1. (1) The Authority shall make disbursements to an Award recipient only after entering into a binding contract with the Award recipient.

2. (2) The contract will be in a form provided by the Authority, and must include:

   1. (a) Terms for Award disbursements, which shall be conditional payments made on an expense reimbursement or cost-incurred basis for eligible Project costs;
   2. (b) A provision that the Authority’s obligation to disburse the Award is contingent upon the availability of moneys in the Fund;
   3. (c) A Project description defining the location and the infrastructure comprising the Project and eligible use of the Award with a Project budget;
   4. (d) The Project performance standards expected of the Award recipient, including a deadline for Project completion;
   5. (e) Project reporting requirements to document Project progress and evaluate the Program (reporting requirements may be ongoing and may include such information and data on the Housing Development’s benefits, data on number of new dwelling units built by type, and occupancy rates);
   6. (f) The terms for loan repayment if the Award includes a loan;
   7. (g) For an Award that includes a grant, the terms for repayment if the contract obligations of the Award recipient are not met during the period of the contract;
   8. (h) For an Award that includes a forgivable loan, the conditions of forgiveness and the terms of loan repayment if the conditions are not met;
   9. (i) Affordable Housing Covenant obligations for the Award as applicable, which may include number of housing units in the Housing Development subject to an Affordable Housing Covenant, required duration (term of years) of the Affordable Housing Covenant, restrictions on use of real property to occupancy by low or moderate income households in rental or owner-occupied housing, restrictions on the rental rate or sale price of real property to ensure affordability by future low and moderate income households; right of first refusal before sale or an option to purchase by the Covenant Holder; and any other term permitted under ORS 456.280 and ORS 456.285;
   10. (j) For an Award that includes an Affordable Housing Covenant obligation, a provision designating the Project’s Covenant Holder (Award recipient or recipient’s eligible designate) and requirements to ensure compliance with ORS 456.270 to 456.295, including enforcing the covenants for the appliable terms of years.  At the Authority’s discretion and to avoid redundancy and financing complexities, the contract may permit non-Program restrictive covenants on the Specified Proposed Housing Development Project to meet the requirements of the Program if they meet or exceed the Affordable Housing Covenant requirements of the Program.  For example, if the Oregon Housing and Community Services Department has or will have a restrictive covenant on the Specified Proposed Housing Development Project for a LIFT award that provides for low income housing requirements for a term of 30 years, that restrictive covenant may suffice and be referenced in the contract;
   11. (k) Bond funding restrictions, including tax-exempt requirements, on the Award, as applicable; and
   12. (l) Other provisions that the Authority considers necessary or appropriate to implement the Program.
3. (3) If an event of a default occurs under a contract for an Award, any recovered funds will be returned to the Fund and may be awarded to another Project.
4. (4) The contract must be authorized by an ordinance, order or resolution adopted by the governing body of the Award recipient in accordance with the Award recipient’s requirements for public notice and authorizing debt.

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