Oregon Administrative Rules › Chapter 813 - OREGON HOUSING AND COMMUNITY SERVICES DEPARTMENT › Division 38 - PREDEVELOPMENT LOAN PROGRAM › Section 813-038-0020 - Program Criteria

Current through Register Vol. 63, No. 7, July 1, 2024
Program criteria includes but is not limited to:
(1) The Eligible Borrower shall provide a
			 complete Program Application satisfactory to the Department that appropriately
			 demonstrates, inter alia, the need for and projected use of the requested
			 Loan.
(2) The Eligible Borrower
			 shall provide such other information, warranties and assurances as the
			 Department may require, including, inter alia, that it will comply with all
			 Program requirements as set forth in statute, these rules, the Application and
			 the Loan Documents.
(3) The Loan
			 will not exceed 100% of the value of the Collateral unless otherwise approved
			 in writing by the Department and may have such other conditions and
			 requirements as the Department, in its sole discretion, determines to be
			 reasonable or appropriate.
(4) The
			 Loan must be secured by a first-lien interest in appropriate Collateral as
			 determined by the Department, unless otherwise approved in writing by the
			 Department.
(5) A proposed
			 multi-family rental housing Eligible Project must have five (5) or more rental
			 housing units and meet the maximum income requirements of either 20% of the
			 units rented to residents at 50% of area median income or 40% of the units
			 rented to residents at 60% of area median income, as determined by the
			 Department. One-third of the total units may be occupied by households whose
			 incomes are more than 120% of the area median income. Rents for income
			 restricted units must also be restricted as required by the
			 Department.
(6) A proposed
			 single-family subdivision with five (5) or more lots must offer the for-sale
			 homes to owners that meet the Department's Oregon Bond Loan requirements for
			 Eligible Borrowers. Income limits and home prices are restricted, based on the
			 County in which the subdivision is located.
(7) Loan funds may be disbursed in a lump
			 sum, in installments, or on a cost reimbursement basis as determined by the
			 Department.
(8) The Program
			 Application shall include, at a minimum, two independent and comprehensive
			 repayment plans to fully repay the Loan within the terms and conditions of the
			 Loan Commitment Letter and are satisfactory to the Department. At least one
			 repayment plan shall include repayment of the Loan without using other
			 Department funding sources.
(9) The
			 Department may require such further information as it deems appropriate prior
			 to disbursement of any Loan Funds.
(10) The Commitment Letter must be executed
			 by an authorized signor of the Eligible Borrower and returned to the Department
			 prior to any disbursement of Loan Funds.
(11) Notwithstanding any Commitment,
			 disbursement of Loan Funds to the Eligible Borrower by the Department is
			 specifically conditioned upon the Borrower's execution, delivery and recording
			 of Loan and other Program documents satisfactory to the Department.
(12) The Department may give a preference for
			 a Loan based upon factors including, but not limited to those described in
			 subparagraph 038-0030(2) and the following:
(a) Projects providing the greatest number of
			 suitable housing units constructed, acquired, developed or rehabilitated for
			 the least amount of loan; and
(b)
			 Those Program applications which, in the sole judgment of the Department, best
			 achieve the purposes of the Predevelopment Loan Program.