Or. Admin. Code § 813-090-0010

Current through Register Vol. 63, No. 10, October 1, 2024

Section 813-090-0010 - [Effective until 11/26/2024] Definitions

Terms used throughout OAR chapter 813, division 090 may be defined in 26 U.S.C. § 42, in Oregon Revised Statute (ORS), or in the OHCS General Definitions (OAR 813-005-0005). Terms used within this division observe those definitions except as defined below. All words and terms used in OAR chapter 813, division 90 are as provided in 813-005-0005 and herein. As used in these rules:

(1) "Applicable fraction" means the portion of a building that is treated as low-income use and generally eligible for the low-income housing tax credits.

(2) "Applicable percentage" means the IRS published or Congress set credit rating used in calculating the low-income housing tax credit. The applicable percentage includes the applicable federal rate (AFR) for the 9% annual credit which applies to eligible construction and substantial rehabilitation costs, and the 4% annual credit which applies to the acquisition cost of existing buildings to be rehabilitated.

(3) "Applicant" means a person or entity that applies for an allocation of LIHTCs from OHCS by completing an application provided by OHCS. Once OHCS accepts the applicant's application and an allocation is made, the applicant becomes a project owner.

(4) "Carryover allocation" means an allocation of LIHTCs that is made with respect to a project pursuant to IRC Section 42(h)(1)(E) and/or IRC Section 42(h)(1)(F), and in conformity with IRS Notice 89-1 and Treasury Regulations Section 1.42-6. OHCS issues a carryover allocation when a project will not be placed in service by close of the calendar year of the allocation but has incurred more than 10% of its anticipated costs within the calendar year in which the allocation was received or six (6) months after the date of the carryover.

(5) "Credit authority" means the dollar amount of low-income housing tax credits available for allocation by OHCS for any calendar year and can include estimates of future amounts.

(6) "Declaration of Land Use Restrictive Covenants" means a recorded document against a property that evidences the original intent and limitations of the LIHTC affordability (and other program) restrictions.

(7) "Financial feasibility" means the viability of a project after taking into consideration its total costs and projected revenues.

(8) An "IRS Form 8609" or "Form 8609" means the Internal Revenue Code (IRS) Form 8609, Low-Income Housing Credit Allocation and Certification that is issued to a Project Owner when a carryover allocation is approved. Owners of qualified low-income building(s) are allowed a low-income housing credit for each qualified building over a 10-year credit period. A separate Form 8609 must be issued for each qualified low-income building in a multiple building project.

(9) "Housing credit agency" means the designated state agency that administers IRC Section 42 and allocates LIHTCs on behalf of the Internal Revenue Service.

(10) "Low-income housing tax credit" or "LIHTCs" means the low-income housing tax credits available on a project pursuant to IRC Section 42. The amount of low-income housing tax credits available for allocation to a project is the amount that OHCS determines is necessary to make the project financially feasible but in no instance can it be greater than the applicable percentage of the qualified basis of each qualified low-income building.

(11) "Notice of Funding Availability" or "NOFA" means the method OHCS informs interested parties about how to apply for low-income housing tax credits and other financial resources.

(12) "Placed in service" means a project is completed and occupied by qualifying residents. In the case of multiple-building projects, each building has its own placed-in-service date.

(13) "Program requirements" means these administrative rules, all funding agreement terms and conditions, OHCS directives, applicable OHCS handbooks and manuals (including but not limited to OHCS' LIHTC Manual defined herein and the General Policy and Guideline Manual described in OAR 813-005-0020, IRC Section 42 of 1986, as amended, and corresponding regulations, and other applicable laws, including federal, state, and local laws, codes, ordinances, and orders, all of which as may be amended from time to time.

(14) "Project" means a "qualified low-income housing project" as defined in IRC Section 42(g).

(15) "Project owner" means a person or entity whose application for LIHTCs has been accepted by OHCS and who is the owner also known as the borrower of a Project.

(16) "Qualified Allocation Plan" or "QAP" means the 2022 State of Oregon Qualified Allocation Plan for Low Income Housing Tax Credits, dated January 31, 2022, as described in 813-090-0037 and IRC Section 42(m)(B). The QAP may be accessed online at OHCS' website.

(17) "Qualified basis" means the amount of eligible basis that will be used to generate low-income housing tax credits and is based upon the proportion of the property that will be used for affordable housing. The qualified basis is equal to the eligible basis, multiplied by the applicable fraction.

(18) "Reservation and extended use agreement" or "REUA" is a contract between OHCS and the project owner whereby the project owner agrees, among other things, to provide and maintain the project and to guarantee its compliance with the requirements of IRC Section 42 and OHCS by executing and recording a Declaration of Land Use Restrictive Covenants on the project property in return for an allocation of LIHTCs in accordance with IRC Section 42(h)(6). It will also include, by reference, a carryover allocation agreement.

(19) Suballocation is an agreement between OHCS to whom current state's private activity bond volume limit (CAP) allocations have been made to choose to suballocate any amount of the agency's allocation to another issue provide that the allocation is used for the same category of project for which the initial request was made, and the suballocation complies. All suballocations expire December 15th of any given calendar year.

Or. Admin. Code § 813-090-0010

HSG 13-1987(Temp), f. & ef. 9-28-87; HSG 1-1988, f. & cert. ef. 3-8-88; HSG 3-1989(Temp), f. & cert. ef. 6-8-89; HSG 18-1989, f. & cert. ef. 11-3-89; HSG 12-1990(Temp), f. & cert. ef. 5-29-90; HSG 14-1990, f. & cert. ef. 10-26-90; HSG 2-1991(Temp), f. & cert. ef. 8-7-91; HSG 7-1991, f. & cert. ef. 12-19-91; OHCS 10-2013(Temp), f. & cert. ef. 6-21-13 thru 12-18-13; Reverted to HSG 7-1991, f. & cert. ef. 12-19-91; OHCS 27-2014(Temp), f. & cert. ef. 6-5-14 thru 12-2-14; OHCS 38-2014, f. & cert. ef. 12/2/2014; OHCS 3-2020, amend filed 02/27/2020, effective 2/27/2020; OHCS 2-2021, temporary amend filed 01/25/2021, effective 01/25/2021 through 7/19/2021; OHCS 2-2022, temporary amend filed 02/11/2022, effective 02/11/2022 through 8/9/2022; OHCS 19-2022, amend filed 08/09/2022, effective 8/12/2022; OHCS 18-2024, temporary amend filed 05/31/2024, effective 5/31/2024 through 11/26/2024

Statutory/Other Authority: ORS 183 & 456.515 - 456.720

Statutes/Other Implemented: ORS 456.559(1)(f) & 26 U.S.C. § 42