Oregon Statutes 223.685 – Local government programs to finance seismic rehabilitation of real property
(1) As used in this section:
Terms Used In Oregon Statutes 223.685
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- local government: means all cities, counties and local service districts located in this state, and all administrative subdivisions of those cities, counties and local service districts. See Oregon Statutes 174.116
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(a) ‘Local government’ means cities and counties.
(b) ‘Qualifying real property‘ means multifamily residential dwellings or commercial or industrial buildings that the local government has determined can be benefited by seismic rehabilitation.
(c) ‘Seismic rehabilitation’ means improvements to qualifying real property that are:
(A) Intended to reduce or prevent harm to persons and property due to the effects of seismic activity on the qualifying real property; and
(B) Authorized by a local government implementing a program established under this section.
(2)(a) A local government may establish a program to assist owners of record of qualifying real property in financing cost-effective seismic rehabilitation of the qualifying real property.
(b) A program established pursuant to this subsection may provide for the local government to:
(A) Make loans to owners financed with the net proceeds and interest earnings of revenue bonds authorized by subsection (8) of this section;
(B) Facilitate private financing by the owners; or
(C) Make loans under subparagraph (A) of this paragraph and facilitate private financing under subparagraph (B) of this paragraph.
(3) A local government that establishes a program under this section may:
(a) Impose requirements intended to ensure that the loan or financing is consistent with the purposes of the program; and
(b) Impose requirements and conditions on loans or financing agreements that are designed to ensure timely repayment.
(4)(a) If the owner of record of qualifying real property requests financing pursuant to a program established under this section, subject to subsection (5) of this section, the local government implementing the program may:
(A) Enter into a loan agreement with the owner and any other person benefited by the loan; or
(B) Facilitate a financing agreement for the owner and any other person benefited by the financing agreement.
(b) A local government acting pursuant to paragraph (a) of this subsection may:
(A) If the local government makes a loan, charge the borrower an interest rate on the principal amount that is sufficient to pay the financing costs of the loan program, including loan delinquencies; and
(B) Charge periodic fees to pay for program costs.
(5) A local government may not enter into a loan agreement, or facilitate a financing agreement, under subsection (4) of this section unless the owner has:
(a) Provided written notice to all mortgagees of the qualifying real property that the owner intends to enter into a loan agreement or financing agreement under this section; and
(b) Received written consent from the mortgagees stating that the loan agreement or financing agreement entered into under this section does not constitute an event of default or give rise to any remedies under the terms of the mortgage loan agreements.
(6) The local government implementing a program established under this section may:
(a) Secure a loan or financing with a lien on the benefited qualifying real property with the same priority, as determined under ORS § 223.230 (3), as a lien for assessments for local improvements arising under ORS § 223.393.
(b) Assess the benefited qualifying real property for the amounts due under a loan agreement or financing agreement.
(c) Enforce a lien and collect an assessment authorized under this section as provided in ORS § 223.505 to 223.650.
(d) Secure a loan or financing in any other manner that the local government determines is reasonable.
(7)(a) In lieu of enforcing liens and collecting assessments as provided in subsection (6)(c) of this section, a local government may certify the assessment, in the manner provided in ORS § 310.060, to the county assessor of each county in which benefited qualifying real property is located.
(b) If the assessments are certified as provided in this subsection, the county assessor shall:
(A) Enter the assessment upon the county assessment roll against the property described in the certificate, in the manner that other local government assessments are entered;
(B) Collect, account for and enforce the assessments in the manner that local government property taxes are collected, accounted for and enforced; and
(C) Transfer, as provided by law, the assessments collected to the local government that imposed the assessment.
(8) A local government may issue revenue bonds pursuant to ORS § 287A.150 to finance the costs of a program established under this section, including the costs of making loans for seismic rehabilitation. [2015 c.48 § 1; 2017 c.283 § 2]
223.685 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS Chapter 223 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
FINANCING OF LOCAL IMPROVEMENTS; REBONDING; REINSTATEMENT; TYPE OF BONDS ACCEPTED IN PAYMENT OF LIENS; ASSESSMENT OF PUBLIC PROPERTY