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HOUSING AND COMMUNITY SERVICES DEPARTMENT

 

DIVISION 120

HOME INVESTMENT PARTNERSHIPS PROGRAM

813-120-0001

Purpose and Objectives

OAR chapter 813, division 120, is promulgated to accomplish the general purpose of the U.S. Department of Housing and Urban Development (HUD) Final Rule for the HOME Investment Partnerships Program, 24 C.F.R. Part 92, and to implement the Oregon HOME Investment Partnerships Program. Pursuant to 24 C.F.R. ¦92.105, the Department was designated a participating jurisdiction upon receiving HUD’s approval of Oregon’s Consolidated Plan. The HOME Investment Partnerships Program is established to address the priority needs outlined in the Consolidated Plan for the development and rehabilitation of decent, safe, sanitary and affordable housing for low- and very-low-income individuals and families. OAR chapter 813, division 120, describes the HOME Investment Partnerships Program and its objective to provide funds to acquire, construct and rehabilitate housing, to provide tenant-based rental assistance for individuals and families of low- and very low-income, and to leverage local and private monies available from other sources for the purposes of production of low- and very low-income housing.

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

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 8-1994, f. & cert. ef. 9-9-94; HSG 3-1995, f. & cert. ef. 9-25-95; OHCS 1-2008, f. & cert. ef. 1-28-08; OHCS 10-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; Administrative correction, 2-5-14

813-120-0010

Definitions

All terms used in OAR chapter 813, division 120, are defined in the Act, in 24 C.F.R. Part 92, in 813-005-0005 and herein. As used in OAR chapter 813, division 120, unless the context indicates otherwise:

(1) “Adjusted Income” means a Family’s annual income (as determined pursuant to 24 C.F.R. ¦ 92.203) less specified allowances determined by HUD, including allowances for dependents, elderly family members, handicapped or disabled members and child care expenses.

(2) “Administrative Costs” means allowable costs, as described in OMB Circular A-87, incurred by the Department in carrying out its eligible Program activities in accordance with prescribed regulations24 CFR Part 58.

(3) “Applicant” means an individual or entity that has applied for HOME funds under the Program.

(4) “Commitment”, when used in reference to a specific Project, means a commitment of HOME funds as outlined under 24 C.F.R. ¦92.2.

(5) “Community Housing Development Organization” or “CHDO” means a private nonprofit organization registered with the Oregon Secretary of State that meets the requirements as defined in 24 C.F.R. ¦ 92.2, has among its stated purposes the provision of decent and affordable housing for low- and moderate-income persons as evidenced in its charter, articles of incorporation or by-laws, has been designated tax-exempt under Section 501(c)(3) or (4) of the Internal Revenue Code of 1986, ,as amended, maintains accountability to the low-income community by:

(a) Maintaining at least one-third of its governing board’s membership for low-income community residents or elected representatives of low-income neighborhood organizations;

(b) Having not more than one-third of its governing board’s membership be public officials and having not more than one-third of its governing board’s membership directly or indirectly appointed by the State or a local government;

(c) Having not more than one-third of its governing board’s membership directly or indirectly appointed by a for-profit entity;

(d) Providing a formal process for Program beneficiaries to advise the CHDO in design, siting, development, and housing management decisions;

(e) Having a demonstrated capacity to carry out the proposed activities funded by the Program;

(f) Having at least a one-year history of serving the community of the proposed Project or, for newly-created CHDOs formed by local churches, service organizations or neighborhood organizations, a parent organization that can satisfy such requirement; and

(g) After meeting the above requirements, has received official CHDO designation from the Department.

(6) “Consolidated Plan” means the plan for the State of Oregon approved by HUD which describes the needs, resources, priorities and proposed activities to be undertaken with respect to the HUD HOME Program in Oregon.

(7) “Displaced Person” means any person who moves involuntarily from real property or moves his or her personal belongings from the real property as a direct result of an activity undertaken with HOME fund assistance.

(8) “Expenditure of Funds” means the process of requesting the Department draw down HOME funds from the HOME Investment Trust Fund Account for a specific Project.

(9) “Family” is defined in 24 C.F.R. ¦ 5.403.

(10) “First-Time Homebuyer” means an individual and his or her spouse who have not owned a home during the three-year period prior to purchase of a home with assistance under the American Dream Downpayment Initiative (ADDI) as described in 24 CFR 92 Subpart M. The term “First-Time Homebuyer” means an individual who is a displaced homemaker or single parent as defined in 24 CFR 92.

(11) “For-Profit Organization” means an individually- or cooperatively-owned organization for profit, which is not a foreign corporation, incorporated under or subject to the provisions of ORS Chapter 60.

(12) “HOME” means HUD’s HOME Investment Partnerships Program established by the HOME Investment Partnerships Act at Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, as amended, 42 U.S.C. ¦ 12701 et seq.

(13) “HOME Agreement” means an agreement between the Department and Recipient setting forth the terms and conditions of the grant, loan or other disbursement of HOME funds by the Department to the Recipient.

(14) “HOME Investment Trust Fund Account” means the account established by the U.S. Treasury and managed through HUD’s Integrated Disbursement and Information System for the Program.

(15) “Homeownership” means ownership in fee simple title or 99 year leasehold interest in a one- to four-unit dwelling or in a condominium unit, ownership or membership in a cooperative, or equivalent form of ownership approved by HUD. The ownership interest may be subject only to the restrictions on resale required under 24 C.F.R. ¦ 92.254(a), mortgages, deeds of trust, or other liens or instruments securing debt on the property as approved by the Department, or any other restrictions or encumbrances that do not impair the good and marketable nature of title to the ownership interest.

(16) “Household” means one or more persons occupying a housing unit.

(17) “HUD” means the U.S. Department of Housing and Urban Development.

(18) “Housing”means manufactured housing and manufactured housing lots, permanent housing for disabled homeless persons, transitional housing, single room occupancy housing, and group homes. Housing also includes elder cottage housing opportunity (ECHO) units that are small, free-standing, barrier-free, energy efficient, removable, and designed to be installed adjacent to existing single-family dwellings. Housing does not include emergency shelters (including shelters for disaster victims) or facilities, correctional facilities and student dormitories.

(19) “HUD Section 8 Housing Quality Standards” or “HQS” means those occupancy standards as contained in 24 C.F.R ¦982.401.

(20) “Integrated Disbursement and Information System” or “IDIS” means HUD’s computerized disbursement and information system which disburses funds and collects and reports information on the use of HOME funds in the U.S. Treasury account and which shall apply to fiscal management in accordance with 24 C.F.R. ¦92.502.

(21) “Layering” means the use of HOME funds with other federal funds which would result in excessive subsidy to a specific Project.

(22) “Local Partnership Program” means a local agency, approved for participation in the Program through the Department’s Low Income Rental Housing Fund Program, to provide Tenant-Based Rental Assistance within aspecific geographical service area.

(23) “Low-Income “ means annual Family income which does not exceed 80 percent of the median income for the area, as determined by HUD, with allowances for Family size.

(24) “Low-Income Neighborhood” means a Neighborhood in which at least 51 percent of its Households are Low-Income.

(25) “Match” means the mandatory use of non-federal sources pursuant to 24 C.F.R. ¦¦ 92.218–92.222.

(26) “Neighborhood” means a geographic location designated in comprehensive plans, ordinances, or other local documents as neighborhood, village, or similar geographical designation that is within the boundary but does not encompass the entire area of a unit of general local government. If the unit of general local government has a population under 25,000, the neighborhood may, but need not, encompass the entire area of a unit of general local government.

(27) “Nonprofit Organization” means an organization which is established under the provisions of ORS Chapter 65; a community development corporation as defined in 458.210; a housing authority as defined in 456.005(2); a community action agency as established by the Economic Opportunity Act of 1964 and 458.505(4); or other nonprofit entity (including an office, division or agency of a political subdivision) representing or seeking to serve the housing, human services and community economic revitalization needs of a clearly-defined population and area.

(28) “Program” means the Oregon HOME Investment Partnerships Program established under OAR chapter 813, division 120.

(29) “Project” means a site or sites together with any building (including a manufactured housing unit), or buildings located on the site(s) that are under common ownership, financing and management and are to be assisted with HOME funds as a single undertaking under the Program.

(30) “Project Completion” means all necessary construction, reconstruction and title transfer have been accomplished and in the Department’s judgment complies with the requirements of OAR chapter 813, division 120, and applicable federal requirements, and the final drawdown for the Project has been disbursed and the Project completion report has been entered into HUD’s IDIS.

(31) “Public Agency” means a state, county, municipality or other governmental entity. Nonprofit Organizations which are organized as public nonprofit corporations may also be considered Public Agencies.

(32) “Public Housing Agency” or “PHA” means any Public Agency that is authorized to engage in or assist in the development or operation of Low-Income housing.

(33) “Recipient” means any entity under contract with the Department to undertake activities funded by the Department’s HOME Program. For the purposes of HOME Tenant-Based Rental Assistance, homebuyer assistance, and homeowner rehabilitation, a Recipient may include the tenant or homeowner receiving assistance.

(34) “Reconstruction” means the rebuilding, on the same lot, of housing standing on a site at the time of Project Commitment. The number of units may not decrease or increase but the number of rooms per unit may decrease or increase. Reconstruction also includes replacing an existing substandard unit of manufactured housing.

(35) “State Recipient” means a unit of general local government designated by the Department to administer HOME funds.

(36) “Subrecipient” means a Public Agency or Nonprofit Organization selected by the Department to administer or implement all or a portion of its HOME Program. Such an organization is not considered a Subrecipient if it receives HOME funds solely as a developer or owner of housing.

(37) “Tenant-Based Rental Assistance” is a form of assistance awarded to a Household to defray the costs of renting a housing unit. Assistance may include, but is not limited to, rent and security deposits. Assistance provided to a Household may be transferred to another housing unit as approved by the Local Partnership Program, or other agency providing Tenant-Based Rental Assistance, and the Department.

(38) “Transitional Housing” means housing that is designed to provide housing and appropriate supportive services to persons including, but not limited to, deinstitutionalized individuals with disabilities, homeless individuals with disabilities, and homeless families with children, and has as its purpose facilitating the movement of individuals and families to independent living within a time period that is set by the Department or Project owner before occupancy.

(39) “Very Low-Income” means annual income which does not exceed 50 percent of the median Family income for the area, as determined by HUD with allowances for Family size.

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

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 8-1994, f. & cert. ef. 9-9-94; HSG 3-1995, f. & cert. ef. 9-25-95; HSG 1-1997, f. & cert. ef. 4-15-97; OHCS 1-2008, f. & cert. ef. 1-28-08; OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; Administrative correction, 2-5-14

813-120-0020

Eligible Applicants

Eligible Applicants for HOME funds include:

(1) Units of general local government, For-Profit and Nonprofit Organizations, and individuals to construct new housing for Low- and Very Low-Income Families, or to acquire and/or rehabilitate existing housing for Low- and Very Low-Income Families, or to sponsor local programs to construct, acquire or rehabilitate housing owned and occupied by Low- and Very Low-Income Families;

(2) Local Partnership Programs and other approved agencies to provide Tenant-Based Rental Assistance to qualified Low- and Very Low-Income Families;

(3) CHDOs to provide funds for the construction of housing for rental and Homeownership opportunities by Low- and Very Low-Income Families, or to acquire and/or rehabilitate existing structures for rental and Homeownership opportunities by Low- and Very Low-Income Families.

(a) The Department shall set aside 15 percent of the HOME allocation for housing developed, owned or sponsored by CHDOs.

(b) The CHDO set-aside may also include Project-specific predevelopment and technical assistance loans.

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 8-1994, f. & cert. ef. 9-9-94; HSG 3-1995, f. &n cert. ef. 9-25-95; HSG 1-1997, f. & cert. ef. 4-15-97; OHCS 1-2008, f. & cert. ef. 1-28-08; Suspended by OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13

813-120-0025

Application Procedure and Requirements

(1) The Department may distribute HOME funds, subject to availability of funds in the Program, through a process which may involve but is not limited to a first come — first reviewed process, demonstration program, a competitive review process, or as necessary to maintain an on-going concern.

(a) Applications for HOME funds may include a pre-application and a final application. The completeness of information in pre-applications shall be the basis for inviting final applications.

(b) Each application submitted shall be reviewed by Department staff according to Program requirements and detailed Project evaluation criteria.

(2) The Applicant shall submit, on an application form and in accordance with the process prescribed by the Department, Applicant and Project information including but not limited to:

(a) Name, address and telephone number of the Applicant;

(b) Category of assistance requested;

(c) Amount requested and total Project costs, including a description and documentation of all additional Project funding and funding sources;

(d) A pro forma of Project income and expenses;

(e) The percentage of Match, as required by 24 C.F.R. ¦ 92.218;

(f) A written description of the Project including the number of units, unit mix, proposed rents, site location, Project amenities, and any other information required in the application materials, Program guidelines or 24 C.F.R. Part 92;

(g) A statement of Project purpose indicating the housing type and tenants to be housed, and the length of time and the number of units that will be committed for occupancy by Low- and Very Low-Income Families;

(h) A description of how the proposed Project meets the regional or statewide needs and priorities addressed in and is consistent with Oregon's Consolidated Plan or its successor, or documentation as to why the highest priority in the Applicant's community differs from the highest priorities outlined in Oregon's Consolidated Plan;

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

(j) A description of the Applicant's readiness to proceed on Project activities. Applicants should expect to begin construction activities within six months of execution of the HOME Agreement; and

(k) A schedule for completion of Project activities.

(3) Applicants must minimize Layering in Projects proposed for HOME funding in accordance 24 CFR 92.250 Subpart b, and the Department will not invest any more HOME funds in combination with other federal governmental assistance than is necessary to provide affordable housing to the targeted population.

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

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 8-1994, f. & cert. ef. 9-9-94; HSG 3-1995, f. & cert. ef. 9-25-95; HSG 1-1997, f. & cert. ef. 4-15-97; OHCS 9-2006(Temp), f. & cert. ef. 8-4-06 thru 1-30-07; OHCS 10-2007, f. & cert. ef. 1-11-07; OHCS 1-2008, f. & cert. ef. 1-28-08; Renumbered from 813-120-0080 by OHCS 6-2013, f. & cert. ef. 6-21-13; OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; Administrative correction, 2-5-14

813-120-0032

Application Review

(1) The Department shall consider an application and approve or deny the application, or request additional information within the timeframe set forth in the application materials.

(2). If the Department proposes to award HOME funds on an application requesting in excess of $100,000, it shall submit the application request to the State Housing Council for review. The Council shall approve or disapprove the application at a public hearing of the Council, pursuant to ORS 456.571(2).

(3) In reviewing applications for HOME assistance, the Department and the Council, as appropriate, may consider, in addition to any other or special evaluation criteria, the following:

(a) Amount of available funds in the HOME Program;

(b) Availability of other sources of assistance; and

(c) Applicant's efforts to leverage public or private funds.

(4) The Department may, in its sole discretion, further restrict the amount and/or type of assistance available or restrict the type of Applicant eligible for assistance.

(5) The Department shall select those applications which, in the judgment of the Department, best achieve the purposes of the HOME Program, this OAR chapter 813, division 120 (including the Program guidelines described in 813-120-0060(1)), and 24 C.F.R. Part 92, and meet the evaluation criteria outlined in the Program guidelines described in 813-120-0060(1). Applicants must document consistency with the priorities in Oregon's Consolidated Plan or its successor, or document why the highest priority in their communities differs from the highest priorities outlined in Oregon's Consolidated Plan or its successor. Projects that are not financially feasible shall not be funded.

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 8-1994, f. & cert. ef. 9-9-94; HSG 3-1995, f. & cert. ef. 9-25-95; OHCS 1-2008, f. & cert. ef. 1-28-08: Renumbered from 813-120-0090 by OHCS 6-2013, f. & cert. ef. 6-21-13; OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; Administrative correction, 2-5-14

813-120-0035

Form of Assistance

(1) The Department shall provide funds for he acquisition, construction and rehabilitation of housing, including Transitional Housing, affordable to Low-and Very Low-Income Families, and Tenant-Based Rental Assistance to Low- and Very-Low-Income Families subject to limitations otherwise prescribed by OAR 813, division 120, and 24 CFR Part 92.

(2) The Department shall also provide down-payment assistance to First-time Homebuyers in accordance with the American Dream Downpayment Initiative as described in 24 CFR Subpart M.

(3) The Department shall confirm to the applicant in writing the amount and form or assistance, if any, to be provided form the HOME Program.

(4) The Department may establish fees, interest rates, repayment terms, performance criteria and reporting requirements pursuant to 24 CFR Part 92, as the Department considers appropriate or necessary for the type and use of assistance provided. The Department shall specify such terms and conditions to an applicant in writing before funds are advanced or any agreements signed. The Department may require an applicant to execute such documents as the Department considers appropriate or necessary to evidence the type and amount of assistance provided, and any terms and conditions agreed to in connection with such assistance, subject to federal policy or regulatory direction.

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

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; OHCS 10-2006(Temp), f. & cert. ef. 8-4-06 thru 1-30-07; OHCS 10-2007, f. & cert. ef. 1-11-07; Renumbered from 813-120-0100 by OHCS 1-2008, f. & cert. ef. 1-28-08; OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; Administrative correction, 2-5-14

813-120-0040

Eligible Costs for HOME Activities

Costs are determined as eligible to be paid with HOME funds to the extent that they promote housing affordability. Eligible costs include:

(1) Development hard costs such as the actual costs of constructing or rehabilitating housing including, but not limited to:

(a) For new construction, costs to meet the applicable new construction standards of Oregon and the Model Energy Code referred to in 24 C.F.R. ¦ 92.251.

(b) For rehabilitation, costs to meet the property standards in 24 C.F.R. ¦ 92.251; to make essential improvements, including energy-related repairs or improvements, improvements necessary to permit use by persons with disabilities, the abatement of lead-based paint hazards, as required by 24 C.F.R. ¦ 92.355, and to repair or replace major housing systems in danger of failure; costs to refinance existing debt when rehabilitating owner-occupied single family units;

(c) For both new construction and rehabilitation,

(A) Costs to make utility connections; and costs of existing structure demolition and improvements to the Project site. A Project shall be documented to have complied with these standards prior to the submission of an IDIS Project Completion Report.

(B) Costs associated with Project site improvements. Site improvements shall be comparable to those found in similar developments in the geographic area surrounding the Project and shall be accomplished for the primary use of the proposed Project residents.

(2) Development soft costs incurred by the owner and/or sponsor. These costs include reasonable and necessary costs associated with financing and/or development of new construction, rehabilitation, or acquisition including, but not limited to:

(a) Architectural, engineering and/or related professional services required for preparing plans, drawings, specifications or work write-ups;

(b) Costs to process and settle Project financing, including private lender origination fees, credit reports, fees for title evidence, legal document recording, attorneys, private appraisal, building permits, and independent cost estimate, builder or developer fees;

(c) Costs of a Project audit.

(d) Costs associated with services provided in connection with affirmative marketing and fair housing information, in conformance with 24 C.F.R. Part 92.

(e) For new construction or rehabilitation, the cost of funding an initial operating deficit reserve, and costs for the payment of impact fees that are charged for all developments within a jurisdiction.

(3) Costs of acquiring improved or unimproved real property, including acquisition by homebuyers.

(4) Costs of relocation payments and other related assistance for permanently or temporarily Displaced Persons, families, businesses, farm operations or other entities determined appropriate by the Department, and staff and overhead costs directly related to providing advisory and other relocation services.

(5) Costs of rent or rental deposits for tenants receiving HOME Tenant-Based Rental Assistance.

(6) Costs of Program administration up to ten percent (10%) of the Department’s fiscal year allocation. Allowable Administrative Costs include, but are not limited to, activities involving the coordination, monitoring and evaluation of HOME-assisted Projects or Programs such as preparing budgets, schedules and amendments; evaluating Program results against stated objectives; developing systems for assuring compliance with Program requirements; monitoring Program activities for progress and compliance with Program requirements; preparing reports and other compliance documents related to the HOME Program; and coordinating the resolution of audit and monitoring findings; the Department’s staff and overhead costs directly related to carrying out the Project.

(7) Project-specific technical assistance and site control loans, and Project-specific seed money loans to CHDOs as outlined in 24 C.F.R. ¦ 92.301.

(8) Up to five percent (5%) of the Department’s fiscal year HOME allocation may be used for the operating expenses of CHDOs as outlined in 24 C.F.R., Part 92.208.

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

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 8-1994, f. & cert. ef. 9-9-94; HSG 3-1995, f. & cert. ef. 9-25-95; HSG 1-1997, f. & cert. ef. 4-15-97; OHCS 1-2008, f. & cert. ef. 1-28-08; Suspended by OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13

813-120-0045

Eligible Activities

(1) The Department may provide funds for the following categories of activities. The Department may restrict the availability of Program funds for each such category at the time it solicits applications.

(2) Homeowner Rehabilitation: For rehabilitation of single-family housing that is the principal residence of a homeowner whose Family is a Low-Income or Very Low-Income Family at the time of commitment of HOME funds. Homeowner rehabilitation programs shall be administered by a State Recipient or a Subrecipient.

(3) Homebuyer Assistance: For acquisition, rehabilitation and/or construction of housing to be owned and occupied by Low- or Very Low-Income Families.

(4) Rental Rehabilitation: For acquisition and/or rehabilitation of existing structures for rental housing affordable to Low- and Very Low-Income Families. The initial and long-term affordability requirements outlined in OAR 813-120-0050 shall apply to rental housing assisted with HOME funds. Rental rehabilitation projects may be sponsored by a State Recipient, Nonprofit Organization, For-Profit Organization, individual or CHDO.

(5) New Construction: For the construction of new rental housing or the acquisition of rental housing which is acquired within one year of the date of the certificate of initial occupancy. New construction Projects may be sponsored by a State Recipient, Nonprofit Organization, For-Profit Organization, individual or CHDO.

(6) Acquisition of vacant land or demolition is an eligible activity only when proposed as a portion of a particular Project intended to provide affordable housing. New Construction of housing is an eligible activity only when the initial certificate of occupancy was issued mor more than one year prior to the Commitment of Program Funds, and is otherwise approved by the Department. Building conversion is considered new construction if one or more untis are being added beyond the existing walls of the structure.

(7) Tenant-Based Rental Assistance: For rental assistance to Low- and Very Low-Income Families.

(8) CHDO Predevelopment and Technical Assistance: Loans for project-specific predevelopment or technical assistance and site control activities performed by CHDOs may be authorized for up to 10 percent of the Program's allocation set-aside for CHDOs, as described in 24 C.F.R. Sec. 92.208, 92.300(e) and (f).

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

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 8-1994, f. & cert. ef. 9-9-94; HSG 1-1997, f. & cert. ef. 4-15-97; Renumbered from 813-120-0030, OHCS 1-2008, f. & cert. ef. 1-28-08: Renumbered from 813-120-0105 by OHCS 6-2013, f. & cert. ef. 6-21-13; OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; Administrative correction, 2-5-14

813-120-0047

Distribution and Expenditure of Funds

(1) The Department will follow the allocation strategies as outlined in the Consolidated Plan or its successor the program information described in OAR 813-120-0060 which may distribute funds based on a formula that takes onto account the relative housing needs of regions or other factors, distribute funds on a statewide basis, or may consider some other means of distribution.

(2) As opportunities arise, the Department may use HOME funds for the demonstration and development of new activities.

(3) The Department shall use its best efforts to make commitments for Projects under the State's HOME allocation for a fiscal year within two years after the month in which that allocation is approved by HUD. All HOME funds committed to a Project under the State's HOME allocation for a fiscal year shall be expended within five years after the month in which the HOME allocation for that fiscal year is approved by HUD.

(4) A Recipient shall begin expenditure of its HOME funds within six months of the date the HOME Agreement between the Recipient and the Department is executed. The Department may, in its sole discretion, permit extension(s) upon submission by the Recipient of documentation acceptable to the Department.

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

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 8-1994, f. & cert. ef. 9-9-94; HSG 3-1995, f. & cert. ef. 9-25-95; HSG 1-1997, f. & cert. ef. 4-15-97; OHCS 1-2008, f. & cert. ef. 1-28-08: Renumbered from 813-120-0070 by OHCS 6-2013, f. & cert. ef. 6-21-13; OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; Administrative correction, 2-5-14

 813-120-0050

HOME Affordability Requirements

HOME affordability requirements vary according to the amount of HOME funds invested and the activity involved. The Department may choose to include one or all of the activities in its Program. Affordability is defined as follows:

(1) For HOME assisted units in rental housing Projects:

(a) Initial and continuing contract rents shall not exceed the lesser of the HUD periodically determined fair market rent (FMR) for comparable-sized units in the area, or a contract rent that does not exceed 30 percent of Adjusted Income of a Family whose income is 65 percent of the area median income as determined by HUD, adjusted for the number of bedrooms in the unit;

(b) If the Project contains five or more HOME-assisted units, a minimum of 20 percent of the HOME-assisted units shall be occupied by Very Low-Income Families

(A) paying no more than 30 percent of Adjusted Income for rent, or

(B) having contract rents not greater than 30 percent of gross annual income of a Family whose income equals 50 percent of area median income, as determined by HUD and adjusted for family size, but under no circumstances shall rents described in (ii) exceed the limits identified in (a) above;

(c) The HOME-assisted units shall be occupied only by Low- and Very Low-Income Families;

(d) The Project does not refuse leasing HOME-assisted units to a Family participating in the HUD Section 8 rental certificate or voucher program or HOME Tenant-Based Rental Assistance under OAR 813, division 120; and

(e) The HOME assisted units of a Project shall remain affordable after Project Completion, enforced by deed restrictions or covenants running with the land, for periods not less than the following based on the amount of HOME assistance per unit regardless of loan or other mortgage terms or ownership transfer:

(A) For rehabilitation and/or acquisition of existing housing per unit amount of HOME funds: Under $15,000 — 5 years; $15,000 to $40,000 — 10 years; over $40,000 — 15 years.

(B) For acquisition of newly-constructed housing which is acquired within one year of the date of the certificate of initial occupancy, or for new construction, the Project must remain affordable for 20 years.

(C) The affordability restrictions may terminate upon foreclosure or other transfer in lieu of foreclosure. If at any time following transfer by foreclosure or transfer in lieu of foreclosure, but if during the term of the affordability period, the owner of record prior to the foreclosure or transfer in lieu of foreclosure, or any entity that includes the former owner or those with whom the former owner has or has had family or business ties, obtains an ownership interest in the Project or property, the affordability restrictions shall be revived according to the original terms.

(2) For homebuyer assistance for acquisition (with or without rehabilitation) of existing housing, such housing:

(a) (For new construction) has an initial purchase price that does not exceed 95 percent of the median purchase price for the type of single-family housing for the area, as determined pursuant to 24 C.F.R. ¦ 94.254(a)(iii), or (for acquisition with rehabilitation) has an estimated value after rehabilitation that does not exceed 95 percent of the median purchase price for the area for the type of single-family housing, as determined pursuant to 24 C.F.R. ¦ 94.254(a)(iii);

(b) Shall, during the affordability period, be the principal residence of an owner whose Family qualifies as a Low-Income Family at the time of purchase; and

(c) Is subject to resale restriction or recapture provisions pursuant to 24 C.F.R. ¦ 92.254, from Project Completion for minimum periods based upon the amount of HOME assistance provided: Less than $15,000 — 5 years; $15,000 to $40,000 — 10 years; over $40,000 — 15 years.

(3) For homeowner rehabilitation Projects without acquisition:

(a) The housing is the principal residence of an owner whose Family qualifies as a Low-Income Family at the time HOME funds are committed to that housing; and

(b) The after-rehabilitation estimated value of the property shall not exceed 95 percent of the median purchase price for the area for the type of single-family housing as determined pursuant to 24 C.F.R. ¦ 94.254(a)(iii).

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

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 8-1994, f. & cert. ef. 9-9-94; HSG 3-1995, f. & cert. ef. 9-25-95; HSG 1-1997, f. & cert. ef. 4-15-97; OHCS 1-2008, f. & cert. ef. 1-28-08; OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; Administrative correction, 2-5-14

813-120-0060

Program Information

(1) The Department has adopted guidelines for the HOME Program regarding application procedures, Project eligibility, Project selection criteria, forms of financial assistance available, and other applicable information. Program guidelines are published in the Program's application materials.

(2) The guidelines described in OAR 813-120-0060(1) are hereby adopted by reference.

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

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 8-1994, f. & cert. ef. 9-9-94; HSG 3-1995, f. & cert. ef. 9-25-95; HSG 1-1997, f. & cert. ef. 4-15-97; OHCS 1-2008, f. & cert. ef. 1-28-08; Suspended by OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13

813-120-0070 [Renumbered to 813-120-0047]

813-120-0080 [Renumbered to 813-120-0025]

813-120-0090 [Renumbered to 813-120-0032]

813-120-0105 [Renumbered to 813-120-0045]

813-120-0110

General Administrative and Monitoring Requirements

(1) The following general administrative and reporting requirements apply under the HOME Program:

(a) The requirements of 24 CFR Parts 44,45 and 85 apply to State Recipients and Subrecipients, and the requirements of OMB Circular A-87 and 24 CFR 85.6, 85.12, 85.20, 85.22, 85.26, 85.34, 85.36, 85.44, 85.51 and 85.52 apply to State Recipients and any governmental Subrecipients receiving HOME finds.

(b) The requirements of OMB Circular A-122 and 24 CFR 84.2, 84.5, 84.13–16, 84.21, 84.22, 84.26–84.28, 84.30, 84.31, 84.34–85.37, 84.40-84.48, 84.51, 84.60-84.62, 84.72 and 84.73 apply to Subrecipients receiving HOME funds that are non-governmental Nonprofit Organizations.

(c) Each Recipient shall submit periodic performance reports as required by the Department, and at the end of the term of its HOME Agreement a Recipient shall submit a summary performance report in form and detail as prescribed by the Department. Such reports shall include those items described in 24 C.F.R. ¦ 92.508.

(d) Financial records, supporting documents and all other pertinent records (including but not limited to records related to Program activities and HOME assisted Projects) shall be retained by State Recipients, Subrecipients and Recipients for the applicable five year period as described in 24 C.F.R. ¦ 92.508, or after any litigation or audit claim is resolved, whichever is later. Representatives of the Department, HUD, the Comptroller General of the United States, the General Accounting Office, and Oregon Secretary of State shall have access to all books, accounts, documents, records and other property belonging to or in use by State Recipients, Subrecipients, and Recipients that pertain to the receipt of HOME funds.

(2) The Department may perform such reviews and field inspections as it deems necessary or appropriate to ensure Program compliance. If the Department determines that a State Recipient, Subrecipient or Recipient has not complied with the requirements of the Program (including but not limited to its agreements with the Department), the Department may require remedial actions be taken or impose sanctions, as described in OAR 813-120-0120 and 813-120-0130.

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

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 3-1995, f. & cert. ef. 9-25-95; HSG 1-1997, f. & cert. ef. 4-15-97; OHCS 1-2008, f. & cert. ef. 1-28-08; OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; Administrative correction, 2-5-14

813-120-0120

Remedies for Noncompliance

(1) At any time before expiration of the affordability requirements contained in OAR 813-120-0050 that are applicable to a Recipient, the Department may, for cause, find that the Recipient is not in compliance with the requirements of the Program. Remedies for noncompliance may include penalties set forth in 813-120-0130. The Department may make findings of noncompliance for reasons that include, but are not limited to, use of funds by the Recipient for activities not approved in the Recipient’s HOME Agreement, the Recipient’s failure to complete activities contemplated by such Agreement in a timely manner, the Recipient’s failure to comply with all applicable rules or regulations, or the lack of a continued capacity by the Recipient to carry out the approved activities.

(2) If the Recipient’s HOME Agreement terminates prior to Project Completion, the Recipient shall repay to the Department’s HOME Investment Trust Fund Account all HOME funds disbursed to the Recipient by the Department for the Project. Repayment of HOME funds to the Department’s HOME Investment Trust Fund Account shall not relieve the Recipient of its obligation to keep the Project affordable for the HOME period of affordability set forth in its Home Agreement with the Department.

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; OHCS 1-2008, f. & cert. ef. 1-28-08; OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; Administrative correction, 2-5-14

813-120-0130

Sanctions

(1) The Department may invoke sanctions against a State Recipient, Subrecipient or Recipient that fails to comply with its HOME Agreement. Sanctions will not be imposed by the Department until the State Recipient, Subrecipient or Recipient has been notified in writing of its deficiencies and has been given an opportunity to respond and correct the deficiencies noted. Below is an illustrative (but not comprehensive) list of circumstances that may warrant sanctions:

(a) The Recipient has not commenced any of the Project activities within six months after its Project award;

(b) The Recipient has not entered into the necessary third party agreements related to the Project within ninety (90) days of its Project award;

(c) The State Recipient, Subrecipient or Recipient has materially breached its HOME agreement; or

(d) The Department finds that significant corrective action is necessary to protect the integrity of the Project funds, and are not being made or will not be made by the Recipient within a reasonable time.

(2) Sanctions imposed by the Department may include but are not limited to one or more of the following:

(a) Bar a the State Recipient, Subrecipient or Recipient, as the case may be, from applying for future HOME funding;

(b) Revoke an existing HOME award;

(c) Withhold unexpended HOME funds;

(d) Require the State Recipient, Subrecipient or Recipient, as the case may be, to return unexpended HOME funds;

(e) Require the State Recipient, Subrecipient or Recipient, as the case may be, to repay expended HOME funds; and

(f) Other remedies that may be provided in the HOME agreement.

(3) The remedies set forth in this OAR 813-120-0130 are cumulative and not exclusive and are in addition to any other rights and remedies provided by law or under the HOME agreement.

(4) A State Recipient, Subrecipient or Recipient shall take all action necessary to enforce the terms of the its agreement against any third party that fails to comply with its agreement with the State Recipient, Subrecipient or Recipient, respectively, and shall recover on behalf of the Department any costs, expenses, and damages that may arise as the result of the breach of such agreement by such breaching third party. The Recipient, by its execution of its HOME Agreement with the Department (whether or not that Agreement expressly so states) acknowledges and agrees that the Department has the unrestricted right (but not the obligation) to enforce the terms of any agreement the Recipient has with a third party regarding the Program or Project or to recover any sums that may become due as the result of a breach of such agreement.

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

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 1-1997, f. & cert. ef. 4-15-97; OHCS 1-2008, f. & cert. ef. 1-28-08; OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; Administrative correction, 2-5-14

813-120-0140

Request for Reconsideration; Waiver

(1) An Applicant may, in writing, request the Director reconsider the Department’s funding decision. The Applicant’s request shall be filed with the office of the Director within 30 days of the Department’s funding decision and shall state with particularity the basis for reconsideration. The Director may require additional information from the Applicant and shall consider a request which complies with the requirements of this OAR 813-120-0140. The Director's decision regarding such request is final.

(2) The Director may waive or modify any non-statutory requirements of HOME unless such waiver or modification would violate any applicable federal or state statutes or regulations.

Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Hist.: HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; OHCS 1-2008, f. & cert. ef. 1-28-08; Suspended by OHCS 11-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13

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