Housing Preservation & Revitalization Demonstration Loans & Grants in Oregon

PROGRAM STATUS:

Closed

APPLICATION DEADLINE:

May 7, 2020

For Prospective Tenants: Find a multi-family housing rental in Oregon.

New tenant income eligibility limits took effect on June 1, 2017: View the new limits for Oregon here.

 

Technical Assistance Grants Selection Results for preserving Section 515 properties.

What does this program do?
It restructures loans for existing Rural Rental Housing and Off-Farm Labor Housing projects to help improve and preserve the availability of safe affordable rental housing for low income residents.

Who may apply for this program?
Current multi-family housing project owners with Rural Rental Housing and Off-Farm Labor Housing loans. Borrowers must continue to provide affordable rental housing for 20 years or the remaining term of any USDA loan, whichever is later.

How may funds be used?

  • Preserve and improve existing Rural Rental Housing and Off-Farm Labor Housing projects in order to extend their affordable use without displacing tenants through increased rents
  • A third party Capital Needs Assessment (CNA) will help identify project needs.

What kinds of funding are available?
A variety of restructuring tools are available including:

  • grants, limited to nonprofit applicants
  • no interest loans
  • soft-second loans
  • debt deferral

How do we get started?

  • A two-phase application process starts with pre-applications accepted on an annual basis through a Notice of Funding Availability (NOFA) in the Federal Register
  • Selected pre-applications are invited to submit final applications

Who can answer questions?
Contact your State RD office.

What governs this program?
Notice of Solicitation of Applications

NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.

For Prospective Tenants: Find a multi-family housing rental in Oregon.

New tenant income eligibility limits take effect July 1, 2016: View the new limits for Oregon here.

Pre-application for FY 2017 and 2018 (for Debt Deferral only)Now Closed.

MPR Debt Deferral Only Transfer Second Feasibility Scenario Limits:

The 2017 MPR NOSA allows transfer transaction applicants to submit a second feasibility scenario using multiple MPR tools in addition to their primary proposal with MPR Deferral only.  Applicants may include, at their own risk, MPR Zero Percent and/or MPR Soft Second loans in their transfer proposals.  MPR tools in the second feasibility scenario may not exceed $15,000 per unit for the MPR Zero Percent loan and $15,000 per unit for MPR Soft Second loan for a combined maximum of $30,000 for Zero Percent and Soft Second loans per unit.

An applicant that chooses to include MPR Zero Percent and/or MPR Soft Second loans in their transfer proposal will formally acknowledge that they understand inclusion of those funds in the underwriting constitutes neither an approval nor a commitment of any MPR funds by the Agency.

Summary of NOSA Responses

Multi-Family Housing Underwriting Background Update (pdf) - Rural Development is pleased to announce the release of Version 6.1 of its Preliminary Assessment tool.  The Preliminary Assessment Tool, or PAT, serves as a portal of access for transfers of ownership, preservation, and similar transactions.

Preliminary Assessment Tools (xltm)Version 7.0 posted contains a number of enhancements that will continue our efforts to simplify, streamline, and provide greater transparency to the transfer and Multi-family Preservation and Revitalization (MPR) processes for the benefit of our customers and RD field staff. Version 7.0 incorporates the provisions of the 2019 HUD Median Income. A complete summary of the updates the PAT v7.0 are detailed in the "About This Template" page.

Preliminary Assessment Tool Customer Comments and Questions (xlsx)

New Construction Underwriting Template (xlsm)- This standardized underwriting Template was developed for Agency underwriters and reviewers to document the terms of proposed New Construction RRH and FLH transactions after selection under the respective NOFAs. This tool is used internally to analyze the transaction proposed by the applicant and verify compliance with program requirements, standards and principles.

CNA Provider Form (pdf) - The CNA Provider Directories are available by contacting the State Architect for each state.  Please contact the state office for more information, or to submit the CNA Provider Information Form for your company.

CNA Template (xlsm) - The CNA Template Ver 1.5h should be used in lieu of all previously used versions of CNA Worksheets.  The CNA Template Ver 1.5i 52318 contained errors and should not be used.  The template documents the findings reached when using RD's Published Guidance on the Capital Needs Assessment (CNA) Process. It includes updated estimated useful life tables, and incorporates the rehabilitation guidance and miscellaneous format revisions for consistency with current program initiatives.  This form has been tested and verified using the standard Windows Microsoft Excel® (Excel 2013) to resolve compatibility issues previously reported.  Use with other operating systems such as those from Apple® or Android®, or those using earlier spreadsheet programs may continue to experience compatibility issues requiring further discussion in the CNA report.

Guidance on the Capital Needs Assessment Process (pdf) -This Unnumbered Letter (UL) addresses the Capital Needs Assessment (CNA) process for RD-financed properties. It has been updated to provide additional guidance and clarification to assist RD borrowers, providers and staff for all RD required CNA assessments for loan making and servicing.  This UL includes general instructions to be used in completing the RD CNA reports, specific instructions on how to use the expected useful life tables, and a set of applicable forms including the Terms of Reference form; Systems and Conditions forms; and Evaluator's Summary forms. This new guide is now comprised of nine main sections: 1) Definitions; 2) Contract Addendum; 3) Requirements and Statement of Work (SOW) for a CNA; 4) The CNA Review Process; 5) Guidance for the Multi-Family Housing (MFH) CNA Recipient Regarding Contracting for a CNA; 6) Revising an Accepted CNA During Underwriting; 7) Updating a CNA; 8) Incorporating a Property’s Rehabilitation into a CNA; and 9) Repair and Replacement Schedule. This entire Unnumbered Letter should be made available to RD MFH property owners, applicants and CNA Providers who are or are planning to submit transactions using the MPR or any other RD RRH or FLH program loan making or servicing authorities.  Only CNAs following this guidance will be accepted.

Multi-Family Housing Property Exit Data - The Rural Housing Service’s Multi-Family loan programs (MFH) were started in the late 1970s, and as a result, the mortgages Rural Development (RD) used to finance multifamily housing developments are coming due.  When a MHF property mortgage matures: the owner is no longer under contract to offer affordable rents to low- and moderate-income families and Rental Assistance (RA) is no longer available to support the families’ tenancy. Rural Development (RD) is acutely aware of the challenges that maturing MFH property mortgages present to the Federal Government’s important and invaluable investment in affordable rental housing for low- and moderate-income families.  RD issued an Unnumbered Letter on April 28, 2015 that describes steps a borrower can take to keep the property in the RD portfolio, including submission of an application for loan deferral under the Multi-Family Preservation and Restructuring (MPR) loan program. The linked dataset provides loan-level information when USDA Section 514 and 515 properties are projected to pay off their loans and exit USDA's Multi-Family Housing program. Other information provided includes whether the loan is prepay eligible and when, loan amount, original loan term and remaining term days, borrower characteristics, property location and characteristics, and more,

NOTE: If state specific forms are not shown above, please ensure that your state is selected in the dropdown menu above to find the State Office contact information and speak to a Housing Programs Specialist before attempting to fill out any forms or applications. This will save you valuable time in your application.

State Architect Requirements:

Contact:

          Norm Schoen, Oregon State Architect
          (503) 414-33064, norm.schoen@or.usda.gov

Rural Development Programs, such as Community Facilities and Multi-Family Housing, involve the construction of new buildings or renovation of existing facilities. The development of these facilities involves the need for architectural services for the preparation of plans, specifications, public bidding, contracting, construction, and construction monitoring.

Applicants, at the earliest possible time, should provide a Preliminary Architectural Feasibility Report, including the Cost Estimate, for review by the Rural Development Program Specialist and State Architect. These two documents are needed to determine the project's feasibility. For Rural Development-financed architectural projects, Rural Development's State Architect will evaluate and provide to the applicants and their architects architectural/construction guidance in the following areas:

          Initial site visit & evaluation of the proposed project
          Preliminary Architectural Feasibilty Report
          Agency concurrence of Owner/Architect Agreements
          Agency acceptance of Plans & Specifications
          Agency concurrence of Construction Contract documents
          Construction & construction monitoring

Guidance on the Capital Needs Assessment Process (pdf) - This Unnumbered Letter (UL), dated March 16, 2015, provides updated clarification and guidance on the Rural Development Capital Needs Assessment (CNA) process for Multi-family Preservations and Revitalizations (MPRs), Rural Rental Housing and Farm Labor Housing transfers, and other Rural Development loan making and servicing actions requiring a CNA. This guidance is comprised of several sections and attachments addressing the CNA process required to be used by USDA Multi-Family Housing property owners, applicants, and CNA providers.

State Engineering Requirements:

Contact:

          Charlotte Bentley
          (503) 414-3362
          charlotte.bentley@usda.gov

 

State Environmental Requirements:

Contact:

          Charlotte Bentley
          (503) 414-3362
          charlotte.bentley@usda.gov

 

There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.

There are currently no events scheduled.

State Office:

Phone: (866) 923-5626, extension 2
Email: rd.mfh.oregon@usda.gov
Relay Service: Dial 711 for a free relay service operated by the FCC

USDA Rural Development
Attn: Multi-Family Housing
1220 SW 3rd Avenue, Suite 1801
Portland, OR 97204

 

* Changes are coming to the Multi-Family Housing Programs in October.

To continue to meet the increasing demand for safe, affordable rural rental housing, USDA Rural Development is reorganizing its Multi-Family Housing Programs into an integrated model with specialized teams.

In the new model, all Multi-Family Housing staff will be aligned under one of three integrated divisions:

  • The Field Operations Division will deliver routine servicing through regional teams.
  • The Production and Preservation Division will process, underwrite, and close all Multi-Family Housing direct, preservation, and guaranteed loan transactions.
  • The Asset Management Division, through regional teams, will oversee portfolio health.

The transition to this integrated model will occur in two waves. The first wave, including USDA’s National Office and the Northeastern region, took effect in July. The second wave will include the remaining states in the Southern, Midwestern, and Western regions and is scheduled to launch on October 13, 2020. More detailed contact information will be posted here at the conclusion of this transition.

This integration will allow USDA to establish streamlined business processes, provide consistent and predictable work for staff, and improve customer service for our Multi-Family Housing Programs.