Current through Register Vol. 63, No. 9, September 1, 2024
(1) For the purpose of enabling a lending
institution to obtain a reservation of OAHTC under ORS
317.097, a sponsoring entity may
apply to OHCS for certification of a qualified loan for the allocation of OAHTC
consistent with OAR chapter 813 division 110 through the Oregon Centralized
Application (ORCA) process.
(2) The
application shall provide information satisfactory to OHCS including but not
limited to:
(a) The name, address and
contact6 information of the sponsoring entity;
(b) Proof as required by OHCS that the
sponsoring entity is a qualified borrower;
(c) The relevant background of the qualified
borrower and its management agent and their expertise with housing for
low-income persons;
(d) A firm
commitment of financing by the lending institution to the sponsoring entity for
the project containing all of the terms and conditions that the sponsoring
entity has to satisfy before the loan will be funded and including an estimated
comparable market interest rate for the proposed loan, the estimated reduced
interest rate and the estimated amount of savings or a letter of intent for the
purpose of a reservation under OAR
813-110-0030;
(e) The name, address and contact person of
the lending institution making the loan;
(f) A description of the project, including
the type of housing or program involved, the number and type of housing units
to be provided, the number of bedrooms, the address where the project is or
will be located, and the federal, state, and local agencies or organizations
involved in financing or managing the project;
(g) A certification that includes, at a
minimum, the statement that all information in the application is true,
complete and accurately describes the project;
(h) An agreement by the sponsoring entity to
execute restrictive covenants satisfactory to OHCS, which will be recorded at
the time of loan closing;
(i) A
demonstration relating to occupancy of the units in the project, as required by
subsection (2) of this section;
(j)
A demonstration that the project meets the minimum requirements of any other
OHCS program used by the project, as required by subsection (3) of this
section;
(k) Any additional
information or actions requested by OHCS; and
(l) A certification by the sponsoring entity
that includes, at a minimum, the statement that all information in the
application is true, complete, and accurately describes the project.
(3) The following provisions apply
to the demonstration relating to occupancy of units that is required in
subsection (1) of this section:
(a) A
demonstration for a project (other than a manufactured dwelling park) that
units constructed or rehabilitated with OAHTC will be occupied by households
earning 80 percent or less of adjusted area median income at the time of
initial occupancy.
(b) In the case
of projects falling under OAR
813-110-0013(2), (3), and
(4), pass-through is not required for a
certification.
(c) For a project
other than a project to which paragraph (b) of this subsection applies, the
demonstration must show that at the time the project is initially rented or
purchased, and thereafter for the term of the OAHTC, the sponsor will pass the
benefits of the project's reduced loan interest rate to tenant or Limited
Equity Cooperative (LEC) households whose earnings are 80 percent or less of
area median income at the time of initial tenant or LEC
qualification.
(d) A demonstration
for a manufactured dwelling park must show that the project meets the occupancy
requirements applicable to manufactured dwelling parks in ORS
317.097.
(4) A project that uses one or more other
OHCS programs must demonstrate that the project meets or will meet the
requirements of those other programs before application of the OAHTC subsidy
rent reduction or housing payment reduction.
(5) Rental units covered by Section 8
project-based assistance are not eligible to be used to demonstrate
pass-through savings for the OAHTC program.
(a) Projects that are partially covered with
project-based assistance may qualify to use OAHTC on the remaining units by
demonstrating pass-through interest savings that result in appropriate rent
reductions or housing payments to the OAHTC qualified tenants.
(b) To the degree this can be achieved in
conjunction with tenant vouchers not targeted for pass-through, it is
encouraged to be targeted to non-voucher units in the Project.
(6) OHCS may require a
non-refundable application charge and may assess such other charges as it deems
reasonable to cover anticipated costs of processing the application,
coordinating with other funding or project partners, negotiating, and recording
required documents or additional administration. Certain other charges are
identified later in these rules.
Statutory/Other Authority: ORS
317.097 & ORS
456.515-456.725
Statutes/Other Implemented: ORS
317.097
