OAR 813-038-0020
Program Criteria
(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.(13)
The Department will make Loans to Eligible Borrowers under the terms of a written Commitment Letter.(14)
The Borrower shall comply with the provisions of these rules, appropriate directives of the Department and the Loan Documents. If the Borrower does not comply or fails to comply, the Department may revoke its Commitment Letter and demand immediate repayment of all or a portion of the Loan Funds advanced.
Source:
Rule 813-038-0020 — Program Criteria, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-038-0020.