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Oregon Housing and Community Services

MIRL Originating Ordinance Template

The Moderate-Income Revolving Loan (MIRL) Program is a voluntary affordable housing development program in which cities and counties (“Sponsoring Jurisdictions") may choose to participate. It was created by Senate Bill 1537 (2024), sections 24-35, and amended by Senate Bill 48 (2025). The MIRL Program is codified at ORS 307.213 – ORS 307.237. Oregon Housing and Community Services (OHCS) has developed a toolkit of resources to assist Sponsoring Jurisdictions in implementing the MIRL Program. This template is one component of that toolkit.

This template is intended to provide a starting point for Sponsoring Jurisdictions as they draft the ordinance or resolution required by ORS 307.214. Sponsoring Jurisdictions are not required to use this document. This document reflects OHCS’ understanding of the requirements of SB 1537, but it is not comprehensive, and it will need to be tailored to reflect any jurisdiction-specific practices or requirements.

This template is not intended to, and does not, provide legal advice. OHCS encourages Sponsoring Jurisdictions to consult with their counsel in drafting and adopting the resolution or ordinance required by ORS 307.214. Sponsoring Jurisdictions are responsible for ensuring that any ordinance or resolution adopted by complies with:

  • SB 1537 (2024)
  • SB 48 (2025)
  • ORS 307.213-237
  • Oregon Administrative Rules (OAR chapter 813, division 410)
  • Any other applicable local, state, or federal laws

Originating Ordinance Template

CITY/COUNTY OF [CITY/COUNTY NAME] 
ORDINANCE NO. [####] 

  

AN ORDINANCE IMPLEMENTING THE MODERATE-INCOME REVOLVING LOAN (MIRL) PROGRAM, ENACTED THROUGH OREGON SENATE BILL 1537 (2024), AS AMENDED BY SB 48 (2025), AND AUTHORIZING THE [JURISDICTION] TO ENTER INTO AGREEMENTS WITH OREGON HOUSING AND COMMUNITY SERVICES (OHCS). 

  

WHEREAS, the [JURISDICTION] desires to establish a Moderate-Income Housing Project Funding Program (the “Local MIRL Program”) to spur certain housing development activities within the [JURISDICTION] using tax increment financing-based resource structure or alternate funding source; and 

  

WHEREAS, the [JURISDICTION] desires to establish a Local MIRL Program to provide financial assistance to developers for Eligible Housing Projects using funds obtained through the MIRL Program [FOR _% AMI]; and 

  

WHEREAS, the [JURISDICTION] seeks to facilitate the development of [HOUSING TYPE] to increase affordability and housing availability within the [JURISDICTION]; 

  

WHEREAS, the [JURISDICTION] has consulted with the governing body of [ANY CITY OR COUNTY WITH TERRITORY INSIDE THE BOUNDARIES OF THE SPONSORING JURISDICTION] regarding [JURISDICTION]’s desire to establish a Local MIRL Program; 

 

NOW, THEREFORE, [JURISDICTION] ORDAINS AS FOLLOWS: 

  

SECTION 1: DEFINITIONS 

For purposes of this Ordinance, the following definitions apply: 

  • Affordability Requirements: The income and affordability restrictions applicable to Eligible Housing Projects receiving funding under the Local MIRL Program.   

  • If a project is rental housing, it must be rented to households with an annual income not greater than [120 OR LOWER] percent of the Area Median Income, and rented at a monthly rate (rent plus a utility allowance set by the [JURISDICTION]) that is affordable to households with an annual income not greater than [120 OR LOWER] percent of the Area Median Income, such affordability to be maintained for a period that is the longer of either ten years or the Agency Loan Term. 

  • If a project is for-sale/homeownership housing, it must be affordable to, and sold or offered for sale to, households with an annual income not greater than [120 OR LOWER] percent of the Area Median Income, continuously from initial sale for a period that is the longer of either ten years or the Agency Loan Term. 

  • Agency Loan: The moneys received by [JURISDICTION] from Oregon Housing and Community Services pursuant to a MIRL loan agreement. 

  • Agency Loan Term: The presumptive number of years that the [JURISDICTION] has to repay an Agency Loan to OHCS. The Agency Loan Term is 10 years [unless otherwise allowed by this Ordinance, for up to 15 years]. 

  • Tax Increment Differential: The amount that results when the County Tax Officer takes the amount in paragraph (A) of this definition and subtracts from it the amount in paragraph (B): 

  1. Using the last certified assessment roll for the property tax year in which an application for Project 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. 

  1. 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: A project that constructs new housing or converts a non-residential building into housing and that meets MIRL Program requirements as set forth in applicable statutes (including but not limited to ORS 307.213-237) and administrative rules (Oregon Administrative Rules chapter 813, division 410), as the same may be amended from time to time. 

  • Project Funding Agreement: A legally binding agreement between the [JURISDICTION] and a developer outlining the disbursement, use, and, if applicable, repayment of Project Funds. 

  • Project Funds: The moneys that the [JURISDICTION] grants or loans to a developer via a Project Funding Agreement to develop an Eligible Housing Project. 

  • Local Site Approval: [Definition] 

  • [Other] 

  

SECTION 2: ESTABLISHMENT OF LOCAL MIRL PROGRAM 

The [JURISDICTION] hereby establishes a Local MIRL Program, which is intended to conform in all respects to the MIRL Program requirements, including ORS 307.213-237 and OAR chapter 813, division 410, as either may be amended from time to time. This Local MIRL Program shall award Project Funds to developers for Eligible Housing Projects using funds obtained through an Agency Loan from OHCS. 

  

SECTION 3: COMPLIANCE PLAN 

The [JURISDICTION] shall enforce Affordability Requirements and compliance measures through a Compliance Plan [ATTACHED AS EXHIBIT OR OUTLINED BELOW], which includes: 

  • Procedures for monitoring compliance with Affordability Requirements; 

  • Reporting requirements for developers receiving Project Funds; and 

  • Remedies for noncompliance. 

  

SECTION 4: PROJECT FUNDING ELIGIBILITY & LIMITATIONS 

To qualify for Project Funding under the Local MIRL Program, a project must: 

  1. Be an Eligible Housing Project; 

  1. Be [DESCRIBE KINDS OF PROJECTS ALLOWED, AS REQUIRED BY ORS 307.214(2)(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)];  

  1. Comply with all MIRL Program requirements, including the provisions of ORS 307.213-237 and OAR chapter 813, division 410;  

  1. Meet all applicable land use and permitting requirements; and 

  1. For projects located in Urban Renewal Areas, utilize the Alternative Funding Source repayment option and receive Project Funds via a loan to the developer.  

 

SECTION 5: PROGRAM ADMINISTRATION 

The [JURISDICTION ADMIN] or their designee shall be responsible for the administration of the Local MIRL Program, including: 

  • Developing a MIRL application process consistent with this Ordinance and all MIRL Program requirements; 

  • Reviewing and provisionally approving project applications; 

  • Project monitoring and compliance; 

  • Ensuring compliance with OHCS requirements; and 

  • Submitting required reports to OHCS. 

  • [OPTIONAL FOR JURISDICTION: Prioritize developments within specific zones, such as urban infill areas.]; 

  • [OPTIONAL FOR JURISDICTION: Meet deeper affordability requirements beyond MIRL Program minimums.]; and 

  • [Other requirements as determined by the JURISDICTION]. 

  

SECTION 6: UTILITY ALLOWANCE CALCULATION FOR RENTAL HOUSING 

The utility allowance for rental housing projects shall be calculated as follows: 

  • [Methodologies specified by the Jurisdiction] 

  

SECTION 7: PROJECT FUNDING AND REPAYMENT  

[JURISDICTION] will determine and define, in each Project Funding Agreement, the method of providing Project Funds to the developer, which shall depend on the Agency Loan repayment option selected by [JURISDICTION] for each Eligible Housing Project. The two options are as follows:  

  1. Property Tax Exemption: [JURISDICTION] may repay the Agency Loan through Program Fees (fees in lieu of taxes) collected from developers or other fee payers with property tax exemptions on MIRL-funded improvements. [JURISDICTION] will work with the County Tax Officer to establish a process for exempting the improvements of Eligible Housing Projects from property taxes.  [JURISDICTION] shall provide Project Funds to the developer as a grant. 

  1. Alternative Funding Source: [JURISDICTION] may repay the Agency Loan by pledging its full faith and credit and taxing authority and an alternative source of revenue that is acceptable to OHCS.  [JURISDICTION] shall define the Alternative Funding Source in the Agency Loan Agreement.  [JURISDICTION] shall provide Project Funds to the developer as a loan. 

 

The Agency Loan repayment and exemption amounts will be determined using OHCS-provided proformas and amortization schedules in accordance with MIRL Program requirements. 

  

SECTION 8: AGREEMENTS WITH OHCS 

The [JURISDICTION] is authorized to enter into an Intergovernmental Master Agreement with OHCS to establish the terms under which the [JURISDICTION] will receive Agency Loans. The [JURISDICTION] shall also enter into an Agency Loan Agreement with OHCS for each approved project. 

  

SECTION 9: SEVERABILITY 

If any provision of this Ordinance is found to be invalid, the remaining provisions shall continue in full force and effect. 

  

SECTION 10: EFFECTIVE DATE 

This Ordinance shall take effect 30 days after adoption. 

  

PASSED AND ADOPTED by the [JURISDICTION] this ___ day of ____, 20__. 

  

[Mayor’s Name], Mayor 

  

ATTEST: 

[City Recorder’s Name], City Recorder