OAR 813-070-0065
Federal Eligibility Requirements
(1)
Section 143 of the Internal Revenue Code of 1986, as amended, requires the Department to meet certain requirements in order to preserve the federal tax exemption for Bonds issued to finance Program Loans. These requirements:(a)
Require the Residential Dwelling to be improved to be owned and occupied by the Eligible Borrower as a principal residence;(b)
Require that the proceeds of a Program Loan be used to finance alterations, repairs and improvements of a Residential Dwelling which substantially protect or improve the basic livability or energy efficiency of such dwelling; and(c)
Limit the maximum amount of a Program Loan to $15,000.(2)
The Department is required to make available for qualified loans in Targeted Areas a specified portion of the lendable proceeds of Bonds sold. Certain census tracts are designated as Targeted Areas by Section 143 of the Internal Revenue Code of 1986, as amended. The Department may apply for approval of additional or revised Targeted Areas after taking into account certain statutory variables. In designating such areas, the Department shall solicit requests from all cities within the state, and apply certain criteria specified by the United States Department of Housing and Urban Development for such purpose to other urban and non-urban areas. The Housing Division shall submit its findings for approval by the Secretary of the United States Department of Housing and Urban Development and the Secretary of the United States Treasury. The Department shall retain a current list of designated Targeted Areas.(3)
The Department is required to establish procedures which ensure compliance with the requirements of Section 143 of the Internal Revenue Code of 1986, as amended. Any failure to meet these requirements shall be corrected within a reasonable time. The Department shall grant no exceptions or waivers unless allowed by federal law.(4)
Where required by federal law, the Department shall calculate and rebate certain amounts, if any, to the United States Treasury.
Source:
Rule 813-070-0065 — Federal Eligibility Requirements, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-070-0065.