Current through Register Vol. 63, No. 9, September 1, 2024
(1) State financed 6.5 percent interest loans
made under Chapter 894, Oregon Laws 1981, as amended by Chapter 749, Oregon
Laws 1987, and Chapter 718, Oregon Laws 1991, shall meet the following
standards:
(a) A loan shall be made only to a
dwelling owner who is or who rents to a residential fuel oil customer or a wood
heating resident;
(b) Only energy
conservation measures recommended as cost-effective in the energy audit,
recommended adjuncts to those measures, and any loan fee that is included in
the body of the loan shall qualify for the loans;
(c) The maximum loan limit, including the
loan fee, is $5,000 for each eligible dwelling unit. If the dwelling owner is a
corporation operating a non-profit home for the elderly, a loan shall not
exceed $2,000 per dwelling unit;
(d) A lender may charge, finance, and collect
a nonrefundable front-end loan fee. Charging such a loan fee will not
disqualify the loan for a tax credit under this section. The fee shall not
exceed that charged by the lender for non-subsidized loans made under like
terms and conditions at the time the subject loan is made;
(e) There is no limit on the number of
eligible dwelling units for which a dwelling owner may receive a
loan;
(f) Loans shall not finance
the following:
(A) Converting space heat
equipment from oil or wood to another source of fuel;
(B) Space heating heat pumps;
(C) Water heating heat pumps;
(D) Wood-burning devices;
(E) Any measure that would benefit all or
part of a non-residential commercial building unless the building has some
residential living space. In the case of a commercial building which has some
residential living space the following can qualify for a loan:
(i) That part of the building used
exclusively for residential; and
(ii) In a centrally heated building, a
prorated share of the cost of a heating system. This share shall be based on
the percentage of residential to total square footage served by the heating
system.
EXAMPLE: 1,000 square feet is commercial, 2,000
square feet is residential - 2/3 of the cost of an eligible heating system
could qualify for the loan.
(F) Solar equipment;
(G) Any materials used in building a new
dwelling, additions to dwellings or remodeling which adds living
space;
(H) That part of the cost of
the measures for which the dwelling owner receives a state cash incentive.
(g) The costs of
materials for "do-it-yourself" jobs may be included in the loan. No labor costs
of such jobs shall qualify for the loan.
(2) In order to qualify for a loan, the
dwelling owner must submit to the Oregon Department of Energy written
permission to inspect the job to verify that the measures have been
installed.
(3) In applying for the
loan, a dwelling owner shall present to the lender:
(a) For contractor-installed measures, at
least one written bid itemizing measures to be included in the loan and their
costs. The Oregon Department of Energy may require that contractors use bid
forms provided by the Oregon Department of Energy; and
(b) For "do-it-yourself" measures, an
itemized list of materials to be installed and their costs.
(4) Lenders may receive a state
tax credit in accord with Section 28, Chapter 894, Oregon Laws 1981 as amended
by Chapter 749, Oregon Laws 1987, and Chapter 718, Oregon Laws 1991. This
applies only to loans which:
(a) Are made to
dwelling owners who are or who rent to residential fuel oil customers or wood
heating residents and who:
(A) Have received
an energy audit completed pursuant to these rules; and
(B) Give the lender a copy of:
(i) The results of the energy
audit;
(ii) Certification on a form
supplied by the Oregon Department of Energy stating that the dwelling receives
space heating from fuel oil or wood; and
(iii) For a furnace or burner replacement, a
certification from the contractor on a form supplied by the Oregon Department
of Energy that the heating system meets or exceeds the combustion efficiency
standards set in these rules.
(iv)
Written permission on a form supplied by and submitted to the Oregon Department
of Energy to inspect.
(b) Are subject to an annual rate not to
exceed 6.5 percent;
(c) Have a
term of ten years or less; and
(d)
Finance those measures recommended in the energy audit.
(5) Lenders making weatherization loans under
Section 28, Chapter 894, Oregon Laws 1981, as amended by Chapter 749, Oregon
Laws 1987, and Chapter 718, Oregon Laws 1991, shall:
(a) Keep a copy of the customer's energy
audit and the certification that the heating system meets or exceeds the
combustion efficiency standards set in these rules, as well as the customer's
loan application;
(b) Help the
customer fill in a form, given to the customer during the energy audit, stating
what measures will be included in the loan; and
(c) Return that form and the heating system
certification to the Oregon Department of Energy no later than one week after
the loan is closed. (This is the lender's only reporting requirement to the
Oregon Department of Energy.)
(6) Eligibility of the lender for any tax
credit under Section 28, Chapter 894, Oregon Laws 1981, as amended by Chapter
749, Oregon Laws 1987, and Chapter 718, Oregon Laws 1991, shall not be affected
by any dwelling owner's failure to use the loan for qualifying
measures.
(7) The borrower must
complete installation of the measures financed within 90 days of receiving the
loan funds.
Stat. Auth.: ORS
469.040 &
469.165
Stats. Implemented: ORS
469.170
