813-002-0005  Temporary rule language in effect until 01/08/2027.
Purpose and Objectives

OAR Chapter 813, Division 2 establishes the rules and guidelines for the Affordable Rental Housing (ARH) Division within the Oregon Housing and Community Services Department (OHCS). Division 2 is designed to govern the ARH Oregon Centralized Application (ORCA) process.

Statutory/Other Authority: ORS 458.210 - 458.740, HB 3395 (2023), ORS 456.250 - 456.395, ORS 456.500 - 456.723 & ORS 458.210 - 458.740
Statutes/Other Implemented: ORS 458.210 - 458.740, HB 3395 (2023), ORS 456.250 - 456.395 & ORS 458.210 - 458.740
History:
OHCS 18-2026, temporary amend filed 07/13/2026, effective 07/13/2026 through 01/08/2027
OHCS 37-2024, adopt filed 09/26/2024, effective 10/01/2024
OHCS 13-2024, temporary adopt filed 05/29/2024, effective 05/29/2024 through 11/24/2024

813-002-0010
Definitions

The following words and terms have the following meanings unless the context would clearly indicate otherwise.   

(1) “Applicant” means any sponsor or developer or other entity related to a Project applying for funding from OHCS through the ORCA process or otherwise on behalf of that Project. 

(2) “ARH” means the Affordable Rental Housing Division within OHCS which provides financial resources to create and preserve quality, affordable rental housing for Oregonians. ARH is also responsible for overseeing long-term property performance and programmatic compliance of OHCS federal and state development investments, permanent supportive housing funding, and the United States Department of Housing and Urban Development’s (HUD) rent-assisted portfolio of housing.  

(3) “Co-Developer” or “Developer” means an organization with a controlling interest in the proposed or funded Project and that is or will be compensated for that controlling interest..  

(4) “Co-Sponsor or “Sponsor” means an individual, group, or organization that provides resources, support, and leadership to the Project team and generally “owns” the affordable housing development Project. 

(5) “Developer Consultant” means an individual or entity contracted to provide guidance and support to the Applicant to structure the project, its funding, and/or seeing its through completion.  

(6) “Funding” means financial support from ARH, including loans, grants, bonds, or other types.  

(7) “Funding Process” means the method ARH employs to receive prospective project applications in order to distribute Funding for Affordable Rental Housing projects in Oregon. This may include the ORCA or a different Funding Process.  

(8) “Funding Recipient” means an Applicant that has been awarded Funding for their project. 

(9) “Oregon Centralized Application” or (“ORCA”) means the integrated entry point for an Applicant to request an affordable housing subsidy from ARH. The ORCA process is divided into various steps in which applicants provide increasing levels of information from project concept to commitment.  

(10) “Project Owner” means the entity that acts as the responsible party for a project once the project has been funded and established.  

(11) “ARH Predevelopment and Pipeline Technical Advisory” means assistance and guidance provided to Applicants as they engage with the Funding Process and move through the ARH development pipeline.   

Statutory/Other Authority: ORS 456.250 - 456.395, ORS 456.500 - 456.723 & ORS 458.210 - 458.740
Statutes/Other Implemented: ORS 456.250 - 456.395, ORS 456.500 - 456.723 & ORS 458.210 - 458.740
History:
OHCS 37-2024, adopt filed 09/26/2024, effective 10/01/2024
OHCS 13-2024, temporary adopt filed 05/29/2024, effective 05/29/2024 through 11/24/2024

813-002-0015  Temporary rule language in effect until 01/08/2027.
Governance and Decision Making

(1) ARH may develop, review, and propose changes to policies as necessary to address evolving housing needs, market conditions, and legislative mandates.

(2) The General Policy and Guideline Manual (GPGM) dated July 13, 2026, as amended from time to time, is incorporated into this Division 2 by reference. The GPGM may be accessed on the OHCS webpage.

(3) The Oregon Centralized Application (ORCA) Manual dated July 13, 2026, as amended from time to time, is incorporated into this Division 2 by reference. The ORCA Manual may be accessed on the OHCS webpage.

Statutory/Other Authority: 456.250 - 456.395, 456.500 - 456.723 & 458.210 - 458.740
Statutes/Other Implemented: 456.250 - 456.395, 456.500 - 456.723 & 458.210 - 458.740
History:
OHCS 18-2026, temporary amend filed 07/13/2026, effective 07/13/2026 through 01/08/2027
OHCS 37-2024, adopt filed 09/26/2024, effective 10/01/2024
OHCS 13-2024, temporary adopt filed 05/29/2024, effective 05/29/2024 through 11/24/2024

813-002-0020
Public Input

(1) Public feedback may be provided to ARH using the Housing Stability Council public feedback process which is published on the OHCS website.  

(2) ARH Funding Applicants and prospective Applicant input may also be provided to ARH through the OHCS General Housing email inbox at app.team@hcs.oregon.gov.  

(3) Project Owners that receive ongoing OHCS compliance monitoring may also provide feedback regarding ARH policies by using the methods listed above or by contacting the ARH staff member responsible for monitoring their project.  

(4) Tenants residing in properties that receive ongoing OHCS compliance monitoring may provide feedback regarding ARH policies by using the methods listed in this section. 

(5) Public feedback will be taken under consideration by ARH. ARH will retain sole discretion for final decision-making regarding the feedback provided by the public.  

Statutory/Other Authority: 456.250 - 456.395,, 456.500 - 456.723 & 458.210 - 458.740
Statutes/Other Implemented: 456.250 - 456.395,, 456.500 - 456.723 & 458.210 - 458.740
History:
OHCS 37-2024, adopt filed 09/26/2024, effective 10/01/2024
OHCS 13-2024, temporary adopt filed 05/29/2024, effective 05/29/2024 through 11/24/2024

813-002-0025
Funding Applications

(1) The Funding Process may include multiple housing resources. Applications may be accepted on a rolling basis if funding is available.    

(2) During the ORCA application process, ARH staff will work with Applicants to assign the best Funding for a project based on the project type, Applicant’s project management experience, eligibility requirements, Funding availability, and other factors as determined by ARH.  

(3) Funding may be set aside to assure access and availability for historically underserved areas or Applicants depending on ARH policy goals or resource priorities.  

(4) Projects in the ARH development pipeline will move through various steps to receive Funding. Standards tied to these steps may be determined by the unique project needs as well as specific funding types attached to the project.    

(5) Movement through the ARH development pipeline steps will be determined by the Applicant’s ability to complete tasks and achieve standards.  However, some steps may be time-constrained as determined by ARH. OHCS will provide Applicants with notice of any deadlines for necessary tasks related to the project if failure to complete the task would result in a project restarting a step in the pipeline, denial of funding, or ARH recalling a conditional commitment of the project funding.  

Statutory/Other Authority: ORS 456.250 - 456.395, ORS 456.500 - 456.723 & ORS 458.210 - 458.740
Statutes/Other Implemented: ORS 456.250 - 456.395, ORS 456.500 - 456.723 & ORS 458.210 - 458.740
History:
OHCS 37-2024, adopt filed 09/26/2024, effective 10/01/2024
OHCS 13-2024, temporary adopt filed 05/29/2024, effective 05/29/2024 through 11/24/2024

813-002-0030
Technical Advisory

(1) ARH Predevelopment and Pipeline Technical Advisory assistance and guidance may include: 

(a) Assistance to Developers in identifying support needed to navigate the Funding Process or ARH development pipeline, strengthen OHCS capacity to build and maintain affordable rental housing, or other areas determined by OHCS. 

(b) Offering resources and referrals to Developers. 

(c) Guidance regarding difficulties Developers encounter during the Funding Process or while in the ARH development pipeline. 

(2) Developers that seek to engage with the ARH Predevelopment and Pipeline Technical Advisors may indicate so at any time throughout the Funding Process. ARH staff may also refer Developers directly to the ARH Predevelopment and Pipeline Technical Advisory team for support. 

(3) ARH may establish and enforce a limit on the number of Developers enrolled to receive services from the ARH Predevelopment and Pipeline Technical Advisory team. 

(a) If such limits on enrollment are established or enforced, priority enrollment will be provided to entities consistent with the most recent Statewide Housing Plan priorities. 

(b) Additional priority engagement with ARH Predevelopment and Pipeline Technical Advisory may be extended to entities that meet priority set-asides offered at the time of engagement. 

(4) ARH Predevelopment and Pipeline Technical Advisors support projects in an advisory capacity only. Working with ARH Predevelopment and Pipeline Technical Advisors does not guarantee Funding or preference for any ARH resources. ARH is not liable for any failure of a project to move through the Funding Process to financial close, regardless of the amount of time ARH staff has contributed to supporting an Applicant throughout that process. 

Statutory/Other Authority: ORS 456.250 - 456.395, ORS 456.500 - 456.723 & ORS 458.210 - 458.740
Statutes/Other Implemented: ORS 456.250 - 456.395, ORS 456.500 - 456.723 & ORS 458.210 - 458.740
History:
OHCS 37-2024, adopt filed 09/26/2024, effective 10/01/2024
OHCS 13-2024, temporary adopt filed 05/29/2024, effective 05/29/2024 through 11/24/2024

813-002-0035
Funding Allocations

(1) Applications will be evaluated based on standards and requirements published in the Funding Process.    

(2) All HSC Funding approvals are considered conditional.   

(3) HSC may conditionally approve maximum subsidy amounts, early project parameters, and project restrictions.   

(a) Applicants may alter project plans for projects conditionally approved by HSC if the changes are immaterial and do not fundamentally alter the project scope or intent.  

(b) Applicants may not alter project plans for projects conditionally approved by HSC if the changes are material and fundamentally alter the project scope or intent. If an Applicant seeks to make such changes, the project must return to HSC for approval of the changes prior to Applicant implementing the change(s). 

Statutory/Other Authority: 456.250 - 456.395, 456.500 - 456.723 & 458.210 - 458.740
Statutes/Other Implemented: 456.250 - 456.395, 456.500 - 456.723 & 458.210 - 458.740
History:
OHCS 37-2024, adopt filed 09/26/2024, effective 10/01/2024
OHCS 13-2024, temporary adopt filed 05/29/2024, effective 05/29/2024 through 11/24/2024

813-002-0040
Protests and Judicial Review of Funding Process

(1) A prospective Applicant may protest an ARH Funding Process. Before seeking judicial review, a prospective Applicant must file a written protest with OHCS and exhaust all administrative remedies. 

(2) Unless otherwise specified by the ARH Funding Process, a protest must be delivered in writing to OHCS not less than 10 calendar days prior to an application due date.  In the case of the ORCA with no due date, a protest must be received during the open application period of the ORCA. Protests of any Funding Process will not affect OHCS Funding decisions that were made prior to OHCS’ receipt of a protest. 

(3) A prospective Applicant’s written protest must include the following elements: 

(a) Sufficient information to identify the Funding Process that is the subject of the protest; 

(b) The grounds that demonstrate how the Funding Process is contrary to law or how the Funding Process is legally flawed; 

(c) Evidence or documentation that supports the grounds on which the protest is based; 

(d) The relief sought; and 

(e) A statement of the desired changes to the Funding Process that the prospective Applicant believes will remedy the conditions upon which the prospective Applicant based its protest. 

(4) OHCS will not consider a prospective Applicant’s protest submitted after the timeline established for submitting such protest under this rule, or such different time period as may be provided in the Funding Process. OHCS will consider the protest if it is timely filed and meets the conditions set forth in subsection (3) of this section. OHCS will issue a written determination of the protest no fewer than 30 days after receipt of the protest, unless a written determination is made by OHCS that circumstances exist that justify a shorter time limit. If OHCS upholds the protest, in whole or in part, OHCS may in its sole discretion either issue an addendum reflecting its determination or cancel the Funding Process. 

(5) If OHCS receives a protest from a prospective Applicant in accordance with this rule, OHCS may extend application due dates if OHCS determines an extension is necessary to consider and respond to the protest. 

(6) Prior to the deadline for submitting a protest, a prospective Applicant may request that OHCS clarify any provision of the Funding Process. OHCS’ clarification to a prospective Applicant, whether orally or in writing, does not change the Funding Process and is not binding on OHCS unless OHCS modifies the Funding Process by addendum. 

(7) If the protest is mailed, the envelope containing the request for review must: 

(a) Be marked PROTEST; 

(b) Identify the project or prospective applicant name; 

(c) Be addressed to the ARH Applications Team as recipient of the protest; 

(d) Be mailed to the Department at its main Salem office: Oregon Housing and Community Services, 725 Summer Street NE, Suite B Salem, Oregon 97301 

(8) If the protest is electronically mailed, the electronic mail must: 

(a) Be marked PROTEST in the subject line; 

(b) Identify the project or prospective applicant name in the subject line; 

(c) Be addressed electronically mailed to the ARH Applications Team at app.team@hcs.oregon.gov. 

(9) Judicial review of OHCS’ decision relating to a protest to a Funding Process shall be in accordance with ORS 183.480. 

Statutory/Other Authority: 456.250 - 456.395, 456.500 - 456.723 & 458.210 - 458.740
Statutes/Other Implemented: 456.250 - 456.395 & 458.210 - 458.740
History:
OHCS 37-2024, adopt filed 09/26/2024, effective 10/01/2024
OHCS 13-2024, temporary adopt filed 05/29/2024, effective 05/29/2024 through 11/24/2024

813-002-0045
Protests and Judicial Review of Funding Decisions

(1) An Applicant may protest the Funding offered to a project, or the intent to award Funding, whichever occurs first, if the following conditions are satisfied: 

(a) The Applicant is adversely affected because the Applicant would be eligible to be awarded Funding in the event that the protest was successful; and 

(b) The reason for the protest is that: 

(A) OHCS has failed to conduct the evaluation of applications in accordance with the criteria or processes described in the Funding Process; 

(B) OHCS has abused its discretion in rejecting the protestor’s application; or 

(C) OHCS’ evaluation of applications or OHCS’ subsequent determination of Funding is in violation of law. 

(2) An Applicant must file a written protest with OHCS and exhaust all administrative remedies before seeking judicial review of OHCS’ grant award decision. 

(3) Unless otherwise specified in the Funding Process, an Applicant must deliver a written protest to OHCS within 7 calendar days after the Applicant has been notified of the Funding decision. 

(4) An Applicant’s written protest must specify the grounds for the protest to be considered by OHCS. 

(5) OHCS will not consider an Applicant’s grant award protest submitted after the timeline established for submitting such protest under this rule, or such different time period as may be provided in the Funding Process. OHCS will issue a written determination of the protest in a timely manner. If OHCS upholds the protest, in whole or in part, OHCS may in its sole discretion either award Funding to the successful protestor or cancel the Funding Process. Cancellation of a Funding Process will not affect OHCS Funding decisions that were made prior to OHCS’ receipt of a protest. 

(6) If the protest is mailed, the envelope containing the request for review must: 

(a) Be marked PROTEST; 

(b) Identify the project or prospective applicant name; 

(c) Be addressed to the ARH Applications Team as recipient of the protest; 

(d) Be mailed to the Department at its main Salem office: Oregon Housing and Community Services, 725 Summer Street NE, Suite B Salem, Oregon 97301 

(7) If the protest is electronically mailed, the electronic mail must: 

(a) Be marked PROTEST in the subject line; 

(b) Identify the project or prospective applicant name in the subject line; 

(c) Be addressed electronically 

(8) Judicial review of OHCS’ decision relating to a grant award protest shall be in accordance with ORS 183.480. 

Statutory/Other Authority: ORS 456.250 - 456.395, ORS 456.500 - 456.723 & ORS 458.210 - 458.740
Statutes/Other Implemented: ORS 456.250 - 456.395, ORS 456.500 - 456.723 & ORS 458.210 - 458.740
History:
OHCS 37-2024, adopt filed 09/26/2024, effective 10/01/2024
OHCS 13-2024, temporary adopt filed 05/29/2024, effective 05/29/2024 through 11/24/2024

813-002-0050
Protests and Judicial Review of Enforcement Action

(1) An Applicant may protest an OHCS enforcement action if the following conditions are satisfied: 

(a) OHCS has abused its discretion in initiating an enforcement action; or 

(b) OHCS’ enforcement is in violation of law. 

(2) An Applicant must file a written protest with OHCS and exhaust all administrative remedies before seeking judicial review of OHCS’ enforcement action. 

(3) Unless otherwise specified in the Funding agreement, an Applicant must deliver a written protest to OHCS within 7 calendar days after OHCS notified an Applicant or a prospective Applicant of its planned enforcement action. 

(4) An Applicant or prospective Applicant written protest must specify the grounds for the protest to be considered by OHCS. 

(5) OHCS will not consider an Applicant enforcement action protest submitted after the timeline established for submitting such protest under this rule, or such different time period as may be provided in the Funding agreement. OHCS will issue a written determination of the protest in a timely manner. If OHCS upholds the protest, in whole or in part, OHCS may in its sole discretion either modify or cancel the enforcement action. 

(6) If the protest is mailed, the envelope containing the request for review must: 

(a) Be marked PROTEST; 

(b) Identify the project or prospective applicant name; 

(c) Be addressed to the ARH Applications Team as recipient of the protest; 

(d) Be mailed to the Department at its main Salem office: Oregon Housing and Community Services, 725 Summer Street NE, Suite B Salem, Oregon 97301 

(7) If the protest is electronically mailed, the electronic mail must: 

(a) Be marked PROTEST in the subject line; 

(b) Identify the project or prospective applicant name in the subject line; 

(c) Be addressed electronically 

(8) Judicial review of OHCS’ decision relating to an enforcement action protest shall be in accordance with ORS 183.480. 

Statutory/Other Authority: 456.250 - 456.395, 456.500 - 456.723 & 458.210 - 458.740
Statutes/Other Implemented: 456.250 - 456.395, 456.500 - 456.723 & 458.210 - 458.740
History:
OHCS 37-2024, adopt filed 09/26/2024, effective 10/01/2024
OHCS 13-2024, temporary adopt filed 05/29/2024, effective 05/29/2024 through 11/24/2024

813-002-0051  Temporary rule language in effect until 01/08/2027.
Compliance Monitoring and Authority

(1) The ARH Division operates a compliance monitoring system to ensure projects receiving ARH funding assistance maintain ongoing compliance with approved project plans. project plans may include but are not limited to the following requirements:

(a) Funding program requirements, and

(b) Relevant regulation including applicable administrative rules (including incorporated manuals), and

(c) ARH department directives, and

(d) Legal agreements, and

(e) Any other ARH requirement which may be enforced at ARH’s sole discretion or otherwise.

(2)(a) The project qwner must maintain all financial records relating to an ARH funded project in accordance with generally accepted accounting principles. The project owner may also maintain other records satisfactory to ARH standards and requirements.

(b) The project owner must maintain all tenant file records relating to an ARH funded project in accordance with state and federal regulations, as well as ARH policies. The project owner may also maintain other records satisfactory to program compliance and ARH standards and requirements.

(c) The project owner must retain and keep accessible all such records, books, documents, papers, plans, records of shipments, payments, and writings throughout the affordability period or for as long as required by the ARH funding agreement.

(d) The project owner must provide requested records, books, documents, papers, plans, records of shipments, payments, and writings to ARH upon request, whether in paper, electronic, or other form, for the purpose of examinations, audits, making excerpts or, transcripts, and taking copies.

(e) The project owner shall retain supporting documents and all other pertinent records with respect to a project until six years after the project affordability period for the respective source of funding ends, or six years after any relevant litigation or audit claim is resolved, whichever is later.

(3) The project owner must provide an annual continued program compliance certification, in a format and on a schedule approved by ARH, that confirms the project owner is fulfilling all obligations required of the funding source(s). ARH may also require the project owner to submit additional information or reports to ARH upon request.

(4) Projects receiving any funding through ARH are subject to regulatory reviews that are required by state, federal, or OHCS program requirements.

(5) The project owner shall cooperate fully with all audits, reviews, and field inspections, or other monitoring actions required by ARH, and shall comply with any resulting correction directives.

(6)(a) The project owner shall act promptly to correct any deficiencies identified by ARH through audits, file or document reviews, field inspections, or any other method of compliance monitoring.

(b)The project owner shall correct deficiencies within thirty 30 to sixty 60 days after notice from ARH, unless earlier correction is required to address material health or safety needs of tenants. If a deficiency is required to be corrected to address the material health or safety needs of tenants, the project owner shall correct such deficiencies within twenty-four hours after notice from ARH.

(c) In the event of a foreclosure, deed in lieu of foreclosure, or similar event with respect to an ARH-funded project, the correction period for the successor for an existing event of noncompliance shall be no less than thirty days from the earlier of the date the successor obtains control or becomes the new project owner.

(d) ARH may, at its sole discretion, extend the thirty-day correction period for up to six months.

Statutory/Other Authority: 456.250 - 456.395, 456.500 - 456.723 & 458.210 - 458.740
Statutes/Other Implemented: 456.250 - 456.395, 456.500 - 456.723 & 458.210 - 458.740
History:
OHCS 18-2026, temporary adopt filed 07/13/2026, effective 07/13/2026 through 01/08/2027

813-002-0053  Temporary rule language in effect until 01/08/2027.
Enforcement

(1) The ARH division is authorized to enforce compliance and may take appropriate enforcement actions including, but not limited to, sanctions, fees, charges, recall of conditional commitment to a project funding, and corrective measures to address violations.

(2) Failure to utilize the appeals processes as specified by the applicable OHCS program or ORCA process, may be considered acceptance of the enforcement decisions made by ARH.

Statutory/Other Authority: 456.250 - 456.395, 456.500 - 456.723 & 458.210 - 458.740
Statutes/Other Implemented: 456.250 - 456.395, 456.500 - 456.723 & 458.210 - 458.740
History:
OHCS 18-2026, temporary adopt filed 07/13/2026, effective 07/13/2026 through 01/08/2027

813-002-0055
Fees and Charges

(1) ARH may require the payment of fees and charges as it determines appropriate with respect to the administration of its housing programs and the ORCA or other Funding process requirements. These fees and charges may include, but are not limited to:  

(a) The Funding Process application, award, documentation and use of department ARH Funding assistance.  

(b) Ongoing compliance monitoring and enforcement of financial, affordability, and habitability requirements.  

(c) Transfers, subordinate liens, and encumbrances.   

(2) At its sole discretion, with reasonable justification and authority and under unique circumstances, ARH may reduce certain established fees and charges. 

Statutory/Other Authority: ORS 456.250 - 456.395, ORS 456.500 - 456.723 & ORS 458.210 - 458.740
Statutes/Other Implemented: ORS 456.250 - 456.395, ORS 456.500 - 456.723 & ORS 458.210 - 458.740
History:
OHCS 37-2024, adopt filed 09/26/2024, effective 10/01/2024
OHCS 13-2024, temporary adopt filed 05/29/2024, effective 05/29/2024 through 11/24/2024