Or. Admin. Code § 813-038-0020

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

Section 813-038-0020 - [Effective until 1/27/2025] Program Criteria

(1) OHCS may establish one or more programs to support partners as OHCS determines is prudent. Programs may be established to address different stages of the predevelopment process, different categories of vulnerable partners, different aspects of predevelopment costs or separated in any other way OHCS determines appropriate.

(2) Any predevelopment loan program subject to this rule should include, but is not limited to, the following program criteria. The Eligible Borrower shall provide:

(a) A complete Program Application satisfactory to OHCS that appropriately demonstrates the need for and projected use of the requested Loan;

(b) Such other information, warranties and assurances as OHCS may require, including that it will comply with all Program requirements as set forth in statute, these rules, the Application, and the Loan Documents, and;

(c) That the Loan will not exceed 100% of the value of the Collateral unless otherwise approved in writing by OHCS and may have such other conditions and requirements as OHCS, in its sole discretion, determines to be reasonable or appropriate.

(3) A proposed multi-family rental housing Eligible Project must have five (5) or more rental housing units. The partner must agree to the terms upon affordable housing project completion, the greater of 10 or 10% of the total units must be occupied by households whose incomes are less than 120% of the area median income. Rents for income restricted units must also be restricted as required by the Department.

(4) Loan funds may be disbursed in a lump sum, in installments, or on a cost reimbursement basis as determined by OHCS.

(5) The Program Application shall include a plan, as determined by OHCS, to make repayment of the loan. Terms and conditions may vary by program and Departmental intent.

(6) OHCS may require other information as it deems appropriate prior to disbursement of any Loan Funds.

(7) The Commitment Letter must be executed by an authorized signor of the Eligible Borrower and returned to OHCS prior to any disbursement of Loan Funds.

(8) Notwithstanding any Commitment, disbursement of Loan Funds to the Eligible Borrower by OHCS is specifically conditioned upon the Borrower's execution, delivery and recording of Loan and other Program documents satisfactory to OHCS.

(9) OHCS may give a preference for a Loan based upon factors that may include, but are not limited to, those described in subparagraph 038-0030(2) and the following:

(a) Projects providing the greatest number of suitable housing units constructed, acquired, developed or rehabilitated for the least amount of loan; and

(b) Those Program applications which, in the sole judgment of OHCS, best achieve the purposes of the Predevelopment Loan Program.

(10) OHCS will make Loans to Eligible Borrowers under the terms of a written Commitment Letter.

(11) The Borrower shall comply with the provisions of these rules, appropriate directives of OHCS, and the Loan Documents. If the Borrower does not comply or fails to comply, OHCS may revoke its Commitment Letter and demand immediate repayment of all or a portion of the Loan Funds advanced.

Or. Admin. Code § 813-038-0020

OHCS 12-2007, f. & cert. ef. 5-10-07; OHCS 24-2024, temporary amend filed 07/31/2024, effective 8/1/2024 through 1/27/2025

Statutory/Other Authority: ORS Ch. 183, 456.555(2) & 456.625(12)

Statutes/Other Implemented: ORS 456.561, 456.574, 456.620 & 456.625