Chapter 3.75
MODERATE-INCOME REVOLVING LOAN PROGRAM
Sections:
3.75.020 Establishment of grant program.
3.75.040 Project grant eligibility and limitations.
3.75.050 Program administration.
3.75.060 Utility allowance calculation for rental housing.
3.75.080 Agreements with OHCS.
3.75.010 Definitions.
For purposes of this chapter, the following definitions apply:
“Affordability requirements” means the income and affordability restrictions applicable to housing projects receiving funding under the local MIRL grant program.
“Annual increment” means the amount that results when the county tax officer takes the amount in subsection (a) of this definition and subtracts from it the amount in subsection (b) of this definition:
(a) Using the last certified assessment roll for the property tax year in which an application for MIRL program funds is received, the county tax officer determines the amount of property taxes assessed against all tax accounts that include the eligible housing project property, and then subtracts the amount of operating taxes as defined in ORS 310.055 and local option taxes as defined in ORS 310.202 levied by fire districts.
(b) For the first property tax year for which the completed eligible housing project property is estimated to be taken into account, the county tax officer determines the estimated amount of property taxes that will be assessed against all tax accounts that include the eligible housing project property and subtracts the estimated amount of operating taxes and local option taxes levied by fire districts.
“Eligible housing project” means a project that constructs new housing or converts a nonresidential building into housing and that meets MIRL program requirements as set forth in applicable statutes and administrative rules (OAR Chapter 813, Division 410).
“Grant agreement” means a legally binding contract between the city and a developer outlining the use of grant funds.
“Grant funds” means the project grant moneys that a sponsoring jurisdiction awards to a developer via a grant agreement.
“Loan term” means the presumptive number of years that a sponsoring jurisdiction has to repay a program loan to OHCS. The loan term is multiplied by the annual increment to determine the maximum project grant award. As a result of the way in which the program fee is calculated, in most instances, the sponsoring jurisdiction will repay the program loan to OHCS before the end of the loan term. The loan term may not exceed the greater of:
(a) Ten years following July 1st of the first property tax year for which the completed eligible housing project property is estimated to be taken into account; or
(b) If agreed to by the sponsoring jurisdiction and OHCS, and if authorized by the sponsoring jurisdiction’s originating ordinance or resolution, the period of time required for the program loan to be repaid in full.
“Program loan” means the loan provided by OHCS to the city for the purpose of funding project grants. [Ord. 587 § 1, 2025].
3.75.020 Establishment of grant program.
The city hereby establishes a local MIRL grant program, which is intended to conform in all respects to the provisions of the MIRL program, including SB 1537, SB 48, and OAR Chapter 813, Division 410. This local MIRL grant program shall provide financial assistance to developers for eligible housing projects using funds obtained through program loans from OHCS. [Ord. 587 § 2, 2025].
3.75.030 Compliance plan.
The city shall enforce affordability requirements and compliance measures through a compliance plan, as summarized and included below:
(1) Procedures for monitoring compliance with affordability restrictions;
(2) Reporting requirements for developers receiving grant funding; and
(3) Remedies for noncompliance. [Ord. 587 § 3, 2025].
3.75.040 Project grant eligibility and limitations.
To qualify for a grant under the local MIRL grant program, a project must:
(1) Be an eligible housing project;
(2) Be a for-sale property (a single-family dwelling, middle housing as defined in ORS 197A.420, or a multifamily dwelling) or rental property (middle housing as defined in ORS 197A.420, a multifamily dwelling, an accessory dwelling unit as defined in ORS 215.501, or any other form of affordable housing or moderate income housing);
(3) Meet all applicable land use and permitting requirements. [Ord. 587 § 4, 2025].
3.75.050 Program administration.
The city manager, or their designee, shall be responsible for the administration of the local MIRL grant program, including:
(1) Developing a MIRL application process consistent with this chapter and all MIRL program requirements;
(2) Reviewing and provisionally approving project applications;
(3) Project monitoring and compliance;
(4) Ensuring compliance with OHCS requirements; and
(5) Submitting required reports to OHCS. [Ord. 587 § 5, 2025].
3.75.060 Utility allowance calculation for rental housing.
The city shall determine the applicable utility allowance for rental housing projects. [Ord. 587 § 6, 2025].
3.75.070 Tax exemption.
The city will work with the county tax assessor to establish a process for exempting property taxes for the approved projects. The city will also coordinate with the county tax assessor to determine the program fee for each project. Tax estimations and exemption amounts will be determined using proformas and amortization schedules in accordance with OHCS requirements. [Ord. 587 § 7, 2025].
3.75.080 Agreements with OHCS.
The city is authorized to enter into a master agreement with OHCS to establish the terms under which the city will receive program loans. The city shall also enter into a loan agreement with OHCS for each approved project. [Ord. 587 § 8, 2025].