OAR 123-700-0090: Loan and Grant Information

(1) The Department will make Program awards in a manner that maximizes the use of available resources and maintains the Department's desired credit standards of the Fund. The Department shall determine the amount of grant or loan funds to be awarded, interest rate, and the terms of any award issued in response to the RFA. OBDD may offer an alternate mix of grant or loan awards or lower amount of award than requested by an applicant. The Department may investigate and recommend other sources of funds for all or part of a proposed project. (2) Grant awards for Child Care Infrastructure Projects are each limited to $2,000,000 and shall not exceed the total project cost; (3) Grant awards for Planning Projects are each limited to $75,000 and shall not exceed the total project cost; (4) The Department will not award more than $2,000,000 total in grants for Planning Projects per biennium. (5) Loan awards for Child Care Infrastructure Projects are each limited to $2,000,000 and shall not exceed the total project cost; (a) The terms of the loan for Child Care Infrastructure Projects will not exceed the useful life of the contracted project or 30 years from the year of project completion, whichever is less. (b) The term of a loan will be based on prudent and reasonable financial underwriting in the Department's sole discretion; (c) The Department, in its sole discretion, may offer eligible borrowers an interest rate that is below the market rate; and (d) Security pledges shall be required for all loans awarded in response to the RFA with the form and amount of security determined by the Department consistent with the nature of the project and the credit worthiness of the recipient. (6) Loan awards for Planning Projects are each limited to $75,000 and shall not exceed the total project cost; (a) The term of the loan for Planning Projects will not exceed 10 years from the year of project completion and; (b) Conditions described under section (5)(b)-(d) of this rule. (7) Grants or loans issued for property acquisition may not exceed the purchase price or the fair market value of the property based on a current appraisal performed by an Oregon state licensed or certified appraiser, whichever is less. (8) As provided in ORS 329A.727, the Department must distribute a minimum of 25% of the appropriated funds to culturally specific early learning, early childhood and parent support programs described under ORS 417.782 (1).