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Oregon Housing and Community Services

Project-Specific Ordinance Template for MIRL

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. The program is established in ORS 307.213 to ORS 37.237. Oregon Housing and Community Services (OHCS) has developed a template of the Project-specific 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 Project-specific ordinance or resolution, which is one of the MIRL program documents required by ORS 307.225. This template reflects the OHCS understanding of MIRL program requirements, 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 Project-specific ordinance or resolution required by ORS 307.225. 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.


CITY/COUNTY OF [CITY/COUNTY NAME]

[ORDINANCE or RESOLUTION] NO. [####]

AN [ORDINANCE OR RESOLUTION] ESTABLISHING [PROJECT NAME] AS PART OF THE [JURISDICTION]’S LOCAL MODERATE-INCOME REVOLVING LOAN (MIRL) PROGRAM, ENACTED THROUGH [ORDINANCE OR RESOLUTION] [####].

WHEREAS, on [DATE], the [JURISDICTION] adopted [ORDINANCE OR RESOLUTION] [####], attached hereto as Exhibit A, for the purposes of establishing a Local MIRL Program;

WHEREAS, the [JURISDICTION] and Oregon Housing and Community Services (OHCS) have entered into an Agency Loan Agreement, attached hereto as Exhibit B, pursuant to which OHCS will provide an Agency Loan to the [JURISDICTION] for [PROJECT NAME], an Eligible Housing Project;

WHEREAS, the [JURISDICTION] and [DEVELOPER’S NAME] (the “Developer”) have entered into a Project Funding Agreement, attached hereto as Exhibit C, to provide MIRL Project Funds for [PROJECT NAME];

WHEREAS, the [JURISDICTION] desires to provide Project Funds to the Developer for [PROJECT NAME] in accordance with the Project Funding Agreement;

NOW, THEREFORE, [JURISDICTION] ORDAINS AS FOLLOWS:

SECTION 1: DEFINITIONS

For purposes of this [ORDINANCE OR RESOLUTION], the following definitions apply:

  • Construction Costs: The hard and soft costs incurred during the development of housing which include, but are not limited to, labor, materials, construction contracts, land planning, engineering and architect fees, surveys, taxes and interest during construction. This can also include broadband internet wiring costs.
  • Eligible Costs: The following costs associated with an Eligible Housing Project:
    • Infrastructure Costs, including but not limited to system development charges;
    • Predevelopment Costs;
    • Construction Costs; and
    • Land Write-Downs.
  • 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 multifamily 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 of 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 household 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.
  • Eligible Housing Project Property: The taxable real and personal property constituting the improvements of an Eligible Housing Project.
  • Project Funding Agreement: The agreement between [JURISDICTION] and [DEVELOPER], in which [JURISDICTION] awards the Project Funds to [DEVELOPER] for the Eligible Housing Project.
  • Project Funds: The moneys that the [JURISDICTION] awards through a loan or a grant to a Developer via a Project Funding Agreement to develop an Eligible Housing Project.
  • Infrastructure Costs: The fundamental facilities and systems required for residential buildings, including, but not limited to, water, electricity and sanitation. This also includes system development charges.
  • Land Write-Down: A change in the value of the land due to the Local MIRL Program that is supported by an appraisal completed by a certified appraiser and not rejected by the County Tax Officer.
  • Agency Loan Agreement: The binding legal document between OHCS and [JURISDICTION] for a specific Eligible Housing Project that sets out the Agency Loan Amount and terms of repayment.
  • Predevelopment Costs: Includes, but is not limited to, site acquisition, architectural services, and Project consultants.
  • Agency Loan: A loan provided by OHCS to the [JURISDICTION] for the purpose of providing Project Funds to a Developer for an Eligible Housing Project.
  • [Other]

SECTION 2: ALLOCATES AND APPROVES MIRL FUNDING OF ELIGIBLE HOUSING PROJECT

The [JURISDICTION] hereby approves and allocates MIRL Project Funds for [PROJECT NAME], an Eligible Housing Project that is intended to conform in all respects to MIRL Program requirements, including ORS 307.213 to ORS 307.237, as may be amended from time to time; OAR chapter 813, division 410; and the Local MIRL Program requirements as set forth in [LOCAL MIRL ORIGINATING ORDINANCE/RESOLUTION NO. ####]. The [JURISDICTION] shall provide Project Funds to the Developer for this Eligible Housing Project using funds obtained through an Agency Loan from OHCS. The Project Funds have been awarded in response to the housing needs of the community of [JURISDICTION].

SECTION 3: DESCRIPTION OF THE ELIGIBLE HOUSING PROJECT

Project Funds are allocated to the Developer for the Eligible Housing Project [IN ACCORDANCE WITH EXHIBIT C].

SECTION 4: AMOUNT AND TERMS OF PROJECT FUNDING

The Project Funds allocated to the Developer for [PROJECT NAME] through a [loan or grant] shall be in the amount of $[XXXXXX].

The Eligible Housing Project and the Developer shall follow all terms of ORS 307.213 to ORS 307.237, as may be amended from time to time; OAR chapter 813, division 410; any other applicable local, state, and federal laws; and Exhibits A, B, and C to this [Ordinance or Resolution].

SECTION 5: TAX EXEMPTION

The Eligible Housing Project Property is exempt from property taxation in accordance with ORS 307.213 to ORS 307.237. The [JURISDICTION] shall forward a copy of this [Ordinance or Resolution], including all exhibits, to the County Tax Assessor’s Office, and shall request that the County Tax Assessor’s Office exempt the Eligible Housing Project Property from property taxes in accordance with ORS 307.213 to ORS 307.237.

OR

SECTION 5: ALTERNATIVE FUNDING SOURCE

The [JURISDICTION] shall forward a copy of this [Ordinance or Resolution], including all exhibits, to the County Tax Assessor’s Office for awareness and in accordance with ORS 307.213 to ORS 307.237.]

SECTION 6: AGREEMENTS WITH OHCS

In adopting this [Ordinance or Resolution], [JURISDICTION] will uphold the terms and conditions agreed upon in the Agency Loan Agreement with OHCS.

SECTION 7: SEVERABILITY

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

SECTION 8: EFFECTIVE DATE

This [Ordinance or Resolution] shall take effect immediately upon adoption.

SECTION 9: EXHIBITS

The following exhibits are attached to this [Ordinance or Resolution] and incorporated herein by reference:

Exhibit A: Originating [ORDINANCE OR RESOLUTION], [ORDINANCE OR RESOLUTION] [####]

Exhibit B: Agency Loan Agreement

Exhibit C: Project Funding Agreement

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

[[Mayor’s Name], Mayor/[Commissioner Name], County Commissioner]

ATTEST:

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