Current through Register Vol. 63, No. 9, September 1, 2024
(1)
Before accepting a Project for the application process, the prospective
Borrower shall submit an application to the Department on forms acceptable to
the Department. If the Project meets the Program requirements, an application
conference with the prospective Borrower shall be scheduled. At the conference,
the Department may discuss, but is not limited to discussing:
(a) Type of loan requested;
(b) Type and formation of prospective
Borrower's company (sole proprietorship, partnership, corporation, nonprofit,
etc.) and qualifications;
(c)
Requested loan amount, terms and interest rate;
(d) Any time constraints on prospective
Borrower or Department;
(e)
Charges;
(f) Reserve and equity
requirements;
(g) Debt service
ratio and other contingency requirements;
(h) Appraisal requirements;
(i) Environmental Surveys;
(j) Contractor's cost estimate and
qualifications;
(k) Management and
maintenance plans;
(l) Project
management requirements, reports, and qualifications;
(m) Loan servicing requirements and
procedures;
(n) Design and related
requirements;
(o) Document
requirements;
(p) Construction
procedures;
(q) Department loan
processing procedures;
(r)
Eligibility requirements under federal and state law and regulations;
(s) Site control;
(t) Reserves and costs for Bond issue;
and
(u) Any other items pertinent
to the proposed project.
(2) At the conclusion of the application
conference, if the prospective Borrower and the Department agree to proceed
with the application process, the prospective Borrower shall provide the
necessary loan application documentation..
(3) After receiving a completed loan
application package from the prospective Borrower, the Department shall
evaluate each Project for consistency with the Department's interpretation of
sound architectural and planning principles and prudent underwriting
standards.
(4) In order to qualify
for a loan, a Project shall:
(a) Be approved
by the Department with respect to site; location; market demand; financial
feasibility; qualifications of general contractor, management agent and
developer; appraisal; financial strength and credit worthiness of the
prospective Borrower; management plan; final architectural package;
organizational documents; ALTA title report; resident services plan; and any
other information the Department shall prescribe;
(b) Meet all applicable state and local land
use and zoning requirements, housing codes, and similar requirements;
(c) Be in compliance with federal
regulations, state statutes and Program rules;
(d) Be located in the State of Oregon;
and
(e) If the loan is for an
amount over $100,000, be approved by the State Housing Council prior to the
Department's issuance of a loan Commitment:
(A) The Department shall review each
application for a loan over $100,000 and prepare a proposal to the State
Housing Council for approval or disapproval. The Department will send a copy of
its proposal to the prospective Borrower with a notice of the State Housing
Council meeting at which the application will be considered. Upon receipt of
the notice, the prospective Borrower may request an opportunity to present
testimony at the meeting;
(B) After
considering the Department's proposal, as well as any other testimony
presented, the State Housing Council shall approve or disapprove the
application or take other appropriate action;
(C) The prospective Borrower shall promptly
be advised in writing of the State Housing Council's decision.
(5) In approving or
disapproving any loan application, the Department and the State Housing Council
shall consider, in addition to requirements elsewhere stated in the Program
rules, the following criteria:
(a) The
location of the Project site, including its proximity to transportation,
shopping, social, commercial and recreational facilities, medical services and
such other facilities and services as shall best serve the residents;
(b) Financial feasibility of the
Project;
(c) Availability of
street, sewer, water, utilities and other public services;
(d) Availability of public
transportation;
(e) Architectural
design, including aesthetic quality, soundness of construction, energy
efficiency, and suitability to the needs of the residents to be
served;
(f) Compliance with
applicable local comprehensive plan and land use regulations;
(g) Market demand;
(h) The financial strength, credit reputation
and history of the prospective Borrower; and
(i) The experience of the developer,
contractors, architects, consultants and management agent in developing,
constructing and operating housing projects.
(6) The prospective Borrower may submit a
written request for review and appeal of the State Housing Council's decision
in accordance with the provisions of ORS Chapter 183. To be considered, a
request must be received by the Department within 30 days of the date of the
notice of application disapproval.
(7) Upon loan approval the Department shall
issue a Commitment, which may be subject to loan funds being available, and may
include, but are not limited to:
(a) The
amount of the loan;
(b) The maximum
rate of interest to be charged on the loan;
(c) The term of the loan;
(d) The amount of the Commitment fee, Rent-Up
Reserve Account and Contingency Escrow Account;
(e) When the Commitment fee shall be paid,
and when the Rent-Up Reserve Account and Contingency Escrow Account shall be
funded;
(f) All other conditions of
the commitment, and when they shall be fulfilled;
(g) Provisions concerning
construction;
(h) Provisions and
conditions of loan disbursement;
(i) Provisions of Loan Closing; and
(j) Conditions of termination of the
Commitment.
(8) If the
Commitment conditions are not completed by the dates specified in the
commitment, the offer for a Commitment shall expire, unless the Department
grants an extension in writing.
(9)
Construction and Completion:
(a) During the
construction of the Project, the Department may conduct random inspections for
Borrower's compliance with the plans and specifications previously approved by
the Department. The Borrower's architect shall submit regular inspection
reports to the Department. Change orders must be signed by the contractor,
Project architect and the Borrower before being submitted to the Department for
its approval and prior to the changes being made;
(b) Upon completion of construction of the
Project, the Department shall perform an inspection to assure the Borrower's
compliance with the approved plans and specifications. If some items of
construction remain to be completed due to circumstances beyond the control of
the Borrower (provided the incomplete items do not detract from livability or
safety of the Project), the Department may require the Borrower to escrow as
approved by the Department and under Department control, an amount equal to one
and one-half times the estimated cost of completion, until the construction
item is completed.
Stat. Auth.: ORS
90.800 -
90.840,
91.886, 183,
456.515 -
456.723 &
458.210 -
458.650
Stats. Implemented: ORS
456.515 -
456.720
