OAR 813-037-0040
Program or Loan Default

(1) The Department may deem a/an LAP loan to be in default when one or more of the following events occur:
(a) A loan recipient does not place appropriate affordable housing into service on a property acquired under this section within eight years of receiving Department’s LAP funding.
(b) The property is not used for an eligible purpose as determined by the Department.
(c) Loan repayment is not made as required under the loan agreement.
(d) A loan recipient does not provide an updated development plan to the Department within five years of receiving a loan.
(e) The loan recipient otherwise fails to perform in a manner consistent with the LAP or applicable loan documents.
(2) If a loan recipient fails to place appropriate affordable housing into service in conformance with subsection (1)(a) or when a loan or LAP default otherwise occurs, the loan recipient must pay the Department an amount consistent with the principal of the original loan plus compounded interest calculated at the current market rate. Loan fees and other costs may also apply. Notwithstanding the foregoing, the Department may, in its sole discretion, grant a partial or total exemption from the repayment requirements of this section if the Department determines that a project is substantially completed or that the property has been substantially used as described in the original affordable housing development plan. When determining whether to grant a partial or total exemption under this section, the Department may consider factors including, but not limited to, extenuating circumstances and potential benefits to the LAP.

Source: Rule 813-037-0040 — Program or Loan Default, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=813-037-0040.

Last Updated

Jun. 8, 2021

Rule 813-037-0040’s source at or​.us