813-115-0001
Purpose and Objectives

The rules of OAR chapter 813, division 115, describe a required process for Publicly Supported Housing contract preservation. This process is defined in ORS 456.250 through 456.265, which provides a framework to help preserve the affordability restrictions of properties with federal, state, or local government assistance. This process also is subject to OHCS’ general rules (OAR 813-005).

Statutory/Other Authority: ORS 456.258
Statutes/Other Implemented: ORS 456.250-456.265
History:
OHCS 1-2024, amend filed 01/05/2024, effective 01/05/2024
OHCS 10-2020, amend filed 05/21/2020, effective 05/21/2020
OHCS 6-2020, temporary amend filed 03/25/2020, effective 03/25/2020 through 09/20/2020
OHCS 13-2018, adopt filed 09/05/2018, effective 09/05/2018

813-115-0010
Definitions

Terms used throughout this division (OAR 813-115) may be defined in Oregon Revised Statute (ORS 456.250) or in the OHCS General Definitions (OAR 813-005-0005). Terms used within this division observe those definitions, except as defined below:

(1) “Affordable rental housing” means dwelling units that are rented with or without government assistance to households that earn 80 percent or less of area median income as determined by OHCS using United States Department of Housing and Urban Development informatoni or that otherwise meet the definitiion of publicly supported housing found in ORS 456.250(6).

(2) “Designee” means a person or entity, appointed by OHCS through a written agreement, who acts as a qualified purchaser of the participating property on OHCS’ behalf, except they are not a party to a notice of right of first refusal executed by OHCS under ORS 456.262.

(3) “Property” as used within the definition of “participating property” in ORS 456.250(4) means a multifamily rental housing development, which includes one or more buildings, may have an associated common area, and may be located on a consolidated or scattered site.

(4) “Publicly supported housing contract preservation” means an extension of the term of affordability affecting the participating property as of the contract termination date as approved by the United States Department of Housing and Urban Development, or the United States Department of Agriculture Rural Development, or OHCS through:

(a) an extension of the term of affordability in the contract beyond the termination date, except as extended by OHCS under ORS 456.259; or 

(b) a new contract with the same level of affordability restrictions for a minimum term of affordability for an additional 20 years; or  

(c) a new contract with a different level of affordability restrictions for a minimum term of affordability for an additional 20 years; or    

(d) Approval of a transfer of budget authority of a Section 8 project based contract, under Section 8(bb) of the United States Housing Act of 1937 (42 U.S.C. 1437f(bb), to a recipient property or properties in Oregon.

(5) “Safe harbor” means residential tenancies that existed on the termination date of a contract with OHCS, and beginning on the termination date and lasting for a period of three years, the owner or landlord of formerly publicly supported housing:

(a) May not terminate the tenancy under ORS 90.727(3)(b), (4)(b) or (5).

(b) May not provide a rent increase notice more than once in a calendar year.

(c) Shall comply with ORS 90.323 and with requirements adopted by OHCS and applicable to affordable rental housing managed by OHCS that govern rent increases, including requirements related to rent increase limits, required notices or approval or review by OHCS.

Statutory/Other Authority: ORS 456.258
Statutes/Other Implemented: ORS 456.250-456.265
History:
OHCS 1-2024, amend filed 01/05/2024, effective 01/05/2024
OHCS 20-2022, amend filed 08/16/2022, effective 08/18/2022
OHCS 10-2020, amend filed 05/21/2020, effective 05/21/2020
OHCS 6-2020, temporary amend filed 03/25/2020, effective 03/25/2020 through 09/20/2020
OHCS 12-2018, adopt filed 09/04/2018, effective 09/04/2018

813-115-0020
Inclusion of Local Government Subsidy Program Properties as Publicly Supported Housing

(1) A local government may make an application to OHCS requesting that a local subsidy program be included in the definition of publicly supported housing as provided by ORS 456.250(6)(a)(B). 

(2) To be eligible for OHCS approval:

(a) The local subsidy program must require a deed restriction, loan agreement, operating agreement, or any other writing agreement that places an affordability restriction on the property; and

(b) The local government subsidy program must otherwise comply with and not be excluded from the definition of publicly supported housing (definition and exclusions are in ORS 456.250(6)(a); and

(3) If an application is approved by OHCS, property that is the subject of a contract by which the property becomes public supported housing that is subject to an affordability restriction becomes a participating property (as defined by ORS 456.250) and is subject to process requirements of this division of rules.

Statutory/Other Authority: ORS 456.258
Statutes/Other Implemented: ORS 456.250-456.265
History:
OHCS 1-2024, amend filed 01/05/2024, effective 01/05/2024
OHCS 20-2022, amend filed 08/16/2022, effective 08/18/2022
OHCS 10-2020, amend filed 05/21/2020, effective 05/21/2020
OHCS 6-2020, temporary amend filed 03/25/2020, effective 03/25/2020 through 09/20/2020
OHCS 12-2018, adopt filed 09/04/2018, effective 09/04/2018

813-115-0030
Required Notices by Owner to OHCS and Other Qualified Purchasers

(1) First notice. The owner of a participating property must provide OHCS and any qualified purchaser of the participating property timely notice of expiration of affordability restrictions as outlined in ORS 456.260.

(2) Second notice. In addition to the notice identified in subsection (1) above, the owner must provide OHCS and any other qualified purchaser of the participating property timely notice of the owner’s request to withdraw the participating property from publicly supported housing as outlined in ORS 456.260.

(3) The notices identified in subsections (1) and (2) above:

(a) Must be on a form as prescribed and provided by OHCS. The owner must deliver the notice electronically through an OHCS approved database, by electronic certified email, or by registered or certified mail. Electronic or regular mail without certification is not an acceptable delivery format and,

(b) Are deemed effective three days after the date any such notice is sent by electronic delivery, by registered or certified mail with return receipt, or in other delivery format prior approved by OHCS. Electronic or regular mail without certification is not an acceptable format for submittal.

(4) When applicable, a pending additional affordability restriction or extension of an affordability restriction term with OHCS, HUD, or USDA Rural Development may serve as proof of the owner's intent to preserve the participating property in lieu of the above notices in subsections (1) and (2) above. In such applicable cases, OHCS may inform the owner and waive the notice requirements.

(5) OHCS may, at its sole discretion, provide extensions to deadlines for delivery of the notices identified in subsections (1) and (2) above.

(6) OHCS may, at its sole discretion, on a participating-property basis, waive the notice requirements under subsections (1) and (2) above for property owners that are local governments or housing authorities. 

Statutory/Other Authority: ORS 456.258
Statutes/Other Implemented: ORS 456.250-456.265
History:
OHCS 1-2024, amend filed 01/05/2024, effective 01/05/2024
OHCS 20-2022, amend filed 08/16/2022, effective 08/18/2022
OHCS 10-2020, amend filed 05/21/2020, effective 05/21/2020
OHCS 6-2020, temporary amend filed 03/25/2020, effective 03/25/2020 through 09/20/2020
OHCS 12-2018, adopt filed 09/04/2018, effective 09/04/2018

813-115-0035
Required Notice by Owner to Tenants and Prospective Tenants of Properties with OHCS Restrictions

(1) In addition to the notices required under ORS 456.260 and ORS 456.262, and OAR 813-115-0030, owners of publicly supported housing properties subject to OHCS restrictions are required to notify tenants and prospective tenants of withdrawal of a participating property.

(2) The notice described in subsection (1) above must be on a form as prescribed and provided by OHCS.

(3) The owner must deliver the notice to tenants and prospective tenants as prescribed in ORS 456.259.

Statutory/Other Authority: ORS 456.458
Statutes/Other Implemented: ORS 456.260
History:
OHCS 1-2024, amend filed 01/05/2024, effective 01/05/2024
OHCS 20-2022, adopt filed 08/16/2022, effective 08/18/2022

813-115-0050
Qualified Purchaser Access to Property, Records and Documents

After providing notice as required under ORS 456.260 and described in OAR 813-115-0030, the property owner must provide a qualified purchaser access to documents as required by ORS 456.262. For the purpose of this rule, documents include, but are not limited to, OHCS, HUD, and USDA Rural Development compliance reports, as applicable; and current approved rent schedule, including actual rent charges.

Statutory/Other Authority: ORS 456.258
Statutes/Other Implemented: ORS 456.250-456.265
History:
OHCS 1-2024, amend filed 01/05/2024, effective 01/05/2024
OHCS 20-2022, amend filed 08/16/2022, effective 08/18/2022
OHCS 10-2020, amend filed 05/21/2020, effective 05/21/2020
OHCS 6-2020, temporary amend filed 03/25/2020, effective 03/25/2020 through 09/20/2020
OHCS 12-2018, adopt filed 09/04/2018, effective 09/04/2018

813-115-0060
Recording Notices of Right of First Refusal

(1) A qualified purchaser may record—in the real property records of the county or counties within which the relevant participating property is located—a notice of right of first refusal, as provided by ORS 456.262, in a form provided by and available from OHCS:

(a) After a qualified purchaser has submitted an offer to the property owner as outlined in OAR 813-115-0030; or

(b) Without delivering an offer to purchase, and no qualified purchaser has recorded a right of first refusal, OHCS may record the right of first refusal per 456.262(7).

(2) A qualified purchaser may assign their interest in a right of first refusal to another qualified purchaser by recording—in the real property records of the county or counties within which the relevant participating property is located—a notice of assignment of the right of first refusal.

(3) A qualified purchaser is not required to exercise a right of first refusal and submit a matching offer under ORS 456.263.

(4) A qualified purchaser shall provide a release of the recorded right of first refusal to the property owner upon:

(a) Transfer of ownership to a third party or qualified purchaser; or 

(b) Expiration of the term of the right of first refusal if there is no transfer of ownership; or

(c) At any time as determined by the qualified purchaser, at their sole discretion prior to (a) or (b) above. 

Statutory/Other Authority: ORS 456.258
Statutes/Other Implemented: ORS 456.250-456.265
History:
OHCS 1-2024, amend filed 01/05/2024, effective 01/05/2024
OHCS 20-2022, amend filed 08/16/2022, effective 08/18/2022
OHCS 10-2020, amend filed 05/21/2020, effective 05/21/2020
OHCS 6-2020, temporary amend filed 03/25/2020, effective 03/25/2020 through 09/20/2020
OHCS 12-2018, adopt filed 09/04/2018, effective 09/04/2018

813-115-0070
Qualified Purchaser Right of First Refusal; Third Party Offer

(1) Before selling a participating property that is subject to a recorded notice of right of first refusal, under ORS 456.262, to a third party other than a qualified purchaser, the property owner shall provide notice to all parties with a recorded right of first refusal of the owner’s intent to: 

(a) Accept a purchase offer from a third party; or 

(b) Amend the terms and conditions of a purchase offer from a third party under (a) above; or 

(c) Terminate a pending sale agreement with a third party; or

(d) Accept a purchase offer from another third party subsequent to (a) above.  

(2) Qualified purchasers receiving this notice under subsection (1) above may exercise a right of first refusal by delivering a matching offer to purchase the property.  The property owner shall accept the first matching offer the property owner receives from a qualified purchaser. 

(3) Qualified purchasers can exercise their right of first refusal as many times as applicable until: 

(a) Owner successfully transfers the property to a third party or a qualified purchaser; or 

(b) The expiration of the term of the right of first refusal; or

(c) The right of first refusal is released or terminated by the qualified purchaser.   

(4) Requirements related to required notices, matching offers, and property sales generally under this process are outlined in ORS 456.263.

Statutory/Other Authority: ORS 456.258
Statutes/Other Implemented: ORS 456.250-456.265
History:
OHCS 1-2024, amend filed 01/05/2024, effective 01/05/2024
OHCS 20-2022, amend filed 08/16/2022, effective 08/18/2022
OHCS 10-2020, amend filed 05/21/2020, effective 05/21/2020
OHCS 6-2020, temporary amend filed 03/25/2020, effective 03/25/2020 through 09/20/2020
OHCS 12-2018, adopt filed 09/04/2018, effective 09/04/2018