OAR 813-135-0040
Allocation of Bond Proceeds
(1)
The department may, to the extent of its authority, allocate bond proceeds to projects selected for funding by the Housing Stability Council.(2)
The department shall allocate the funds in compliance with the requirements of the Oregon Constitution, Article XI-Q, ORS 456.559 (Powers and duties of department)(1)(f) and the rules of this division. Applications will be solicited during specified periods within the department’s Notice of Funding Availability (NOFA). The department may also select from a pool of qualified applicants, or such other process the department deems appropriate.(3)
The department may choose whether or not to allocate all funds available.(4)
The obligation to repay the LIFT Loan principal shall be satisfied upon repayment in full at maturity. In the alternative, and at the election of the borrower at any time after the initial affordability period, such obligation may be:(a)
Satisfied upon the borrower executing (and where OHCS deems necessary, recording) agreements(A)
Subjecting the qualified property to an additional affordability period equivalent to the initial level of affordability; and(B)
Ensuring that the equity of the LIFT Loan continues to benefit the qualified project;(b)
Extended beyond the initial maturity date on the condition that(A)
Substantially equivalent (as determined by OHCS) affordability is maintained through the extended affordability date; and(B)
The equity of the LIFT Loan continues to benefit the qualified project. At the request of the borrower, OHCS also may consider a combination of LIFT Loan repayment, affordability preservation, and loan extension in proportion to the previously identified options.(5)
LIFT Loans may be prepaid as long as affordability is ensured in a manner satisfactory to OHCS. Examples include:(a)
Loan fully repaid at maturity.(b)
Loan satisfied by a 30 year affordability extension where the LIFT equity is used to rehabilitate the qualified project.(c)
Loan terms extended for an additional 20 or 30-year affordability term.(d)
Loan prepaid at year 15 with continued affordability ensured for the entirety of the initial affordability term.
Source:
Rule 813-135-0040 — Allocation of Bond Proceeds, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-135-0040.