Or. Admin. Code § 813-037-0040

Current through Register Vol. 63, No. 12, December 1, 2024

Section 813-037-0040 - Program or Loan Default

(1) OHCS may deem an LAP loan to be in default when one or more of the following events occur:

(a) A loan recipient does not place appropriate affordable housing into service on a property acquired under this section within eight years of receiving OHCS's LAP funding.

(b) The property is not used for an eligible purpose as determined by OHCS.

(c) Loan repayment is not made as required under the loan agreement.

(d) A loan recipient does not provide an updated development plan to OHCS within five years of receiving a loan.

(e) The loan recipient otherwise fails to perform in a manner consistent with the LAP or applicable loan documents.

(2) If a loan recipient fails to place appropriate affordable housing into service in conformance with subsection (1)(a) or when a loan or LAP default otherwise occurs, the loan recipient must pay OHCS an amount consistent with the principal of the original loan plus compounded interest calculated at the current market rate. Loan fees and other costs may also apply. Notwithstanding the foregoing, OHCS may, in its sole discretion, grant a partial or total exemption from the repayment requirements of this section if OHCS determines that a project is Substantially Completed or that the property has been substantially used as described in the original affordable housing development plan. When determining whether to grant a partial or total exemption under this section, OHCS may consider factors including, but not limited to, Extenuating Circumstances, community need and project specific circumstances.

Or. Admin. Code § 813-037-0040

OHCS 16-2018, adopt filed 10/24/2018, effective 10/24/2018; OHCS 5-2022, amend filed 02/28/2022, effective 3/1/2022

Statutory/Other Authority: ORS 456.502

Statutes/Other Implemented: ORS 456.502