Or. Admin. R. 410-141-5186

Current through Register Vol. 63, No. 6, June 1, 2024

Section 410-141-5186 - CAPITALIZATION: Restricted Reserve Account-Permitted Investments in Obligations with Political Subdivisions; Public Supported Housing

(1) With prior written approval from the Authority, a CCO may invest up to 25% of its Primary Reserve and Secondary Reserve with one or more public housing authorities created under ORS 456.055 to 456.235 and governed by a county in the CCO's service area.

(a) The housing authority(ies) must address a documented social determinant of health need for that community;

(b) The CCO shall complete and file with the Authority a Form D as described and required under OAR 410-141-5320 for each housing authority that the CCO contracts with under this section;

(c) The CCO shall complete and file with the Authority the Model Depository Agreement specific to any obligation described in this section that will not be held with a third-party financial institution.

(2) The obligation shall be supported by an agreement between the CCO and the housing authority.

(a) The agreement shall describe the use of the funds provided (e.g. newly constructed vs. purchased; public housing vs. affordable housing vs. mixed income housing; owned vs. operated; type of housing unit such as single-family dwellings, multifamily dwellings, emergency shelters, dwelling accommodations, living accommodations, manufactured dwelling parks, residential units) and how the funds will address a documented social determinant of health need for that community;

(b) The agreement shall require and describe financial reporting requirements including but not limited to audited financial statements;

(c) A draft copy of the agreement shall be included with the Form D submission and reviewed by the Authority.

(3) The obligation will be secured through written guarantees by a regulated guarantor who is adequately capitalized. The guarantor's adequate capitalization is demonstrated through financial reports submitted at least annually to, and evaluated by, either the Authority or a state or federal insurance or bank regulatory agency.

(a) The guarantee shall be unconditional and absolute for the full and prompt payment and performance of all obligations under the promissory note;

(b) The guarantee shall remain in full force and effect and be binding upon guarantors until the promissory note is paid and performed in full;

(c) A draft copy of the guarantee, together with the most recent audited financial statement and regulatory examination of the guarantor, shall be included with the Form D submission.

(4) The obligation shall be supported by a promissory note between the housing authority and the CCO.

(a) The promissory note shall mature no later than the date of the end of the CCO's current contract;

(b) The promissory note may be extended in the event that the CCO's contract is extended;

(c) A draft copy of the promissory note shall be included with the Form D submission and reviewed by the Authority.

Or. Admin. R. 410-141-5186

DMAP 56-2021, adopt filed 12/30/2021, effective 1/1/2022

Statutory/Other Authority: ORS 413.042, 414.615, 414.625, 414.635 & 414.651

Statutes/Other Implemented: ORS 414.610 - 414.68