Or. Admin. Code § 813-066-0020 - Manufactured Dwelling Replacement Loan Terms
All loans made under this program will comply with the following terms and criteria in addition to any other requirements imposed by OHCS:
(1)
(a) The OHCS manufactured dwelling
replacement loan is a gap loan intended to assist in the completion of the
Manufactured Dwelling Replacement Project after all other financial resources
available to the homeowner have been utilized. There is no minimum loan amount.
Loans for a single-wide Manufactured Dwelling or equivalent are not to exceed
$100,000, and for a double-wide, loans are not to exceed $175,000. The Director
of the Home ownership Division may approve an increase of up to $25,000 above
the original loan amount when unavoidable and unexpected costs increase the
original completed project amount. A director increase may not exceed program
limits.
(b) Actual loan amount for
each Manufactured Dwelling Replacement Project shall be determined through a
process prescribed by OHCS.
(2) Homeowner(s) must contribute available
personal financial resources from sources other than OHCS such as loans,
grants, insurance proceeds, savings, or other resources available to the
homeowner toward their Manufactured Dwelling Replacement Project.
(a) Minimum homeowner contribution shall be
determined through a review process prescribed by OHCS and will be considered
the primary funding source for the Manufactured Dwelling Replacement
Project.
(b) Homeowner(s) may not
be required to utilize or access personal financial resources for homeowner
minimum contribution if doing so would cause the homeowner(s) to incur a tax
penalty such as from early withdrawal from a retirement account or
IRA.
(c) Minimum homeowner
contribution requirement may be reduced or waived at OHCS discretion on a
case-by-case basis, with approval of the Director of Home ownership Division of
OHCS.
(3) The
replacement manufactured dwelling shall meet or exceed Energy Efficiency
Standards and be of reasonably similar size to the manufactured dwelling to be
replaced, single-wide for single-wide, and double-wide for double-wide; with
the exception of replacing the old manufactured dwelling with a smaller
manufactured dwelling, such as replacing an old, double-wide manufactured
dwelling for a new, single-wide manufactured dwelling. Exceptions to higher
energy efficiency standards may be made in cases of natural disaster for new
manufactured dwellings ordered or purchased prior to October 31, 2021 or for
borrowers impacted by natural disasters who do not have access to energy
efficiency incentive programs in their location.
(4) Program loans must have a 0 percent (0%)
interest rate.
(5) Program loans
must not require regular principal payments.
(6) When a homeowner requires a primary home
loan from a lender other than OHCS or other funding sources to complete the
Manufactured Dwelling Replacement Project financing, OHCS will agree to
subordinate its loan to these funding sources as a security interest
holder.
(7) The program loan
balance at closing will be reduced incrementally by 1/120th each month and
forgiven completely after 10 years of homeowner occupancy from the loan
origination date.
(8) If the
manufactured dwelling is sold before the 10-year homeowner occupancy period
expires, the outstanding balance of the program loan shall be repaid upon sale
of the manufactured dwelling unless:
(a) The
program loan is assumed by a buyer who meets the minimum income restrictions
set forth in ORS 458.356(2)(a)
or the minimum income restrictions set forth in the program loan documents,
whichever is more restrictive, or
(b) The remaining balance of the program loan
may be forgiven early by OHCS due to hardship at the sole discretion of
OHCS.
(9) The program
loan may be secured by a recorded or filed security interest through a process
prescribed by OHCS. OHCS may charge a homeowner for costs incurred by OHCS for
filing or recording of documentation or application as necessary to secure the
program loan. The homeowner may pay for these charges from the homeowner's
program loan or from personal funds.
(10) A program loan may be made to refinance
an existing loan, provided the existing loan can be verified as true debt, was
made for the purpose of an otherwise qualified Manufactured Dwelling
Replacement Project, and the existing loan was made after January 1,
2020.
(11) Program loan and grant
fund disbursements must comply with the following:
(a) Program loan and grant funds may be
disbursed to manufactured dwelling retailers, licensed contractors, financial
institutions and lenders, title insurance companies, municipalities and
government agencies, or other commercial entities required for completion of
the Manufactured Dwelling Replacement Project.
(b) Program loan and grant funds cannot be
disbursed to residents of the dwelling being replaced, persons who will reside
in the new dwelling to be purchased by the program loan, or persons who will
hold title to the new manufactured dwelling or any real property that the
dwelling(s) are to be located or placed upon.
(12) The unpaid balance of the program loan
must be repaid in full upon:
(a) The
homeowner's sale or voluntary transfer of the manufactured dwelling without
OHCS prior written consent, within 10 years of homeowner occupancy;
or
(b) The relocation of the
manufactured dwelling without OHCS prior written consent; or
(c) The manufactured dwelling ceasing to be
the homeowner's primary residence; or
(d) The replaced manufactured dwelling
remaining on site 180 calendar days after the Manufactured Dwelling Replacement
Project is completed.
Notes
Statutory/Other Authority: ORS 458.356 & ORS 458.358
Statutes/Other Implemented: ORS 456.555, ORS 446.003, ORS 455.010 & ORS 90.100
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