The Housing Finance Section manages a variety of low-interest affordable rental housing loan programs. Our variety of programs create opportunities for affordable housing developers with all phases of their financing needs including permanent loan programs financed with tax-exempt bonds (Bonds Financing Opportunities ). We offer affordable housing developers a combination of one-stop shopping options, which encourages financing versatility and efficiency. Developers may apply for any one of the funding sources or a combination of available funding programs to make developments financially viable. The primary multifamily programs the Housing Finance Section administers are as follows:
Elderly & Disabled Loan Program
The Elderly and Disabled (E & D) Loan Program provides below-market interest rate permanent mortgage loans by issuing pooled tax-exempt bond financing for affordable multi-unit rental housing projects. Borrowers may apply for this loan for construction of new affordable housing or for acquisition and/or rehabilitation of existing properties.
Loan Guarantee Program and General (Lease) Guarantee Program
The Programs provide guarantees to lenders to assist in the financing of new housing construction or for the acquisition and/or rehabilitation of existing housing for low- and very low-income families. Guarantees may be up to 25 percent of the original principal amount of a loan.
Mobile Home Parks Purchase Program (MHPP)
The Program is funded by a revolving loan fund to provide prepurchase assistance to qualified tenants' associations, tenants' association supported nonprofit organizations, and Facility Purchase Associations with prepurchase costs.
Oregon Rural Rehabilitation Loan Program (ORR)
The Program provides financial assistance in the form of a loan to borrowers for the construction, acquisition and/or rehabilitation of housing for farm workers and their families; expanding the supply of affordable, decent and safe housing for farm workers and their families.
Pass-Through Revenue Bond Financing Program (Conduit)
The Program provides tax-exempt bond funds to finance the construction, rehabilitation and acquisition of multi-unit affordable housing for lower-income Oregonians while providing sufficient safeguards to protect the financial interest of the bond issuer. The program provides additional flexibility in the loan structure and providing an efficient process for underwriting and loan approval.
Predevelopment Loan Program and Habitat Predevelopment Loan Program
The Programs provide below market financing and flexible terms for site acquisition and predevelopment costs. Eligible predevelopment cost may include architectural design, site acquisition, legal fees, market analysis, appraisals, soil and environmental reports, etc.
Risk Sharing Loan Program
The Program provides below-market interest rate permanent mortgage loans by issuing pooled tax-exempt bond financing for affordable multifamily rental housing projects. The Department and HUD share the loan risk and through HUD's FHA mortgage insurance program the bond funds receive a AAA credit enhancement.
Seed Money Advance Loan Program (SMAL) and Market Study Loan Program
The Program and its subsidary Market Study Loan Program are revolving loan funds that can be used to pay recoverable predevelopment costs, including market studies, before construction loan proceeds are available.
Vertical Housing Program
The Vertical Housing Program encourages mixed-use commercial / residential developments in areas designated by communities through a partial property tax exemption. The exemption varies in accordance with the number of residential floors on a project with a maximum property tax exemption of 80 percent over 10 years.
