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HOUSING AND COMMUNITY SERVICES DEPARTMENT

 

DIVISION 5
GENERAL RULES

813-005-0001
General Purpose
OAR chapter 813, division 5, is promulgated
to accomplish the purpose of describing certain common terms, policies and procedures
with respect to the administration of the Housing and Community Services Department.
Stat. Auth.: ORS 90.630, 90.771 - 90.775,
90.800 - 90.840, 183, 315.271, 317.097, 446.525 - 446.543, 456.515 - 456.725, 458.210
- 458.365, 458.405 - 458.460, 458.505 - 458.740, 566.310 - 566.350 & 757.612
- 757.617
Stats. Implemented: ORS 90.630,
90.771 - 90.775, 90.800 - 90.840, 183, 315.271, 317.097, 446.525 - 446.543, 456.515
- 456.725, 458.210 - 458.365, 458.405 - 458.460, 458.505 - 458.740, 566.310 - 566.350
& 757.612 - 757.617
Hist.: OHCS 1-2005(Temp),
f. & cert. ef. 8-4-05 thru 1-31-06; OHCS 3-2006, f. & cert. ef. 1-31-06;
OHCS 14-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; OHCS 18-2013, f. &
cert. ef. 12-18-13
813-005-0005
Definitions
(1) Terms used in OAR chapter 813 have
the meanings given them in the Act, in this section, otherwise in OAR chapter 813
or in other applicable law, unless the context indicates to the contrary. Such terms
need not be capitalized. Undefined terms are intended to be read consistently with
their normal usage unless the context indicates otherwise.
(2) Pursuant to ORS 456.555(5)(b)
the Housing and Community Services Department by administrative rule, must identify
and distinguish between housing programs and community services programs. Any program
administered by the department (as principal and not agent) that is not listed in
this subsection, does not principally involve the financing, regulation, maintenance
or support of housing or home ownership or otherwise defined in statute or in this
chapter as a housing program is a "community service program." Accordingly, the
following programs administered by the department are housing programs:
(a) Multi-Unit Housing Program
(OAR 813-010);
(b) Rental Housing Program
(OAR 813-012);
(c) Oregon Rural Rehabilitation
Program (OAR 813-015);
(d) Single-Family Mortgage
Program (OAR 813-020);
(e) Elderly Housing Program
(OAR 813-030);
(f) Pass-Through Revenue
Bond Financing Program (OAR 813-035);
(g) Pre-Development Program
(OAR 813-038);
(h) Farmworker Housing Development
Account (OAR 813-039);
(i) Seed Money Advance Program
(OAR 813-040);
(j) Agriculture Workforce
Housing Tax Credit Program (OAR 813-041);
(k) Housing Development Program
(OAR 813-042);
(l) Housing Loan Guarantee
Program (OAR 813-043);
(m) Homeownership Assistance
Program (OAR 813-044);
(n) Housing Development Account
Program (813-045);
(o) Emergency Housing Program
(OAR 813-046);
(p) Housing Revitalization
Program (OAR 813-048);
(q) Disabled Housing Program
(OAR 813-060);
(r) Home Improvement Loan
Program (OAR 813-070);
(s) Mortgage Credit Certificate
Program (OAR 813-080);
(t) Low-Income Housing Tax
Credit Program (OAR 813-090);
(u) Oregon Affordable Housing
Tax Credit Program (OAR 813-110);
(v) Home Investment Partnerships
Program (OAR 813-120);
(w) HELP Program (OAR 813-130);
(x) Incentive Fund Program
(OAR 813-140);
(y) Subsidized Development
Visitability Program (OAR 813-310);
(z) General Guarantee Program
(OAR 813-350); and
(aa) Other activities of
the department involving the financing, regulation, maintenance or support of housing
or home ownership or that otherwise are defined in statute or in this chapter as
a housing program.
(3) Pursuant to ORS 456.555,
the Housing and Community Services Department is to establish from time to time,
by administrative rule, the threshold property purchase price at which a single-family
home ownership loan on property must be submitted by the department to the State
Housing Council for approval or disapproval as well as the threshold value for a
housing grant or other housing funding award for multifamily housing. Presently,
the threshold property purchase price for single-family home ownership that obligates
the department to obtain State Housing Council review and approval of a proposed
single-family loan is that purchase price which, when reduced by costs of purchase
other than the department loan, is equal to or greater than seventy-five percent
of the applicable area program purchase price limit or $190,000, whichever is greater.
The threshold value of a housing grant or other housing funding award with respect
to a multifamily housing development (project) that obligates the department to
obtain State Housing Council review and approval is $200,000 per funding source
with an aggregate threshold per project of $400,000.
(4) "Acquisition loan" means
a loan for the purpose of financing the purchase of an existing Project.
(5) "Act" means ORS 456.515
through 456.725 and, given the context, also may include 458.005 through 458.740,
90.800 through 90.840, and 91.886.
(6) "Approved lender" means
any person authorized to engage in the business of making loans of the general character
of program loans, who meets the qualifications for an approved lender set forth
in the applicable program rules and who contracts with the department to make program
loans.
(7) "Approved servicer" means
any person authorized to engage in the business of servicing loans of the general
character of program loans, who meets the qualifications for an approved servicer
set forth in the applicable program rules and who contracts with the department
to service program loans.
(8) "Bond" means any bond,
note or other evidence of indebtedness issued to obtain funds to provide financing
for a program of the department as provided in the Act or as further defined by
statute.
(9) "Borrower" means an eligible
borrower who has received a program loan.
(10) "Break-even occupancy"
means the point in time when a project's monthly rental income meets its monthly
operating expenses and debt service.
(11) "Commitment" means the
written conditional obligation of the department to make, purchase, service or sell
a program loan or other funding award.
(12) "Community service programs"
are defined in subsection (2) of this section.
(13) "Contingency escrow
account" means an account generally not to exceed 3% of the initial principal amount
of the program loan, established by the sponsor in the form of a savings account,
time certificate of deposit, or irrevocable letter of credit assigned to the department.
(14) "Cooperative" is a consumer
housing entity formed according to the provisions of ORS Chapter 62, as amended.
(15) "Department" means the
Housing and Community Services Department of the state of Oregon established pursuant
to ORS 456.555 originally enacted by enrolled house bill 3377, chapter 739, Oregon
Laws 1991.
(16) "Director" means the
chief administrative officer of the Housing and Community Services Department established
pursuant to ORS 456.555(2).
(17) "Elderly household"
means a household residing in the state of Oregon whose head is over the age of
58 or 55, as applicable.
(18) "Eligible borrower"
means a person who satisfies the criteria to receive a program loan as set forth
in the applicable program rules, statutes or department orders.
(19) "Escrow payments" means
the monthly payments made by the sponsor or borrower and placed in an escrow reserve
account for the payment of property taxes, insurance premiums and reserve for replacements
and other identified costs as required by the department in accordance with the
program loan.
(20) “Funding documents”
means any and all documents required by the department to document a housing grant
or other funding award or reservation commitment including, but not limited to loan
agreements, regulatory agreements, operating agreements, reservation letters, guarantees
or otherwise.
(21) "Housing Council" or
"State Housing Council" means that seven-member body established by ORS 456.
(22) "Housing programs" are
defined in subsection (2) of this section.
(23) "Lending department"
means a commercial bank, savings and loan association, savings bank, mortgage banker
Federal Housing Administration, Farmers Home Administration or other department
that provides permanent or construction mortgage loans.
(24) "Loan agreement" means
a written agreement, typically executed at loan closing, between the department
and a sponsor establishing the terms of any department loan.
(25) "Loan closing" means
the disbursement by the department of the program loan proceeds after execution
and recording of the loan documents.
(26) "Loan documents" means
the written agreements by and between the sponsor and the department or in favor
of the department, typically executed at loan closing, and generally including,
but not necessarily limited to the promissory note, the loan agreement, the trust
deed and the regulatory agreement.
(27) "Mobile home park" means
a project consisting of individual lots and mobile homes located within 500 feet
of one another on a lot, tract or parcel of land under the same ownership, and which
complies with all ordinances, plans and codes in the area.
(28) “NOFA” means
a notice of funding availability.
(29) "Operating agreement
and declaration of restrictive covenants and equitable servitudes" or "operating
agreement" means a written agreement typically executed at loan closing between
the department and the sponsor of a project under the department's pass-through
revenue bond program and regulating the use of revenues and operation of the project,
particularly with respect to tenant income and unit rent compliance by the sponsor.
(30) "Person" means any natural
or legal person.
(31) "Procedural guide" means
a manual of written procedures adopted by the department to carry out a program.
(32) "Program" means a statutorily
authorized plan or order of business conducted by the department.
(33) "Program loan" means
a loan made pursuant to a program of the department.
(34) “Program requirements”
means the requirements with respect to any department funding program including
but not limited to as contained in or arising from applicable administrative rules,
solicitation documents, funding documents, department directives, federal, state
and local statutes, codes, regulations or determinations and other applicable law.
(35) "Qualified insurer"
means the Federal Housing Administration, the Veterans' Administration, or any other
person who is authorized to insure or guarantee payment of loans and who is approved
by the department.
(36) "Regulatory agreement
and declaration of restrictive covenants and equitable servitudes" or "regulatory
agreement" means a written agreement typically executed at loan closing between
the department and a sponsor regulating the use of revenues and operation of the
project for which a department loan is issued, particularly pertinent with respect
to compliance by the sponsor with maintaining the status of any involved bond issue.
(37) "Rent-up reserve account"
means an account set up by the sponsor and under the control of the department to
assure sufficient funds to pay operating expenses and debt service of the project
before break-even occupancy.
(38) "Replacement cost reserve
account" means an account established to aid in payment for extraordinary maintenance
or repair of a project or for replacement of capital items of a project as allowed
by the department.
(39) "Seed money advance"
means an advance given to a qualified housing sponsor to pay preconstruction costs.
(40) "Single-family residence"
means a housing unit intended and used for occupancy by one household and the property
on which it is located. This shall be real property located in the state of Oregon.
A single-family residence may include a single-family residence, condominium unit,
a dwelling in a planned unit development (PUD), or a mobile or manufactured home
which has a minimum of 400 square feet of living space and a minimum width in excess
of 102 inches and is of a kind customarily used at a fixed location.
(41) “Solicitation”
means a process by which the department invites applications for a housing grant
or other funding award with respect to a project.
(42) “Solicitation
documents” means those documents that, inter alia, set forth the terms and
conditions of a solicitation.
(43) "Sponsor" means any
person meeting the legal, financial, credit and other qualifications to be the borrower
on a department loan and to own and operate a project as set forth in the applicable
program rules, statutes and department orders.
(44) "Targeted area" means
an area in the state designated by the department in compliance with the requirements
of Section 143(j) of the Internal Revenue Code of 1986, as amended, and approved
by the United States Departments of Treasury and Housing and Urban Development.
(45) "Trustee" means the
state treasurer or, with the approval of the department, a private financial institution
in Oregon acting pursuant to an indenture of trust or other appropriate instrument.
[Publications: Publications referenced
are available from the agency.]
Stat. Auth.: ORS 90.630,
90.771 - 90.775, 90.800 - 90.840, 183, 315.271, 317.097, 446.525 - 446.543, 456.515
- 456.725, 458.210 - 458.365, 458.405 - 458.460, 458.505 - 458.740, 566.310 - 566.350
& 757.612 - 757.617

Stats. Implemented: ORS 456.515
- 456.720

Hist.: 1HD 7-1984, f. &
ef. 9-4-84; HSG 1-1987(Temp), f. & ef. 2-5-87; HSG 5-1987, f. & ef. 3-10-87;
Renumbered from 813-001-0006; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 5-1989,
f. & cert. ef. 11-3-89; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 8-1991,
f. & cert. ef. 12-23-91; OHCS 1-2005(Temp), f. & cert. ef. 8-4-05 thru 1-31-06;
OHCS 3-2006, f. & cert. ef. 1-31-06; OHCS 14-2013(Temp), f. & cert. ef.
6-21-13 thru 12-18-13; OHCS 18-2013, f. & cert. ef. 12-18-13; OHCS 25-2014(Temp),
f. & cert. ef. 4-17-14 thru 10-14-14; OHCS 34-2014, f. & cert. ef. 10-9-14
813-005-0016
Waiver
The director may waive, suspend or modify
any term or provision of OAR 813, unless such waiver, suspension or modification
would violate applicable federal or state law.
Stat. Auth.: ORS 91.886, 183 & 456.555
Stats. Implemented: ORS 90.800
- 90.840, 91.886, 456.515, 456.725 & 458.005 - 458.740
Hist.: OHCS 1-2005(Temp),
f. & cert. ef. 8-4-05 thru 1-31-06; OHCS 3-2006, f. & cert. ef. 1-31-06;
OHCS 14-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; OHCS 18-2013, f. &
cert. ef. 12-18-13
813-005-0020
General Policy and Guideline Manual
The General Policy and Guideline Manual,
as amended from time to time, is incorporated into this division by reference and
has application, inter alia, to the solicitation, review, reservation, award and
documentation of housing grants and other funding awards with respect to affordable
multifamily housing projects as well as to the operation and compliance of such
projects with applicable habitability, affordability and other requirements irrespective
of the program source of funding. The manual may be accessed online on the department’s
website.
Stat. Auth.: ORS 91.886, 317.097 &
456.555

Stats. Implemented: ORS 90.800
- 90.840, 91.886, 317.097, 456.515 - 456.725 & 458.005 - 458.740

Hist.: OHCS 14-2013(Temp),
f. & cert. ef. 6-21-13 thru 12-18-13; OHCS 18-2013, f. & cert. ef. 12-18-13;
OHCS 25-2014(Temp), f. & cert. ef. 4-17-14 thru 10-14-14; OHCS 34-2014, f. &
cert. ef. 10-9-14
813-005-0030
Contingency of Funding Awards
If the department provides a reservation
or otherwise to make a funding award under ORS 90.800 - 90.840, 91.886, ORS 317.097,
456.515 through 456.725 or 458.005 through 458.740, and if the type and amount of
subject funding or any other department funding approved by the department that
was considered by the department in setting the amount of the subject funding (“complementary
funding”) meets or exceeds the threshold amounts established in OAR 813-005-0005(3)
for review by the State Housing Council, the reservation or other commitment is
subject to review and approval by the council of such subject funding and any such
complementary funding. The council may approve, deny, modify or further condition
funding assistance subject to its review. Based upon any relevant council determination,
including with respect to complementary funding, any subject reservation or other
commitment may be deemed revoked, or be modified and further conditioned.
Stat. Auth.: ORS 91.886, 317.097 &
456.555
Stats. Implemented: ORS 90.800
- 90.840, 91.886, 317.097, 456.515 – 456.725 & 458.005 - 458.740
Hist.: OHCS 14-2013(Temp),
f. & cert. ef. 6-21-13 thru 12-18-13; OHCS 18-2013, f. & cert. ef. 12-18-13
813-005-0040
Compliance Monitoring
(1) A project receiving any department
assistance is subject to such reviews and field inspections that the department
determines to be necessary or appropriate including, but not limited to ensuring
the funding recipient’s and project owner’s compliance with any program
requirements including, but not limited to applicable administrative rules (including
incorporated manuals), department directives, solicitation documents, funding documents,
or otherwise. The project owner shall cooperate fully with all reviews and field
inspections, comply with any resulting correction directives, and shall make all
records available for inspection and copying. The project owner also shall provide
such other information as the department may from time to time request.
(2) Project owners shall
cooperate fully with department reviews, field inspections and other information
requests including, but not limited to allowing the inspection and copying of relevant
records as determined by the department.
(3) Project owners shall
act promptly to correct any deficiencies identified by the department as a consequence
of its reviews, field inspections or otherwise upon notice by the department of
same.
(4) Project owners shall
retain financial records, supporting documents and all other pertinent records with
respect to a project until six years after the project affordability period for
the respective source of funding is complete, or after any relevant litigation or
audit claim is resolved, whichever is later.
Stat. Auth.: ORS 91.886, 317.097 &
456.555
Stats. Implemented: ORS 90.800
- 90.840, 91.886, 317.097, 456.515 – 456.725 & 458.005 - 458.740
Hist.: OHCS 14-2013(Temp),
f. & cert. ef. 6-21-13 thru 12-18-13; OHCS 18-2013, f. & cert. ef. 12-18-13
813-005-0050
Remedies
(1) If the department determines that
there has been any material failure or default with respect to any term, covenant
or condition of the applicable solicitation documents or funding documents, applicable
rules, directives, or other program requirements, it may exercise any remedy available
under OAR chapter 813, the solicitation documents, the funding documents, other
program requirements or applicable law. Remedies include, but are not limited to
rescission of funding awards, issuance of corrective orders or directives, imposition
of sanctions, recapture of any tax credits, recoupment of funding, recovery for
damages, specific performance, injunctive relief, declaratory actions, appointment
of a receiver for the project, foreclosure of lien interests, debarment from other
department funding, and other remedies available at law.
(2) The remedies set forth
in this section are cumulative and not exclusive and are in addition to any other
rights and remedies available to the department. The department may exercise any
or all remedies available to it, and in such manner as it, in its sole discretion,
determines appropriate. No failure to exercise a remedy shall be deemed as a waiver
or release of such remedy or other remedies or the claims upon which they are based.
(3) Any waiver of a remedy
or claim must be in writing and signed by an authorized representative of the department.
No waiver shall be continuing in nature or affect any other remedy or claim of the
department unless expressly so stated in the signed waiver.
Stat. Auth.: ORS 91.886, 317.097 &
456.555
Stats. Implemented: ORS 90.800
- 90.840, 91.886, 317.097, 456.515 – 456.725 & 458.005 - 458.740
Hist.: OHCS 14-2013(Temp),
f. & cert. ef. 6-21-13 thru 12-18-13; OHCS 18-2013, f. & cert. ef. 12-18-13
813-005-0060
Transfer of Recipient, Assistance
or Ownership; Subordinate Liens; Encumbrances
(1) A recipient of any department assistance
or owner of a project for which such assistance is provided may not transfer or
allow any transfer of any interest in itself, the assistance or the project, allow
a subordinate lien or otherwise encumber the project, or any portion or interest
therein, unless the department first approves the transfer, subordinate lien or
encumbrance in writing. Any such transfer is subject to the payment to the department
of a transfer or other approval charge as required by the department. If the recipient
effects or allows a transfer, subordinate lien or encumbrance without prior written
approval by the department, the transfer, subordinate lien or encumbrance is voidable
and remains subject to the approval or disapproval of the department and the recipient
or owner responsible for allowing the transfer, subordinate lien or encumbrance
and any transferees, jointly and severally, are subject to a charge by the department
with respect to its review and treatment of any such event.
(2) The department may condition
its approval upon such terms and conditions as it, in its sole discretion, may require.
Factors the department may consider in determining whether or not to give approval
to a transfer, subordinate lien or encumbrance include, but are not limited to:
(a) The financial investment
of the department in the project;
(b) Preservation of existing
housing;
(c) The transferee’s
ability to maintain and manage the project for the needs of the residents, the integrity
of the housing and as security for the assistance;
(d) The effect of the transfer,
subordinate lien or encumbrance upon the financial integrity of the project, repayment
of the assistance, use of the project for its intended purposes, and continuity
of the program requirements; and
(e) Continued compliance
with program requirements.
Stat. Auth.: ORS 91.886, 317.097 &
456.555
Stats. Implemented: ORS 90.800
- 90.840, 91.886, 317.097, 456.515 – 456.725 & 458.005 - 458.740
Hist.: OHCS 14-2013(Temp),
f. & cert. ef. 6-21-13 thru 12-18-13; OHCS 18-2013, f. & cert. ef. 12-18-13
813-005-0070
Fees and Charges
The department may require the payment
of such fees and charges as it determines appropriate with respect to the administration
of its housing programs and program requirements including, but not limited to the
solicitation, award, documentation and use of department funding assistance and
correlation with other funding partners and resources, acquisition, development,
construction, rehabilitation and operation of projects assisted with department
funding assistance, ongoing compliance monitoring and enforcement of financial,
affordability, and habitability requirements, transfers, subordinate liens and encumbrances.
Stat. Auth.: ORS 91.886, 317.097 &
456.555
Stats. Implemented: ORS 90.800
- 90.840, 91.886, 317.097, 456.515 – 456.725 & 458.005 - 458.740
Hist.: OHCS 14-2013(Temp),
f. & cert. ef. 6-21-13 thru 12-18-13; OHCS 18-2013, f. & cert. ef. 12-18-13

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