Oregon Administrative Rules › Chapter 415 - OREGON HEALTH AUTHORITY, HEALTH SYSTEMS DIVISION: ADDICTION SERVICES › Division 52 - RECOVERY HOMES FOR PEOPLE IN RECOVERY FROM ALCOHOL AND DRUG ABUSE OR DEPENDENCY › Section 415-052-0110 - Revolving Loan Fund

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
Establishment of the Revolving Loan Fund.
The Division will
			 establish and administer a revolving loan fund to assist the establishment of
			 recovery homes. This fund shall be known as the "Oregon Recovery Homes
			 Revolving Loan Fund". The revolving loan fund will be established with federal
			 funds allocated for this purpose under
			 42
			 U.S.C. 300x-25 and may be supplemented with
			 state funds designated for this purpose.
(2)
Administration of the Revolving
			 Loan Fund.
The Division may contract with a private, nonprofit entity to
			 administer the revolving loan fund The private, nonprofit entity will be
			 selected through a competitive process consistent with state contracting
			 practices under ORS 279B. The selection of the contractor shall be based upon a
			 review of qualifications, expertise, experience and documented capabilities
			 relating to the administration of a revolving loan fund. The revolving loan
			 fund will be administered consistent with all federal, state and local laws and
			 the following requirements:
(a) The revolving
			 loan fund will be maintained in an account that is separate and distinct from
			 all other accounts maintained by the contractor that is selected by the
			 Division. The account will be interest-bearing, if such an account is
			 available, and be kept in a depository approved by the State of
			 Oregon;
(b) The contractor will
			 adopt policies and procedures for the administration of the revolving loan fund
			 consistent with
			 42
			 U.S.C. 300x-25,
			 45
			 CFR 96.129 and these rules. These policies
			 and procedures will include criteria for approving loans, collecting payments,
			 assessing penalties, and managing loans in default. These policies and
			 procedures will be reviewed and approved by the Division;
(c) The contractor will use forms and other
			 written materials to provide loans. These will include, but not be limited to,
			 a loan application form, a loan approval letter indicated loan terms, and a
			 past due notification letter;
(d)
			 Loans will be limited to legitimate costs relating to the establishment or
			 relocation of a recovery home. These costs will include, but not be limited to,
			 first month's rent, necessary furniture, facility modifications, and purchase
			 of appliances and equipment necessary to the operation of the
			 household
(e) Loans will not exceed
			 $5,000. This amount will include no more than $4,000 from federal sources. No
			 interest will be charged;
(f) The
			 terms for the loan shall specify that repayment will occur within two years
			 after the date on which the loan is made;
(g) The loan will be paid through monthly
			 installments with funds collected from residents of the recovery
			 home;
(h) A reasonable penalty will
			 be assessed for each failure to pay the monthly installment by the due
			 date;
(i) There will be procedures
			 that outline liability and recourse in the case of default; and
(j) A record for each loan shall be
			 maintained and include the application, approval documentation, payment
			 history, correspondence, penalties, default remedies and documentation of
			 pay-off.