(2) Applicants for revitalization program funds shall be:
(a) A unit of local government;
(b) A housing authority;
(c) A nonprofit corporation; or
(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;
(c) New construction to replace units for which rehabilitation is infeasible;
(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
(c) Demonstrate a coordinated local effort to integrate housing, job placement and social services.
(8) In implementing this section and ORS 458.305, the council 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]
Note: Sections 1 to 3, chapter 553, Oregon Laws 2021, provide:
Sec. 1a. Section 1 of this 2021 Act is added to and made a part of ORS chapter 458. [2021 c.553 §1a]
Sec. 1. Pilot program. (1) As used in this section:
(a) "Accessory dwelling unit" has the meaning given that term in ORS 215.501.
(b) "ADU community pilot program" means one or more programs established, implemented and operated by a nonprofit organization to invest in developing accessory dwelling units for eligible homeowners and available for lease by eligible tenants.
(c) "Area median income" has the meaning given that term in ORS 458.610.
(d) "Eligible homeowner" means:
(A) A household that owns and resides in a home and has an income at or below the area median income; or
(B) A nonprofit organization, including the organization receiving a grant under this section, that owns a home that is rented to a household with an income at or below the area median income.
(e) "Eligible tenant" means a person or household with an income that is below 60 percent of the area median income.
(f) "Nonprofit organization" means an organization or group of organizations that is described in section 501(c)(3) of the Internal Revenue Code and is exempt from income tax under section 501(a) of the Internal Revenue Code.
(2) The Housing and Community Services Department shall provide a grant to a nonprofit organization to fund ADU community pilot programs developed by the organization or its subgrantees that must:
(a) Assess the suitability of an eligible homeowner’s property for siting and construction of an accessory dwelling unit;
(b) Provide or assist with the financing, documentation, siting, construction and cleanup of an accessory dwelling unit on an eligible homeowner’s property;
(c) Identify, screen and enter into lease agreements with eligible tenants who will reside in accessory dwelling units developed under the program on an eligible homeowner’s property;
(d) Provide professional property management services for the eligible homeowner; and
(e) Require that eligible homeowners maintain the accessory dwelling units as affordable to eligible tenants for a period of no less than 10 years.
(3) The nonprofit organization receiving a grant under subsection (2) of this section may distribute grant funds to subgrantees that are nonprofit organizations for ADU community pilot programs described in subsection (2) of this section.
(4) Upon being awarded a grant under this section, the grant recipient shall enter into an agreement with the department that:
(a) Indicates the purposes for which the grant funds may be used;
(b) Includes the repayment provisions set forth in subsection (5) of this section;
(c) Permits the department to conduct audits and monitoring of the grant recipient regarding the purposes for which grant funds have been used; and
(d) Requires the grant recipient to report on the use of funds in a manner described by the department.
(5)(a) The grant recipient shall repay to the department, in whole or in part, grant funds received under this section, to the extent that:
(A) The grant recipient does not use the grant funds in accordance with the provisions of the grant agreement executed between the department and the grant recipient under subsection (4) of this section; or
(B) The Director of the Housing and Community Services Department determines that the grant recipient must repay all or part of the grant funds on grounds of misappropriation, fraud or similar reasons after monitoring the grant recipient’s operations and conducting an administrative hearing under ORS 183.413 to 183.470.
(b) Funds received by the department under this subsection shall be paid into the State Treasury and credited to the General Housing Account created under ORS 458.620. [2021 c.553 §1]
Sec. 2. Report on program. No later than September 15, 2023, the Housing and Community Services Department shall provide a report to an appropriate interim committee of the Legislative Assembly in the manner provided under ORS 192.245 on the ADU community pilot programs established under section 1 of this 2021 Act, including the amounts expended and information reported by the grant recipient. [2021 c.553 §2]
Sec. 3. Section 1 of this 2021 Act is repealed on January 2, 2024. [2021 c.553 §3]