ORS 307.223: City or county may pledge full faith and credit and taxing authority to repay agency loans; project property to which loan relates ineligible for program tax exemption; funding may be used for project in urban renewal area; developers not liable for program fee.

(1)(a) For purposes of ORS 307.213 to 307.237, a sponsoring jurisdiction may enter into an agency loan agreement with the Housing and Community Services Department under ORS 307.221 under which the sponsoring jurisdiction pledges its full faith and credit and taxing authority and any alternative source of revenue, other than the fee payable under ORS 307.231, that is acceptable to the department in repayment of the total amount as determined under ORS 307.221 (2). (b) Amounts received in repayment of a project loan made under ORS 307.221 shall be considered an alternative source of revenue subject to this subsection. (2) Notwithstanding ORS 307.227, eligible housing project property to which an agency loan agreement entered into on the terms set forth in subsection (1) of this section relates: (a) Is not eligible for the property tax exemption under ORS 307.227. (b) May be granted any property tax limit, exemption or partial exemption, special assessment, credit or deferral for which the eligible housing project property is eligible other than the exemption described in paragraph (a) of this subsection. (3) A sponsoring jurisdiction may award project funding to a developer under ORS 307.216 for an eligible housing project to which an agency loan agreement entered into on the terms set forth in subsection (1) of this section relates that is located in an urban renewal area in accordance with the provisions of ORS chapter 457. (4) Amounts received by the department in repayment of an agency loan entered into on the terms set forth in subsection (1) of this section shall be deposited in the Housing Project Revolving Loan Fund established under ORS 307.237. (5) A developer awarded project funding under ORS 307.216 from a sponsoring jurisdiction that has entered into an agency loan agreement on the terms set forth in subsection (1) of this section is not liable for payment of a fee under ORS 307.231, with respect to the eligible housing project for which the project funding was awarded. [2025 c.530 §10]