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The Oregon Administrative Rules contain OARs filed through May 15, 2013

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HOUSING AND COMMUNITY SERVICES DEPARTMENT

DIVISION 130

HELP PROGRAM

813-130-0000

Purpose and Objectives

OAR chapter 813, division 130, is promulgated to ORS 456.555(2) to carry out the provisions of the HELP Program. The Department receives HELP funds from the U.S. Department of Housing and Urban Development (HUD) under Section 1012 of the Steward B. McKinney Homeless Assistance Act ("the Act") of 1988. The HELP Program is funded by monies realized from the HUD-authorized refunding of existing bonds issued by the Department, the proceeds of which were originally used to finance housing projects, pursuant to an agreement between the Department and HUD under HUD's Financing Adjustment Factor (FAF) Program. Under the FAF Program, HUD shares such monies realized from these refundings on an equal basis with bond issuers such as the Department, and attaches certain restrictions and requirements upon the use of funds realized from such refunding. The HELP Program's objective is to provide financial assistance for the construction, acquisition and/or rehabilitation of rental housing for individuals and families of very low income for the purpose of expanding the supply of affordable, decent, safe and sanitary housing in Oregon.

Stat. Auth.: ORS 456.555
Stats. Implemented: ORS 456.555
Hist.: HSG 6-1993(Temp), f. & cert. ef. 10-1-93; HSG 4-1994, f. & cert. ef. 8-1-94; OHCS 12-2006(Temp), f. & cert. ef. 8-4-06 thru 1-30-07; OHCS 11-2007, f. & cert. ef. 1-11-07

813-130-0010

Definitions

All terms used in OAR chapter 813, division 130, are defined in the Act, OAR 813-005-0005 and herein. As used in OAR chapter 813, division 130, unless the context indicates otherwise:

(1) "Affordability Period" means the period during which a project assisted with HELP funds must remain affordable to Very Low Income residents, which period shall be at least 10 years from the date of the Use Agreement.

(2) "Annual Household Income" means the anticipated total income from all sources received by the family head and by each additional member of the family of 18 years of age and over, including all net income derived from assets for the twelve-month period following the effective date of certification of income, in accordance with HUD in 24 C.F.R. 813.

(3) "Applicant" means an applicant for HELP funds.

(4) "Household" means one or more persons occupying a housing unit.

(5) "HUD" means the U.S. Department of Housing and Urban Development.

(6) "Low Income" means annual Household income which does not exceed 80 percent of the median Household income for the area, as determined by HUD, with allowances for family size.

(7) "Nonprofit Organization" means

(a) An organization which has obtained tax-exempt status under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and is established under the provisions of ORS Chapter 65,

(b) A community development corporation as defined in ORS 458.210,

(d) A community action agency as established pursuant to the federal Economic Opportunity Act of 1964 and which meets the requirements of ORS 458.505(4), or

(e) Other nonprofit entity representing or seeking to serve the housing, human services and community economic revitalization needs of a clearly-defined population and area.

(8) "Program" means the HELP Program.

(9) "Recipient" means a recipient of HELP funds.

(10) "Use Agreement" means the Financing Adjustment Factor Savings Funds Use Agreement between a Recipient and the Department.

(11) "Very Low Income" means annual Household income which does not exceed 50 percent of the median Household income for the area, as determined by HUD, with allowances for family size.

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

813-130-0020

Eligible Applicants for HELP Funds

Eligible Recipients for HELP funds include units of general local government and Nonprofit Organizations which propose to construct, acquire and/or rehabilitate rental housing for Households with Very Low Incomes.

813-130-0030

Eligible Activities for HELP Funds

HELP funds provided by the Department shall be used for the construction, acquisition and/or rehabilitation of rental housing to be occupied by Households with Very Low Incomes.

813-130-0040

Eligible Costs for HELP Funds

Costs eligible to be paid with HELP funds are costs that promote housing affordability and include but not limited to:

(1) Development hard costs, such as the actual costs of constructing or rehabilitating rental housing;

(2) Costs of acquiring improved or unimproved real property;

(3) Pre-development costs which have been pre-approved by the Department; and

(4) Soft development costs associated with the construction, acquisition, or rehabilitation, including fees and interest studies,

813-130-0050

HELP Affordability Requirements

(1) A Use Agreement executed by the Department and a Recipient shall include covenants and restrictions running with land (which will be binding upon the Recipient and any successors in title to the project) that require such project assisted with HELP funds to remain affordable to Very Low Income residents during the Affordability Period. Upon expiration of a Use Agreement, those covenants and restrictions described therein shall also expire.

(2) Use Agreements shall require Recipients to obtain resident income certifications at the time of initial occupancy of the HELP-assisted units and on an annual basis thereafter during the Affordability Pperiod to document to the Department that units assisted with HELP funds continue to serve Very-Low-Income Households.

(3) Use Agreements may provide that a Household with Very-Low Income at the time of initial occupancy shall remain eligible despite the rise of Household income and will not be displaced by reason of ceasing to qualify as a very-low-income family or person if the owner exercises reasonable efforts to lease the next available similar unit to a family or person of very low income.

813-130-0060

Program Requirements

The Department shall adopt guidelines for the HELP Program which address application procedures, project eligibility, project selection criteria, financial assistance available, and other applicable information. Program guidelines shall be contained in the HELP application materials.

813-130-0070

Distribution of Funds

The Department shall distribute HELP funds according to the Program administrative rules for the targeted clients as endorsed by the Housing Council and in accordance with Program application materials.

813-130-0080

Application Procedure and Requirements

(1) The Department may require a non-refundable application charge from any applicant requesting HELP funds through the Consolidated Funding Cycle or otherwise.

(2) The Department may require a supplemental application charge from applicants requesting additional resources for projects that have already been funded by the Department.

(3) The Department may require a transfer application charge from owners of projects that receive grants or tax credits through the Department, who request the Department's approval of a change in project ownership. The Department may assess a transfer review charge to project owners and transferees who effect a change in project ownership without prior written Department approval.

(4) The Department may award HELP funds, subject to availability 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 application process for HELP funds may include a pre-application and a final application. Upon the basis of its review of the pre-applications, the Department may, in its sole discretion, invite certain Applicants to submit final applications. The Department will not process applications it determines to be incomplete.

(5) An Applicant shall submit to the Department, on the application form and in accordance with the application process prescribed by the Department, such information as the Department may require, including but not limited to:

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

(b) Type of assistance requested;

(c) 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 HELP application forms and other application materials and Program guidelines;

(d) A statement of project purpose indicating the housing type and residents to be housed, and the length of the Affordability Period;

(e) A pro forma of project income and expenses;

(f) Amount requested and total project development costs, including a description and documentation of all additional project funding and funding sources;

(g) A narrative of the Applicant's experience in developing affordable housing, including the experience of all members of the project development team;

(h) A narrative of the experience of the Applicant's management agent as it relates to operating affordable housing projects;

(i) A description of the Applicant's readiness to proceed with project activities; and

(j) A schedule for completion of project activities.

(6) The Department may restrict the amount and/or type of assistance available or restrict the type of Applicants eligible for assistance.

813-130-0090

Application Review

(1) The Department shall approve, deny, or request additional information on applications requesting HELP funds of $100,000 or less within the time frame set forth in the HELP application materials.

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

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

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

(b) Availability of other sources of assistance; and

(4) The Department shall not fund any project that is not financially feasible.

(5) The Department shall select those projects which, in the judgement of the Department, best achieve the purposes of the HELP Program and any evaluation criteria outlined in the program application materials.

813-130-0100

Form of Assistance; Documentation

(1) The Department may provide HELP funds in the form of a grant or a loan, or a combination of both. Loan rates and terms, if applicable shall be determined by the Department based on a project's needs and cash flow and an Applicant's capacity to repay HELP funds. Preference shall be given to those Applicants requesting loans which show sufficient project cash flow to repay the loan. The Department shall notify an Applicant in writing of the amount and form of assistance, if any, to be provided by the HELP Program.

(2) Each Recipient shall execute a Use Agreement, containing such terms regarding fees, interest rates, repayment terms, performance criteria and reporting requirements as the Department or HUD considers appropriate or necessary for the type and use of assistance provided. Each Use Agreement must be:

(a) (If the Recipient owns the project property at the time of disbursement) recorded as an encumbrance on the project property before any HELP funds are advanced; or

(b) (If the Recipient does not own the project property at the time of disbursement) placed in escrow in an escrow account established by the Recipient, and the Recipient must agree to and make provision for recording the Use Agreement as an encumbrance against the project property immediately upon obtaining title to such project property.

(3) The Department may require a Recipient to execute such documents as the Department considers appropriate or necessary to evidence the type and amount of financial assistance provided and any terms and conditions agreed to in connection with such assistance, subject to state or federal policy or regulatory direction.

813-130-0110

General Administrative and Monitoring Requirements

(1) The Department or HUD may perform such reviews or field inspections as it deems necessary to ensure Program compliance. The Department may require that a Recipient take such remedial actions as described in this rule and OAR 813-130-0120.

(2) Financial records, supporting documents, and all other pertinent records shall be retained by a HELP Recipient for five years after the project is complete, or after any litigation or audit claim is resolved, whichever is later. The Department, HUD, the Inspector General, the General Accounting Office, and Oregon Secretary of State and their representatives shall have access to all books, accounts, documents, records and other property belonging to or in use by the Recipient which relate to the use of HELP funds.

813-130-0120

Remedies for Noncompliance

At any time before the expiration of the Affordability Period, the Department may find that a Recipient is not in compliance with the requirements of the Program for reasons including but not limited to use of funds for activities not approved in the Use Agreement, failure to complete activities in a timely manner, failure to comply with applicable rules or regulations, or the lack of a continued capacity by the Recipient to carry out the approved activities. Remedies for noncompliance may include penalties imposed by the Department, including but not limited to repayment of HELP funds.

813-130-0130

Sanctions

(1) The Department may invoke sanctions against a Recipient that fails to comply with the provisions of its Use Agreement. The following circumstances may warrant sanctions:

(a) HELP funds have not been expended within six months of disbursement by the Department to the Recipient;

(b) There is a material breach of the Use Agreement;

(d) The Department finds that significant corrective actions are necessary to protect the integrity of the project funds and those corrective actions are not, or will not be, made within a reasonable time.

(2) One or more of the following sanctions may be imposed by the Department:

(a) Prohibit a Recipient from applying for future HELP assistance or other Department assistance;

(b) Revoke an existing HELP award;

(d) Require return of HELP funds that have been disbursed to the Recipient but not expended by Recipient;

(e) Require repayment of expended HELP funds; and

(f) Invoke other remedies that may be incorporated into the Use Agreement.

(3) Sanctions will not be imposed by the Department until the Recipient has been notified in writing of its deficiencies and given a reasonable time to respond and correct the deficiencies noted. The sanctions and remedies set forth in this OAR 813-130-0130 are cumulative and not exclusive and are in addition to any other rights and remedies provided by law or under the Use Agreement.

813-130-0140

Waiver

The Director may waive or modify any requirements of these Program rules, unless such waiver or modification would violate applicable state statute or federal regulations.

Stat. Auth.: ORS 456.555
Stats. Implemented: ORS 456.555
Hist.: OHCS 12-2006(Temp), f. & cert. ef. 8-4-06 thru 1-30-07; OHCS 11-2007, f. & cert. ef. 1-11-07

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