OAR 813-110-0015
Application Requirements
(1)
For the purpose of enabling a lending institution to obtain a reservation of OAHTC under ORS 317.097 (Lending institution loans for housing), a sponsoring entity may apply to the department for certification of a qualified loan for the allocation of OAHTC consistent with OAR chapter 813 pursuant to relevant solicitation documents issued by the department including, but not limited to a Notice of Funding Availability (“NOFA”), or as otherwise determined by the department. The application shall provide information satisfactory to the department including but not limited to:(a)
The name, address and telephone number of the sponsoring entity;(b)
Proof as required by the department that the sponsoring entity is a qualified borrower;(c)
The relevant background of the qualified borrower and its management agent and their expertise with housing for low-income persons, if applicable;(d)
A firm commitment of financing by the lending institution to the sponsoring entity for the property that is the subject of the tax credits claim containing all of the terms and conditions that the sponsoring entity has to satisfy before the loan will be funded and including an estimated comparable market interest rate for the proposed loan, the estimated reduced interest rate and the estimated amount of savings or a letter of intent for the purpose of a reservation under OAR 813-110-0021 (Reservation in Lieu of Certification);(e)
The name, address and contact person of the lending institution making the loan;(f)
A description of the project, including the type of housing or program involved, the number and type of housing units to be provided, the number of bedrooms, the address where the project is or will be located, and the federal, state and local agencies or organizations involved in financing or managing the project;(g)
A certification that includes, at a minimum, the statement that all information in the application is true, complete and accurately describes the project;(h)
An agreement by the sponsoring entity to execute restrictive covenants satisfactory to the department to which covenants will be recorded at the time of loan closing;(i)
A demonstration relating to occupancy of the units in the project, as required by subsection (2) of this section;(j)
A demonstration that the project meets the minimum requirements of any other department program used by the project, as required by subsection (3) of this section;(k)
Any additional information or actions requested by the department; and(l)
A certification by the sponsoring entity that includes, at a minimum, the statement that all information in the application is true, complete and accurately describes the project.(2)
The following provisions apply to the demonstration relating to occupancy of units that is required in subsection (1) of this section:(a)
A demonstration for a project other than a manufactured dwelling park must show that units constructed or rehabilitated with OAHTC will be occupied by households earning less than 80 percent of adjusted area median income at the time of initial occupancy.(b)
In the case of a preservation project or a manufactured dwelling park awarded after September 27, 2007, pass-through is not required for a certification produced on or after September 27, 2007.(c)
For a project other than a project to which paragraph (b) of this subsection applies, the demonstration must show that at the time the project is initially rented or purchased, and thereafter for the term of the OAHTC or twenty years, whichever is longer, the sponsor will pass the benefits of the project’s reduced loan interest rate to tenant or homeowner households whose earnings are less than 80 percent of area median income at the time of initial tenant or homeowner qualification.(d)
A demonstration for a manufactured dwelling park must show that the project meets the occupancy requirements applicable to manufactured dwelling parks in ORS 317.097 (Lending institution loans for housing).(3)
Because the OAHTC program is intended to lower rents below the level that would be obtained after all other subsidies have been applied, a project that uses one or more other department programs must demonstrate that the project meets or will meet the minimum requirements of those other programs before application of the OAHTC subsidy rent reduction. For example, if an applicant has applied for tax credits under the Low Income Housing Tax Credits (LIHTC) program and that application indicated a target of 60 percent of area median income rents, the application under this rule must show the project is feasible at the targeted 60 percent median rents without the OAHTC subsidy. The OAHTC subsidy must be applied to reduce rents below the 60 percent level and must be passed on directly to the OAHTC qualified tenants or homeowners in its entirety although the pass-through need not be distributed evenly among the units. Pass through is limited for units occupied by a tenant with a tenant based Section 8 or Housing Choice Voucher, under 813-110-0013 (Loan Requirements)(2)(C).(4)
Rental units covered by Section 8 project based assistance are not eligible to be used to demonstrate pass-through savings for the OAHTC program because the rent reductions related to the OAHTC subsidy typically would not be passed on to the tenants in the form of a rent reduction from what the tenants would otherwise pay, and therefore, would not achieve pass-through savings. Projects that are partially covered with project based assistance may qualify to use OAHTC on the remaining units by, inter alia, demonstrating pass-through interest savings that result in appropriate rent reductions to the OAHTC qualified tenants. To the degree this can be achieved in conjunction with tenant vouchers not targeted for pass through, it is encouraged to be targeted to non-voucher units in the Project.(5)
The department may require more extensive and enduring affordability covenants than provided in subsections (2) through (4) as may be reflected in relevant solicitation documents or otherwise.(6)
The department may require a non-refundable application charge and may assess such other charges as it deems reasonable to cover anticipated costs of processing the application, coordinating with other funding or project partners, negotiating and recording required documents or additional administration. Certain other charges are identified later in these rules.
Source:
Rule 813-110-0015 — Application Requirements, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-110-0015.