Oregon Administrative Rules
Chapter 813 - OREGON HOUSING AND COMMUNITY SERVICES DEPARTMENT
Division 120 - HOME INVESTMENT PARTNERSHIPS PROGRAM
Section 813-120-0050 - HOME Affordability Requirements
Universal Citation: OR Admin Rules 813-120-0050
Current through Register Vol. 63, No. 9, September 1, 2024
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. Sec. 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. Sec. 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. Sec.
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. Sec. 94.254(a)(iii).
Publications: Publications referenced are available from the agency.
Stat. Auth.: ORS 456.620
Stats. Implemented: ORS 456.559(1)(f)
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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