Or. Admin. Code § 813-120-0040

Current through Register Vol. 63, No. 12, December 1, 2024

Section 813-120-0040 - Eligible Costs for HOME Activities

Costs are determined as eligible to be paid with HOME funds to the extent that they promote housing affordability. Eligible costs include:

(1) Development hard costs such as the actual costs of constructing or rehabilitating housing including, but not limited to:

(a) For new construction, costs to meet the applicable new construction standards of Oregon and the Model Energy Code referred to in 24 C.F.R. Sec. 92.251.

(b) For rehabilitation, costs to meet the property standards in 24 C.F.R. Sec. 92.251; to make essential improvements, including energy-related repairs or improvements, improvements necessary to permit use by persons with disabilities, the abatement of lead-based paint hazards, as required by 24 C.F.R. Sec. 92.355, and to repair or replace major housing systems in danger of failure; costs to refinance existing debt when rehabilitating owner-occupied single family units;

(c) For both new construction and rehabilitation,

(A) Costs to make utility connections; and costs of existing structure demolition and improvements to the Project site. A Project shall be documented to have complied with these standards prior to the submission of an IDIS Project Completion Report.

(B) Costs associated with Project site improvements. Site improvements shall be comparable to those found in similar developments in the geographic area surrounding the Project and shall be accomplished for the primary use of the proposed Project residents.

(2) Development soft costs incurred by the owner and/or sponsor. These costs include reasonable and necessary costs associated with financing and/or development of new construction, rehabilitation, or acquisition including, but not limited to:

(a) Architectural, engineering and/or related professional services required for preparing plans, drawings, specifications or work write-ups;

(b) Costs to process and settle Project financing, including private lender origination fees, credit reports, fees for title evidence, legal document recording, attorneys, private appraisal, building permits, and independent cost estimate, builder or developer fees;

(c) Costs of a Project audit.

(d) Costs associated with services provided in connection with affirmative marketing and fair housing information, in conformance with 24 C.F.R. Part 92.

(e) For new construction or rehabilitation, the cost of funding an initial operating deficit reserve, and costs for the payment of impact fees that are charged for all developments within a jurisdiction.

(3) Costs of acquiring improved or unimproved real property, including acquisition by homebuyers.

(4) Costs of relocation payments and other related assistance for permanently or temporarily Displaced Persons, families, businesses, farm operations or other entities determined appropriate by the Department, and staff and overhead costs directly related to providing advisory and other relocation services.

(5) Costs of rent or rental deposits for tenants receiving HOME Tenant-Based Rental Assistance.

(6) Costs of Program administration up to ten percent (10%) of the Department's fiscal year allocation. Allowable Administrative Costs include, but are not limited to, activities involving the coordination, monitoring and evaluation of HOME-assisted Projects or Programs such as preparing budgets, schedules and amendments; evaluating Program results against stated objectives; developing systems for assuring compliance with Program requirements; monitoring Program activities for progress and compliance with Program requirements; preparing reports and other compliance documents related to the HOME Program; and coordinating the resolution of audit and monitoring findings; the Department's staff and overhead costs directly related to carrying out the Project.

(7) Project-specific technical assistance and site control loans, and Project-specific seed money loans to CHDOs as outlined in 24 C.F.R. Sec. 92.301.

(8) Up to five percent (5%) of the Department's fiscal year HOME allocation may be used for the operating expenses of CHDOs as outlined in 24 C.F.R., Part 92.208.

Or. Admin. Code § 813-120-0040

HSG 6-1992(Temp), f. & cert. ef. 6-15-92; HSG 10-1992, f. & cert. ef. 11-20-92; HSG 1-1993(Temp), f. & cert. ef. 2-19-93; HSG 3-1993, f. & cert. ef. 8-18-93; HSG 8-1994, f. & cert. ef. 9-9-94; HSG 3-1995, f. & cert. ef. 9-25-95; HSG 1-1997, f. & cert. ef. 4-15-97; OHCS 1-2008, f. & cert. ef. 1-28-08

Publications: Publications referenced are available from the agency.

Stat. Auth.: ORS 456.620

Stats. Implemented: ORS 456.559(1)(f)