Or. Admin. Code § 125-045-0225

Current through Register Vol. 64, No. 1, January 1, 2025

Section 125-045-0225 - Terminal Disposition of State Real Property Interests (Notices - Clearing House Process)

(1) Prior to the Terminal Disposition by an Agency of a State Real Property Interest, the Agency must first declare in writing to the Division its intent to dispose of the Interest. The written declaration must include the following:

(a) A detailed description of the State Real Property Interest to be transferred, including its approximate size in square feet or acreage and its legal description;

(b) A map showing the location of the State Real Property Interest;

(c) An explanation of the reason for disposal;

(d) A completed notice using a form provided by the Division; and

(e) Any other information the Division may request.

(2) To ensure that the Terminal Disposition best serves the interests of the State and the Disposing Agency, the Disposing Agency is encouraged to create a disposition strategy for the property. The Disposing Agency's disposition strategy should consider:

(a) The highest and best use of the Real Property Interest, consistent with the local planning goals;

(b) How the Real Property Interest might be marketed most effectively, given the nature of the Interest and likely potential purchasers; and

(c) How the economic return to the State might be maximized.

(d) How to promote the public purpose of increasing housing options for low-income individuals and families in this state as provided in ORS 458.445.

(3) Whenever any agency possesses or controls real property not needed for public use, or whenever the public interest may be furthered, the agency may sell, exchange, convey or lease for any period not exceeding 99 years all or any part of the interest in the property. Except for the Department of State Lands and the Department of Transportation and where real property is set apart by deed, will or otherwise for a burial ground or cemetery or the use is restricted by dedication, agencies must offer for sale any real property in its possession or control, if the property:

(a) Is within the urban growth boundary of any city, is within an urban reserve, is within a rural community, or is within an urban unincorporated community;

(b) Is not being used for public purposes;

(c) Is not needed for public use within five years of the last date the property was used for public purposes.

(4) After receipt of a declaration to dispose of a State Real Property Interest, and before a Disposing Agency may unconditionally offer to dispose of the State Real Property Interest, the Division must provide notice of the intended Terminal Disposition to all Agencies authorized by law to acquire Real Property Interests. Written notice to agencies must include the following:

(a) A request that any Agency with an interest in acquiring the State Real Property Interest notify the Division in writing of its interest;

(b) The information required to be provided under OAR 125-045-0225(1);

(c) The deadline for the Agency to provide written notice to the Division of its interest in acquiring the State Real Property Interest, which may not be less than 30 days from the date the Division issues the notice, unless the Administrator determines that a shorter period is in the State's interest; and

(d) Any other information the Division or the Disposing Agency elects to include in the notice.

(5) Notification by the Clearing House Process, will be given to agencies by at least one of the following methods:

(a) Mailed notice;

(b) Electronic mail notice;

(c) Posting notice of the intended Terminal Disposition on the Division's website; or

(d) Newspaper publication meeting the requirements defined in OAR 125-045-0235(3).

(6) The Division may dispense with notice to Agencies if the Administrator adopts written findings that in the reasoned judgment of the Division it is unlikely that transfer of the State Real Property Interest to another Agency could satisfy the Disposing Agency's needs and that as a result, notice would be a futile act.

(7) If one or more Agencies responds timely to the written notice described in this rule, the responding Agency or Agencies must negotiate with the Disposing Agency to determine if a sale, assignment, lease or other transfer can be completed. The Disposing Agency may not reject another Agency's bona fide offer to acquire the State Real Property Interest without Division approval.

(8) If two or more Agencies make bona fide offers to acquire the State Real Property Interest, the Disposing Agency must determine, in its reasonable discretion, which, if any, offer is most advantageous to the State and the Disposing Agency. Prior to making this determination, the Division may solicit the advice of the PLAC. A Disposing Agency need not use a competitive bidding process in connection with the Terminal Disposition of a State Real Property Interest to another Agency.

(9) Before a Disposing Agency may dispose of a State Real Property Interest to other than another Agency, the Division must provide notice of the intended Terminal Disposition to Nonprofit Organizations, Indian Tribes and Political Subdivisions on the condition that the entities will develop housing on the real property that will be occupied by families and individuals with an income no greater than 80 percent of the median family income for the county in which the real property is located by at least one of the following methods:

(a) Mailed notice;

(b) Electronic mail notice;

(c) Posting notice of the intended Terminal Disposition on the Division's website; or

(d) Newspaper publication meeting the requirements defined in OAR 125-045-0235(3).

(10) The Division may provide notice to Nonprofit Organizations, Indian Tribes and Political Subdivisions at the same time as it provides notice to Agencies. The Division may dispense with notice to Nonprofit Organizations, Indian Tribes and Political Subdivisions if the Administrator adopts written findings that in its reasoned judgment it is unlikely that transfer of the State Real Property Interest to a Nonprofit Organization, Indian Tribe or Political Subdivision could satisfy the Disposing Agency's needs and that as a result, notice would be a futile act.

(11) All notices to Nonprofit Organizations, Indian Tribes and Political Subdivisions must include the following:

(a) A request that any Nonprofit Organizations, Indian Tribe and Political Subdivision with an interest in acquiring the State Real Property Interest notify the Division in writing of its interest;

(b) The information required to be provided under OAR 125-045-0225(1);

(c) Agencies, Nonprofit Organizations, Indian Tribes and Political Subdivisions must provide written notice of interest in acquiring the property by the deadline indicated on the notice;

(d) A reservation of the right of the Disposing Agency to reject any offers;

(e) Notice that a Nonprofit Organization, Indian Tribe and Political Subdivision's right to acquire the State Real Property Interest is subject and subordinate to the right of Agencies to acquire the State Real Property Interest (required only if notice to Nonprofit Organization, Indian Tribe and Political Subdivisions is made concurrently with notice to Agencies); and

(f) Any other information the Division or the Disposing Agency elects to include in the notice.

(12) If no Agency indicates an interest in acquiring the State Real Property Interest, or if a sale or other transfer to another Agency cannot be finalized, any Nonprofit Organization, Indian Tribe or Political Subdivision that has made a timely response to the notice may negotiate with the Disposing Agency to determine if a sale or other transfer can be completed.

(13) A written notice of interest in acquiring the property must be received by the deadline indicated on the public notice and reference the file number and county in which the property is located for identification. Negotiations between the selling agency and respondents will take place in the following order:

(a) State agencies in the order in which they are received;

(b) Nonprofit Organizations in the order in which they are received;

(c) Indian Tribes in the order in which they are received,

(d) Political subdivisions in the order in which they were received.

(14) A responding entity is expected to enter into a pre-purchase agreement or memorandum of understanding with the offering entity within 60 days of responding to the notice.

(15) The Disposing Agency must consider any bona fide offer submitted by a Nonprofit Organization, Indian Tribe or Political Subdivision but is not obliged to sell or otherwise transfer the State Real Property Interest to the Nonprofit Organization, Indian Tribe or Political Subdivision.

(16) No Terminal Disposition of a State Real Property Interest to a Nonprofit Organization, Indian Tribe or Political Subdivision for less than the Appraised Fair Market Value may occur without the written approval of the Administrator or Director according to OAR 125-045-0245.

(17) If two or more Nonprofit Organizations, Indian Tribes or Political Subdivisions make bona fide offers to acquire the State Real Property Interest, the Disposing Agency must determine, in its reasonable discretion, which, if any, offer is acceptable to the State.

(18) The Disposing Agency may place any conditions on the transfer of a State Real Property Interest to a Nonprofit Organization, Indian Tribe and Political Subdivision it deems advisable, including but not limited to requirements that:

(a) Any State Real Property Interest sold or transferred to a Nonprofit Organization, Indian Tribe or Political Subdivision be subject to a deed restriction that the property be used solely for a public purpose or benefit; and

(b) Such State Real Property Interest not be resold to a private purchaser without the consent of the Division.

(c) Nonprofit Organizations and Indian Tribes must use the property to develop housing that will be occupied by families and individuals with an income no greater than 80 percent of the median family income for the county in which the real property is located.

(19) The Disposing Agency need not use a competitive bidding process in connection with the Terminal Disposition of a State Real Property Interest to a Nonprofit Organization, Indian Tribe or Political Subdivision.

Or. Admin. Code § 125-045-0225

DAS 4-2006, f. 5-12-06, cert. ef. 6-1-06; DAS 8-2009, f. & cert. ef. 7-21-09; DAS 10-2009, f. & cert. ef. 11-19-09; DAS 1-2016, f. & cert ef. 1/7/2016

Stat. Auth.: ORS 270.015(2), 270.100(1)

Stat. Implemented: ORS 270.100, 270.110, 270.120, Ch. 572, OL 2015 (HB3524), Ch. 285, OL 2015 (SB224)