(a) There is a significant number of rental properties in this state whose owners have obtained rural rental housing loans from Rural Development or the Farm Service Agency of the United States Department of Agriculture under 7 C.F.R. 3560. Many of these rental properties contain rental units in which very low, low and moderate income families, elderly persons and persons with disabilities live and receive federal rental assistance.
(b) Beginning in 2015, many of the mortgage loans made to the owners of these rental properties will mature and federal rental assistance to tenants residing on the premises of these rental properties will no longer be available.
(c) Currently, there is no legal mechanism in place requiring the owners of these rental properties to provide notice of loan maturity to tenants, the Housing and Community Services Department, housing authorities as defined in ORS 456.005 and local governments.
(d) Requiring notice at least one year before maturity of a loan described in paragraph (a) of this subsection would provide:
(A) Tenants with time to locate alternative housing and rental assistance; and
(B) The Housing and Community Services Department, housing authorities and local governments with time to work with Rural Development or the Farm Service Agency of the United States Department of Agriculture to develop arrangements that will protect the housing status of existing tenants.
(2) The owner of any rental property that has received a rural rental housing loan from Rural Development or the Farm Service Agency of the United States Department of Agriculture under 7 C.F.R. 3560 shall provide written notice by first class mail with postage prepaid and by posting in a common area on the rental property notice of all of the following:
(a) The date upon which the loan matures;
(b) That federal rental assistance will no longer be available after the date of loan maturity with respect to the rental property that includes the premises on which the tenants reside; and
(c) That there may be other program use restrictions and rent controls that expire after the date of loan maturity.
(3) The notice required by subsection (2) of this section must be mailed to:
(a) Any tenant residing on the premises of the rental property that is the subject of the loan, mailed to the street address of the premises on which the tenant resides, on or after the date that is one year before the date of loan maturity;
(b) The Director of the Housing and Community Services Department;
(c) The housing authority that is located in the county or area of operation in which the rental property is located; and
(d) The mayor, planning department or person or entity with a similar function in the local government in the area in which the rental property is located.
(4)(a) Failure to provide the notice required by this section entitles a tenant residing on the premises of the rental property on the date that is at least one year in advance of the date of loan maturity to continue residing on the premises of the rental property without any increase in the tenant’s portion of the rent charged for up to one year after the date of loan maturity, or one year after termination of the tenant’s federal rental assistance, program use restrictions or rent controls, whichever date is later.
(b) Providing notice less than one year before the date of loan maturity entitles a tenant residing on the premises of the rental property on the date that is at least one year before the date of loan maturity to continue residing on the premises of the rental property without any increase in the tenant’s portion of the rent charged for a period of time that equals the number of days that the notice was late.
(c) If the tenant begins residency at a time that is less than one year before the date of loan maturity, the tenant must receive the notice required by this section prior to entering into a rental agreement. Failure to provide the notice required by this paragraph entitles the tenant to continue residing on the premises of the rental property without any increase in the tenant’s portion of the rent charged for up to one year after the date of loan maturity, or one year after termination of the tenant’s federal rental assistance, program use restrictions or rent controls, whichever date is later.
(5) The provisions of subsection (4) of this section are not intended to contravene the owner’s right to terminate a tenant’s residency or evict a tenant for good cause.
(6) As used in this section, "local government" means cities and counties. [2015 c.182 §1; 2021 c.57 §6]
Note: 456.500 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 456 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
Structure 2021 Oregon Revised Statutes
Volume : 13 - Housing, Games, Environment
Section 456.005 - Definitions for ORS chapters 456 and 458.
Section 456.055 - Definitions for ORS 456.055 to 456.235.
Section 456.060 - Definition of "area of operation"; intergovernmental agreements.
Section 456.065 - Definition of "housing project."
Section 456.070 - Declaration of necessity for establishment of housing authorities.
Section 456.080 - Determination of need for housing authority.
Section 456.090 - Sufficiency of resolution; copy as evidence.
Section 456.095 - Appointment and qualification of commissioners of housing authorities.
Section 456.100 - Terms and compensation of commissioners.
Section 456.105 - Organization; officers; quorum; employees; legal services.
Section 456.120 - Powers of housing authority as public corporation.
Section 456.125 - Research, planning, construction and operation of housing projects.
Section 456.128 - Housing authority intellectual property.
Section 456.130 - Investigations, hearings and recommendations of authority.
Section 456.145 - Eminent domain.
Section 456.150 - Housing projects subject to local laws; consideration of other programs.
Section 456.153 - Involvement in mixed income housing project.
Section 456.155 - Policy regarding profit from projects; reserves.
Section 456.160 - Limitations as to rentals.
Section 456.180 - Liability on bonds; debt limitation.
Section 456.200 - Powers of authority in securing payment of bonds or lease obligations.
Section 456.202 - Short-term bond anticipation notes.
Section 456.205 - Enforcing rights of obligee of an authority.
Section 456.210 - Power of authority to confer additional rights upon obligee.
Section 456.215 - Financial aid and cooperation of federal government.
Section 456.235 - Dissolution of housing authorities.
Section 456.250 - Definitions for ORS 456.250 to 456.265.
Section 456.255 - Legislative findings.
Section 456.258 - Applicability; interpretation; rules.
Section 456.259 - Withdrawal notice to tenants.
Section 456.260 - First withdrawal notice to department and local government.
Section 456.263 - Right of first refusal; matching offer; third-party sale.
Section 456.264 - Remedy for failure to give notice.
Section 456.265 - Sanctions against withdrawing property owner prohibited.
Section 456.270 - Definitions for ORS 456.270 to 456.295.
Section 456.275 - Legislative findings.
Section 456.280 - Covenant creation, effect, conveyance, duration and termination.
Section 456.285 - Permissible provisions.
Section 456.290 - Validity of covenant.
Section 456.295 - Action affecting covenant.
Section 456.305 - Definitions for ORS 456.305 to 456.325.
Section 456.310 - Purpose; additional powers.
Section 456.315 - Powers of state public bodies in aiding or cooperating on housing projects.
Section 456.320 - Donations and loans to housing authority.
Section 456.355 - Definitions for ORS 456.355 to 456.370.
Section 456.360 - Purpose; additional powers.
Section 456.365 - Powers of city or county in aiding or cooperating on housing projects.
Section 456.375 - Definitions for ORS 456.375 to 456.390.
Section 456.378 - Housing Choice Landlord Guarantee Program; application; deadlines; rules.
Section 456.385 - Housing Choice Landlord Guarantee Program Fund.
Section 456.407 - Policy encouraging settlement of disputes.
Section 456.418 - Special assessment; lien; collection.
Section 456.426 - Functions of manufactured dwelling site information clearinghouse.
Section 456.429 - Scope of information collected.
Section 456.433 - Funding of clearinghouse.
Section 456.502 - Affordable Housing Land Acquisition Revolving Loan Program; rules.
Section 456.508 - Definitions for ORS 456.510 and 456.513.
Section 456.510 - Visitability requirements.
Section 456.513 - Exemption from visitability requirements.
Section 456.515 - Definitions for ORS 456.515 to 456.725 and ORS chapter 458.
Section 456.539 - Administration of Elderly and Disabled Housing Fund; rules.
Section 456.540 - Requirements for elderly housing project upon retirement of bond obligations.
Section 456.541 - Project applications for housing serving persons with disabilities.
Section 456.543 - Elderly and Disabled Housing Sinking Fund.
Section 456.548 - Definitions for ORS 456.548 to 456.725.
Section 456.559 - Powers and duties of department.
Section 456.561 - Loans, grants and funding awards; review.
Section 456.562 - Department intellectual property; fees.
Section 456.569 - Authority of Housing and Community Services Department to require fingerprints.
Section 456.571 - Powers and duties of council.
Section 456.572 - State housing plan; contents; annual update.
Section 456.576 - Self-Sufficiency Housing Fund.
Section 456.578 - Use of funds; petty cash fund.
Section 456.579 - Manufactured Dwelling Parks Account; restrictions; other moneys.
Section 456.581 - Uses of Manufactured Dwelling Parks Account; rules.
Section 456.582 - Prohibited acts; civil penalty.
Section 456.585 - Agriculture workforce housing information.
Section 456.594 - Definitions.
Section 456.595 - Petroleum supplier assessment; computation; effect of failure to pay; interest.
Section 456.597 - Oil-Heated Dwellings Energy Account.
Section 456.605 - Mortgage credit certificate program.
Section 456.607 - Definitions.
Section 456.608 - Rent Guarantee Program; rules.
Section 456.609 - Rent Guarantee Program Fund.
Section 456.612 - Declaration of financing purpose.
Section 456.620 - Duties of department in carrying out housing programs.
Section 456.623 - Project funding notification registry.
Section 456.630 - Services to qualified sponsors and institutions.
Section 456.635 - Commitments on residential loans.
Section 456.640 - Purchase of residential loans.
Section 456.645 - Revenue bonds.
Section 456.655 - When bonds not to be issued; debt service reserve; bond declaration.
Section 456.665 - Status of revenue bonds; negotiability; interest tax-exempt.
Section 456.675 - Bond provisions and limits; security for payment.
Section 456.685 - Bondholders’ remedies.
Section 456.690 - Loan authority of department; rules.
Section 456.692 - Loans financed through bonds secured by specific properties.
Section 456.705 - Servicing loans.
Section 456.710 - Payment of advances; use thereof; limitations.
Section 456.715 - Insurance of loans.
Section 456.717 - Interim construction financing for multifamily housing.
Section 456.720 - Housing Finance Fund; Housing Development Account.
Section 456.722 - Preferences in funding grants to low-income housing providers; rules.
Section 456.723 - Legislative finding on bonding authority of department.
Section 456.725 - Discrimination against purchaser with children prohibited; exceptions; rules.