Loading
The Oregon Administrative Rules contain OARs filed through November 15, 2014
 
QUESTIONS ABOUT THE CONTENT OR MEANING OF THIS AGENCY'S RULES?
CLICK HERE TO ACCESS RULES COORDINATOR CONTACT INFORMATION

 

HOUSING AND COMMUNITY SERVICES DEPARTMENT

 

DIVISION 43

HOUSING DEVELOPMENT AND LOAN GUARANTEE PROGRAM

813-043-0000

Purpose and Objectives

The rules of OAR Chapter 813, Division 043, are established to accomplish the general purpose of 1991 Legislative Session law; Chapter 740, the Oregon Housing Fund and the Housing Development and Guarantee Account therein, which authorizes the Department to establish a program to expand the state's supply of housing for low and very low income families and individuals including, but not limited to, persons more than 65 years of age, disabled persons, farm workers, and Native Americans. These rules describe the Housing Development and Loan Guarantee Program and its objective to provide grants and loan guarantees to construct new housing or to acquire and/or rehabilitate existing structures for housing for persons of Low and/or Very Low Income.

Stat. Auth.: ORS 458.600 - ORS 458.650
Stats. Implemented: ORS 458.600 - ORS 458.650 & Ch. 740, OL 1991
Hist.: HSG 4-1991(Temp), f. & cert. ef. 10-10-91; HSG 4-1992, f. & cert. ef. 4-28-92

813-043-0010

Definitions

(1) All words and terms are used in OAR Chapter 813, Division 43, as defined in the Act, and as provided in 813-005-0005 and herein. As used in these rules, unless the context indicates otherwise:

(a) "Account" means the Housing Development and Guarantee Account;

(b) "Council" means the State Housing Council established in ORS 456.567;

(c) "Department" means the Oregon agency established under 1991 Legislative Session Law, Chapter 739;

(d) "Disabled" means those persons described as such by the Fair Housing Amendments Act of 1988;

(e) "In-Kind Contribution" means a supportive project contribution other than cash. In-Kind Contributions include, but are not limited, to office equipment, working space, office supplies, staff time, telephone, support staff time, auto use, donated project materials or labor, and non-Board volunteer time;

(f) "Low Income" means a household with an adjusted annual household income that is more than 50 percent but less than 80 percent of the area median income, as determined by the council, based on information from the United States Department of Housing and Urban Development, with allowances for family size;

(g) "Organization" means a:

(A) Nonprofit corporation established under ORS Chapter 65;

(B) Housing authority established under ORS 456.055 to 456.230; or

(C) Local government as defined in ORS 197.015.

(h) "Very Low Income" means a household with an adjusted annual household income that is less than 50 percent of the area median income, as determined by the council, based on information from the United States Department of Housing and Urban Development, with allowances for family size.

Stat. Auth.: ORS 458.600 - ORS 458.650
Stats. Implemented: ORS 458.600 - ORS 458.650 & Ch. 740, OL 1991
Hist.: HSG 4-1991(Temp), f. & cert. ef. 10-10-91; HSG 4-1992, f. & cert. ef. 4-28-92; HSG 1-1995, f. & cert. ef. 5-4-95

813-043-0020

Eligibility for Housing Development and Guarantee Account Funds

(1) The Department shall provide grants from Account revenue subject to the availability of funds and limitations otherwise prescribed by law for any or all of the following purposes:

(a) To Organizations and for-profit business entities to construct new housing or to acquire and/or rehabilitate existing structures for housing households with low and/or very low income;

(b) To nonprofit organizations, as set forth in ORS 458.210 to 458.240, to provide technical assistance and/or predevelopment costs. Pre-development costs include but are not limited to, site acquisition, architectural services and project consultants. Predevelopment costs do not include costs described in subsection (c) of this section;

(c) For costs to develop nonprofit organizations that show sufficient evidence of having strong community support and a strong likelihood of producing Low and/or Very Low Income housing. No account funds shall be used by an Organization for its general operations;

(d) To match public and private moneys available from other sources for purposes of production of Low and/or Very Low Income housing.

(2) The Department shall provide guarantees of repayment of loans made to finance the construction, acquisition and/or rehabilitation of Low and/or Very Low Income housing. The loan guarantees shall be secured by the principal of the Account, subject to the Account balance and limitations otherwise prescribed by law. The Department shall not:

(a) Issue any loan guarantee that guarantees the repayment of more than 25 percent of the original principal balance of any loan;

(b) At any time allow the aggregate dollar total of all loan guarantees issued to exceed the total amount then in the account.

Stat. Auth.: ORS 458.600 - ORS 458.650
Stats. Implemented: ORS 458.600 - ORS 458.650 & Ch. 740, OL 1991
Hist.: HSG 4-1991(Temp), f. & cert. ef. 10-10-91; HSG 4-1992, f. & cert. ef. 4-28-92; HSG 6-1994, f. & cert. ef. 9-9-94

813-043-0030

Distribution of Funds

(1) The Department shall develop a distribution formula which takes into account the relative housing needs of regions and shall concentrate funds in those areas of the state with the greatest housing need, as may be evidenced by factors including but not limited to, the unmet housing need, extent of overcrowding, and number of poverty households.

(2) The distribution formula shall provide for a minimum amount of funds to regions of the state. If an inadequate number of applications are submitted from a particular region to use the minimum regional amount, then the funds may be redistributed to other regions.

Stat. Auth.: ORS 458.600 - 458.650
Stats. Implemented: ORS 458.600 - 458.650 & Ch. 740, OL 1991
Hist.: HSG 4-1991(Temp), f. & cert. ef. 10-10-91; HSG 4-1992, f. & cert. ef. 4-28-92; OHCS 13-2010(Temp), f. & cert. ef. 8-24-10 thru 2-18-11; OHCS 3-2011, f. & cert. ef. 2-17-11

813-043-0040

Application Procedure and Requirements

(1) The Department may provide grant funds subject to the availablility of funds in the program through a process which may include, but is not limited to, a first come - first reviewed or a competitive review process. The applicant shall submit, in an application form and process prescribed by the Department, project information including, but not limited to:

(a) A written description of the project including, but not limited to, the number of units, unit mix, proposed rents, site location, the proposed program of services to occupants and the availability of these services in the future, project amenities, and any other information pertinent to the project;

(b) A statement of project purpose indicating the housing type and tenants to be housed, and the length of time the units will be committed available for Low or Very Low Income households;

(c) A proforma of project expenses and income;

(d) Grant amount requested and total project development costs, including a description of all additional project funding and funding sources;

(e) A description of the sponsor/developer/owner/manager experience in developing and operating housing projects;

(f) Such other documentation as the Department may require.

(2) A lender may submit a request for a loan guarantee to the Department for a project that needs a credit enhancement in order to obtain a loan. Only projects that serve Low and/or Very Low Income households are eligible for loan guarantees, including construction loans. The lender's request shall include, but is not limited to:

(a) A written description of the project including but not limited to, the number of units, unit mix, proposed rents, site location and amenities and any other information pertinent to the project;

(b) A statement of project purpose indicating the housing type and tenants to be housed;

(c) A proforma of project expenses and income;

(d) The Loan Guarantee amount requested and total project development costs, including a description of all additional project funding and funding sources;

(e) A description of the sponsor/developer/owner/manager experience in developing and operating housing projects;

(f) Such other documentation as the Department may require;

(g) A $100 non-refundable application fee;

(h) A non refundable construction loan application fee not to exceed $350.

Stat. Auth.: ORS 458.600 - ORS 458.650
Stats. Implemented: ORS 458.600 - ORS 458.650 & Ch. 740, OL 1991
Hist.: HSG 4-1991(Temp), f. & cert. ef. 10-10-91; HSG 4-1992, f. & cert. ef. 4-28-92; HSG 6-1994, f. & cert. ef. 9-9-94

813-043-0050

Criteria for Funding or Guarantee

(1) A project grant award or loan guarantee shall be given preference based on:

(a) Providing the greatest number of Low and Very Low Income housing units for the least amount of account funds expended or committed toward matching funds from other loans, grants, or eligible In-Kind Contributions;

(b) Insuring the longest possible use as Low or Very Low Income housing units; or

(c) Including a program of services for occupants of proposed housing including, but not limited to, programs that address home health care, mental health services, alcohol and drug treatment and post-treatment care, child care and case management;

(d) Other subordinate criteria as determined by the Department including, but not limited to:

(A) Providing housing for a seasonal workforce, where a critical need for housing such a workforce exists in the community;

(B) Providing housing for specific populations which have top priority for that region in the state's Comprehensive Housing Affordability Study (CHAS) or in the CHAS for that community, and have historically faced barriers in finding housing.

(2) Among relatively equivalent applications for grant awards or loan guarantees for farmworker housing, the Department shall give preference to projects which are not under the control of employers. "Control" in this section means the ownership, management, or maintenance of the housing projects. "Employers" in this section includes relatives, agents, or associations of employers.

(3) In evaluating housing projects that serve a predominantly non-English speaking population, the Department shall give subordinate preference to projects which mitigate the language barrier impact in the provision of supportive services.

(4) A grant to a project shall be conditioned upon the continued use of the project for the targeted tenant group and provision of supportive services for the duration and to the extent indicated in the grant application. The Department, at its dicretion, may require repayment of the grant if all or part of the commitments to tenant groups, supportive services, or period of use for Low or Very Low Income housing are withdrawn from the project. Grant terms and conditions shall be established in a project use agreement and recorded.

(5) At least 75 percent of the revenue derived from the Account in any calendar year shall be used to produce housing for the Very Low Income persons, and no more than 25 percent of the revenue derived in any calendar year shall be used to produce housing for Low income households.

(6) At least 75 percent of the Account shall be used to guarantee loans made to finance the construction, development, acquisition or rehabilitation of housing for Very Low Income households. No more than 25 percent of the Account shall be used to guarantee loans made to finance the construction, development, acquisition or rehabilitation of housing for Low Income households.

Stat. Auth.: ORS 458.600 - ORS 458.650
Stats. Implemented: ORS 458.600 - ORS 458.650 & Ch. 740, OL 1991
Hist.: HSG 4-1991(Temp), f. & cert. ef. 10-10-91; HSG 4-1992, f. & cert. ef. 4-28-92

813-043-0060

Fees

(1) A lender receiving a loan guarantee shall be charged an annual fee up to .25 percent on the original loan balance. Payment shall be remitted to the Department not less than annually.

(2) If the guarantee coverage is less than the maximum 25 percent, then the fee will be reduced proportionally (e.g., a ten percent guarantee shall have an annual fee of ten percent). Line of credit guarantee fees shall be based on the total credit line.

(3) A non refundable extension fee shall be charged to extend a loan guarantee reservation. The fee shall be 25% of the estimated annual loan guarantee fee for every 180 days extension.

(4) A $100 non refundable assumption/transfer fee shall be charged when a loan is assumed or transferred and the loan guarantee is to remain in place.

(5) Fees collected by the Department shall be used for the Loan Guarantee Program operations including, but not limited to, funding a loan loss reserve.

Stat. Auth.: ORS 458.600 - ORS 458.650
Stats. Implemented: ORS 458.600 - ORS 458.650 & Ch. 740, OL 1991
Hist.: HSG 4-1991(Temp), f. & cert. ef. 10-10-91; HSG 4-1992, f. & cert. ef. 4-28-92; HSG 6-1994, f. & cert. ef. 9-9-94

The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

© 2013 State of Oregon All Rights Reserved​