(2) Notwithstanding any of the provisions of ORS 456.548 to 456.725 to the contrary:

(a) Of the $2.5 billion bond authorization under ORS 456.661, the aggregate principal amount of not to exceed $30 million is to be made available exclusively for making or participating in making residential loans for detached single-family homes, including lots described in ORS 92.840, in any city.

(b) The bonds under paragraph (a) of this subsection may be sold as a part of the Housing and Community Services Department’s overall nongeneral obligation bond issues under ORS 456.548 to 456.725, or separate issues totaling no more than $30 million in an aggregate principal amount may be sold by the department as required and requested by a city. The bonds need not be identified by individual loans or transactions but may include any number of individual loans or transactions or purposes within any single issue.

(c) The department may use moneys received under paragraph (b) of this subsection to purchase, service, sell and make commitments to purchase, service and sell residential loans meeting all of the requirements of this paragraph. The loans must be:

(A) Originated by private lending institutions or any individual or organization authorized by law to make those loans, for residential housing;

(B) For owner-occupied detached single-family housing, which may include but is not limited to lots described in ORS 92.840;

(C) For properties located within an area of a city where the median income is below the city’s median family income; and

(D) To persons whose annual income for the current and the immediately preceding year does not exceed 105 percent of the prevailing median income for families within that city.

(d) Areas eligible under paragraph (c) of this subsection shall be identified by ordinance of the governing body of that city. That city shall have sole discretion to designate one or more of those areas, and the proportionate or approximate actual amount of single-family residential loans to be made in those areas.

(e) Fees or charges pursuant to ORS 456.625 (3) shall be assessed or collected in connection with, or for, any loan, advance, insurance, loan commitments or servicing, by the department under this section only after consultation with the city. [1979 c.327 §§31,32; 1981 c.504 §5; 1995 c.79 §249; 1999 c.698 §1; 2003 c.743 §1; 2005 c.643 §1; 2007 c.607 §15]