OAR 813-020-0049
Permissible Use of Property Financed by a Program Loan
(1)
A borrower under the Single-Family Mortgage Program shall continuously occupy the single-family residence financed by the program loan as the borrower’s permanent and principal residence during the time the borrower has the program loan, except under the conditions specified in section (2) of this rule. Prior to repayment of the program loan or prior to assumption of the loan when the Department allows assumption, the borrower may not sell, transfer or otherwise dispose of the single-family residence and may not be a party to any formal or informal arrangement to sell, transfer or otherwise dispose of the residence.(2)
A borrower under the program may not vacate, rent or agree to rent the single-family residence during the term of the program loan unless the borrower requests and receives permission from the loan servicer and, if the servicer requires, from the Department. Permission must be based upon the determination of the servicer, and of the Department when the Department’s permission is requested, that one of the following conditions applies:(a)
The borrower is making a good faith effort to sell the residence or refinance the program loan; or(b)
The circumstances causing the borrower to move out of the residence are beyond the borrower’s control, including but not limited to any of the following or substantially similar circumstances:(A)
The borrower or the borrower’s spouse is drafted into military service;(B)
The borrower or the borrower’s spouse is involuntarily transferred by an employer on a temporary basis;(C)
The borrower or the borrower’s spouse becomes disabled and needs medical rehabilitation, and consequently cannot live in the residence; or(D)
The borrower or the borrower’s spouse must move to finish an educational degree requirement and has taken a temporary leave of absence from employment.(3)
For a determination whether a circumstance under section (2) of this rule applies, the loan servicer or the Department may require evidence from the borrower of continuing sales or refinancing efforts or of the specific circumstances asserted.(4)
A borrower shall submit a request under section (2) of this rule in writing to the loan servicer, and to the Department if the loan servicer requires the Department’s permission, one month before the borrower vacates or rents the residence. The borrower may request permission to rent or vacate the residence for a period of time not to exceed one year, and may request additional one-year extensions. Permission to rent or vacate or to extend is subject to a determination by the loan servicer, and by the Department if the Department also granted permission, that the condition under section (2) of this rule as asserted by the borrower continues to apply. A borrower must submit a request for extension to the servicer, and to the Department when applicable, before the approved period ends.(5)
If a program loan was made from the proceeds of bonds sold after September 15, 1982, the principal residence requirements of Section 143 of the Internal Revenue Code of 1986, as amended, apply instead of the principal residence requirement under this rule. A borrower must submit evidence satisfactory to the Department that the borrower will comply with federal residence requirements.(6)
A borrower who does not comply with a provision of this rule is subject at any time and without notice to acceleration of all payments due under the program loan and to any other remedy or civil penalty allowable by law.
Source:
Rule 813-020-0049 — Permissible Use of Property Financed by a Program Loan, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-020-0049.