OAR 813-138-0030: Project Development - Allocation of Bond Proceeds

(1) The Department may, to the extent of its authority, allocate bond proceeds to Projects approved for funding by the Housing Stability Council. (2) When funded with Article XI-Q bonds, the Department shall allocate the funds in compliance with the requirements of the Article XI-Q, of the Oregon Constitution, ORS 456.559(1)(f) and the rules of this division. (3) The Department may choose whether to allocate all available funds. (4) The obligation to repay the loan principal shall be satisfied upon repayment in full at maturity. In the alternative, and at the election of the borrower at any time after the initial affordability period, such obligation may be: (a) Satisfied upon the borrower executing agreements: (A) Subjecting the Qualified Property to an additional affordability period equivalent to the initial level of affordability; and (B) Ensuring that the equity of the PSH loan continues to benefit the Project; (b) Extended beyond the initial maturity date on the condition that: (A) Substantially equivalent, as determined by the Department, affordability is maintained through the extended affordability date; and (B) The equity of the PSH loan continues to benefit the Project. At the request of the borrower, the Department also may consider a combination of PSH loan repayment, affordability preservation, and loan extension in proportion to the previously identified options. (5) PSH loans may be prepaid as long as affordability is ensured in a manner satisfactory to the Department. Repayment examples include: (a) Loan fully repaid at maturity. (b) Loan satisfied by a 30-year affordability extension where the PSH equity is used to rehabilitate the qualified project. (c) Loan terms extended for an additional 30-year affordability term. (d) Loan prepaid at year 15 with continued affordability ensured for the entirety of the initial affordability term.