Financial Eligibility is the third step of the Oregon Centralized Application (ORCA) process. This step focuses on the financial aspects of the project, requiring applicants to submit lender letters of intent, well-developed construction cost estimates, and a full preliminary proforma.
The Financial Eligibility step should be initiated no more than 15 months before closing. All applications must pass through and meet the evaluation standards in this step.
OHCS will evaluate progress on the project design and policy priorities proposed in the Impact Assessment step.
Adherence to proposed timelines and plans is crucial. A significant deviation from the proposed timeline, project design, or policy priorities described in the impact assessment step will result in the loss of the conditional commitment of resources and require the project to return to the impact assessment step. Inactivity or failure to fulfill evaluation standards within six months at this step will remove a project from the application process.
Financial Eligibility evaluation standards
The Financial Eligibility step will gather information and require the following:
Architectural plans (updated)
Applicants with new construction projects will provide concept-level plan including floor plans and elevations. Applicants with rehabilitation projects will submit a capital needs assessment, concept-level drawings with major elements of the project, and a final scope of work. All applicants will describe any updates to the project description made since the impact assessment step.
Construction costs (updated)
Applicants will describe how construction costs have changed from the impact assessment step and provide supporting documentation for any these changes through a required detailed cost estimate and tracking of project costs to detailed line items, using the Uniformat Schedule of Values.
Financial proforma (updated)
Applicants will be sent a version of their impact assessment application with additional fields to be completed. This financial eligibility proforma will require applicants to have a completed budget, with costs that are based on a bid from a general contractor.
Financial Proforma Template - This template is for modeling potential projects. Please note that database connections are turned off, so do not use this template for your actual application. It is only for modeling purposes.
Lender and investor Letters of Interest (LOI)
LOIs must be received from all funders. If U.S. Department of Housing and Urban Development (HUD) project-based vouchers (PBV) are being used, evidence of HUD PBV application must be submitted. LOIs must also be submitted from any services funder. LOIs must contain the required information for OHCS to evaluate project readiness.
Permit submission
Applicants will either confirm they have already submitted for their permits or submit a plan for doing. If submitting a permit plan, it must include a signature from the local body responsible for permitting confirming their knowledge that the project is being considered and will need permitting soon.
Policy changes from impact assessment
Applicants are required to provide updates on any policy changes that have occurred since the impact assessment step and this financial eligibility step. Projects are expected to maintain the policy priorities proposed in the impact assessment step, including adherence to project design and costs. Deviation from submitted information may result in a project being removed from this application step.
Underwriting guidelines
OHCS will apply underwriting guidelines to ensure ongoing project viability and risk mitigation associated with all applicable programs. Guidelines will be consistent with industry-standard minimum requirements of mortgage lenders, investors, and other potential public funding sources.
OHCS has an approved list of market analysts and appraisal guidelines in the Core Development Manual. Projects should ensure their appraiser/market analyst is on the approved list and the projects are following the guidelines. At this time, OHCS is not reviewing the scope of work prior to engaging the appraiser. Appraisals must be no older than 12 months.
What happens next
OHCS will evaluate progress and adherence to the project design and policy priorities. Once evaluation standards for financial eligibility are met, applicants can proceed to the commitment step.