OAR 309-036-0115
Funds for Community Housing


(1) The Division shall work through community partners to develop community housing and may not acquire or operate community housing directly. In circumstances where a particular type of community housing is desired and no community partner has been identified, the Division may acquire or directly operate community housing.
(2) The community housing to be assisted with funds from the Community Mental Health Housing Fund shall include a variety of types of housing integrated into residential neighborhoods of local communities throughout Oregon. The Division may establish priorities for the types of housing to be assisted based on an analysis of housing needs of individuals with serious and persistent mental illness. The community housing types to be considered for funding include but are not limited to single-family housing, multiple-unit residential housing, residential facilities, and other residences for individuals with serious and persistent mental illness. Housing for individuals with serious and persistent mental illness may include improvements and related equipment to enable a provider to offer services on site. When services are not offered on site, the community housing provider must demonstrate that access to services is available elsewhere in the community:
(a) Funds may be used to develop new community housing or to preserve or renovate existing community housing for individuals with serious and persistent mental illness. To this end, funding may be used toward acquisition, remodeling, maintenance, repair, permanently installed fixtures or appliances, and equipment;
(b) The community housing to be assisted with funds from the Community Mental Health Housing Fund must be made available for occupancy by individuals with serious and persistent mental illness. Consistent with the designated housing model, additional individuals such as resident managers, care providers, family members, and roommates may also reside in the housing to the extent allowed under ORS 426.502 (Definitions for ORS 426.502 to 426.508);
(c) Funds from the Community Mental Health Housing Fund may not be used to support service provision at the community housing.
(3) The Director shall identify annually the amount of funds available in the Community Mental Health Housing Fund for community housing purposes:
(a) The Director or designee shall establish with advice and input from the Community Mental Health Housing Fund Advisory Committee (CMHHFAC) a plan for allocating funds. This allocation plan shall designate amounts available for new development and renovation awards, geographic distribution goals, and any desired housing types or resident population priorities;
(b) As funds become available, it shall be the Division’s goal to distribute funds in a fair and equitable manner with respect to geographic and service population considerations. To this end, regional distribution goals shall be established by the Division with input from the CMHHFAC. These goals shall be established based upon the general population distribution in Oregon, Division data on the number of individuals with serious and persistent mental illness served in each region of the state, and other factors relating to housing needs. The distribution plan goals shall be published in the application materials. If after considering all applications for a region, the resulting awards do not award all funds in accordance with these goals, then remaining funds may be re-allocated to other regions.
(4) Unless targeted for a specific purpose by the Oregon Legislative Assembly, financial assistance for community housing by the Division shall be based on the assessment of housing needs for individuals with serious and persistent mental illness. In assessing housing needs, the Division shall conduct surveys, review available data, and seek input from advisory bodies that include consumers, family members, service providers, housing providers, citizens, and other interested individuals. The Division may prioritize types of housing and specify subpopulations of individuals with serious and persistent mental illness for occupation in the community housing that will receive financial assistance.
(5) The Division shall implement an application and award process that may include but is not limited to an open process such as a first come – first reviewed solicitation, a demonstration program, or a competitive application process. The Division may also award emergency funds when necessary to ensure the completion of development or continued operation of community housing. The application and award process shall be consistent with the following guidelines:
(a) For the open application process, the Division shall announce the availability of funding from the Community Mental Health Housing Fund and provide instructions for applying for such funding. The announcement of funding shall include a description of the fund, the allocation plan, eligible community housing, application rating criteria, and application materials;
(b) An application for funding shall contain all information required by the Division, including but not limited to:
(A) A description of the proposed community housing project, including but not limited to type of unit or units, number of residents who are individuals with serious and persistent mental illness, proposed rents, site location, the services to be available to residents, and project amenities;
(B) Documentation of the applicant’s experience with developing and operating housing;
(C) A statement identifying the length of time the unit or units shall be dedicated for use by individuals with serious and persistent mental illness;
(D) An operating budget showing anticipated revenues and expenses;
(E) The development plan, including a development budget with all sources of funding identified; and
(F) Documentation describing how the proposed community housing is consistent with allocation plan priorities. Applicants shall have a minimum of sixty days to complete and return applications.
(c) Completed applications shall be submitted to the Director or designee:
(A) Applications shall be reviewed and rated by a review panel established by the Director or designee. The review panel shall include at least three members of the Community Mental Health Housing Fund Advisory Committee. The review panel shall make recommendations for funding decisions to the Director;
(B) For applications made on an emergency basis under these rules, the Division may use an expedited review process that includes review and comment by at least three members of the Community Mental Health Housing Fund Advisory Committee. Results of the review shall be presented to the Director who will make the final funding decisions. Applicants shall receive written notice of funding decisions.
(d) Applicants who disagree with funding decisions are encouraged to discuss their application with Division staff. If the issue is not resolved, applicants may submit a request for appeal of the decision to the Director or designee as follows:
(A) The applicant requesting an appeal shall submit a written request to the Director or designee within seven business days after receiving the written funding decision;
(B) The Director or designee shall approve or deny the request for an appeal and shall notify the applicant in writing of the decision to approve or deny the requested appeal within fifteen business days of receipt of the appeal. The decision shall be final;
(C) The decision to grant the appeal in favor of the applicant for one request does not set a precedent that must be followed by the Division when evaluating subsequent requests for appeal.
(6) The Division shall develop procedures for the disbursement of funds consistent with prudent accounting practices and the Division’s financial procedures.
(7) All funds disbursed in amounts greater than $10,000 for the purpose of community housing shall be secured by a trust deed or other instrument to secure the investment and ensure continuing use of the property, improvements, and related equipment in accordance with the purposes of the award.
(8) Recipients of funding for community housing shall ensure that all eligible individuals with serious and persistent mental illness shall be considered for residency without regard to:
(a) Race;
(b) Color;
(c) Sex or sexual orientation, except as may be limited by room arrangement;
(d) Religion;
(e) Creed;
(f) National origin;
(g) Age;
(h) Familial status;
(i) Marital status;
(j) Source of income; or
(k) Disability in addition to the serious and persistent mental illness.

Source: Rule 309-036-0115 — Funds for Community Housing, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=309-036-0115.

Last Updated

Jun. 8, 2021

Rule 309-036-0115’s source at or​.us