DIVISION 41
FARMWORKER HOUSING TAX CREDIT PROGRAM
813-041-0000
Purpose and Objectives
OAR chapter 813, division 41, is promulgated to carry out the provisions of ORS 315.164 through 315.169, in particular ORS 315.167, as they pertain to the Oregon Housing and Community Services Department. The purpose of the Farmworker Housing Tax Credit Program is to encourage the rehabilitation of existing housing and the construction or placement of additional housing for farmworkers.
Stat.
Auth.: ORS 315.167 - 315.139 & 458.650
Stats
Implemented: ORS 315.617
Hist.:
OHCS 7-2001(Temp), f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp),
f. & cert. ef. 3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02;
OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10
813-041-0005
Definitions
All terms used in OAR chapter 813, division 41, are defined in the Act, in OAR 813-005-0005, in ORS 315.163, and herein.
(1) "Acquisition Costs" means the cost of acquiring buildings, structures and improvements that constitute or will constitute farmworker housing. Acquisition costs do not include the cost of acquiring land on which farmworker housing is or will be located. Acquisition does not mean solely the cost of acquiring a project which has been awarded farmworker housing tax credits.
(2) "Annual Notice" means the Department's notice of details of the program for that year, including any changes the Department may have made to the program from the previous year pursuant to ORS 315.164 through 315.167 and OAR chapter 813, division 41.
(3) "Application" means the application filed by an owner with the Department on the Department's prescribed application form(s), together with the attached information, as required by the Department in OAR 813-041-0010, and as the Department may specify in an annual notice or by other means, which has been signed by the owner requesting approval for tax credits for a project.
(4) "Approval" means issuance by the Department of a letter of credit approval for a project.
(5) "Cap" means the maximum aggregate amount of estimated eligible costs for all projects approved for the calendar year pursuant to letters of credit approval issued by the Department, as set forth in ORS 315.167(4).
(6) "Carry-over Application" means an application which is fully approvable and either:
(a) Can only be awarded partial credits due to cap restrictions for the calendar year. Applicants must voluntarily reduce their eligible costs and file a new application no later than January 15, or
(b) Is an application which received a reservation.
(7) "Condition of Habitability" means a condition that is in compliance with:
(a) The applicable provisions of the state building code under ORS chapter 455 and the rules adopted thereunder; or
(b) If determined on or before December 31, 1995, section 12 and 13, chapter 964, Oregon Laws 1989.
(8) "Eligible Costs" includes finance costs, construction costs including development costs as well as hard construction costs, excavation costs, installation costs, and permit costs, but excludes land costs, operating and replacement reserves.
(9) "Estimated Eligible Costs" is the lesser of:
(a) A forecast of the actual eligible costs;
(b) An amount less than such forecasted amount that the owner is requesting for approval for a specific project; or
(c) A voluntary ceiling for the forecasted eligible costs for large projects as may be announced in an annual notice.
(10) " Farmworker" means any person who, for an agreed remuneration or rate of pay, performs temporary or permanent labor for another in the production of farm products or in the planting, cultivating or harvesting of seasonal agricultural crops or in the forestation or reforestation of lands, including but not limited to planting, transplanting, tubing, pre-commercial thinning and thinning of trees and seedlings, the clearing, piling and disposal of brush and slash and other related activities.
(11) "Farmworker Housing" means housing:
(a) Limited to occupancy by farmworkers and their immediate families;
(b) No dwelling unit of which is occupied by a relative of the owner or operator of such farmworker housing; and
(c) Consisting, if located in an exclusive farm use zone, of housing that is in compliance with any applicable local zoning ordinance and that is:
(A) A manufactured dwelling, as defined in ORS 446.003, or
(B) Any other dwelling unit in existing farmworker housing, if the project for which the tax credit is being claimed, consists of the rehabilitation of such existing farmworker housing.
(12) "Farmworker Housing Project" or "Project" means construction, installation or rehabilitation of farmworker housing located in the state of Oregon.
(13) "Firm Commitment of Financing" means an agreement by a lender or other resource provider to make funds available to the owner for the project, which agreement contains all of the terms and conditions that the owner has to satisfy prior to closing.
(14) "Owner" means a person or corporation, including a nonprofit corporation or state or local government entity including but not limited to a housing authority, which holds legal title to the farmworker housing and will develop and manage (whether directly or through an operator) the farmworker housing. The owner may be the controlling general partner in a limited partnership which holds legal title to the farmworker housing and will develop and manage (whether directly or through an operator) the farmworker housing in accordance with all applicable state and federal statutes and regulations and any other requirement as set forth by the Department.
(15) "Operator" means a person or entity other than an owner who operates and manages farmworker housing.
(16) "Program" means the Farmworker Housing Tax Credit Program.
(17) "Rehabilitation" means to make repairs or improvements to a building that improve its livability and are consistent with applicable building codes.
(18) "Relative" means a brother or sister (whether by the whole or by half blood), spouse, ancestor (whether by law or by blood), or lineal descendant of an individual.
(19) "Reservation Letter" means a letter indicating the level of farmworker housing tax credit award needed for leverage or match in an application for state or federal funds. The reservation letter does not mean a letter of tax credit approval.
(20) "Taxpayer" means a resident individual, corporation or financial institution, including, but not limited to, an owner or operator of farmworker housing.
(21) "Tax Credit" means a credit against taxes allowed a taxpayer for a farmworker housing project pursuant to ORS 315.164.
(22) "Tenant" is a person or a renter (including any family members) who occupies or will occupy a unit in farmworker housing.
Stat. Auth.: ORS 315-164
- 315.169 & 458.650
Stats
Implemented: ORS 315.167
Hist.:
OHCS 7-2001(Temp), f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp),
f. & cert. ef. 3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02;
OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10
813-041-0010
Program Description and Application Requirements
(1) Prior to submitting any application, applicants are encouraged to read ORS 315.164 through 315.169, the annual notice, and general information regarding this program. This information will be provided, along with application form(s), upon request addressed to: Farmworker Housing Tax Credit Program, Oregon Housing and Community Services Department, North Mall Office Building, 725 Summer Street NE, Salem, Oregon 97301-1266.
(2) The Department reserves the right to establish the initial date on which applications may be filed in any year, the application form(s) and required supporting documentation, and evaluation criteria. The Department also reserves the right to request additional information and to request applicants with large projects to agree to a voluntary ceiling on the estimated eligible costs included in their applications.
(3) An application for tax credit for a project shall be filed no later than six months after the date construction for the project commences. The application shall contain all information required by the Department, including, but not limited to:
(a) Name, address, telephone number, and taxpayer identification number of the taxpayer and owner;
(b) Location of the proposed farmworker housing;
(c) A description of the project, including:
(A) The type of housing (seasonal or year around housing); and
(B) Number and type of housing units to be provided and the projected occupancy and square footage per unit;
(d) The estimated eligible costs of the project, broken down by cost type (note that an annual notice may request owners to limit the amount of the estimated eligible costs requested in their applications); and
(e) Any other information as the Department may require, including but not limited to:
(A) Information about the current zoning of the proposed site, including at a minimum, an accompanying letter signed by the appropriate community development or planning agency indicating the current zoning designation and that the proposed project complies with the allowable uses for the zone designation, to confirm both the eligibility of the project proposed and its ability to proceed;
(B) An accompanying letter or form specifying the sources of the funds, including at a minimum any outside sources of funds, and/or firm commitments of financing for funds from sources not in the owner's name. The Department may, at its discretion, issue a reservation letter for projects which have yet to obtain a firm commitment of financing. Reservation letters will only be issued when an applicant is applying for other federal or state funding where a commitment of farmworker tax credits would benefit the application;
(C) Information on the readiness of the project to proceed to construction in the current calendar year, such as:
(i) Projected date on-site construction activity will begin or necessary permits will be secured; and
(ii) The projected construction time;
(D) Information on the projected occupancy date;
(E) Information on the projected life of the project for farmworker housing purposes;
(F) A commitment to the timely completion of the project, shall either be evidenced by:
(a) The execution of the application by the owner if the project will be completed and ready for occupancy in the calendar year of the approval; or
(b) A specific letter of commitment stating that the project will be completed and ready for occupancy during the following calendar year; and
(G) Any other information the Department may specify in an annual notice.
(4) To claim a tax credit under this division, a taxpayer must show in each year following the completion of a farmworker housing project that the project is continuing to be operated as farmworker housing for a period of at least ten years after such completion, unless the Department grants the taxpayer a waiver from this requirement after the taxpayer has successfully met this requirement for the first five years after completion. Factors necessary for the Department to grant such a waiver may include, but are not limited to, the following:
(a) A documented decline in a particular area for farmworker housing; and
(b) Other factors as may be outlined in the application form(s), informational materials, or annual notice(s).
[Publications: Publications referenced are available from the agency.]
Stat.
Auth.: ORS 315.167 - 315.169 & 458.650
Stats
Implemented: ORS 315.617
Hist.:
OHCS 7-2001(Temp), f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp),
f. & cert. ef. 3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02;
OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10
813-041-0015
Filing, Consideration and Evaluation of Applications.
(1) Unless otherwise indicated by the Department in an annual notice, applications may be filed after January 2 for a given calendar year. Applications for a calendar year submitted before the initial date applications may be filed for that calendar year will not be considered and will be returned. Applications will be considered filed on the date of the USPS postmark if mailed; on the date printed out by Department devices on which they arrive if sent electronically by facsimile (Fax); and on the date they are stamped in at the Department if hand delivered.
(2) The Department may, subject to availability under the cap, consider applications through any reasonable process which may include, but is not limited to, a first come-first reviewed process, competitive review process, as a demonstration program, or as necessary to meet an on-going concern.
(3) The Department may create a 'soft set-aside' of credits solely for on-farm projects. Such set-aside will extend to June 30 of the given calendar year. Credits not awarded by that time may be made available to any otherwise viable project.
(4) The Department's evaluation of applications for approval may include, but is not limited to, the following criteria:
(a) Completeness, level of detail and accuracy of the information included in the application;
(b) Other criteria as may be established in the application form(s) and announced in the annual notice. In the evaluation process the Department may determine the qualifying status of the taxpayer, the proposed project and the costs included in the estimated eligible costs.
(5) The Department may:
(a) Return as not filed, any application determined in the evaluation process not to include specific or substantial information about the project or determined by the Department to be incomplete in any respect;
(b) Request the owner to provide, within 15 calendar days, any information deemed missing, and if such information is not timely submitted, the application may be returned as not filed;
(c) Limit the tax credit award to the minimum amount required to make the project financially viable; or
(d) Issue a reservation letter where appropriate.
(6) Upon determining that an application has successfully met the evaluation criteria, the application will be further processed for approval in the chronological order in which it was filed.
Stat.
Auth.: ORS 315.167 315.169 & 458.650
Stats
Implemented: ORS 315.617
Hist.: OHCS 7-2001(Temp),
f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp), f. & cert. ef.
3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02; OHCS 3-2009(Temp),
f. & cert. ef. 12-15-09 thru 6-12-10
813-041-0020
Standby Applications
(1) Any application requesting approval for estimated eligible costs which, when aggregated with the estimated eligible costs of all projects approved to that date for that calendar year, is in excess of the cap, must be declined unless the owner elects to reduce the estimated eligible costs for the project to an amount that would, when aggregated with the estimated eligible costs of all projects approved to that date for that calendar year, not exceed the cap, or unless the owner asks to be placed on a standby list.
(2) The Department may maintain applications on a standby list in any order determined by the Department if they are otherwise determined in the evaluation process to be appropriate for approval.
(3) Whenever, for any reason, there is availability under the cap later in a given calendar year, the Department will select a standby application for further processing for approval, and will notify the owner, and allow the owner a reasonable time to update its application to reflect current conditions.
(4) All outstanding standby applications shall expire on December 31 of the calendar year of application.
Stat.
Auth.: ORS 315.167 - 315.169 & 458.650
Stats
Implemented: ORS 315.617
Hist.:
OHCS 7-2001(Temp), f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp),
f. & cert. ef. 3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02;
OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10
813-041-0025
Approval of Eligible Projects
(1) Subject to availability under the cap, the Department may approve an application for tax credit, provided that all occupied units in the farmworker housing for which the tax credit is being claimed are occupied by farmworkers and their immediate family. Relatives of the owner or operator may not occupy any dwelling unit in such farmworker housing.
(2) An owner who files an application and meets the requirements set forth in ORS 315.164 through 315.167, OAR chapter 813, division 41, and the applicable annual notice will be issued a letter of credit approval. A letter of credit approval designates by its date of issuance the earliest tax year in which the tax credit may be claimed for the completed project. The letter of credit approval will indicate that:
(a) A tax credit may, subject to disallowance by the Department of Revenue, be claimed based on the estimated eligible costs specified in the letter, or actual costs, whichever are lower, following completion of the project and a pre-occupancy inspection where applicable;
(b) Other criteria apply to the project and must be met for the full term of the tax credit to assure continued eligibility for claiming the tax credit by the owner, taxpayer, or financial institution; and
(c) The estimated eligible costs for all projects approved to date in the calendar year (including the project which is the subject of the letter of credit approval) do not exceed the cap.
Stat.
Auth.: ORS 315.167 - 315.169
Stats
Implemented: ORS 315.617
Hist.:
OHCS 7-2001(Temp), f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp),
f. & cert. ef. 3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02;
OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10
813-041-0027
Charges
(1) The Department may impose a charge from any applicant requesting farmworker housing tax credits.
(2) The Department may charge for Department of Justice time required for review of applicant requested changes to proscribed documents.
Stat.
Auth.: ORS 315-164 - 315.169
Stats
Implemented: ORS 315.167
Hist.:
OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10
813-041-0030
Monitoring
If, after issuance of a letter of credit approval and during the term the tax credit is being used, the project is found to be out of compliance with the requirements, including but not limited to ORS 315.164 through 315.167, OAR chapter 813, division 41, or the commitments contained in the application, the Department will promptly notify the Department of Revenue, and the Department of Revenue will take any appropriate action based on Department of Revenue statutes, rules and procedures.
Stat.
Auth.: ORS 315.167 315.169
Stats
Implemented: ORS 315.617
Hist.:
OHCS 7-2001(Temp), f. & cert. ef. 12-13-01 thru 6-10-02; OHCS 1-2002(Temp),
f. & cert. ef. 3-15-02 thru 6-10-02; OHCS 8-2002, f. & cert. ef. 6-6-02;
OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10
813-041-0035
Waiver
The Department may waive or modify any requirements of these rules upon a determination by it of good cause in order to promote the best interests of the program or of the department, unless such waiver or modification would violate applicable federal or state statutes or regulations.
Stat Auth.:
ORS 456.515 - 456.720, 315.164 - 315.167 & 458.650
Stats
Implemented: ORS 315.167 & 456.555
Hist.:
OHCS 3-2009(Temp), f. & cert. ef. 12-15-09 thru 6-12-10
Alphabetical Index by Agency Name
Numerical Index by OAR Chapter Number
Search the Text of the OARs
Questions about Administrative Rules?
Link to the Oregon Revised Statutes (ORS)
Return to Oregon State Archives Home Page