(a) A contract term will expire, permitting the owner to withdraw the participating property from publicly supported housing or limit affordability restrictions on the property; or

(b) The owner intends to withdraw the participating property from publicly supported housing.

(2) The property owner shall send a copy of the notice in subsection (1) of this section to each local government within which the participating property is located.

(3) If the notice is not delivered timely, the property owner shall extend the affordability restriction on the participating property for no less than 24 months after delivering the untimely notice under subsection (1) of this section and provide notice of the extension to the Housing and Community Services Department and each local government that is entitled to notice under subsection (2) of this section.

(4) A local government may:

(a) Establish and impose any fine, penalty, tax, fee, charge or assessment upon the owner of participating property for failure to comply with local regulations adopted to implement the provisions of subsection (1) of this section.

(b) Require an owner to refrain from disturbing tenancies, other than for cause as defined in the contract, for a period of not more than 180 days after expiration of the contract or withdrawal of the participating property from publicly supported housing if the local government pays, or arranges for payment, to the owner on the first day of each month, the monthly subsidy that the owner was receiving under the contract.

(c) Make application to the Housing and Community Services Department requesting that a local subsidy program be included in the definition of publicly supported housing, as long as the program otherwise complies with and is not excluded from the definition of publicly supported housing.

(5) Any notices provided under subsection (1) of this section shall specify whether the owner:

(a) Intends to withdraw the participating property from publicly supported housing.

(b) Intends to convert the participating property to a nonparticipating use.

(c) Is involved in negotiations with the United States Department of Housing and Urban Development, the Housing and Community Services Department or any other individual or entity regarding an extension of an expiring contract. [1999 c.275 §3; 2017 c.608 §3; 2019 c.571 §4]

Note: Section 7, chapter 571, Oregon Laws 2019, provides:

Sec. 7. The amendments to ORS 456.260, 456.262 and 456.263 by sections 4 to 6 of this 2019 Act apply to participating properties subject to an affordability restriction or contract that will, by its terms, terminate on or after 30 months following the effective date of this 2019 Act [January 1, 2020]. [2019 c.571 §7]

Note: See note under 456.250.