(2) The department shall disburse moneys credited to the account to accomplish the purposes described in ORS 456.515 to 456.725, except that 25 percent of moneys deposited in the account pursuant to ORS 294.187 is dedicated for expenditure to meet the critical housing needs of veterans in this state.

(3) The department may disburse moneys in the account by contract, grant, loan or otherwise as the department determines necessary.

(4) The department may set interest rates on loans made with moneys in the account.

(5) The department shall establish guidelines for the types of loans financed with moneys in the account by rule.

(6) The department may use moneys in the account to pay allowable administrative expenses incurred under ORS 456.515 to 456.725.

(7) The department may, in the director’s discretion, return moneys received for deposit in the account to the original source of the moneys.

(8) The department may accept moneys for deposit in the account pursuant to ORS 458.620 (4) and enter into agreements regarding the use of moneys deposited with the original source of the moneys.

(9) The department shall adopt rules that:

(a) Subject to subsection (2) of this section, govern the allocation of moneys deposited in the account to best meet critical housing needs and build organizational capacity of partners throughout this state; and

(b) Consistent with subsection (10) of this section, require equitable distribution of resources over time based on objective measures of need, including the number and percentage of low and very low income households in an area.

(10) The Oregon Housing Stability Council shall adopt a policy that provides for distribution by the department of account moneys and account investment revenue statewide while concentrating account moneys and account investment revenue in those areas of this state with the greatest need, as determined by the council, for housing for persons with a low or very low income. [2009 c.18 §10; 2013 c.646 §5; 2015 c.608 §4]