These rules establish requirements for Oregon Health Authority grants and other funds awarded for the acquisition, development, construction, and/or rehabilitation of Behavioral Health Facilities and Community-Based Structured Housing. Grantees receiving OHA capital funding must execute a Declaration of Restrictive Covenants recorded against the real property, with use restriction periods ranging from 5 to 20 years depending on the funding amount. Grantees must comply with annual reporting, OHA monitoring, and notify OHA before any property transfer, sale, or refinancing. All funded programs must also comply with applicable licensing, certification, and accreditation standards.
View official sourceOregon Health Authority Health Systems Division: Behavioral Health Services - Chapter 309 Division 37 BEHAVIORAL HEALTH INVESTMENTS 309-037-0200 Purpose (1) The purpose of these rules is to establish the requirements for the administration and compliance monitoring of grants and other funds awarded through the Oregon Health Authority (OHA) to fund the acquisition, development, construction, and/or rehabilitation of Behavioral Health Facilities and Community-Based Structured Housing. (2) These rules are intended to ensure accountability, sustainability, stewardship of public resources and to build capacity for Oregon’s behavioral health programs. (3) Programs funded with OHA funding must comply with all applicable state and federal laws, administrative rules, and requirements, including any licensing, certification, or accreditation standards associated with the funded program. Statutory/Other Authority: ORS 413.042 Statutes/Other Implemented: ORS 413.042 History: BHS 22-2026, adopt filed 07/27/2026, effective 08/01/2026 309-037-0210 Definitions For the purpose of these rules, the following definitions apply: (1) “Adult Foster Home” has the meaning set forth in OAR 309-040-0305. (2) “Behavioral Health Facility” means a licensed building or property intended to provide mental health or substance use disorder services, housing, or related supports. (3) “Community-Based Structured Housing” has the meaning set forth in OAR 309-060-0105. (4) “Declaration of Restrictive Covenants” means an agreement between OHA and a grantee whereby the Grantee agrees, among other things, to comply with a use restriction for a term of years that encumbers the real property acquired and/or improved with OHA funds and that is recorded against the real property in the real property records of the county in which the property is located and in accordance with local requirements. (5) “Grantee” means any entity receiving OHA funds for the purposes of acquiring, constructing, or renovating a Behavioral Health Facility or Community-Based Structured Housing. (6) “Opioid Treatment Program” has the meaning set forth in OAR 415-020-0005 (7) “Real Property” has the meaning set forth in ORS 308.240 (8) “Residential Treatment Facility” has the meaning set forth in OAR 309-035-0105. (9) “Residential Treatment Home” has the meaning set forth in OAR 309-035-0105. (10) “Secure Residential Treatment Facility” has the meaning set forth in OAR 309-035-0105. (11) “Substance Use Disorder Residential Treatment Facility” or “SUD Residential Treatment Facility” means a facility that meets the definition of a Residential Treatment Facility for substance-dependent individuals under ORS 443.400(11) or a “detoxification center” as defined in ORS 430.306 with a certificate issued by OHA as described in OAR 410-172-0670. (12) “Transitional Housing” means temporary housing for persons who lack permanent, safe shelter with onsite services and support. (13) “Withdrawal Management” means services performed in a Behavioral Health Facility approved by OHA that provides withdrawal management services and emergency care to individuals experiencing withdrawal symptoms due to the cessation or reduction of substance use. Statutory/Other Authority: ORS 413.042 Statutes/Other Implemented: ORS 413.042 History: BHS 22-2026, adopt filed 07/27/2026, effective 08/01/2026 309-037-0220 Declaration of Restrictive Covenants The purpose of this rule is to establish requirements for Declarations of Restrictive Covenants (DRCs) to ensure that Behavioral Health Facilities and Community-Based Structured Housing funded with public resources remain dedicated and available for their intended public use. Declarations of Restrictive Covenants protect long-term public investment in Behavioral Health Facilities and Community-Based Structured Housing by ensuring continued availability and access. (1) The requirement for a Declaration of Restrictive Covenants applies to all Grantees receiving OHA funding for the acquisition, construction, and/or renovation of real property for the development of Behavioral Health Facilities and Community-Based Structured Housing and, depending on the amount of OHA funding, imposes a use restriction from five (5) to twenty (20) years as described in this division. This does not apply if a recipient of the funding is a federally recognized tribe and the capital development project is on tribal land, or the land or building is owned or being purchased by the tribe. (2) Duration of the Declaration of Restrictive Covenants. The use restriction period set forth in a Declaration of Restrictive Covenants is based on the total amount of OHA funding as follows: (a) A Behavioral Health Facility or Community-Based Structured Housing with OHA funding in the amount of $0 to $499,999.99 requires a use restriction for a period of five (5) years. (b) A Behavioral Health Facility or Community-Based Structured Housing with OHA funding in the amount of $500,000.00 to $1,499,999.99 requires a use restriction for a period of ten (10) years. (c) A Behavioral Health Facility or Community-Based Structured Housing with OHA funding in the amount of $1,500,000.00 to $3,999,999.99 requires a use restriction for a period of fifteen (15) years. (d) A Behavioral Health Facility or Community-Based Structured Housing with OHA funding in the amount of $4,000,000.00 or more requires a use restriction for a period of twenty (20) years. (3) Requirement to Record a Declaration of Restrictive Covenants (a) All Grantees receiving OHA funds for acquisition, construction, or renovation must execute a Declaration of Restrictive Covenants. (b) The Grantee is responsible for all recording fees. (c) The Declaration of Restrictive Covenants must be recorded in the real property records of the county in which the property is located before any capital improvement work commences on the property. (4) Compliance and Monitoring (a) Grantees must comply with and operate the property in accordance with the recorded Declaration of Restrictive Covenants for the duration of the use restriction period. (b) Annual reporting will be required for the duration of the use restriction period. (c) OHA may conduct monitoring to verify compliance, including review of facility operations, service capacity, population served, or program outputs. (d) Grantees must notify OHA prior to any transfer, sale, or refinancing of the property. (e) Regardless of any such sale or transfer, the use restriction is binding on successors and assigns in accordance with the terms of the Declaration of Restrictive Covenants. Statutory/Other Authority: ORS 413.042 Statutes/Other Implemented: ORS 413.042 History: BHS 22-2026, adopt filed 07/27/2026, effective 08/01/2026