MODERATE INCOME REVOLVING LOAN PROGRAM
PROJECT FUNDING AGREEMENT
This Moderate Income Revolving Loan Program Project Funding Agreement (“Project Funding Agreement”) is made and entered into by [Sponsoring Jurisdiction] (“Sponsoring Jurisdiction”) and [Developer] (“Developer”), an Oregon [“individual” or type of entity], for the purposes of financing the affordable housing development described in Exhibit B to Exhibit 1 and known as [project name] (“Project”).
RECITALS
- ORS 307.213 to 307.237 establish an affordable housing revolving loan program to be implemented by Oregon Housing and Community Services (“OHCS”) and Oregon cities and counties wishing to participate in the program (the “Moderate Income Revolving Loan Program” or “MIRL Program”). Sponsoring Jurisdiction has created a Local MIRL Program under which developers may apply for Project Funds for Eligible Costs that are associated with Eligible Housing Projects.
- Sponsoring Jurisdiction and OHCS have entered into an Intergovernmental Agency Loan Agreement pursuant to which OHCS has agreed to provide an Agency Loan to Sponsoring Jurisdiction to enable Sponsoring Jurisdiction to provide Project Funds to Developer to develop the Project.
- Sponsoring Jurisdiction and Developer are entering into this Project Funding Agreement to convey the Project Funds to Developer, require Developer to develop the Project, and ensure that the Project complies with all MIRL Program requirements, including but not limited to the Affordability Requirements.
AGREEMENT
NOW THEREFORE, for good and sufficient consideration, including the terms and conditions herein, Sponsoring Jurisdiction and Developer agree as follows:
1. DEFINITIONS
Capitalized terms have the meanings provided in Exhibit 1.
2. DOCUMENTS; PRECEDENCE; INCORPORATION
2.1. This Project Funding Agreement consists of the following documents, which are incorporated by this reference and listed in descending order of precedence:
2.1.1. Exhibit 1 (Moderate Income Revolving Loan Program Rider and Declaration of Land-Use Restricted Covenants, including all exhibits thereto) (the “MIRL Rider”); and
2.1.2. This document.
2.2. For the avoidance of any doubt: All references to the “Project Funding Agreement” are intended to encompass this document and the MIRL Rider (including all exhibits thereto). To the extent the provisions of the MIRL Rider conflict with any terms of this document, the provisions of the MIRL Rider shall take precedence.
3. PROJECT FUNDING AWARD
3.1 Disbursement. Upon satisfaction of all conditions precedent in the Project Funding Agreement, the Sponsoring Jurisdiction shall disburse $[Project Funding Amount] (“Project Funds”) to the Developer in the form of a [grant or loan], in accordance with the Intergovernmental Agency Loan Repayment Option selected for the Eligible Housing Project.
3.1.1. The Sponsoring Jurisdiction has no obligation to disburse the Project Funds to the Developer unless Sponsoring Jurisdiction has received an Intergovernmental Agency Loan from Oregon Housing and Community Services and all conditions precedent in the Project Funding Agreement for disbursement of the Project Funds are satisfied.
3.1.2.The Sponsoring Jurisdiction shall distribute Project Funds to the Developer in [full upon receiving the Intergovernmental Agency Loan OR a cadence of fund distribution schedule upon project milestones]
3.2.
Term The term of this Project Funding Agreement is set forth in the MIRL Rider.
3.3. Repayment.
3.3.1. [Under the Tax Exemption Repayment Option] The County Tax Officer shall exempt the Eligible Housing Project Property from ad valorem property taxation in accordance with ORS 307.227. The property tax exemption shall first apply to the first property tax year that begins after the completion of the Eligible Housing Project. Repayment of Project Funds shall occur through the Program Fee repayment schedule, in which the Fee Payer shall pay the Program Fee to the County Tax Officer annually, in lieu of exempted property taxes, as provided in ORS 307.231.
3.3.1.1.1.[Under the Alternative Funding Source Repayment Option] [if Project Funding is loaned] The Developer shall repay [ $[XXXXX] or [X]% of the Project Funding Amount] on an [frequency] basis. Repayments of the Project Funds shall be made on the [day] [annually or monthly. Etc.]. The Developer shall repay the Project Funds in full, unless otherwise agreed upon by the Sponsoring Jurisdiction.
3.4 Developer shall comply with the terms of the Project Funding Agreement, MIRL Rider, and all applicable federal, state, and local laws.
[Signature Pages Follow]
IN WITNESS WHEREOF, the Parties have caused this Moderate Income Revolving Loan Program Project Funding Agreement to be executed by their duly authorized representatives as of the Effective Date.
DEVELOPER: _______________________[Developer Name]
By: ________________________________
[Name of signer, title]
STATE OF OREGON )
: ss
COUNTY OF )
The foregoing instrument was acknowledged before me this [day] day of [Month], 20__ by [name of signer, title of entity, type of entity, role of entity (see signature block)] of Developer, for and on behalf of Developer.
NOTARY PUBLIC FOR OREGON
My Commission Expires: _______________________
Exhibit 1
MIRL Rider
[Attach the appropriate MIRL Rider from the Intergovernmental Master Agreement, either Exhibit B-1, B-2, or B-3 depending on the housing type of the Eligible Housing Project]