Oregon Administrative Rules
Chapter 813 - OREGON HOUSING AND COMMUNITY SERVICES DEPARTMENT
Division 66 - MANUFACTURED DWELLING REPLACEMENT PROGRAM
Section 813-066-0020 - Manufactured Dwelling Replacement Loan Terms

Universal Citation: OR Admin Rules 813-066-0020

Current through Register Vol. 63, No. 9, September 1, 2024

All loans made under this program will comply with the following terms and criteria in addition to any other requirements imposed by OHCS:

(1)

(a) The OHCS manufactured dwelling replacement loan is a gap loan intended to assist in the completion of the Manufactured Dwelling Replacement Project after all other financial resources available to the homeowner have been utilized. There is no minimum loan amount. Loans for a single-wide Manufactured Dwelling or equivalent are not to exceed $100,000, and for a double-wide, loans are not to exceed $175,000. The Director of the Home ownership Division may approve an increase of up to $25,000 above the original loan amount when unavoidable and unexpected costs increase the original completed project amount. A director increase may not exceed program limits.

(b) Actual loan amount for each Manufactured Dwelling Replacement Project shall be determined through a process prescribed by OHCS.

(2) Homeowner(s) must contribute available personal financial resources from sources other than OHCS such as loans, grants, insurance proceeds, savings, or other resources available to the homeowner toward their Manufactured Dwelling Replacement Project.

(a) Minimum homeowner contribution shall be determined through a review process prescribed by OHCS and will be considered the primary funding source for the Manufactured Dwelling Replacement Project.

(b) Homeowner(s) may not be required to utilize or access personal financial resources for homeowner minimum contribution if doing so would cause the homeowner(s) to incur a tax penalty such as from early withdrawal from a retirement account or IRA.

(c) Minimum homeowner contribution requirement may be reduced or waived at OHCS discretion on a case-by-case basis, with approval of the Director of Home ownership Division of OHCS.

(3) The replacement manufactured dwelling shall meet or exceed Energy Efficiency Standards and be of reasonably similar size to the manufactured dwelling to be replaced, single-wide for single-wide, and double-wide for double-wide; with the exception of replacing the old manufactured dwelling with a smaller manufactured dwelling, such as replacing an old, double-wide manufactured dwelling for a new, single-wide manufactured dwelling. Exceptions to higher energy efficiency standards may be made in cases of natural disaster for new manufactured dwellings ordered or purchased prior to October 31, 2021 or for borrowers impacted by natural disasters who do not have access to energy efficiency incentive programs in their location.

(4) Program loans must have a 0 percent (0%) interest rate.

(5) Program loans must not require regular principal payments.

(6) When a homeowner requires a primary home loan from a lender other than OHCS or other funding sources to complete the Manufactured Dwelling Replacement Project financing, OHCS will agree to subordinate its loan to these funding sources as a security interest holder.

(7) The program loan balance at closing will be reduced incrementally by 1/120th each month and forgiven completely after 10 years of homeowner occupancy from the loan origination date.

(8) If the manufactured dwelling is sold before the 10-year homeowner occupancy period expires, the outstanding balance of the program loan shall be repaid upon sale of the manufactured dwelling unless:

(a) The program loan is assumed by a buyer who meets the minimum income restrictions set forth in ORS 458.356(2)(a) or the minimum income restrictions set forth in the program loan documents, whichever is more restrictive, or

(b) The remaining balance of the program loan may be forgiven early by OHCS due to hardship at the sole discretion of OHCS.

(9) The program loan may be secured by a recorded or filed security interest through a process prescribed by OHCS. OHCS may charge a homeowner for costs incurred by OHCS for filing or recording of documentation or application as necessary to secure the program loan. The homeowner may pay for these charges from the homeowner's program loan or from personal funds.

(10) A program loan may be made to refinance an existing loan, provided the existing loan can be verified as true debt, was made for the purpose of an otherwise qualified Manufactured Dwelling Replacement Project, and the existing loan was made after January 1, 2020.

(11) Program loan and grant fund disbursements must comply with the following:

(a) Program loan and grant funds may be disbursed to manufactured dwelling retailers, licensed contractors, financial institutions and lenders, title insurance companies, municipalities and government agencies, or other commercial entities required for completion of the Manufactured Dwelling Replacement Project.

(b) Program loan and grant funds cannot be disbursed to residents of the dwelling being replaced, persons who will reside in the new dwelling to be purchased by the program loan, or persons who will hold title to the new manufactured dwelling or any real property that the dwelling(s) are to be located or placed upon.

(12) The unpaid balance of the program loan must be repaid in full upon:

(a) The homeowner's sale or voluntary transfer of the manufactured dwelling without OHCS prior written consent, within 10 years of homeowner occupancy; or

(b) The relocation of the manufactured dwelling without OHCS prior written consent; or

(c) The manufactured dwelling ceasing to be the homeowner's primary residence; or

(d) The replaced manufactured dwelling remaining on site 180 calendar days after the Manufactured Dwelling Replacement Project is completed.

Statutory/Other Authority: ORS 458.356 & ORS 458.358

Statutes/Other Implemented: ORS 456.555, ORS 446.003, ORS 455.010 & ORS 90.100

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.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.