Program status
Land Acquisition Revolving Loan program (LAP) is closed for homeownership projects.
LAP is open for rental housing projects.
Background
The Affordable Housing Land Acquisition Revolving Loan Program (LAP) was created in 2017 by the Oregon Legislature to assist eligible organizations in Oregon to purchase land suited for affordable housing development. This includes both affordable rental and homeownership developments. Eligible organizations include:
- Local governments
- Local housing authorities
- Nonprofit community or neighborhood-based organizations
- Federally recognized Tribal Nations in Oregon
- Regional or statewide nonprofit housing assistance agencies
Legislative requirements include funding targets for eligible organizations operating homeownership programs and rental housing for families on low incomes. Funding targets are as follows:
- 40% of funds for homeownership for low-income households (80% or less of area median income)
- 60% of funds to organizations operating affordable rental housing for Oregonians on low incomes
It's important to note that any LAP loans must be paid back before an affordable housing project can start any vertical construction.
Program Material
Current availability of LAP resources
FAQs
LAP funds cannot be used to purchase any structures, or any land intended for purposed other than new affordable housing construction. However, applicants are allowed to combine LAP funds with other funding sources for the purchase of a property if the appraisal excludes the value of any existing structures or states that the structures have no value. LAP funds can cover up to 90% of the eligible land value, with the applicant responsible for the difference between the purchase price and the eligible land value using non-LAP funds.
No, only organizations eligible to apply for LAP can hold LAP funds.
No, a binding contract, such as a purchase and sales agreement or purchase option, is required for OHCS to move forward with the application for Finance Committee approval and loan document preparation.
No, this is not allowed. According to program requirements, properties already purchased or donated by the applicant are not eligible for LAP loans. All transactions must be arms-length transactions.
No, LAP funds cannot be used for this purpose. The program funding is strictly for acquiring property for new construction.
The pre-application intake form for LAP is available on the LAP webpage. Both Homeownership and Affordable Rental Housing LAP applicants will need to request credentials for a Procorem Workcenter via the Land Acquisition Program Intake Form at https://app.smartsheet.com/b/form/688101a72afd44639e43185d3f1fafa1. Once credentials are received, log in to Procorem to access the application checklist: https://app.procorem.com/login. When documentation is uploaded to complete a task, mark the task as 'Finished' to notify OHCS staff.
It is an agreement where one party in a construction project reimburses the contractor for costs incurred during the work. A project under a reimbursement agreement is not eligible for LAP financing.
The process is designed to be quicker than competitive applications. It typically takes 60-90 days from application approval to closing, assuming no unusual situations arise.
Only organizations eligible for LAP can hold the purchased land. If a nonprofit has been recently established and has less than two years of audited financial statements, a for-profit organization can submit two years of CPA-prepared tax returns and balance sheets as a guarantor.
LAP does not guarantee future OHCS funding. It is expected that most loans will be repaid within four to six years using funds received to construct the affordable housing development.
The resources listed on the website reflect the most up-to-date available resources. The date on the website reflects when the resources were last updated, rather than indicating any recent changes to the content. Project funded through the LAP funds are to be repaid within eight years or upon project development, whichever occurs earlier. Any repaid funds will be returned to the general LAP fund and allocated based on the program’s use split of 40% for homeownership projects and 60% for affordable rental housing projects. OHCS is unable to provide clear timeline on when projects will be repaid unless an entity submits a LAP loan payoff request.
Questions? Email Lyndi Romero-Gonzalez at
lyndi.romero-gonzalez@hcs.oregon.gov. Stay up to date on LAP program updates by
signing up Technical Advisories.