closing costs. The account holder must not have owned or held any interest in a residence during the three years prior to making the purchase. However, this three-year period shall not apply to displaced homemakers, individuals who have lost home ownership as a result of divorce or owners of manufactured homes.

(e) The rental of a primary residence when housing stability is essential to achieve state policy goals. Account moneys may be used for security deposits, first and last months’ rent, application fees and other expenses necessary to move into the primary residence, as specified in the account holder’s personal development plan for increasing the independence of the person.

(f) The capitalization of a small business. Account moneys may be used for capital, plant, equipment and inventory expenses and to hire employees upon capitalization of the small business, or for working capital pursuant to a business plan. The business plan must have been developed with a financial institution, nonprofit microenterprise program or other qualified agent demonstrating business expertise and have been approved by the fiduciary organization. The business plan must include a description of the services or goods to be sold, a marketing plan and projected financial statements.

(g) Improvements, repairs or modifications necessary to make or keep the account holder’s primary dwelling habitable, accessible or visitable for the account holder or a household member. This paragraph does not apply to improvements, repairs or modifications made to a rented primary dwelling to achieve or maintain a habitable condition for which ORS 90.320 (1) places responsibility on the landlord. As used in this paragraph, “accessible” and “visitable” have the meanings given those terms in ORS 456.508.

(h) The purchase of equipment, technology or specialized training, as specified in the account holder’s personal development plan, that allows the person to become competitive in obtaining or maintaining employment, to start or maintain a business, or to increase the independence of an account holder.

(i) The purchase or repair of a vehicle, as specified in the account holder’s personal development plan for increasing the independence of the person.

(j) The saving of funds for retirement, as specified in the account holder’s personal development plan for increasing the independence of the person.

(k) The payment of debts to support the account holder’s personal development plan for increasing the independence of the person.

(L) The creation or improvement of a credit score by obtaining a secured loan or a financial product that is designed to improve credit, as specified in the account holder’s personal development plan for increasing the independence of the person.

(m) The replacement of a primary residence when replacement offers significant opportunity to improve habitability or energy efficiency.

(n) The establishment of savings for emergency expenses to promote financial stability and to protect existing assets as specified in the account holder’s personal development plan. As used in this paragraph, “emergency expenses” includes expenses for extraordinary medical costs or other unexpected and substantial personal expenses that would significantly impact the account holder’s noncash assets, health, housing or standard of living if not promptly addressed.

(2)(a) An account holder may withdraw all or part of the account holder’s deposits to an individual development account for any financial hardship as determined by the account holder, without regard to whether the account was established for emergency savings.

(b) The fiduciary organization shall remove from an account holder’s account any moneys deposited as matching funds to deposits withdrawn under this section, unless the withdrawn deposits were deposited and withdrawn for emergency expenses under subsection (1)(n) of this section.

(3)(a) If the account holder of an account established for the purpose set forth in subsection (1)(c) or (j) of this section has achieved the account’s approved purpose in accordance with the personal development plan developed by the account holder under ORS 458.680, the account holder may withdraw, or authorize the withdrawal of, the remaining amount of all deposits, including matching deposits, and interest in the account as follows:

(A) For an account established for the purpose set forth in subsection (1)(c) of this section, by rolling over the entire withdrawal amount, not to exceed the limit established pursuant to ORS 178.335, into one or more of the savings network accounts for higher education under ORS 178.300 to 178.360, the establishment of which is the purpose of the individual development account; or

(B) For an account established for the purpose set forth in subsection (1)(j) of this section, by rolling over the entire withdrawal amount into an individual retirement account, a retirement plan or a similar account or plan established under the Internal Revenue Code.

(b) Upon withdrawal of all moneys in the individual development account as provided in paragraph (a) of this subsection, the account relationship shall terminate.

(c) The rollover of moneys into a savings network account for higher education under this subsection may not cause the amount in the savings network account for higher education to exceed the limit on total contributions established pursuant to ORS 178.335.

(d) Any amount of the rollover that has been subtracted on the taxpayer’s federal return pursuant to section 219 of the Internal Revenue Code shall be added back in the determination of taxable income.

(4) If an account holder moves from the area where the program is conducted or is otherwise unable to continue in the program, the fiduciary organization may remove the account holder from the program.

(5) If an account holder is removed from the program under subsection (4) of this section, all matching deposits in the account and all interest earned on matching deposits shall revert to the fiduciary organization. The fiduciary organization shall use the reverted funds as a source of matching deposits for other accounts. [1999 c.1000 §4; 2001 c.648 §4; 2003 c.280 §18; 2007 c.765 §4; 2015 c.701 §6a; 2015 c.843 §20; 2016 c.30 §8; 2020 s.s.1 c.12 §36; 2021 c.525 §11]

Note: See note under 458.670.

458.690 Required account features; rules. (1) A fiduciary organization selected under ORS 458.695 may qualify as the recipient of account contributions that qualify the contributor for a tax credit under ORS 315.271 only if the fiduciary organization matches amounts deposited by the account holder according to a formula established by the fiduciary organization of not less than $1 nor more than $5 for each $1 deposited by the account holder. The matching funds must be deposited into a designated account that is controlled by the fiduciary organization and is separate from the savings account of the account holder.

(2) Account holders may not accrue more than $6,000 of matching funds under subsection (1) of this section from state-directed moneys in any 12-month period. A fiduciary organization may designate a lower amount as a limit on annual matching funds. A fiduciary organization shall maintain on deposit sufficient funds to cover the matching deposit agreements for all individual development accounts managed by the organization.

(3) The Housing and Community Services Department shall adopt rules to establish a maximum total amount of state-directed moneys that may be deposited as matching funds into an individual development account.

(4) The Housing and Community Services Department shall provide information to the Department of Revenue about all individual development account contributors that are qualified for a tax credit under ORS 315.271, if required by ORS 315.058. [1999 c.1000 §5; 2001 c.648 §5; 2003 c.280 §19; 2007 c.765 §5; 2015 c.843 §21; 2019 c.483 §24; 2021 c.525 §12]

Note: Section 9 (1), chapter 765, Oregon Laws 2007, provides:

Sec. 9. (1) A credit may not be claimed under ORS 315.271 and 458.690 for tax years beginning on or after January 1, 2030. [2007 c.765 §9; 2015 c.701 §7; 2021 c.525 §7(1); 2023 c.490 §16(1)]

Note: See note under 458.670.

458.695 Selection of fiduciary organizations. The Housing and Community Services Department may select fiduciary organizations to administer moneys directed by the state to individual development account purposes. In making the selections, the department shall consider factors including, but not limited to:

(1) The ability of the fiduciary organization to implement and administer the individual development account program, including the ability to verify account holder eligibility, certify that matching deposits are used only for approved purposes and exercise general fiscal accountability;

(2) The capacity of the fiduciary organization to provide or raise matching funds for the deposits of account holders;

(3) The capacity of the fiduciary organization to provide appropriate support services and general assistance to advance account holder self-reliance; and

(4) The links that the fiduciary organization has to other activities and programs designed to increase the independence of this state’s lower income households through education and training, home ownership and small business development. [1999 c.1000 §6; 2007 c.765 §6]

Note: See note under 458.670.

458.700 Authority of fiduciary organizations; rules. (1) Subject to Housing and Community Services Department rules, a fiduciary organization has sole authority over, and responsibility for, the administration of individual development accounts. The responsibility of the fiduciary organization extends to all aspects of the account program, including marketing to participants, soliciting additional matching contributions, counseling account holders, providing financial literacy education, and conducting required verification and compliances activities. The fiduciary organization may establish program provisions as the organization believes necessary to ensure account holder compliance with the provisions of ORS 458.680 and 458.685. A fiduciary organization may establish income and net worth limitations for account holders that are lower than the income and net worth limitations established by ORS 458.670 (5) and 458.680 (2).

(2) A fiduciary organization may act in partnership with other entities, including businesses, government agencies, nonprofit organizations, community development corporations, community action programs, housing authorities and congregations to assist in the fulfillment of fiduciary organization responsibilities under ORS 458.670 and 458.675 to 458.700.

(3) A fiduciary organization may use a reasonable portion of moneys allocated to the individual development account program for administration, operation and evaluation purposes.

(4) A fiduciary organization shall provide the Housing and Community Services Department with an annual report of the fiduciary organization’s individual development account program activity. The report must be filed no later than 90 days after the end of the fiscal year of the fiduciary organization. The report must include, but is not limited to:

(a) The number of individual development accounts administered by the fiduciary organization;

(b) The amount of deposits and matching deposits for each account;

(d) The number of withdrawals made; and

(e) Any other information the department may require for the purpose of making a return on investment analysis.

(5) The department may make all reasonable and necessary rules to ensure fiduciary organization compliance with ORS 458.670 and 458.675 to 458.700. [1999 c.1000 §7; 2001 c.648 §6; 2003 c.280 §20; 2007 c.765 §10; 2015 c.701 §10; 2015 c.843 §§22,23; 2021 c.525 §13]

Note: See note under 458.670.

COMMUNITY DEVELOPMENT PROJECTS

458.705 Legislative findings. The Legislative Assembly finds that:

(1) The population of the state is growing and is expected to continue growing well into the 21st century. That population growth is uneven, resulting in some places struggling to manage new people, jobs and building, and other places being eager to attract a share of growth and economic development. A community’s pattern of development can accommodate a growing population and help rebuild rural and distressed economies while maintaining the state’s quality of life. Downtown areas need to be revitalized to accommodate more business and civic activity. Affordable housing must be developed near job centers. Rural and distressed communities need to be rebuilt to allow all sectors of the state to share in economic prosperity.

(2) Numerous barriers exist to achieving vibrant downtown areas and community centers, ample affordable housing and thriving rural economies. Overcoming those barriers will require the state to work in partnership with local communities, the private sector and community-based groups to provide livability. Regulations must be balanced with incentives. Private sector financing must be better leveraged. Local planning and zoning codes must allow the redevelopment of strategic infill sites. The needs of working families for housing, transportation and services that are affordable and accessible must be addressed by the entire community.

(3) A critical element in the creation of effective partnerships is a flexible funding source that can serve as an incentive to achieving quality development. Careful targeting of financial incentives can provide the needed impetus for revitalization of downtown areas throughout the state, the creation of affordable housing in the proper places and new job centers in places working to attract new growth.

(4) State government, in tandem with local and federal governments, nonprofit organizations and the business sector, provides a variety of tools to help build strong Oregon communities. Targeted financial incentives will complement existing tools and allow state government and its partners to enhance livability and make cost-effective use of public infrastructure. The resulting communities will be economically viable and will have housing that is affordable to community residents. [1999 c.956 §1]

Note: 458.705 to 458.740 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 458 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

458.710 [1999 c.956 §6; repealed by 2015 c.180 §34]

458.715 Duties of Oregon Housing Stability Council regarding Community Development Incentive Project Fund. (1) The Oregon Housing Stability Council shall, with respect to the Community Development Incentive Project Fund established under ORS 458.720:

(a) Develop program guidelines, including specific project criteria and financing mechanisms.

(b) Review applications seeking funding from the fund and make recommendations for funding approval.

(c) Review proposals for cooperative agreements or joint projects between the council and other agencies to facilitate the goals of the fund.

(2) Subject to available financing, the council may approve any project that carries out the goals of the fund.

(3) Notwithstanding subsections (1) and (2) of this section, the council may make loans or grants from the Community Development Incentive Project Fund for the purpose of preserving affordable housing. [1999 c.956 §7; 2009 c.62 §1; 2015 c.180 §29]

Note: See note under 458.705.

458.720 Community Development Incentive Project Fund; purpose; lottery bond proceeds. (1) Pursuant to ORS 286A.560 to 286A.585, lottery bonds may be issued to make grants or loans to Oregon municipalities, businesses and individuals to encourage real estate developments that promote downtown and community center areas, provide affordable housing and other infill developments, and fund projects that promote business opportunities in Oregon’s distressed areas and rural communities.

(2) The use of lottery bond proceeds is authorized based on the following findings:

(a) The grants and loans made will be used to fund projects that assist Oregon communities in managing growth, thereby attracting industry and workers and improving Oregon’s labor market; and

(b) The projects will bring jobs and economic diversity to Oregon’s distressed areas and rural communities.

(3) The aggregate principal amount of lottery bonds issued pursuant to this section may not exceed the sum of $25 million and an additional amount estimated by the State Treasurer to be necessary to pay bond-related costs. Lottery bonds issued pursuant to this section shall be issued only at the request of the Director of the Housing and Community Services Department, in consultation with the Oregon Housing Stability Council.

(4) The net proceeds of lottery bonds issued pursuant to this section shall be deposited in the Community Development Incentive Project Fund, which is hereby established in the State Treasury separate and distinct from the General Fund.

(5) The proceeds of lottery bonds issued pursuant to this section shall be used only for the purposes set forth in subsection (1) of this section and for bond-related costs.

(6) Interest earned by the Community Development Incentive Project Fund shall be credited to the fund or to the Housing Development and Guarantee Account, as determined by the council. In addition to any other moneys specifically designated by law, the fund shall consist of any amounts appropriated by the Legislative Assembly and any gifts, grants or donations. [Subsections (1) to (5) of 1999 Edition enacted as 1999 c.702 §3; subsection (6) of 1999 Edition enacted as 1999 c.956 §3; 2003 c.743 §7; 2007 c.783 §203b; 2015 c.180 §30]

Note: See note under 458.705.

458.725 Fund appropriation and expenditure guidelines. All moneys deposited in the Community Development Incentive Project Fund are continuously appropriated to the Housing and Community Services Department to carry out the purposes of the fund. In addition to any other purpose specifically provided by law, moneys deposited in the fund shall be expended for community development purposes, including but not limited to:

(1) Promoting affordable housing development near jobs and transportation;

(2) Revitalizing downtowns and community centers; and

(3) Rebuilding rural and distressed economies. [1999 c.956 §4]

Note: See note under 458.705.

458.730 Department use of financing mechanisms; determination of funding adequacy. (1) The Housing and Community Services Department may use the moneys in the Community Development Incentive Project Fund in any manner permitted under ORS 458.735. However, the primary purpose of the fund is to finance developments identified by the Oregon Housing Stability Council if other state or private financing sources are inadequate or unavailable. The department shall make the final determination as to whether financing sources are inadequate or unavailable.

(2) In expending moneys from the fund, the department may use financing mechanisms that include, but are not limited to:

(a) Grants or loans for the development of multifamily or single-family affordable housing located near community centers or employment centers.

(b) Grants or loans for the development of mixed-use real estate projects located in downtown or community center areas.

(d) Partial loan guarantees or other credit enhancement tools to private commercial lenders.

(e) Grants or loans to finance infrastructure development that creates jobs or housing in communities identified by the Oregon Business Development Department as rural or distressed.

(f) Interim ownership by the Housing and Community Services Department of real estate located within downtown or community center areas.

(g) Other financial tools or incentives that the council determines would further the intended purposes of the fund. [1999 c.956 §5; 2015 c.180 §31]

Note: See note under 458.705.

458.735 Department review of projects; lending criteria. The Housing and Community Services Department shall:

(1) Administer the Community Development Incentive Project Fund in accordance with rules adopted by the department.

(2) Verify documentation and approve or disapprove funding recommended by the Oregon Housing Stability Council under ORS 458.715.

(3) Seek to leverage local, federal and private financial resources for use in conjunction with fund expenditures.

(4) Emphasize use of the fund to fill funding gaps in projects identified by the council that are designed to achieve the objectives of the fund.

(5) If making a fund expenditure as a loan, establish lending criteria that allow the fund to create quality development patterns and produce a sound loan portfolio. In establishing the criteria, the department shall permit the assumption of an appropriate level of risk, maintain a reserve for losses and provide for the periodic monitoring of reserve adequacy. Loan repayments may be used by the department in any financially prudent manner consistent with fund goals. [1999 c.956 §8; 2015 c.180 §32; 2023 c.193 §11]

Note: See note under 458.705.

458.740 Project facilitation. In addition to any other power or authority granted to the Housing and Community Services Department, the department may:

(1) Acquire property and hold, conserve, improve, lease, sell or otherwise use or exercise control over the property for the purpose of facilitating the use of the property as part of a community development project.

(2) Enter into cooperative agreements or joint projects with other agencies as approved by the Oregon Housing Stability Council.

(3) To the extent authorized by law, enter into contracts for the purchase of land and improvements and exercise control over purchased land and improvements.

(4) To the extent authorized by law, enter into contracts for the completion of site development functions including, but not limited to, design services, design review with local governments and completion of the permitting process. [1999 c.956 §9; 2015 c.180 §33]

Note: See note under 458.705.

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