Division 41

Link to law: http://arcweb.sos.state.or.us/pages/rules/oars_800/oar_813/813_041.html
Published: 2015

The Oregon Administrative Rules contain OARs filed through November 15, 2015

 

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HOUSING AND COMMUNITY SERVICES DEPARTMENT

 

DIVISION 41


AGRICULTURE WORKFORCE HOUSING
TAX CREDIT PROGRAM

813-041-0000
Purpose
The rules in OAR chapter 813, division
41, are adopted to carry out the Agriculture Workforce Housing Tax Credit Program
(the “program”) established in ORS 315.163 to 315.169 insofar as 315.163
to 315.169 pertains to the Housing and Community Services Department (“department”).
The purpose of the program is to encourage the rehabilitation of existing housing
and the construction or placement of additional housing for agricultural workers.
Stat. Auth.: ORS 315.167 - 315.139 &
458.650
Stats Implemented: ORS 315.617
Hist.: OHCS 7-2001(Temp),
f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp), f. & cert. ef.
3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02; OHCS 3-2009(Temp),
f. & cert. ef. 12-15-09 thru 6-12-10; OHCS 6-2010, f. & cert. ef. 6-10-10;
OHCS 33-2014, f. & cert. ef. 10-9-14
813-041-0006
Definitions
Terms defined in ORS 315.163 used in
the Agriculture Workforce Housing Tax Credit Program are set out as follows for
the reader’s convenience:
(1)(a) “Acquisition
costs” means the cost of acquiring buildings, structures and improvements
that constitute or will constitute agriculture workforce housing.
(b) “Acquisition costs”
does not include the cost of acquiring land on which agriculture workforce housing
is or will be located.
(2) “Agricultural worker”
means any person who, for an agreed remuneration or rate of pay, performs temporary
or permanent labor for another in the:
(a) Production of agricultural
or aqua cultural crops or products;
(b) Handling of agricultural
or aqua cultural crops or products in an unprocessed stage;
(c) Processing of agricultural
or aqua cultural crops or products;
(d) Planting, cultivating
or harvesting of seasonal agricultural crops; or
(e) Forestation or reforestation
of lands, including but not limited to the planting, transplanting, tubing, precommercial
thinning, and thinning of trees and seedlings, the clearing, piling and disposal
of brush and slash and other related activities.
(3) “Agriculture workforce
housing” means housing:
(a) Limited to occupancy
by agriculture workers, including agriculture workers who are retired or disabled,
and their immediate families; and,
(b) No dwelling unit of which
is occupied by a relative of the owner or operator of the agricultural workforce
housing, except in the case of a manufactured dwelling in a manufactured dwelling
park nonprofit cooperative as that term is defined in ORS 62.803.
(4) “Agricultural workforce
housing project” means the acquisition, construction, installation or rehabilitation
of farmworker housing.
(5) “Condition of habitability”
means a condition that is in compliance with:
(a) The applicable provisions
of the state building code under ORS Chapter 455 and the rules adopted thereunder;
or
(b) If determined on or before
December 31, 1995, sections 12 and 13, chapter 964, Oregon Laws 1989.
(6) “Contributor”
means a person:
(a) That acquired, constructed,
manufactured or installed agriculture workforce housing or contributed money to
finance an agriculture workforce housing project; or
(b) That has purchased or
otherwise received via transfer a credit as provided in ORS 315.169.
(7) “Eligible costs”
includes acquisition costs, finance costs, construction costs, excavation costs,
installation costs and permit costs and excludes land costs.
(8)(a) “Owner”
means a person that owns agriculture workforce housing.
(b) “Owner” does
not include a person that only has an interest in the housing as a holder of a security
interest.
(9) “Rehabilitation”
means to make repairs or improvements to a building that improve its livability
and are consistent with applicable building codes.
(10) “Relative”
means a brother or sister (whether by the whole or by half-blood), spouse, ancestor
(whether by law or by blood), or lineal descendant of an individual.
(11) “Taxpayer”
includes a nonprofit corporation, a tax-exempt entity or any other person not subject
to tax under ORS chapter 316, 317 or 318.
Stat Auth.: ORS 315.163 to 315.169 and
456.555

Stats Implemented: ORS 315.163

Hist.: OHCS 33-2014, f. &
cert. ef. 10-9-14
813-041-0010
Program Description and Application
Requirements
(1) A taxpayer who is an owner or operator
of agriculture workforce housing, or a contributor, may obtain a letter of credit
approval from the department for the purpose of claiming a tax credit for such agriculture
workforce housing if the taxpayer submits an application for the credit as required
by ORS 315.167 and if the department approves the application. The application must
be submitted on the application form furnished or required by the department and
must comply with all requirements established by the department.
(2) To claim the tax credit
for a specific year, a taxpayer must file the application in a manner consistent
with this section after January 2 of the year for which the credit is claimed, or
after another date established in the department’s annual notice referred
to in section (4) of this rule. An application is filed with the department:
(a) As of the date of the
postmark of the United States Postal Service if the application is mailed;
(b) As of the date printed
by the department fax machine if the application is sent electronically by facsimile;
or
(c) As of the date stamped
by the department if the application is hand delivered.
(3) A taxpayer may apply
to the department for a waiver of the length of time for which the taxpayer must
show the housing continues to be operated as agriculture workforce housing as authorized
by ORS 315.164 by submitting to the department an application for the waiver on
the form furnished or required by the department and by complying with all requirements
established by the department. Factors that the department may consider in determining
to grant such a waiver or the extent of such a waiver include, but are not limited
to:
(a) Documentation of a decline
in demand for agriculture workforce housing within a relevant area;
(b) The ongoing financial
feasibility of the agriculture workforce housing;
(c) The availability of relevant
services in the area;
(d) Past compliance by the
owner of the agriculture workforce housing with department requirements; and
(e) The condition of the
agriculture workforce housing.
(4) A taxpayer is responsible
for being informed of current application requirements of the program, including
but not limited to information as provided by the department through its applicable
solicitation for applications whether or not posted on the department’s website.
[Publications: Publications referenced
are available from the agency.]
Stat. Auth.: ORS 315.167
- 315.169 & 458.650

Stats Implemented: ORS 315.617

Hist.: OHCS 7-2001(Temp),
f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp), f. & cert. ef.
3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02; OHCS 3-2009(Temp),
f. & cert. ef. 12-15-09 thru 6-12-10; OHCS 6-2010, f. & cert. ef. 6-10-10;
OHCS 33-2014, f. & cert. ef. 10-9-14
813-041-0015
Evaluation of Applications.
(1) The department’s evaluation
and approval of an application is subject to the terms of the applicable solicitation,
the provisions of this section, other applicable law, and the annual limitation
on the total of estimated eligible costs for all approved projects for the calendar
year established under ORS 315.167. The application review process may be on an
invitation basis, a first come-first reviewed process, a competitive review process,
an evaluation as a demonstration program, or any other process deemed necessary
or appropriate by the department.
(2) The department may create
a soft set-aside of credits solely for on-farm projects. Such set-aside will extend
up to June 30 of the given calendar year. Credits not awarded by that time normally
will be made available to other qualifying projects.
(3) Applications are subject
to evaluation by the department according to criteria that may include, but are
not limited to the following:
(a) Completeness, level of
detail and accuracy of the information included in the application;
(b) The qualifying status
of the taxpayer and of the proposed project;
(c) The viability of the
project, including as reflected in the estimated eligible costs and other support
funding as appropriately documented; and
(d) Such other criteria established
by the department, including but not limited to those described in the applicable
solicitation.
(4) An application is subject
to one or more of the following actions by the department:
(a) An application determined
by the department in the evaluation process not to include specific or substantial
information about the project or to be incomplete or inaccurate in any respect may
be declined by the department and returned to the taxpayer as not qualifying for
further evaluation;
(b) The department may issue
a request to the taxpayer to provide or correct, within 15 days, any information
deemed missing, inaccurate or inadequate in the application and, if the supplemental
information is not timely submitted or deemed adequate by the department, the application
may be declined by the department and returned to the taxpayer as not qualifying
for further evaluation;
(c) Issuance of a letter
of credit approval, including in a credit amount reduced from the amount requested
to the minimum amount determined by the department to be required to make the project
financially viable, including as needed by the project for leverage or match of
state, federal or other funding.
(5) Factors that the department
may consider in prioritizing one application over others may include, but are not
limited to:
(a) The quality of the application;
(b) The location of the project;
(c) The market demand for
and financial feasibility of the project;
(d) The particulars of the
appraisal of the project;
(e) Whether or not the project
meets all applicable state and local land use and zoning requirements, housing codes
and similar requirements;
(f) Whether or not the project
meets all other applicable laws and program requirements;
(g) The target population
to be served;
(h) The availability and
sustainability of related tenant services;
(i) The extent and duration
of affordability to be provided; and
(j) The department’s
experience with and the reputation, experience and capacity of the project sponsor
and its agents, representatives, employees and contractors.
Stat. Auth.: ORS 315.167 315.169 &
458.650

Stats Implemented: ORS 315.617

Hist.: OHCS 7-2001(Temp),
f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp), f. & cert. ef.
3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02; OHCS 3-2009(Temp),
f. & cert. ef. 12-15-09 thru 6-12-10; OHCS 6-2010, f. & cert. ef. 6-10-10;
OHCS 33-2014, f. & cert. ef. 10-9-14
813-041-0020
Standby Applications
(1) If an application is subject to
being declined by the department as not qualifying for further evaluation solely
because the estimated eligible costs, when aggregated with the estimated eligible
costs of all projects approved to that date for the calendar year, exceeds the limitation
on the total of estimated eligible costs under ORS 315.167, the taxpayer may:
(a) Request reduction of
the estimated eligible costs for the project to an amount that, when aggregated
with the estimated eligible costs of all projects approved to that date for the
calendar year, would not exceed the limitation; or
(b) Request that the department
place the taxpayer on a standby list for future possible eligibility.
(2) Applications on a standby
list under this rule will be held in such priority as the department determines
to be appropriate considering factors including, but not limited to those enumerated
in 0015 above.
(3) The department may select
and process a standby application whenever the department determines that credit
is available for funding the application. The taxpayer may update the taxpayer’s
application as needed within the time provided by the department.
(4) All outstanding standby
applications expire on December 31 of the calendar year of their filing.
Stat. Auth.: ORS 315.163 - 315.169 &
456.555

Stats Implemented: ORS 315.163
- 315.169

Hist.: OHCS 7-2001(Temp),
f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp), f. & cert. ef.
3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02; OHCS 3-2009(Temp),
f. & cert. ef. 12-15-09 thru 6-12-10; OHCS 6-2010, f. & cert. ef. 6-10-10;
OHCS 8-2010(Temp), f. & cert. ef. 6-17-10 thru 12-13-10; OHCS 16-2010, f. &
cert. ef. 12-15-10; OHCS 33-2014, f. & cert. ef. 10-9-14
813-041-0027
Charges
(1) The department may assess and the
assessed taxpayer or other applicable party shall pay such charges as the department
determines appropriate for reviewing an application as well as for issuance of a
letter of credit approval.
(2) The department may assess
and the assessed taxpayer, owner, operator or other applicable party shall pay such
charges as the department determines appropriate from time to time for its monitoring
of the project for compliance with program requirements or enforcement of appropriate
program compliance, including but not limited to meeting appropriate construction
and maintenance standards, and satisfying and documenting applicable affordability
compliance.
Stat. Auth.: ORS 315-164 - 315.169

Stats Implemented: ORS 315.163
- 315.169

Hist.: OHCS 3-2009(Temp),
f. & cert. ef. 12-15-09 thru 6-12-10; OHCS 6-2010, f. & cert. ef. 6-10-10;
OHCS 33-2014, f. & cert. ef. 10-9-14

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