Oregon Administrative Rules
Chapter 813 - OREGON HOUSING AND COMMUNITY SERVICES DEPARTMENT
Division 37 - AFFORDABLE HOUSING LAND ACQUISITION REVOLVING LOAN PROGRAM (LAP)
Section 813-037-0030 - Award Determination

(1) There is no maximum loan amount on LAP loans; however, LAP is not intended to cover 100 percent of site acquisition costs. The amount of any LAP loan is subject to the discretion of OHCS considering factors that may include, but are not limited to:

(2) OHCS shall be in the first lien position on all property loan documents.

(3) Loan applications must include development plans as described in ORS 456.502(4).

(4) Subject to the placement of appropriate affordable housing into service on the land acquired by the LAP loan within eight years of the loan's receipt, LAP loans will have a simple interest rate of not more than one percent if all loan terms and regulatory requirements are met. Collection costs, late fees, interest upon accelerated payments due to an event of default and post-judgment interest are not subject to the one percent limitation.

(5) Subject to the placement of appropriate affordable housing into service on the land acquired by the LAP loan within eight years of the loan's receipt, LAP loan fees, if applicable, will not exceed one percent if all loan terms and regulatory requirements are met. Collection costs, late fees, interest upon accelerated payments due to an event of default and post-judgment interest are not subject to the one percent limitation.

(6) All loans will include documents listing the Current Market Rate of the loan payable in the event of a loan default.

(7) All housing developed on the property acquired with LAP funding shall be preserved as affordable housing for a minimum of 30 years. The affordability restrictions shall be documented through documents acceptable to OHCS including, but not limited to, restrictive covenants, recorded at the loan recipient's expense against the property acquired with LAP funding.

(8) Loan payments may be deferred by OHCS. However, repayment shall begin no later than when the project financing has closed. Loan documents must be satisfactory to OHCS in its sole discretion. Loan recipients must reimburse OHCS for its legal costs in negotiating terms of applicable loan documents.