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

 

DIVISION 41

AGRICULTURE WORKFORCE HOUSING TAX CREDIT PROGRAM

813-041-0000

Purpose

The rules in OAR chapter 813, division 41, are adopted to carry out the Agriculture Workforce Housing Tax Credit Program (the “program”) established in ORS 315.163 to 315.169 insofar as 315.163 to 315.169 pertains to the Housing and Community Services Department (“department”). The purpose of the program is to encourage the rehabilitation of existing housing and the construction or placement of additional housing for agricultural workers.

Stat. Auth.: ORS 315.167 - 315.139 & 458.650
Stats Implemented: ORS 315.617
Hist.: OHCS 7-2001(Temp), f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp), f. & cert. ef. 3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02; OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10; OHCS 6-2010, f. & cert. ef. 6-10-10; OHCS 33-2014, f. & cert. ef. 10-9-14

813-041-0006

Definitions

Terms defined in ORS 315.163 used in the Agriculture Workforce Housing Tax Credit Program are set out as follows for the reader’s convenience:

(1)(a) “Acquisition costs” means the cost of acquiring buildings, structures and improvements that constitute or will constitute agriculture workforce housing.

(b) “Acquisition costs” does not include the cost of acquiring land on which agriculture workforce housing is or will be located.

(2) “Agricultural worker” means any person who, for an agreed remuneration or rate of pay, performs temporary or permanent labor for another in the:

(a) Production of agricultural or aqua cultural crops or products;

(b) Handling of agricultural or aqua cultural crops or products in an unprocessed stage;

(c) Processing of agricultural or aqua cultural crops or products;

(d) Planting, cultivating or harvesting of seasonal agricultural crops; or

(e) Forestation or reforestation of lands, including but not limited to the planting, transplanting, tubing, precommercial thinning, and thinning of trees and seedlings, the clearing, piling and disposal of brush and slash and other related activities.

(3) “Agriculture workforce housing” means housing:

(a) Limited to occupancy by agriculture workers, including agriculture workers who are retired or disabled, and their immediate families; and,

(b) No dwelling unit of which is occupied by a relative of the owner or operator of the agricultural workforce housing, except in the case of a manufactured dwelling in a manufactured dwelling park nonprofit cooperative as that term is defined in ORS 62.803.

(4) “Agricultural workforce housing project” means the acquisition, construction, installation or rehabilitation of farmworker housing.

(5) “Condition of habitability” means a condition that is in compliance with:

(a) The applicable provisions of the state building code under ORS Chapter 455 and the rules adopted thereunder; or

(b) If determined on or before December 31, 1995, sections 12 and 13, chapter 964, Oregon Laws 1989.

(6) “Contributor” means a person:

(a) That acquired, constructed, manufactured or installed agriculture workforce housing or contributed money to finance an agriculture workforce housing project; or

(b) That has purchased or otherwise received via transfer a credit as provided in ORS 315.169.

(7) “Eligible costs” includes acquisition costs, finance costs, construction costs, excavation costs, installation costs and permit costs and excludes land costs.

(8)(a) “Owner” means a person that owns agriculture workforce housing.

(b) “Owner” does not include a person that only has an interest in the housing as a holder of a security interest.

(9) “Rehabilitation” means to make repairs or improvements to a building that improve its livability and are consistent with applicable building codes.

(10) “Relative” means a brother or sister (whether by the whole or by half-blood), spouse, ancestor (whether by law or by blood), or lineal descendant of an individual.

(11) “Taxpayer” includes a nonprofit corporation, a tax-exempt entity or any other person not subject to tax under ORS chapter 316, 317 or 318.

Stat Auth.: ORS 315.163 to 315.169 and 456.555
Stats Implemented: ORS 315.163
Hist.: OHCS 33-2014, f. & cert. ef. 10-9-14

813-041-0010

Program Description and Application Requirements

(1) A taxpayer who is an owner or operator of agriculture workforce housing, or a contributor, may obtain a letter of credit approval from the department for the purpose of claiming a tax credit for such agriculture workforce housing if the taxpayer submits an application for the credit as required by ORS 315.167 and if the department approves the application. The application must be submitted on the application form furnished or required by the department and must comply with all requirements established by the department.

(2) To claim the tax credit for a specific year, a taxpayer must file the application in a manner consistent with this section after January 2 of the year for which the credit is claimed, or after another date established in the department’s annual notice referred to in section (4) of this rule. An application is filed with the department:

(a) As of the date of the postmark of the United States Postal Service if the application is mailed;

(b) As of the date printed by the department fax machine if the application is sent electronically by facsimile; or

(c) As of the date stamped by the department if the application is hand delivered.

(3) A taxpayer may apply to the department for a waiver of the length of time for which the taxpayer must show the housing continues to be operated as agriculture workforce housing as authorized by ORS 315.164 by submitting to the department an application for the waiver on the form furnished or required by the department and by complying with all requirements established by the department. Factors that the department may consider in determining to grant such a waiver or the extent of such a waiver include, but are not limited to:

(a) Documentation of a decline in demand for agriculture workforce housing within a relevant area;

(b) The ongoing financial feasibility of the agriculture workforce housing;

(c) The availability of relevant services in the area;

(d) Past compliance by the owner of the agriculture workforce housing with department requirements; and

(e) The condition of the agriculture workforce housing.

(4) A taxpayer is responsible for being informed of current application requirements of the program, including but not limited to information as provided by the department through its applicable solicitation for applications whether or not posted on the department’s website.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 315.167 - 315.169 & 458.650
Stats Implemented: ORS 315.617
Hist.: OHCS 7-2001(Temp), f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp), f. & cert. ef. 3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02; OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10; OHCS 6-2010, f. & cert. ef. 6-10-10; OHCS 33-2014, f. & cert. ef. 10-9-14

813-041-0015

Evaluation of Applications.

(1) The department’s evaluation and approval of an application is subject to the terms of the applicable solicitation, the provisions of this section, other applicable law, and the annual limitation on the total of estimated eligible costs for all approved projects for the calendar year established under ORS 315.167. The application review process may be on an invitation basis, a first come-first reviewed process, a competitive review process, an evaluation as a demonstration program, or any other process deemed necessary or appropriate by the department.

(2) The department may create a soft set-aside of credits solely for on-farm projects. Such set-aside will extend up to June 30 of the given calendar year. Credits not awarded by that time normally will be made available to other qualifying projects.

(3) Applications are subject to evaluation by the department according to criteria that may include, but are not limited to the following:

(a) Completeness, level of detail and accuracy of the information included in the application;

(b) The qualifying status of the taxpayer and of the proposed project;

(c) The viability of the project, including as reflected in the estimated eligible costs and other support funding as appropriately documented; and

(d) Such other criteria established by the department, including but not limited to those described in the applicable solicitation.

(4) An application is subject to one or more of the following actions by the department:

(a) An application determined by the department in the evaluation process not to include specific or substantial information about the project or to be incomplete or inaccurate in any respect may be declined by the department and returned to the taxpayer as not qualifying for further evaluation;

(b) The department may issue a request to the taxpayer to provide or correct, within 15 days, any information deemed missing, inaccurate or inadequate in the application and, if the supplemental information is not timely submitted or deemed adequate by the department, the application may be declined by the department and returned to the taxpayer as not qualifying for further evaluation;

(c) Issuance of a letter of credit approval, including in a credit amount reduced from the amount requested to the minimum amount determined by the department to be required to make the project financially viable, including as needed by the project for leverage or match of state, federal or other funding.

(5) Factors that the department may consider in prioritizing one application over others may include, but are not limited to:

(a) The quality of the application;

(b) The location of the project;

(c) The market demand for and financial feasibility of the project;

(d) The particulars of the appraisal of the project;

(e) Whether or not the project meets all applicable state and local land use and zoning requirements, housing codes and similar requirements;

(f) Whether or not the project meets all other applicable laws and program requirements;

(g) The target population to be served;

(h) The availability and sustainability of related tenant services;

(i) The extent and duration of affordability to be provided; and

(j) The department’s experience with and the reputation, experience and capacity of the project sponsor and its agents, representatives, employees and contractors.

Stat. Auth.: ORS 315.167 315.169 & 458.650
Stats Implemented: ORS 315.617
Hist.: OHCS 7-2001(Temp), f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp), f. & cert. ef. 3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02; OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10; OHCS 6-2010, f. & cert. ef. 6-10-10; OHCS 33-2014, f. & cert. ef. 10-9-14

813-041-0020

Standby Applications

(1) If an application is subject to being declined by the department as not qualifying for further evaluation solely because the estimated eligible costs, when aggregated with the estimated eligible costs of all projects approved to that date for the calendar year, exceeds the limitation on the total of estimated eligible costs under ORS 315.167, the taxpayer may:

(a) Request reduction of the estimated eligible costs for the project to an amount that, when aggregated with the estimated eligible costs of all projects approved to that date for the calendar year, would not exceed the limitation; or

(b) Request that the department place the taxpayer on a standby list for future possible eligibility.

(2) Applications on a standby list under this rule will be held in such priority as the department determines to be appropriate considering factors including, but not limited to those enumerated in 0015 above.

(3) The department may select and process a standby application whenever the department determines that credit is available for funding the application. The taxpayer may update the taxpayer’s application as needed within the time provided by the department.

(4) All outstanding standby applications expire on December 31 of the calendar year of their filing.

Stat. Auth.: ORS 315.163 - 315.169 & 456.555
Stats Implemented: ORS 315.163 - 315.169
Hist.: OHCS 7-2001(Temp), f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp), f. & cert. ef. 3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02; OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10; OHCS 6-2010, f. & cert. ef. 6-10-10; OHCS 8-2010(Temp), f. & cert. ef. 6-17-10 thru 12-13-10; OHCS 16-2010, f. & cert. ef. 12-15-10; OHCS 33-2014, f. & cert. ef. 10-9-14

813-041-0027

Charges

(1) The department may assess and the assessed taxpayer or other applicable party shall pay such charges as the department determines appropriate for reviewing an application as well as for issuance of a letter of credit approval.

(2) The department may assess and the assessed taxpayer, owner, operator or other applicable party shall pay such charges as the department determines appropriate from time to time for its monitoring of the project for compliance with program requirements or enforcement of appropriate program compliance, including but not limited to meeting appropriate construction and maintenance standards, and satisfying and documenting applicable affordability compliance.

Stat. Auth.: ORS 315-164 - 315.169
Stats Implemented: ORS 315.163 - 315.169
Hist.: OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10; OHCS 6-2010, f. & cert. ef. 6-10-10; OHCS 33-2014, f. & cert. ef. 10-9-14

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