Publicly Supported Housing Contract Preservation (PuSH-CP)

Preserving existing affordable housing is an important supplement to new developments. Preservation prevents displacement, is generally cheaper than building new housing, and conforms to existing land-use patterns.

The PuSH Contract Preservation legislation was designed to preserve affordability provisions affecting Publicly Supported Housing participating properties nearing contract expiration with OHCS, HUD or USDA Rural Development through an opportunity to purchase by OHCS through a designee or local government (qualified purchasers).

The Oregon Legislature implemented a Publicly Supported Housing - Contract Preservation (PuSH-CP) process, which requires publicly supported housing property owners to provide notification to OHCS and appropriate local government agencies of their intent regarding preservation of affordability of their properties with expiring restrictions.

The Publicly Supported Housing Contract Preservation (PuSH-CP) process is a result of Oregon House Bills, including HB 2002 (2017) and subsequently amended by HB 2002 (2019), HB 2095 (2021), and HB 3042 (2023).

Properties subject to this process are multifamily rental housing developments with affordability restrictions. Restrictions can be from project-based rental assistance from HUD or RD, or from OHCS (tax credits, grants, loans). Local government can also apply to OHCS to include their local subsidy programs in the PuSH-CP process.

Overview of PuSH-CP timeline for owners

Required Owner Notifications

In accordance with ORS 456.260 and 456.262, Owners of publicly supported housing must provide notices to local government and local housing authorities, in addition to OHCS, regarding their intent for preservation of the participating property when the affordability restrictions come to an end, or to allow the property to be withdrawn from Oregon’s inventory of publicly supported housing. There are two notices owners are required to provide to OHCS and local government

First notice is due no sooner than 36 months and no later than 30 months prior to when the affordability restrictions will end, and
Second notice is due no sooner than 30 months and no later than 24 months prior to when the affordability restrictions expire.

Owners with OHCS contracts must also provide notice to the tenants before the owner withdraws the participating property from publicly supported housing. The notice must meet specific requirements and language, as outlined in ORS 456.259, and be delivered to tenants (and applicants) no more than 24 months, and at least 20 months, before the affordability expiration date.

If an owner fails to give notices required, the owner must:

Extend the termination date until no earlier than 20 months after delivery of all notices required under subsection (3) or (4) of this section; and,
Provide notice of the extension to the department and to each tenant that is entitled to notice under this section.

Qualified Purchasers/Designees/Right of First Refusal

During the PuSH-CP noticing process, OHCS consults with the local government for the purposes of determining the best pathway to preservation when the owner’s notice(s) indicates intent to withdraw the property from publicly supported housing upon expiration of the affordability restrictions or offer it for sale. This consultation will determine which qualified purchaser (OHCS or local government) will pursue an opportunity to offer to purchase the property with priority for local government ownership. If it is determined that OHCS should pursue preservation, OHCS may assign a designee to make an offer to purchase after entering into a written agreement with OHCS.

Owners are not required to accept the Qualified Purchaser offer but are required to accept the first received subsequent matching offer from qualified purchasers under a right of first refusal process when the owner intends to sell to a third-party. A Qualified Purchaser has the right to make an offer up to 30 months prior to contract expiration and may file a right of first refusal prior to contract expiration which will extend 36-months beyond the anticipated withdrawal of the property from publicly supported housing.

OHCS may record a notice of right of first refusal without delivering an offer if:

No qualified purchaser has recorded a right of first refusal 60 days prior to the termination date;
The department has given written notice to the owner 14 days in advance; and
The notice of right of first refusal is recorded prior to the termination date.

PuSH-CP fact sheet

Oregon Housing and Community Services (OHCS) is looking for multifamily rental housing entities to consider becoming a “Qualified Purchaser” in preservation of the affordability restrictions of Publicly Supported Housing – Contract Preservation (PuSH-CP) through new ownership.

ORS 456.250 to 456.267 requires participating property owners to communicate with OHCS 30 months prior to affordability restriction expiration regarding their intent to preserve the affordability of the property. When an Owner notifies OHCS of their interest to sell the property, OHCS may choose to pursue an opportunity to offer to purchase the property through an appointed Designee.

The role of a Designee for OHCS requires collaboration and timeliness. It means submitting an offer to purchase a withdrawing property to preserve affordability through new ownership and all responsibilities associated with this complex transaction and ongoing compliance.

The first step to becoming a potential Designee requires completion of the PuSH Designee Interest Form. Potential Designees are expected to self-evaluate their interest in partnering with OHCS through the qualified purchaser process. Once the survey is submitted, we will contact the interested party with next steps to discuss the process in more detail.

PuSH-CP Preservation Tracking (Updated 12/29/2023)

The state’s inventory of affordable housing, known as "Oregon Affordable Housing Inventory (OAHI)", is a vital part of the preservation program for compliance monitoring purposes and informing the public of a property’s status of potential withdrawal from publicly supported housing based on expiration/termination dates.

Oregon Affordable Housing Inventory (OAHI)

Safe Harbor means residential tenancies that existed on the termination date of a contract with OHCS are protected from no-cause evictions and rent increases above established limits beginning on the termination date and continuing for a period of three years. According to ORS 456.267, the owner or landlord of formerly publicly supported housing:

(a) May not terminate the tenancy under ORS 90.427(3)(b), (4)(b) or (5);

(b) May not provide a rent increase notice more than once in a calendar year; and

(c) Shall comply with ORS 90.323 and with requirements adopted by OHCS and applicable to affordable rental housing managed by OHCS that govern rent increases, including requirements related to rent increase limits, required notices or approval or review by OHCS. OHCS Rent Increase Policy.

OHCS may assess a $5,000 civil penalty against an owner that does not comply with the OHCS Rent Increase Policy for residential tenancies that existed at the time of the affordability expiration date.

Oregon Revised Statutes