Oregon Administrative Rules › Chapter 410 - OREGON HEALTH AUTHORITY, HEALTH SYSTEMS DIVISION: MEDICAL ASSISTANCE PROGRAMS › Division 141 - OREGON HEALTH PLAN › Section 410-141-5115 - ASSET VALUATION AND PERMITTED INVESTMENTS: Investment in Real Property

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Except as
			 otherwise provided in OAR 410-141-5105  and OAR 410-141-5110, a CCO may invest
			 in real property only if used for the purposes or acquired in the manner and
			 within the limits as follows:
(a) A CCO may
			 invest in the land and the buildings thereon in which it has its principal
			 office, and in such other real property as required for its convenient
			 accommodation in the transaction of business. Such investments shall not exceed
			 in the aggregate ten percent of the assets of the CCO, except with the consent
			 of the Authority.
(b) A CCO may
			 invest in real property that is acquired in satisfaction of loans, mortgages,
			 liens, judgments or debts previously owing to the CCO in the course of its
			 business.
(c) A CCO may invest in
			 real property acquired in part payment of the consideration on the sale of
			 other real property owned by the CCO if the transaction does not increase the
			 investment of the CCO in real property.
(d) A CCO may invest in real property
			 acquired by gift or devise or through merger, consolidation or bulk reinsurance
			 of another CCO.
(e) A CCO may
			 invest in the vendor's interest in real property subject to a contract of sale.
			 The amount invested in the vendor's interest under such a contract shall not
			 exceed, except with the consent of the Authority:
(A) Ninety percent of the market value of the
			 subject real property, when the real property is one, or two-family residential
			 property.
(B) Eighty percent of the
			 market value of the subject real property, when the real property is other than
			 that described in subparagraph (A) of this paragraph.
(f) A CCO may invest in real property or any
			 interest therein that is acquired or held by purchase, lease or otherwise,
			 other than real property used primarily for agricultural, ranch, mining,
			 development of oil or mineral resources, recreational, amusement or club
			 purposes, if the real property or interest therein is acquired as an investment
			 for the production of income or acquired to be improved or developed for such
			 investment purposes pursuant to an existing program therefor. A CCO may hold,
			 improve, develop, maintain, manage, lease, sell and convey real property
			 acquired by it under this paragraph. Real property and interests therein so
			 acquired may be leased or sublet. Except with the consent of the Authority, a
			 CCO shall not have an amount exceeding five percent of its assets at any one
			 time invested in real property and interests therein under this
			 paragraph.
(g) A CCO may invest in
			 additional real property and in equipment incident to real property if
			 necessary or convenient for the purpose of enhancing the sale or other value of
			 real property previously acquired or held by the CCO under paragraph (b), (c),
			 (d) or (f) of this subsection. The real property and equipment shall be
			 included, together with the real property for the enhancement of which it was
			 acquired, for the purpose of applicable investment limits.
(h) A CCO may invest in real property without
			 regard to whether the property is income-producing when acquired if the CCO
			 intends to improve the property for resale or if the CCO intends that the
			 property will be income-producing. The CCO may also invest in real property
			 that is income-producing and used primarily for agricultural, ranch, mining,
			 development of oil or mineral resources, recreational, amusement or club
			 purposes. Funds invested under this paragraph shall not exceed the lesser of
			 five percent of the CCO's assets or 50 percent of the CCO's capital and
			 surplus, except with the consent of the Authority.
(i) Except with the consent of the Authority,
			 all real property owned by the CCO under this subsection, except as to
			 properties described in paragraphs (a) and (e) of this subsection, shall not at
			 any time exceed 10 percent of the assets of the CCO.