OAR 813-135-0040. Allocation of Bond Proceeds

(1) OHCS may, to the extent of its authority, allocate bond proceeds to projects selected for funding by the Housing Stability Council. (2) OHCS shall allocate the funds in compliance with the requirements of the Oregon Constitution, Article XI-Q, ORS 456.559(1)(f) and the rules of this division. Applications will be solicited during specified periods within OHCS’s NOFA or ORCA process. OHCS may also select from a pool of qualified applicants, or such other process OHCS deems appropriate. Housing Stability Council may also direct OHCS to use local jurisdiction funding processes to commit funding to projects that otherwise meet programmatic requirements. (3) OHCS may choose whether 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, no earlier than one year and no later than three months prior to the designated maturity date, the borrower may elect, 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 that is equal to, or less than, the initial affordability period; 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) The affordability requirements (as determined by OHCS) are maintained through the extended maturity date, which shall be a date OHCS sets that extends the term of the LIFT Loan for a period of time that is equal to, or less than, the period of time provided in the initial LIFT Loan term; 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. (c) 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 provided that affordability is ensured in a manner satisfactory to OHCS. Refer to program manuals for more information.