Or. Admin. R. 330-060-0040 - Low-Interest Loans Through Lenders

(1) State financed 6.5 percent interest loans made under Chapter 894, Oregon Laws 1981, as amended by Chapter 749, Oregon Laws 1987, and Chapter 718, Oregon Laws 1991, shall meet the following standards:
(a) A loan shall be made only to a dwelling owner who is or who rents to a residential fuel oil customer or a wood heating resident;
(b) Only energy conservation measures recommended as cost-effective in the energy audit, recommended adjuncts to those measures, and any loan fee that is included in the body of the loan shall qualify for the loans;
(c) The maximum loan limit, including the loan fee, is $5,000 for each eligible dwelling unit. If the dwelling owner is a corporation operating a non-profit home for the elderly, a loan shall not exceed $2,000 per dwelling unit;
(d) A lender may charge, finance, and collect a nonrefundable front-end loan fee. Charging such a loan fee will not disqualify the loan for a tax credit under this section. The fee shall not exceed that charged by the lender for non-subsidized loans made under like terms and conditions at the time the subject loan is made;
(e) There is no limit on the number of eligible dwelling units for which a dwelling owner may receive a loan;
(f) Loans shall not finance the following:
(A) Converting space heat equipment from oil or wood to another source of fuel;
(B) Space heating heat pumps;
(C) Water heating heat pumps;
(D) Wood-burning devices;
(E) Any measure that would benefit all or part of a non-residential commercial building unless the building has some residential living space. In the case of a commercial building which has some residential living space the following can qualify for a loan:
(i) That part of the building used exclusively for residential; and
(ii) In a centrally heated building, a prorated share of the cost of a heating system. This share shall be based on the percentage of residential to total square footage served by the heating system.

EXAMPLE: 1,000 square feet is commercial, 2,000 square feet is residential - 2/3 of the cost of an eligible heating system could qualify for the loan.

(F) Solar equipment;
(G) Any materials used in building a new dwelling, additions to dwellings or remodeling which adds living space;
(H) That part of the cost of the measures for which the dwelling owner receives a state cash incentive.
(g) The costs of materials for "do-it-yourself" jobs may be included in the loan. No labor costs of such jobs shall qualify for the loan.
(2) In order to qualify for a loan, the dwelling owner must submit to the Oregon Department of Energy written permission to inspect the job to verify that the measures have been installed.
(3) In applying for the loan, a dwelling owner shall present to the lender:
(a) For contractor-installed measures, at least one written bid itemizing measures to be included in the loan and their costs. The Oregon Department of Energy may require that contractors use bid forms provided by the Oregon Department of Energy; and
(b) For "do-it-yourself" measures, an itemized list of materials to be installed and their costs.
(4) Lenders may receive a state tax credit in accord with Section 28, Chapter 894, Oregon Laws 1981 as amended by Chapter 749, Oregon Laws 1987, and Chapter 718, Oregon Laws 1991. This applies only to loans which:
(a) Are made to dwelling owners who are or who rent to residential fuel oil customers or wood heating residents and who:
(A) Have received an energy audit completed pursuant to these rules; and
(B) Give the lender a copy of:
(i) The results of the energy audit;
(ii) Certification on a form supplied by the Oregon Department of Energy stating that the dwelling receives space heating from fuel oil or wood; and
(iii) For a furnace or burner replacement, a certification from the contractor on a form supplied by the Oregon Department of Energy that the heating system meets or exceeds the combustion efficiency standards set in these rules.
(iv) Written permission on a form supplied by and submitted to the Oregon Department of Energy to inspect.
(b) Are subject to an annual rate not to exceed 6.5 percent;
(c) Have a term of ten years or less; and
(d) Finance those measures recommended in the energy audit.
(5) Lenders making weatherization loans under Section 28, Chapter 894, Oregon Laws 1981, as amended by Chapter 749, Oregon Laws 1987, and Chapter 718, Oregon Laws 1991, shall:
(a) Keep a copy of the customer's energy audit and the certification that the heating system meets or exceeds the combustion efficiency standards set in these rules, as well as the customer's loan application;
(b) Help the customer fill in a form, given to the customer during the energy audit, stating what measures will be included in the loan; and
(c) Return that form and the heating system certification to the Oregon Department of Energy no later than one week after the loan is closed. (This is the lender's only reporting requirement to the Oregon Department of Energy.)
(6) Eligibility of the lender for any tax credit under Section 28, Chapter 894, Oregon Laws 1981, as amended by Chapter 749, Oregon Laws 1987, and Chapter 718, Oregon Laws 1991, shall not be affected by any dwelling owner's failure to use the loan for qualifying measures.
(7) The borrower must complete installation of the measures financed within 90 days of receiving the loan funds.

Notes

Or. Admin. R. 330-060-0040
DOE 10(Temp), f. & ef. 9-16-77; DOE 1-1978, f. & ef. 1-16-78; DOE 8-1979, f. & ef. 11-27-79; DOE 13-1980, f. 12-15-80, ef. 1-1-81; DOE 7-1981, f. & ef. 12-18-81; DOE 4-1983, f. & ef. 10-10-83; DOE 3-1987, f. & ef. 12-18-87; DOE 2-1991, f. & cert. ef. 10-14-91; DOE 1-2000, f. 3-30-00, cert. ef. 4-1-00; DOE 2-2001, f. 10-5-01, cert. ef. 10-8-01; DOE 2-2003, f. 9-24-03, cert. ef. 10-1-03; DOE 5-2004, f. 10-14-04, cert. ef. 11-1-04; DOE 2-2007, f. 8-29-07, cert. ef. 9-1-07

Stat. Auth.: ORS 469.040 & 469.165

Stats. Implemented: ORS 469.170

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