Oregon Administrative Rules
Chapter 813 - OREGON HOUSING AND COMMUNITY SERVICES DEPARTMENT
Division 20 - SINGLE-FAMILY MORTGAGE PROGRAM
Section 813-020-0035 - Eligible Residences
Universal Citation: OR Admin Rules 813-020-0035
Current through Register Vol. 63, No. 9, September 1, 2024
(1) A residence is eligible for a loan from the Single-Family Mortgage Program if:
(a) The residence is located in
Oregon;
(b) The residence is
structurally sound and functionally adequate;
(c) The residence is only one single-family
residential unit;
(d) The residence
conforms with all applicable zoning requirements, building codes and similar
requirements; and
(e) The
acquisition cost, including any deferred, indirect or nonmonetary consideration
other than labor of the borrower and the borrower's family, and the appraised
value of the residence do not exceed limits established by the Department under
this rule.
(2) In addition to the requirements of section (1) of this rule:
(a) If the loan on a residence includes
proceeds of bonds sold after September 15, 1982, a residence is eligible for a
program loan only if no more than 15 percent of the total living area of the
residence is of a character that is subject to being rented for or used in the
operation of a trade or business conducted on any part of the land or
improvements, thereby qualifying the use as a deduction for federal income tax
purposes under Section 280A of the Internal Revenue
Code.
(b) If a residence to which
this rule applies is a part of a condominium or planned unit development, the
eligibility of the residence for a program loan is subject to a determination
by the Department whether granting the loan would result in an excessive
percentage of units in the condominium or development that are financed by
program loans.
(3) For the purpose of this rule, a determination by the Department of limits on:
(a) The acquisition cost of a residence is
subject to consideration of the following factors:
(A) The cost and condition of housing within
the state;
(B) Income levels
established for the program;
(C)
Purchase price limits under applicable federal law; and
(D) Reasonable down payment
requirements.
(b) The
appraised value of a residence is subject to limits established by the
Department and to consideration of the following factors:
(A) The cost and condition of housing within
the state;
(B) The market value of
such housing, assuming arms'-length sales transactions;
(C) The probability of non-arms'-length sales
transactions;
(D) The effect of the
limits on the lender's ability to originate program loans; and
(E) The effect of the limits on the security
of program loans.
Stat. Auth.: ORS 456.555
Stats. Implemented: ORS 456.620 & ORS 456.625, 456.635 & 456.640
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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