Or. Admin. Code § 813-090-0010 - 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.
Notes
Publications: The publication(s) referred to or incorporated by reference in this rule are available from the agency.
Statutory/Other Authority: ORS 183 & 456.515 - 456.720
Statutes/Other Implemented: ORS 456.559(1)(f) & 26 U.S.C. § 42
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