OAR 813-055-0065
Form of Assistance; Documentation
(1)
The department may provide GHAP funds in the form of a grant or a loan, or a combination of both. Loan rates and terms, if applicable shall be determined by the department based on a project’s or applicant’s needs and cash flow, other funding resources, market conditions and an applicant’s capacity to repay GHAP funds. Preference may be given to those applicants requesting loans that show sufficient project cash flow to repay the loan. The department normally will notify an applicant in a written reservation letter as to the amount and form of GHAP assistance, if any, to be provided, together with notable conditions. Such reservation commitments remain subject to department rules, solicitation requirements, applicable law, and the negotiation, execution and recording (if required) of documents satisfactory to the department.(2)
Each recipient of project development assistance shall, inter alia, execute funding agreements satisfactory to the department including, but not limited to a project use agreement, containing such terms regarding fees, interest rates, repayment terms, performance criteria, reporting requirements, restrictive covenants, and other terms as the department considers appropriate or necessary for the type and use of assistance provided. Each relevant funding agreement, including the use agreement, must be:(a)
(If the recipient owns the project property at the time of disbursement) recorded as an encumbrance on the project property before any GHAP funds are advanced; or(b)
(If the recipient does not own the project property at the time of disbursement) at the discretion of the department, placed in an escrow account established by the recipient satisfactory to the department and subject to such further conditions as the department may require, including the recording of restrictive covenants running with the project property for the applicable affordability period, with appropriate lien priority and taking effect upon close of escrow.(3)
The department may require a recipient to execute and record such funding documents satisfactory to the department as it considers appropriate in its sole discretion.
Source:
Rule 813-055-0065 — Form of Assistance; Documentation, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-055-0065.