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The Oregon Administrative Rules contain OARs filed through September 15, 2014
 
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HOUSING AND COMMUNITY SERVICES DEPARTMENT

 

DIVISION 15

OREGON RURAL REHABILITATION PROGRAM

 

813-015-0001

General Purpose

OAR chapter 813, division 15, is promulgated to accomplish the general purpose of ORS 456.515 to 456.725 and 566.310 to 566.360, specifically 566.340, which authorizes the Department to make funds available to provide housing or related facilities for Farmworkers. The objective of the Oregon Rural Rehabilitation (ORR) Program is to provide financial assistance in the form of ORR Loans to Eligible Borrowers for the construction, acquisition and/or rehabilitation of housing for Farmworkers and their families, thereby expanding the supply of affordable, decent and safe housing for Farmworkers and their families in Oregon.

Stat Auth: ORS 456.515 - 456.725
Stats Implemented: ORS 456.515 - 456.725, 566.310 - 566.360
Hist.: OHCS 19-2006, f. & cert. ef. 11-15-06

813-015-0006

Definitions

All words and terms used in OAR chapter 813, division 015, are defined in ORS 456.515 to 456.725, 566.310 to 566.360 and as provided in 813-005-0005 and herein. As used in these rules, unless the context indicates otherwise:

(1) "Eligible Project" means the acquisition, construction and/or rehabilitation of housing or related facilities which shall be primarily occupied by Farmworkers who, in the last 12 calendar months have, at a minimum, earned fifty percent (50%) of their income or worked fifty percent (50%) of their time in agriculture or aquaculture.

(2) "Farmworker" means any person working in connection with cultivating soil, raising or harvesting any agricultural or aquacultural commodity as further described in OAR 813-039-0010(6).

(3) "Fund" means the Oregon Rural Rehabilitation (ORR) Fund.

(4) "Nonprofit Housing Corporation" means an organization formed under ORS chapter 65 that has been organized exclusively to provide housing facilities as further described in ORS 456.615(14).

(5) "ORR Loan" means a loan by the Department to finance a Farmworker housing project as part of the Oregon Rural Rehabilitation Loan Program.

Stat Auth: ORS 456.515 - 456.725
Stats Implemented: ORS 456.515 - 456.725, 566.310 - 566.360
Hist.: OHCS 19-2006, f. & cert. ef. 11-15-06

813-015-0011

Eligibility for Funding

Subject to the availability of Funds and limitations otherwise prescribed by law, the Department may provide funding in the form of ORR Loans to Eligible Borrowers for Eligible Projects.

(1) The Department may make ORR Loans to Eligible Borrowers under the terms and conditions as set forth in the Program rules and Program loan application.

(2) Program criteria includes but is not limited to:

(a) The Eligible Borrower shall provide a complete Program loan application, as determined by the Department.

(b) The Eligible Project may be new construction, acquisition and/or rehabilitation, multiple homeownership or multi-family rental housing with a minimum of two (2) units.

(c) The ORR Loan may be in a first or junior lien position provided there is one-hundred percent (100%) or greater security of the ORR Loan for the full term, as determined by the Department.

(d) The ORR Loan shall not exceed 35 percent (35%) of the Eligible Project costs or $100,000; whichever is less, except upon a finding by the Department that special circumstances justify a greater amount at the discretion of the Director.

(e) Eligible Borrowers include Nonprofit Housing Corporations, for profit or governmental entities that are developers of affordable Farmworker housing.

(f) The Eligible Project must be used primarily as Farmworker housing with related support services, as further defined in Division 813-015-0006.

Stat Auth: ORS 456.515 - 456.725
Stats Implemented: ORS 456.515 - 456.725, 566.310 - 566.360
Hist.: OHCS 19-2006, f. & cert. ef. 11-15-06

813-015-0016

Availability and Source of Funds

(1) The Department may provide funding, subject to the availability of Funds through a process which may include, but is not limited to, a first come-first reviewed process or a competitive review process.

(2) The Oregon Rural Rehabilitation (ORR) Program is funded by monies realized from an agreement between the State of Oregon and the Secretary of Agriculture of the United States. The ORR fund was originally established following the Depression as part of New Deal efforts to stabilize the agricultural economy and strengthen rural communities. For many years the funds were administered by the federal government and the Oregon Rural Rehabilitation Corporation. The State Land Board became the successor to the Oregon Rural Rehabilitation Corporation in 1953. In 1975 an agreement was signed between the Division of State Lands and the U.S. Department of Agriculture, Farmers Home Administration, for administration of the ORR fund. In 1994 the Oregon Legislative Assembly transferred the ORR Program from the Division of State Lands to Oregon Housing and Community Services (OHCS). Since 1994, OHCS has operated the ORR fund as a revolving loan account.

Stat Auth: ORS 456.515 - 456.725
Stats Implemented: ORS 456.515 - 456.725, 566.310 - 566.360
Hist.: OHCS 19-2006, f. & cert. ef. 11-15-06

813-015-0021

Program Loan Terms

(1) The term of an ORR Loan may be up to, but shall at no time exceed, ten (10) years without prior written approval by the Department.

(2) Interest shall accrue at a per annum rate not exceeding one percent (1%) made to an Eligible Borrower who is a Nonprofit Housing Organization, and at a per annum rate not exceeding three percent (3%) made to any other Eligible Borrower.

(3) The Department will notify the Eligible Borrower of the type of funding, if any, to be provided and the terms and conditions of the ORR Loan in the form of a Commitment letter. The Commitment letter shall be executed by the Eligible Borrower prior to any advance of funds or contractual agreements are signed.

(4) The terms and conditions that may be contained in the Commitment letter may include, but are not limited to:

(a) The approved amount of the ORR Loan;

(b) The charges and premiums that are due and payable;

(c) The interest rate;

(d) The repayment terms;

(e) The Loan Documents to be executed by the Eligible Borrower;

(f) Performance criteria; and,

(g) Reporting criteria.

(3) If during the term of the ORR Loan, the Eligible Borrower does not comply with the terms and conditions of the Commitment letter and Loan Documents, the Department may, upon written notice to the Eligible Borrower, immediately revoke approval of the use of the Funds, terminate any Commitment to provide funding and/or demand repayment of all or a portion of the Funds advanced, if any.

Stat Auth: ORS 456.515 - 456.725
Stats Implemented: ORS 456.515 - 456.725, 566.310 - 566.360
Hist.: OHCS 19-2006, f. & cert. ef. 11-15-06

813-015-0026

Loan Security

Not withstanding any other provision contained in the Program rules, the Department will not disburse funds for an ORR Loan until:

(1) The Eligible Borrower has provided adequate verification, satisfactory to the Department, which determines the value of the security.

(2) The ORR Loan is secured by a fully executed trust deed note and other appropriate Loan Documents as determined by the Department.

(3) The trust deed is recorded and is in an acceptable lien position, as determined by the Department.

(4) The Eligible Borrower has satisfied all conditions contained in the Commitment letter.

Stat Auth: ORS 456.515 - 456.725
Stats Implemented: ORS 456.515 - 456.725, 566.310 - 566.360
Hist.: OHCS 19-2006, f. & cert. ef. 11-15-06

813-015-0031

Application Requirements

An Eligible Borrower shall submit, in form and in accordance with a process prescribed by the Department, information which includes but is not limited to:

(1) Completion of the prescribed Program loan application accompanied by the application charge as determined by the Department.

(2) The prescribed Program loan application may include, but is not limited to:

(a) A written description of the Eligible Project, including the number of units, proposed rents, site location, the proposed program of services for residents and the availability of those services in the future, Eligible Project amenities, and any other information pertinent to the Eligible Project;

(b) A proforma of the Eligible Project's operating budget, sources of funding, and development budget;

(c) The amount of Funds requested;

(d) A description of the experience of the Eligible Borrower, consultant, property manager, general contractor, and other members of the development team as requested by the Department;

(e) Adequate verification of value for the collateral offered as security for the ORR Loan;

(f) A financially viable repayment plan that meets the Program loan terms; and

(g) Such other information and documentation as prescribed in the Program loan application and as the Department may require.

(3) The Department may require a non-refundable application charge from any Eligible Borrower requesting an ORR Loan.

(4) The Department may require a non-refundable loan commitment charge payable at the time of loan closing or after acceptance of the Commitment Letter, as determined by the Department.

Stat Auth: ORS 456.515 - 456.725
Stats Implemented: ORS 456.515 - 456.725, 566.310 - 566.360
Hist.: OHCS 19-2006, f. & cert. ef. 11-15-06

813-015-0035

Application Review and Processing Procedures

(1) The Department will review Program loan applications upon their appropriate delivery subject to, but not limited to:

(a) Applications being complete and consistent with Department and Program requirements, guidelines and policy standards.

(2) ORR Loans not exceeding $100,000 may be approved by the Department. Any ORR Loan exceeding $100,000 must be approved by the State Housing Council.

(3) After consideration of the proposal, the Department will approve or disapprove the ORR Loan request or take other appropriate action.

(4) The Eligible Borrower will be notified in writing of the Department's decision.

(5) If a ORR Loan request is approved, the Department will issue a Commitment letter containing the terms and conditions on which the Department will close the ORR Loan.

(6) In approving or disapproving any ORR Loan application, the Department may consider, but is not limited to, the following criteria:

(a) Availability of Program Funds;

(b) Ability to leverage public or private funds;

(c) Geographic area affected;

(d) Number and type of housing units to be provided or the number of Farmworkers to be housed;

(e) Financial strength and viability of the proposed Eligible Project;

(f) Experience of the development team;

(g) The development team's readiness to proceed with development;

(h) The proposed repayment plan;

(i) The value of the security offered as collateral; and

(j) Administrative costs and/or responsibilities imposed on the Department in connection with the proposed Funding.

(7) ORR Loan funds will be disbursed upon the Eligible Borrower executing the Commitment letter, satisfying all pre-closing conditions contained in the Commitment letter, and execution of the Loan Documents.

Stat Auth: ORS 456.515 - 456.725
Stats Implemented: ORS 456.515 - 456.725, 566.310 - 566.360
Hist.: OHCS 19-2006, f. & cert. ef. 11-15-06

813-015-0040

Transfer of Ownership

(1) An Eligible Borrower who has received an ORR Loan shall not transfer ownership, lease, or otherwise encumber any property which serves as security for a ORR Loan without prior written consent from the Department. Consent will not be unreasonably withheld.

(2) A transfer of ownership means a sale, conveyance or other transfer of:

(a) Any interest of a general partner;

(b) Any interest in a joint venture;

(c) More than twenty-five percent (25%) of the limited partner's interest;

(d) More than ten percent (10%) of a corporate owner's interest; or

(e) Any individual interest when the ownership is not a limited partnership, joint venture or corporation.

(3) The Department may collect from the Eligible Borrower a transfer processing charge of 1% of the current ORR Loan balance with a minimum of $100 and a maximum of $1,000, plus any incurred Department of Justice charges or other legal costs incurred.

Stat Auth: ORS 456.515 - 456.725
Stats Implemented: ORS 456.515 - 456.725, 566.310 - 566.360
Hist.: OHCS 19-2006, f. & cert. ef. 11-15-06

813-015-0045

Equal Opportunity

No person receiving Program Funding under OAR chapter 813, division 15, shall make any distinction or restriction or discriminate against any purchaser, occupant or lessee, or prospective purchaser, occupant or lessee, relating to the sale, rental, lease or occupancy of real property, because of race, color, creed, sex, marital status or national origin.

Stat Auth: ORS 456.515 - 456.725
Stats Implemented: ORS 456.515 - 456.725, 566.310 - 566.360
Hist.: OHCS 19-2006, f. & cert. ef. 11-15-06

813-015-0050

Waiver

The Department may waive or modify any requirements of OAR 813, division 015, unless such waiver or modification would violate applicable federal or state statures or regulations.

Stat Auth: ORS 456.515 - 456.725
Stats Implemented: ORS 456.515 - 456.725, 566.310 - 566.360
Hist.: OHCS 19-2006, f. & cert. ef. 11-15-06

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