(1) The aggregate principal amount of bonds issued under ORS § 456.645 that may be outstanding is $2.5 billion, excluding bonds issued under and within the limits provided in ORS § 456.515 to 456.725 and any bonds that have been refunded. The amount of $30 million of the total $2.5 billion of bonds authorized under this section or proceeds from the sale of the bonds shall be made exclusively available for making or participating in making residential loans for single-family homes in cities with a population of 300,000 or more in the manner specified in ORS § 456.593. No more than $10 million of the bonds authorized under this section or proceeds from the sale of the bonds shall be made available for residential loans for home improvements.

(2) ORS § 286A.095 applies for purposes of determining limitations under this section.

(3) The Legislative Assembly finds that:

(a) Pursuant to ORS § 456.515 to 456.725, the Housing and Community Services Department has served as the sole department or instrumentality of the state authorized to coordinate and establish statewide priorities for housing programs and to provide planning and technical assistance to sponsors of housing for persons and families of lower income throughout the state.

(b) The department’s activities have been instrumental in alleviating the serious shortage of decent, safe and sanitary housing for lower income persons.

(c) Continuation of the department’s programs for financing owner-occupied residential housing to the fullest extent practicable under the Internal Revenue Code is a matter of paramount concern to the state.

(4) The department shall designate areas of chronic economic distress within the state for the purpose of issuing qualified mortgage bonds as described in section 143 of the Internal Revenue Code. [1979 c.327 § 11 (enacted in lieu of 456.660); 1981 c.504 § 8; 1981 c.691 § 3; 1985 c.205 § 1; 1995 c.79 § 258; 1999 c.698 § 2; 2001 c.114 § 51; 2005 c.643 § 2; 2007 c.783 § 201]