Oregon Administrative Rules › Chapter 813 - OREGON HOUSING AND COMMUNITY SERVICES DEPARTMENT › Division 90 - LOW-INCOME HOUSING TAX CREDIT PROGRAM › Section 813-090-0010 - Definitions

Current through Register Vol. 63, No. 7, July 1, 2024
Terms used throughout OAR chapter 813, division 090 may be
				defined in 26 U.S.C. §
									42, in Oregon Revised Statute (ORS), or in
				the OHCS General Definitions (OAR 813-005-0005). Terms used within this
				division observe those definitions except as defined below. All words and terms
				used in OAR chapter 813, division 90 are as provided in 813-005-0005  and
				herein. As used in these rules:
(1)
			 "Applicable fraction" means the portion of a building that is treated as
			 low-income use and generally eligible for the low-income housing tax
			 credits.
(2) "Applicable
			 percentage" means the IRS published or Congress set credit rating used in
			 calculating the low-income housing tax credit. The applicable percentage
			 includes the applicable federal rate (AFR) for the 9% annual credit which
			 applies to eligible construction and substantial rehabilitation costs, and the
			 4% annual credit which applies to the acquisition cost of existing buildings to
			 be rehabilitated.
(3) "Applicant"
			 means a person or entity that applies for an allocation of LIHTCs from OHCS by
			 completing an application provided by OHCS. Once OHCS accepts the applicant's
			 application and an allocation is made, the applicant becomes a project
			 owner.
(4) "Carryover allocation"
			 means an allocation of LIHTCs that is made with respect to a project pursuant
			 to IRC Section 42(h)(1)(E) and/or IRC Section 42(h)(1)(F), and in conformity
			 with IRS Notice 89-1 and Treasury Regulations Section 1.42-6. OHCS issues a
			 carryover allocation when a project will not be placed in service by close of
			 the calendar year of the allocation but has incurred more than 10% of its
			 anticipated costs within the calendar year in which the allocation was received
			 or six (6) months after the date of the carryover.
(5) "Credit authority" means the dollar
			 amount of low-income housing tax credits available for allocation by OHCS for
			 any calendar year and can include estimates of future amounts.
(6) "Declaration of Land Use Restrictive
			 Covenants" means a recorded document against a property that evidences the
			 original intent and limitations of the LIHTC affordability (and other program)
			 restrictions.
(7) "Financial
			 feasibility" means the viability of a project after taking into consideration
			 its total costs and projected revenues.
(8) An "IRS Form 8609" or "Form 8609" means
			 the Internal Revenue Code (IRS) Form 8609, Low-Income Housing Credit Allocation
			 and Certification that is issued to a Project Owner when a carryover allocation
			 is approved. Owners of qualified low-income building(s) are allowed a
			 low-income housing credit for each qualified building over a 10-year credit
			 period. A separate Form 8609 must be issued for each qualified low-income
			 building in a multiple building project.
(9) "Housing credit agency" means the
			 designated state agency that administers IRC Section 42 and allocates LIHTCs on
			 behalf of the Internal Revenue Service.
(10) "Low-income housing tax credit" or
			 "LIHTCs" means the low-income housing tax credits available on a project
			 pursuant to IRC Section 42. The amount of low-income housing tax credits
			 available for allocation to a project is the amount that OHCS determines is
			 necessary to make the project financially feasible but in no instance can it be
			 greater than the applicable percentage of the qualified basis of each qualified
			 low-income building.
(11) "Notice
			 of Funding Availability" or "NOFA" means the method OHCS informs interested
			 parties about how to apply for low-income housing tax credits and other
			 financial resources.
(12) "Placed
			 in service" means a project is completed and occupied by qualifying residents.
			 In the case of multiple-building projects, each building has its own
			 placed-in-service date.
(13)
			 "Program requirements" means these administrative rules, all funding agreement
			 terms and conditions, OHCS directives, applicable OHCS handbooks and manuals
			 (including but not limited to OHCS' LIHTC Manual defined herein and the General
			 Policy and Guideline Manual described in OAR 813-005-0020, IRC Section 42 of
			 1986, as amended, and corresponding regulations, and other applicable laws,
			 including federal, state, and local laws, codes, ordinances, and orders, all of
			 which as may be amended from time to time.
(14) "Project" means a "qualified low-income
			 housing project" as defined in IRC Section 42(g).
(15) "Project owner" means a person or entity
			 whose application for LIHTCs has been accepted by OHCS and who is the owner
			 also known as the borrower of a Project.
(16) "Qualified Allocation Plan" or "QAP"
			 means the 2022 State of Oregon Qualified Allocation Plan for Low Income Housing
			 Tax Credits, dated January 31, 2022, as described in 813-090-0037  and IRC
			 Section 42(m)(B). The QAP may be accessed online at OHCS' website.
(17) "Qualified basis" means the amount of
			 eligible basis that will be used to generate low-income housing tax credits and
			 is based upon the proportion of the property that will be used for affordable
			 housing. The qualified basis is equal to the eligible basis, multiplied by the
			 applicable fraction.
(18)
			 "Reservation and extended use agreement" or "REUA" is a contract between OHCS
			 and the project owner whereby the project owner agrees, among other things, to
			 provide and maintain the project and to guarantee its compliance with the
			 requirements of IRC Section 42 and OHCS by executing and recording a
			 Declaration of Land Use Restrictive Covenants on the project property in return
			 for an allocation of LIHTCs in accordance with IRC Section 42(h)(6). It will
			 also include, by reference, a carryover allocation agreement.
(19) Suballocation is an agreement between
			 OHCS to whom current state's private activity bond volume limit (CAP)
			 allocations have been made to choose to suballocate any amount of the agency's
			 allocation to another issue provide that the allocation is used for the same
			 category of project for which the initial request was made, and the
			 suballocation complies. All suballocations expire December 15th of any given
			 calendar year.
Statutory/Other Authority: ORS 183 & 456.515 -
				  456.720
Statutes/Other Implemented: ORS
				  456.559(1)(f)
				  & 26 U.S.C. §
											42