Transfer of Ownership: Assumption of Loan for Tax Credits and Grants

Property owners and agents transferring ownership of properties with OHCS‑administered funding (e.g., tax credits, grants, etc.), excluding Elderly/Disabled and Risk Share Loans, must obtain OHCS approval prior to the transfer. This requirement applies to any sale or transfer that changes the vesting of the real property (i.e., recording a deed). Early engagement with OHCS during property marketing is encouraged.

Overview

The process outlined below is for transfer of ownership transactions that include a change in the deed (vesting of the real property) for properties with tax credits and/or grant resources from OHCS. This process is not for bond financed properties. All transfers must be approved by OHCS. The buyer (also known as the “Successor Owner”) must be one of the following:

1. A related-party transfer due to Post-15 Low-Income Housing Tax Credit (LIHTC) transfer or another event
2. A non-related-party transfer (sale or arm’s-length transaction)

Owners are encouraged to contact OHCS as soon as marketing of the property starts to review the transfer process and expectations before a transfer commences.

Getting started

To start the transfer of ownership approval process, please provide the following:

1. Complete the Transfer of Ownership request submission form with all required document uploads.
2. Owner/seller written request for approval of the proposed transaction. 
3. Seller must provide year-to-date (YTD) stub financial via Procorem. (Upload statements and complete standard template.);
• Review instructions for financial submissions in Procorem.
4. Sale Threshold Requirement: Purchase and Sale Agreement (or similar document), including estimated closing date.
5. Preliminary Title Report, including escrow agent contact information.
6. Lender Term Sheet, including buyer lender contact information.
7. Buyer entity documentation:
• Organization chart (if you need an organizational chart template, please contact arh.portfolio@hcs.oregon.gov.)
• Partnership Agreement
• Management Agreement (if applicable)
• Articles of Organization
• Authorized Signatures
• Complete Ownership Entity Reporting form
8. Attorneys contact information (for both owner and buyer)
9. HUD-2530 approval (if HUD funded, including Section 8, Risk Share)
10. Complete and submit Management Agent Packet for approval, if applicable. (See Management Agent Packet section)

OHCS requires a minimum 90-day notice prior to the estimated closing date.

Management Agent Packet

Management Agent Packets are required for any transfers of ownership that also includes a change in the management agent operating the property. These completed packets must include, but are not limited to, current property contact information, tenant selection plans, marketing plans, as well as a current resident services plan (when applicable) for review and OHCS approval.

You can access the Management Agent Packet and online submission form through the management agent approval process webpage.

For transfers of ownership that do not result in current management agent, it may be necessary to provide certain updated documentation for OHCS records. Examples may include, but are not limited to:

• Executed Property Management Agreements
  
• Updated Management Plan for the Property
• Updated Affirmative Fair Housing Marketing Plan (AFHMP) (Use HUD form 935.2)
• New Resident Services Plan and MOUs (if applicable)

Questions specific to Management Agent Packets can be sent to HCS.MAP.Review@hcs.oregon.gov.

OHCS response

OHCS will provide the necessary assumption documents to cover the resources provided by OHCS. Most of the documents are signed by OHCS, the owner, and the successor owner. Draft documents will be provided to the parties as soon as they are available. Final versions of the documents are subject to legal sufficiency review by the Oregon Department of Justice (OHCS' attorney). OHCS documents have been standardized and are not generally open to modification. Any legal costs incurred by OHCS for modifications will be billed and payable at closing. Once legal sufficiency is obtained, the original assumption document(s) will be signed by OHCS and submitted to the escrow agent for execution by the parties. Documents can be counter-signed if prior approval is provided by OHCS.

There is a $750 preparation charge applicable for certain OHCS documents required to complete the assumption/transfer process. Legal costs for modification to standard documents are in addition to this charge.

Questions on this process? Contact arh.portfolio@hcs.oregon.gov.

OHCS wants to ensure that everyone has access to its information and programs. If you would like this information in a different language, please email Language.Access@hcs.oregon.gov.