(1) The Oregon Health Authority may, through contract or otherwise, acquire, purchase, receive, hold, exchange, demolish, construct, lease, maintain, repair, replace, improve and equip community housing for the purpose of housing persons with chronic mental illness.

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(2) The authority may dispose of community housing acquired under subsection (1) of this section in a public or private sale, upon such terms and conditions as the authority considers advisable to increase the quality and quantity of community housing available for persons with chronic mental illness. Except as provided in subsection (3) of this section, in any instrument conveying fee title to community housing, the authority shall include language that restricts the use of the community housing to housing for persons with chronic mental illness. Such restriction is not a violation of ORS § 93.270.

(3) If the authority determines that community housing acquired under subsection (1) of this section is no longer suitable for use as community housing, the authority may sell or otherwise dispose of the community housing without including in any instrument conveying fee title to the community housing any language that restricts the use of the community housing. Proceeds from the sale or disposition of community housing under this subsection are considered proceeds described in ORS § 426.506 (4)(c).

(4) When exercising the power granted to the authority under this section, the authority is not subject to ORS Chapter 273 or ORS § 270.100 to 270.190, 276.900 to 276.915 or 279A.250 to 279A.290. [1999 c.983 § 3; 2003 c.794 § 281; 2005 c.11 § 2; 2007 c.70 § 211; 2009 c.595 § 430]