All housing units or projects for which funds are advanced, loaned or otherwise provided by the Housing and Community Services Department under ORS 456.515 to 456.725 and ORS chapter 458 must be in compliance with any interim comprehensive land use plan or comprehensive land use plan and zoning, subdivision and other ordinances and regulations and laws of this state applicable to the lands upon which such projects are to be constructed; or, if an interim comprehensive land use plan or comprehensive land use plan is not in effect with respect to such lands, such units or projects must be in compliance with generally accepted land use planning standards.
ORS 456.695