813-043-0020 Eligibility for Loan Guarantee Program Fund (1) OHCS shall provide guarantees of repayment of loans made to finance the construction, development, acquisition and/or rehabilitation of: (a) Housing for rental or ownership by persons with Moderate, Low and Very Low Income; or (b) The commercial component of a structure that contains both commercial property and housing for persons with Moderate, Low and Very Low Income. (2) Organizational Eligibility - Any of the following (an "applicant") may apply to OHCS for a loan guarantee for a qualifying project under the Loan Guarantee Program in the role of a developer, an owner or a lending institution for the project: (a) A for-profit business; (b) A local government entity including, but not limited to, a unit of local government (such as city or county) or a housing authority; (c) A not-for-profit organization, including but not limited to, a nonprofit community-based organization, a regional or statewide nonprofit entity, or a nonprofit corporation; (d) A Native American tribe; or (e) Any other entity specifically identified by OHCS as an eligible applicant in an application or award process with respect to the Loan Guarantee Program funds. (3) Project Eligibility – To be considered eligible for a loan guarantee, projects must meet the following criteria: (a) No less than 50% of the units constructed, developed, acquired or rehabilitated must be designated for Moderate, Low, or Very Low income individuals or families; (b) Affordability designations must remain on the property for a period of no less than 10 years or until the loan is paid off or whichever is longer; (c) Loan guarantees for homeownership are eligible, but 100% of the housing must be purchased by a Moderate, Low, or Very Low income family. There are no affordability requirements for homeownership beyond the initial purchase; (d) Properties with a commercial component are bound by the following requirements: (A) Commercial space cannot exceed 20% of the overall development budget for the project, as determined by OHCS underwriting; and (B) Commercial space must be restricted in scope through a land-use agreement to exclude business(es) that are incompatible with residential housing. (e) All projects must meet underwriting criteria as established by OHCS in the Loan Guarantee Program Manual and the participating lender. (4) General Terms & Conditions of the Fund: (a) No guarantee shall be prepared or construed in such a manner as to violate provisions of Article XI, Section 7, of the Oregon Constitution; (b) OHCS will not issue any loan guarantee that provides for the repayment of more than 50 percent of the original principal balance of any loan; (c) OHCS will not allow the aggregate dollar total of all loan guarantees issued to exceed the total amount then in the accountFund; (d) To the greatest extent possible, the Loan Guarantee Program should prioritize projects that: (A) Further affordable housing investments in rural markets that lack market and appraisal data to support needed lending; or (B) Provide access to lending to those small and culturally specific organizations that will benefit from the enhanced credit and risk mitigation a guarantee would provide. Statutory/Other Authority: ORS 458.600 - 458.650 Statutes/Other Implemented: OL 1991, Ch. 740 & ORS 458.740 History: OHCS 39-2025, minor correction filed 09/11/2025, effective 09/11/2025 OHCS 33-2024, amend filed 09/11/2024, effective 09/16/2024 HSG 6-1994, f. & cert. ef. 9-9-94 HSG 4-1992, f. & cert. ef. 4-28-92 HSG 4-1991(Temp), f. & cert. ef. 10-10-91