Oregon Housing and Community Services has announced that the new Land Acquisition Program (LAP) is anticipated to open and begin accepting loan applications on Nov. 19. See below for the full announcement from OHCS.
Funds are expected to go extremely quickly and will be time stamped with proposed tie breaker guidelines that include parameters like having a Board-approved diversity, equity and inclusion plan and demonstrated community needs.
Initial funding for this program is $2.5 million with a 40% soft set-aside for homeownership. For the initial offering of this program, only organizations seeking to acquire property in areas that meet the “Rural” definition established for LIFT are eligible.
To apply, there is a $500 application fee and initial fee of 1% of the total loan. No payments will be due on the loan until homes are built and sold within the 8-year timeframe. At that point, the balance of the loan is due with 1% simple interest. Additional costs to participate include providing an appraisal by an approved provider (due at time of application) and title insurance.
We are excited to announce that the new Land Acquisition Program (LAP) is anticipated to open and begin accepting loan applications on Nov. 19, 2018. LAP is a first come, first served program based upon date received. Applications will be reviewed for program required standards. Multiple applications received on the same day and resulting in fund oversubscription will be evaluated based upon selection criteria.
LAP was established by 2017 HB 2912 and provides loans for the purchase of land to be used for the development of affordable rental or homeownership housing. The loan can remain outstanding for up to eight years and is repayable at the time of construction financing. The initial resources will target land purchase for affordable housing development in rural areas of the state.
For additional information regarding LAP and application requirements, please visit the LAP webpage. For purposes of program requirements for entering into a purchase and sale agreement, applicants may use the date of this notice as the initial program announcement.
Any program or application questions can be directed to Joanne.Sheehy@oregon.gov.