OAR 813-090-0039: Reservation and Extended Use Agreement; Low-Income Commitment

(1) No LIHTC allocation will be made by OHCS to a proposed project until or unless OHCS and the applicant enter into a REUA. The REUA will specify, among other things, a minimum applicable unit fraction, as defined by IRC Section 42(c)(1)(B), and the income-restricted rent formula to be maintained for the project to continue to qualify for LIHTCs. (2) An executed REUA shall be enforceable in any state court by any individual who qualified for occupancy by virtue of the income limitations set for the project, will be binding on all successors of the project owner, and the Declaration of Land Use Restrictive Covenants incorporated within the REUA must be recorded against the property as a restrictive covenant pursuant to state law. (3) The LIHTC allocation will not exceed the amount necessary to satisfy the financial feasibility standards for the development of the project, as represented by the applicable fraction specified in the REUA, and may be reduced in accordance with the Code at OHCS’ determination and sole discretion. (4) The REUA shall include a commitment to meet the applicable fraction and restricted rent requirements for each building of the project for 15 years or more beyond the initial 15-year compliance period.