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Oregon Housing and Community Services

MIRL Originating Ordinance Template

Important Note

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 is established in ORS 307.213 to ORS 307.237. Oregon Housing and Community Services (OHCS) has developed a template of the Originating Ordinance in the set of resource materials intended to assist sponsoring jurisdictions in implementing the MIRL program.

Although this template presents an optional format, it is designed to help sponsoring jurisdictions draft the originating ordinance or resolution, which is one of the MIRL program documents required by ORS 307.214. This template reflects the OHCS understanding of the requirements of ORS 307.213 to ORS 307.237, but it is not comprehensive and 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 governance and counsel when writing and adopting the ordinance or resolution required by ORS 307.214. Sponsoring jurisdictions are responsible for ensuring that any ordinance or resolution adopted by the sponsoring jurisdiction complies with ORS 307.213 to ORS 307.237, OAR chapter 813, division 410, and any other applicable local, state, and federal laws.

The required components for the MIRL Originating Ordinance include:

  • Definition of “local site approval”
  • Compliance Plan
  • Utility allowance calculation description

The Originating Ordinance may contain any other information that the sponsoring jurisdiction deems necessary to implement its local MIRL program. However, if any of the three elements above are missing, OHCS will not be able to proceed with the implementation process.

CITY/COUNTY OF [CITY/COUNTY NAME]

ORDINANCE NO. [####]

AN ORDINANCE IMPLEMENTING THE MODERATE-INCOME REVOLVING LOAN (MIRL) PROGRAM, ENACTED THROUGH ORS 307.213 to ORS 307.237 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 [the Tax Exemption Repayment Option AND/OR the Alternative Funding Source Repayment Option]; 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, AFFORDABLE RENTAL AND/OR HOMEOWNERSHIP] 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;

[WHEREAS, the [JURISDICTION] delegates authority to [ENTITY] to assist with or perform on behalf of [JURISDICTION] any duty required under ORS 307.216 or ORS 307.225. In which OHCS may take any action with respect to [ENTITY] as would be taken with respect to [JURISDICTION].]

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, at minimum, the duration of time that the Agency Loan remains outstanding.
    • 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, at minimum, the duration of time that the Agency Loan remains outstanding.
  • Agency Loan Term: The presumptive number of years that the [JURISDICTION] has to repay an Agency Loan to OHCS, which shall be set forth in the Agency Loan Agreement.
  • Eligible Housing Project: A project to construct housing or to convert a building from nonresidential use to housing, that is:
    • If For-sale/Homeownership Housing:
      • Middle housing as defined in ORS 197A.420, a single-family dwelling, or a multi-family dwelling; and
      • Affordable to, and sold or offered for sale to, households with very low income, low income, or moderate income, as those terms are defined in ORS 458.610, continuously from initial sale for a period set forth in a Loan Agreement if not less than the Loan Term;
    • Or, if Rental Housing:
      • 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; and
      • Rented to households with very low income, low income, or moderate income, as those terms are defined in ORS 458.610, and rented at a monthly rate (rent plus utility allowance set by the Sponsoring Jurisdiction) that is affordable to households with very low income, low income, or moderate income, such affordability to be maintained for a period set forth in a Loan Agreement of not less than the Loan Term.
  • Local Site Approval: [Definition]
  • Project Funding Agreement: A legally binding agreement between the [JURISDICTION] and a Developer outlining the disbursement and use 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.
  • Tax Increment Differential: The amount calculated by the County Tax Officer by taking the amount in paragraph (A) of this definition and subtracting from it the amount in paragraph (B):
    • Using the last certified assessment roll for the property tax year in which an application for MIRL 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.
    • 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.
  • [Other]

SECTION 2: ESTABLISHMENT OF PROJECT FUNDING PROGRAM

The [JURISDICTION] hereby establishes a Local MIRL Program, which is intended to conform in all respects to the MIRL Program requirements, as set forth in ORS 307.213 to ORS 307.237, as may be amended from time to time, and OAR chapter 813, division 410. 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 MIRL funding under the local MIRL Funding Program, a project must:

  • Be an Eligible Housing Project
  • Be located within the geographical boundaries of [JURISDICTION]
  • Be [DESCRIBE KINDS OF PROJECTS ALLOWED, AS REQUIRED BY SB 1537, SEC. 25(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)]
  • Comply with all MIRL Program requirements, including the provisions of ORS 307.213 to ORS 307.237 and 
  • Meet all applicable land use and permitting requirements.
  • Meet the additional requirements of the Local MIRL Program as defined in [CITE OR DEFINE]

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].
  • [Include if intending to utilize OHCS Administrative Supports] The Local MIRL Program is authorized to use administrative supports provided by OHCS, including but not limited to application review, templated documents, compliance and monitoring, and workout and default coordination.

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 award Project Funding for Eligible Housing Projects as either a grant or loan, as specified in the Project Funding Agreement. The Agency Loan will be repaid through the:  

  • [ Tax Exemption Repayment Option, in which [JURISDICTION] will work with the County Tax Officer to establish a process for exempting the improvements of approved Eligible Housing Projects from property taxes, and in which the Agency Loan will be repaid through payment of the annual Program Fee [and/or]; 
  • Alternative Funding Source Repayment Option, in which [JURISDICTION] pledges its full faith and credit and taxing authority and an Alternative Funding Source to repay the Agency Loan. [JURISDICTION] shall define the Alternative Funding Source in the Agency Loan Agreement.]

The Agency Loan repayment 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: AUTHORITY TO REVIEW AND APPROVE

The [JURISDICTION] authorizes [REVIEWING AND APPROVING BODY] to review and approve Eligible Housing Projects that utilize the Alternative Funding Source Repayment Option. Such projects are exempt from the requirement to adopt a Project-Specific Ordinance or Resolution.

SECTION 10: OHCS ADMINISTRATIVE SUPPORT

The [JURISDICTION] may delegate Local MIRL Program administrative support functions to OHCS in writing. Such administrative support functions may include, but are not limited to:

  • Project application and Proforma review
  • Project Funding Agreement template support
  • Compliance and Monitoring
  • Annual and Final Reporting
  • Default Coordination
  • Technical Assistance for County Tax Officers

SECTION 11: SEVERABILITY

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

SECTION 12: 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/[County Commissioner Name], County Commissioner]

ATTEST:

[City/County Recorder’s Name], City/County Recorder