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), which takes effect on September 26, 2025. OHCS has developed a toolkit of documents to assist Sponsoring Jurisdictions in implementing the MIRL Program. This originating ordinance 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 section 25 of SB 1357. Sponsoring Jurisdictions are not required to use this template. This template reflects OHCS's 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 section 25 of SB 1537. Sponsoring Jurisdictions are responsible for ensuring that any ordinance or resolution adopted by the Sponsoring Jurisdiction complies with:

SB 1537 (2024)
SB 48 (2025)
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 Grant Program (the “local MIRL Grant Program”) to spur certain housing development activities within the [JURISDICTION] using a tax increment financing-based resource structure capitalized by the State of Oregon; and

WHEREAS, the [JURISDICTION] desires to establish a local MIRL Grant 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 Grant 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 Grant 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 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 Loan Term.

Annual Increment: 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):

Using the last certified assessment roll for the property tax year in which an application for MIRL Grant 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.

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 SB 1537 (2024) and SB 48 (2025), as may be amended from time to time) and administrative rules (Oregon Administrative Rules chapter 813, division 410).

Grant Agreement: A legally binding agreement between the [JURISDICTION] and a Developer outlining the use of Grant Funds.

Grant Funds: The moneys that the [JURISDICTION] awards to a Developer via a Grant Agreement to develop an Eligible Housing Project.

Loan Term: The presumptive number of years that the [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 annual program fee is calculated, in most instances, the [JURISDICTION] will repay the Program Loan to OHCS before the end of the Loan Term. The Loan Term may not exceed the greater of:

Ten years following July 1 of the first property tax year for which the completed Eligible Housing Project Property is estimated to be taken into account; or

If agreed to by the [JURISDICTION] and OHCS, and if authorized in this Ordinance, the period of time required for the Program Loan to be repaid in full.

Local Site Approval: [Definition]

Program Loan: A loan provided by OHCS to the [JURISDICTION] for the purpose of funding a Project Grant.

[Other]

SECTION 2: ESTABLISHMENT OF GRANT PROGRAM

The [JURISDICTION] hereby establishes a local MIRL Grant Program, which is intended to conform in all respects to the MIRL Program requirements, including SB 1537 and SB 48, as may be amended from time to time, and OAR chapter 813, division 410. This local MIRL Grant Program shall provide Grant Funds to developers for Eligible Housing Projects using funds obtained through Program Loans 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 Grant Funds; and

Remedies for noncompliance.

SECTION 4: PROJECT GRANT ELIGIBILITY & LIMITATIONS

To qualify for a grant under the local MIRL Grant Program, a project must:

Be an Eligible Housing Project;

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 SB 1537, SB 48, and OAR chapter 813, division 410; and

Meet all applicable land use and permitting requirements.

SECTION 5: PROGRAM ADMINISTRATION

The [JURISDICTION ADMIN] or their designee shall be responsible for the administration of the local MIRL Grant 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: TAX EXEMPTION

[JURISDICTION] will work with the County Tax Assessor to establish a process for exempting approved Eligible Housing Projects from property taxes. The [JURISDICTION] will also coordinate with the County Tax Assessor to determine the program fee for each project. Tax estimates 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 a Master Agreement with OHCS to establish the terms under which the [JURISDICTION] will receive Program Loans. The [JURISDICTION] shall also enter into a 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