Or. Admin. Code § 813-110-0013

Current through Register Vol. 63, No. 11, November 1, 2024

Section 813-110-0013 - [Effective 11/26/2024] Loan Requirements

To be eligible for the OAHTC program tax credit, the loan shall be:

(1) Made to a qualified borrower who;

(a) Uses the proceeds to finance construction, development, acquisition, or rehabilitation of housing; and,

(b) Provides a written declaration to OHCS that the:

(A) Housing created by the loan is or will be occupied by households earning 80 percent or less of the area median income; and,

(B) The full amount of the savings, from the reduced interest rate provided by the lending institution, is or will be passed through to the qualified tenants in the form of a rent reduction or housing payment reduction, regardless of other subsidies provided directly to the housing project,

(C) In satisfying the pass-through requirement in OAR 813-110-0013(B), project sponsors may not assign pass-through to units whose qualified tenants are benefitting from a project-based voucher,

(D) In satisfying the pass through requirement in OAR 813-110-0013(B), may not assign more than the estimated prorated annual per unit pass-through to units whose qualified tenants benefit from a tenant-based voucher.

(E) Limited Equity Cooperative projects satisfy the pass-through requirement in OAR 813-110-0013(B) by passing through the full amount of the savings to households in the Limited Equity Cooperative in the form of reduced housing payments,

(F) The estimated annual average per-unit pass-through for the projects is to be calculated by dividing the annual loan interest savings, divided by twelve months, and then by dividing the number of affordable units occupied or held vacant for occupancy by qualified tenants, or

(2) Made to a qualified borrower who;

(a) Uses the proceeds to finance construction, development, acquisition, or acquisition and rehabilitation of housing consisting of a manufactured dwelling park;

(b) The housing created by the loan is or will be occupied by a significant number of households, defined as 30% or more of all households at initial tenant qualification, earning 80 percent or less of the area median income; and,

(c) Provides by a written declaration to OHCS that the housing will continue to be operated as a manufactured dwelling park during the period for which the OAHTC program tax credit is allowed, or

(3) Made to a qualified borrower who;

(a) Uses the proceeds to finance acquisition, or acquisition and rehabilitation, of housing consisting of a preservation project; and,

(b) Provides a written declaration to OHCS that the housing preserved by the loan:

(A) Is or will be occupied by households earning 80 percent or less of the area median income; and

(B) Has a rent assistance contract with the United States Department of Housing and Urban Development (HUD) or the United States Department of Agriculture that will be maintained by the qualified borrower, or;

(4) Made to qualified borrower who;

(a) Uses the proceeds to finance construction, development, acquisition, or rehabilitation, of housing; and,

(b) Enters into a written declaration of restricted covenants with OHCS including the following minimum written requirements and any other that OHCS deems necessary:

(A) The housing is or will be occupied by the households earning 80 percent or less of the area median income, and

(B) Is the subject of a rent assistance contract with the federal government or the state government or a local government that will be maintained by the qualified borrower, and

(C) That limits a tenant's rent burden to no more than 30 percent of their income, and

(D) Has the declaration recorded

(5) For the project to qualify under OAR 813-110-0013 (3) and (4), a minimum of 25 percent of the total units must be covered by the rent assistance contract.

Or. Admin. Code § 813-110-0013

OHCS 14-2007(Temp), f. & cert. ef. 10-16-07 thru 4-12-08; OHCS 5-2008, f. & cert. ef. 4-11-08; Suspended by OHCS 9-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; OHCS 22-2013, f. & cert. ef. 12-18-13; OHCS 4-2016(Temp), f. & cert. ef. 5-5-16 thru 10-31-16; OHCS 12-2016, f. & cert. ef. 10/13/2016; OHCS 21-2022, amend filed 08/30/2022, effective 9/9/2022; OHCS 12-2023, temporary amend filed 06/02/2023, effective 6/2/2023 through 11/28/2023; OHCS 20-2024, temporary amend filed 05/31/2024, effective 5/31/2024 through 11/26/2024; OHCS 27-2024, amend filed 08/27/2024, effective 9/2/2024

Statutory/Other Authority: ORS 317.097 & ORS 456.515 - 456.725

Statutes/Other Implemented: ORS 317.097