(2) The department is authorized to use the Elderly and Disabled Housing Fund to advance funds, by contract, grant, loan or otherwise, as provided by Article XI-I(2) of the Oregon Constitution to finance multifamily housing for elderly households, persons with disabilities and their family members and such other persons who reside therein as are necessary to maintain the housing or provide services or companionship for elderly households and persons with disabilities.

(3) In carrying out the provisions specified in Article XI-I(2) of the Oregon Constitution, the department shall, with the concurrence of the Oregon Housing Stability Council, adopt criteria for approval of projects proposed by qualified housing sponsors to finance multifamily housing for the target population and their family members and such other persons who reside therein as are necessary to maintain the housing or provide services or companionship for elderly households and persons with disabilities. The criteria shall:

(a) Assure that health, mental health and other supportive services as may be necessary to maintain elderly and disabled households living in the housing are available to the occupants onsite or in the community;

(b) Give priority to members of the target populations; and

(c) Allow occupancy by such family members or other persons as the department determines necessary to maintain the housing and provide services or companionship for elderly households and persons with disabilities.

(4) The department shall:

(a) Adopt criteria consistent with the maximum household income restrictions in ORS 456.620 (4) for approval of applications for financing the purchase by elderly households of ownership interests within a multifamily structure or facility.

(b) Provide means for allocating funds to finance multifamily housing units for the target population and to establish limitations on the interest and fees to be charged on loans made by the department.

(c) Adopt rules necessary for efficient administration of the Elderly and Disabled Housing Fund.

(d) Adopt rules to assure that each of the target populations has access to a reasonable portion of the bond authority under ORS 456.515 to 456.725, and that a reasonable portion of the funds for elderly households is made available to finance the purchase by elderly households of ownership interests within multifamily housing structures or facilities.

(5) Loans made by the department under this section for the interim construction financing of multifamily housing shall be subject to the provisions of ORS 456.717. [1977 c.485 §7; 1979 c.327 §20; 1981 c.504 §4; 1981 c.695 §4; 1993 c.1 §2; 1993 c.511 §3; 1995 c.79 §241; 2007 c.70 §259; 2007 c.607 §11; 2015 c.180 §3]