1. (1) The Authority may provide Awards in a manner that maximizes the use of available resources and maintains the desired credit standards of the Fund. The Authority shall determine the amount, type, interest rate and other terms of any Awards. The Authority may offer an Award of a lower amount or a different type of financial assistance than requested by the Eligible Applicant. The amount of the Award may be the minimum amount that the Authority determines is necessary to enable the Project to proceed.
2. (2) To be eligible for an Award, the Project’s Specified Proposed Housing Development must be located within an urban growth boundary, on a reservation of a federally recognized Indian tribe, or on tribal trust land.

3. (3) Grants and Forgivable Loans:

   1. (a) To be eligible for a Program grant or forgivable loan, the housing to be developed within the Specified Proposed Housing Development supported by the Project must be subject to an Affordable Housing Covenant under which:

      1. (A) The Award recipient shall serve as, or designate, the Covenant Holder; and

      2. (B) The housing will be made affordable to households with low income (which may include very low income) or moderate income, as those terms are defined in ORS 458.610, i.e. households with income less than or equal to 120 percent of the Area Median Income:

         1. (i) For a period of no less than 10 years from the date on which the housing is first available for occupancy as rental housing; or
         2. (ii) For a period of no less than 5 years from the date on which the housing is first sold as owner-occupied housing.
   2. (b) If less than all of the housing supported by the Project (i.e. the infrastructure) to be developed within the Specified Proposed Housing Development will be subject to an Affordable Housing Covenant that meets the requirements of (4)(a) of this rule, the grant or forgivable loan amount will be subject to a not-to-exceed amount that is calculated based on the following formula:  number of housing units subject to Affordable Housing Covenants within the Specified Proposed Housing Development divided by the total number of housing units within the Specified Proposed Housing Development multiplied by the total Project costs.  For example, if a water infrastructure Project will cost $1 million, and half of the Specified Proposed Housing Units will be market rate and half will be subject to an Affordable Housing Covenant, the maximum grant or forgivable loan amount is $500,000.

4. (4) Loans:

   1. (a) Maximum loan amounts for a Project will be based on the Authority’s financial and credit analysis of the Eligible Applicant’s capacity to repay the loan, the availability of moneys in the Fund, and prudent Fund management. Projects that are not financially feasible, or Loans that cannot be adequately secured, as determined by the Authority, will not be funded.

   2. (b) A Project may receive a Program loan subject to the following conditions:

      1. (A) The term of a loan is limited to the usable life of the contracted project, or 29 years from the year of project completion whichever is less;
      2. (B) The interest rate on a loan will be determined by the Authority and will be set at the time of the Program Award; and
      3. (C) The repayment terms of a loan may include deferred repayment of principal and/or interest for a specified term of the loan to address special circumstances and financial feasibility of a Project as determined by the Authority.

Statutory/Other Authority

Oregon Laws 2025, Chapter 497

Statutes/Other Implemented

Oregon Laws 2025, Chapter 497

History

OBDD 8-2026, adopt filed 04/24/2026, effective 04/24/2026