OAR 813-020-0035
Eligible Residences
(1)
A residence is eligible for a loan from the Single-Family Mortgage Program if:(a)
The residence is located in Oregon;(b)
The residence is structurally sound and functionally adequate;(c)
The residence is only one single-family residential unit;(d)
The residence conforms with all applicable zoning requirements, building codes and similar requirements; and(e)
The acquisition cost, including any deferred, indirect or nonmonetary consideration other than labor of the borrower and the borrower’s family, and the appraised value of the residence do not exceed limits established by the Department under this rule.(2)
In addition to the requirements of section (1) of this rule:(a)
If the loan on a residence includes proceeds of bonds sold after September 15, 1982, a residence is eligible for a program loan only if no more than 15 percent of the total living area of the residence is of a character that is subject to being rented for or used in the operation of a trade or business conducted on any part of the land or improvements, thereby qualifying the use as a deduction for federal income tax purposes under Section 280A of the Internal Revenue Code.(b)
If a residence to which this rule applies is a part of a condominium or planned unit development, the eligibility of the residence for a program loan is subject to a determination by the Department whether granting the loan would result in an excessive percentage of units in the condominium or development that are financed by program loans.(3)
For the purpose of this rule, a determination by the Department of limits on:(a)
The acquisition cost of a residence is subject to consideration of the following factors:(A)
The cost and condition of housing within the state;(B)
Income levels established for the program;(C)
Purchase price limits under applicable federal law; and(D)
Reasonable down payment requirements.(b)
The appraised value of a residence is subject to limits established by the Department and to consideration of the following factors:(A)
The cost and condition of housing within the state;(B)
The market value of such housing, assuming arms’-length sales transactions;(C)
The probability of non-arms’-length sales transactions;(D)
The effect of the limits on the lender’s ability to originate program loans; and(E)
The effect of the limits on the security of program loans.
Source:
Rule 813-020-0035 — Eligible Residences, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-020-0035.