Or. Admin. Code § 813-090-0089 - Transfer of Owner, Tax Credit or Project Ownership

(1) The sponsor of a project to which low-income housing tax credits are allocated under the Low-Income Housing Tax Credit Program and an owner of such project may not transfer or allow any transfer of any interest in itself, the tax credits or the project or otherwise encumber the project, or any portion or interest therein, unless the department first approves the transfer or encumbrance in writing. Any such transfer or encumbrance is subject to payment to the department by the sponsor or owner of a transfer or encumbrance charge as required by the department. The owner shall notify in writing and obtain the agreement of any buyer or successor or other person acquiring the project or any interest therein that such acquisition is subject to declaration requirements. If the sponsor or owner effects or allows a transfer or encumbrance without prior written approval by the department, the transfer or encumbrance is voidable and remains subject to the approval or disapproval of the department and the sponsor or owner and transferees, jointly and severally, are subject to a transfer or encumbrance review charge by the department. The owner agrees that the department may, in addition to the exercise of other remedies, void any sale, transfer, or exchange of the project found in noncompliance.

(2) The department may condition its approval upon such terms and conditions as it, in its sole discretion, may require. Factors the department may consider in determining whether to give approval to a transfer or encumbrance include but are not limited to:

(a) The financial investment of the department in the project;

(b) Preservation of existing housing;

(c) The proposed transferee's ability to maintain and manage the project property for the needs of the residents, the integrity of the housing and as security for any financing;

(d) The effect of the transfer or encumbrance upon the financial integrity of the project, the tax credits, the repayment of project financing, use of the project for its intended purposes, and continuity of the program; and

(e) Continued compliance with applicable program requirements including, but not limited to terms and conditions of applicable funding documents, resultant restrictive covenants and equitable servitudes, and state and federal laws, rules and regulations.

Notes

Or. Admin. Code § 813-090-0089

Hist.: OHCS 26-2014(Temp), f. & cert. ef. 6-2-14 thru 11-29-14; Suspended by OHCS 30-2014(Temp), f. 6-5-14 thru 11-29-14

Stat. Auth.: ORS 456.555

Stats. Implemented: ORS 456.508, 456.510, 456.513, 456.559, 456.605, 456.625, 456.722