OAR 813-206-0030
Eligible Projects
(1)
To be a project eligible for Multifamily Energy Program funding, the project must satisfy applicable program requirements, including the requirements of all other department financial assistance programs applicable to the project, including, but not limited to, use for its development or ongoing financing.(2)
Existing or new construction affordable multifamily properties with five (5) or more dwelling units per building are eligible to be qualifying projects for program funding, whether low-rise, mid-rise or high-rise multifamily buildings. Campuses of duplexes, triplexes, and quadplexes will be considered on a case-by-case basis.(3)
Successful applicants for program funding must satisfy applicable program requirements, including relevant procurement and application requirements, as well as requirements of all other department financial assistance programs from which funding will be used for development or financing of the project.(4)
Program funding sourced from the SB 1149 Electricity Public Purpose Charge account is reserved for projects located in the PacifiCorp or Portland General Electric service areas. Such projects, to be eligible for program funding, also must use a hard-wired electrical system to qualify for program funding.(5)
Applications for program funding for projects located outside PacifiCorp and Portland General Electric service areas are subject to acceptance by the department only when funds from sources other than SB 1149 Electricity Public Purpose Charge account resources are available.(6)
The following project costs are eligible for reimbursement under the program:(a)
New construction costs related to higher-than-code minimums on insulation, windows, appliances, lighting, ventilation, domestic hot water, and electric heating systems; and(b)
Acquisition/rehabilitation costs related to upgrades from original levels of insulation, windows, appliances, lighting, ventilation, domestic hot water, and electric heating systems.(7)
Program funding is primarily intended to benefit dwelling units (“Qualified Units”) within eligible projects that are or will be reserved for occupancy by qualifying low-income households (“Qualified Tenants”) in accordance with program requirements, but may be used to reimburse eligible reimbursement costs throughout the project as authorized by the department.(8)
To be a qualified tenant, household income at the time of occupancy, at a minimum, must not exceed 80 percent of the area median income, adjusted for family size, as determined by the department based upon information from the U.S. Department of Housing and Urban Development (“HUD”). Notwithstanding the foregoing, the department may establish area median income requirements for some or all qualified units in a project as it chooses in its sole discretion, including in consideration of the amount of program funding provided for the project.(9)
To be an eligible project for program funding, at least one-half of the dwelling units in the project normally must be qualified units. Notwithstanding the foregoing, the department may establish such other ratio or number of qualified units in a project as it chooses in its sole discretion, particularly in consideration of the amount of program funding provided for the project.(10)
Qualified units must remain rent-restricted throughout the affordability period in accordance with program requirements, including the terms and conditions of the project financial assistance agreement, to ensure the affordability of qualified units. Acceptable affordability of rents typically means rents that a person or family with an income, adjusted for family size, at the maximum level to be deemed a qualified tenant, does not equal more than 30 percent of the gross income of such qualified tenant or as otherwise allowed by the department.(11)
Restrictions on rents will be determined by the department on the basis of gross rents, i.e., inclusive of utilities and other costs determined by the department as appropriate for inclusion in the calculation of rents so as to preserve the affordability of and access to qualified units. The department may require its prior written approval of initial rents for qualified units and for any subsequent adjustments of such rents. It also may require such information from the project owner with respect to project rents and tenant incomes as it deems appropriate in evaluating appropriate rent levels.(12)
The project must remain affordable, i.e., with the identified number of appropriately rent-restricted qualified units occupied or held available for occupancy by qualified tenants, for a minimum of 10 years or such longer period identified by the department in the application or award process or otherwise (the “Affordability Period”), unless superseded by other department resource requirements.(13)
In developing projects or otherwise in satisfying applicable program requirements, including the use of program or other funds, applicants and others, including project owners, may be subject to Oregon’s Prevailing Wage Law (“OPWL”). Applicants and others, including project owners, must provide documentation acceptable to the department as to whether or not their project is subject to OPWL and, if applicable, their compliance with same before, and as a condition of the, receipt of program funds.(14)
Unless otherwise approved in writing by the department:(a)
Owners of projects must be single-asset entities (with the asset being the project).(b)
The applicant and the owner of the project must be registered with and authorized to do business in the State of Oregon by the Office of the Secretary of State.(c)
The project may not have any liens or encumbrances prior to or that impair the liens and encumbrances associated with the program and other department funding.(d)
The project and owner may not have debts, liens, or encumbrances not approved in writing by the department.(e)
The project must include fee simple ownership by the owner of the project site real property.
Source:
Rule 813-206-0030 — Eligible Projects, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-206-0030.