Oregon Housing and Community Services (OHCS) opened a Land Acquisition Program (LAP) in November of 2018 with $2.5 million in available resources. This program is designed to provide loans for purchasing land for affordable homeownership and affordable rental housing. Loan periods may not exceed 8 years and loan terms are 1 percent simple interest and a 1 percent loan fee is paid at the time of the construction loan. OHCS initially set aside LAP funding to target rural housing opportunities for both homeownership and affordable rental housing. If funding remains available, urban homeownership LAP applications will be accepted beginning May 19, 2019 and urban affordable rental LAP applications will be accepted beginning on November 19, 2019. Please consult the LAP Program Manual for more details.
In addition, after receiving partner feedback on the LAP program, effective immediately, OHCS will no longer require land appraisals at the time of application. Instead, OHCS will accept an option or sales agreement supported by assessed value documentation or a broker letter at the time of application. NOTE: Any discrepancies between the option or sales agreement and the supporting documentation should be explained in writing. For example, an option or sales agreement set at a below market value will most likely not match the assessed property value or a brokers opinion letter, so this would need to be explained. An appraisal is still required prior to the OHCS funding a LAP loan. Applicable changes have been made to the LAP Manual and its supporting documents.
If you have any questions about this fund offering, please contact the LAP program manager Joanne Sheehy at Joanne.Sheehy@Oregon.gov.
