(2) The Elderly and Disabled Housing Sinking Fund shall consist of:
(a) All moneys received from contract or loan proceeds;
(b) Bond reserves;
(c) Other funds available for these purposes; and
(d) If necessary, state ad valorem taxes provided by Article XI-I(2), Oregon Constitution, and by ORS 456.515 to 456.725.
(3) The Elderly and Disabled Housing Sinking Fund shall not be used for any purpose other than that for which the fund was created provided, however, that amounts on deposit in the fund may be applied to the payment of operating and administrative expenses of the department, including bond issuance, administration and repayment costs, allocable to its elderly and disabled housing program under ORS 456.515 to 456.725, and for transfers under subsections (4) and (5) of this section. Should a balance remain therein after the purposes for which the fund was created have been fulfilled or after a reserve sufficient to meet all existing obligations and liabilities of the fund has been set aside, the surplus remaining may be transferred to the Elderly and Disabled Housing Fund at the direction of the department.
(4) The Director of the Housing and Community Services Department may transfer moneys from the Elderly and Disabled Housing Sinking Fund, with the approval of the State Treasurer, for the purpose of financing multifamily housing for the elderly and persons with disabilities. The State Treasurer shall approve such request if:
(a) The cash flow projection under ORS 286A.010 associated with the bonds shows that, for the term of the bonds outstanding at the time the director transfers the moneys, remaining moneys in the sinking fund, together with expected loan proceeds and fund earnings, will continue to be adequate to pay bond principal, interest and administrative costs; and
(b) The transfer will not create the need for issuance of any bonds.
(5) The director shall deposit loan prepayments in the Elderly and Disabled Housing Fund, and lend such prepayments for the purpose of financing multifamily housing for the elderly and persons with disabilities for a term not exceeding the term of the bonds associated with the loan that was prepaid, if the director determines that such a deposit and loan will not adversely affect the ability of the department to pay outstanding bonds. [1977 c.485 §8; 1979 c.327 §21; 1981 c.695 §7; 1991 c.357 §1; 1995 c.79 §242; 2005 c.755 §42; 2007 c.70 §261; 2007 c.783 §197]