1. (1) After approval of an application for a Program award for a project and issuance of a notice of intent to award, the Department shall promptly begin preparation and negotiation of a Financing Contract with the approved applicant, i.e. grant recipient.  The Financing Contract will be in a form provided by the Department, and must include:

   1. (a) A project description;
   2. (b) Project performance standards expected of the grant recipient, including but not limited to compliance with federal Coronavirus Capital Projects Fund requirements and a deadline for project completion;
   3. (c) Project reporting requirements;
   4. (d) An approved project budget for project costs that are eligible for payment by Program funds;
   5. (e) Terms for grant disbursements, which shall be made in compliance with the approved budget, and which may be in a single payment or in multiple, conditional payments. The Grantee must submit each disbursement request on a Department-provided or Department-approved disbursement request form for Department review and approval;
   6. (f) Terms for repayment if the contract obligations of the grant recipient are not met during the period of the Financing Contract; and
   7. (g) Other provisions that the Department considers necessary or appropriate to implement the Program.
2. (2) The Department may make grant disbursements to an award recipient only after entering into a binding Finance Contract with the award recipient.
3. (3) If an event of a default occurs under a Financing Contract by an award recipient for a Program grant, any recovered funds by the Department may be used by the Department in accordance with the uses provided for in OAR 123-047-0110 and the terms of the federal award to the Department.

Statutory/Other Authority

ORS 285A.075, ORS 285A.166 & ORS 285A.180

Statutes/Other Implemented

ORS 285A.180 & Oregon Laws 2025, chapter 616, section 10

History

OBDD 3-2026, temporary adopt filed 02/04/2026, effective 02/04/2026 through 07/31/2026