OAR Chapter 274 — Department of Veterans' Affairs

Division 1 PROCEDURAL RULES

Or. Admin. R. 274-001-0000 Notice of Proposed Rule

Prior to the adoption, amendment, or repeal of any rule, the Director of Veterans' Affairs shall give notice of the proposed adoption, amendment, or repeal:

(1) In the Secretary of State's Bulletin referred to in ORS 183.360 at least 21 days prior to the effective date.

(2) By mailing a copy of the notice to the following persons, organizations, or publications at least 28 days before the effective date:

(a) Associated Press;

(b) Advisory Committee to the director;

(d) Legislative Counsel; and

(e) Legislators designated in ORS 183.335(15).

History

Statutory/Other Authority: Ch. 602, OL 1997, 183, 406.030, 407.115, 407.135, 407.145, 407.275, 407.305 & 407.375
Statutes/Other Implemented: Ch. 602, OL 1997, 183, 406.030, 406.040, 407.115, 407.177, 407.275, 407.315 & 407.375
DVA 6-2004, f. & cert. ef. 4-16-04
DVA 4-1997, f. & cert. ef. 10-22-97
DVA 4-1996, f. & cert. ef. 7-22-96
DVA 11-1993, f. 12-20-93, cert. ef. 12-22-93
DVA 5-1993, f. 3-16-93, cert. ef. 3-21-93
DVA 1-1982, f. 1-15-82, ef. 2-1-82
DVA 44, f. & ef. 12-1-75

Or. Admin. R. 274-001-0005 Model Rules of Procedure

Pursuant to the provisions of ORS 183.341, the Department of Veterans' Affairs adopts the Uniform and Model Rules of Procedure as contained in Appendix G of the "Attorney General's Administrative Law Manual and Uniform and Model Rules of Procedure" dated January 2012. A copy of this manual is on file with the Department of Veterans' Affair, 700 Summer Street NE, Salem, Oregon, and is available for public review Monday through Friday between the hours of 8 a.m. and 5 p.m.

[ED. NOTE: The full text of the Attorney General’s Model Rules of Procedure is available from the office of the Attorney General or the Department of Veterans’ Affairs.]

History

Statutory/Other Authority: ORS 183.341 & 406.030
Statutes/Other Implemented: ORS 183.341 & 406.030
DVA 1-2013, f. & cert. ef. 5-15-13
DVA 5-2008, f. & cert. ef. 3-25-08
DVA 7-2006, f. & cert. ef. 6-27-06
DVA 6-2004, f. & cert. ef. 4-16-04
DVA 1-2002, f. & cert. ef. 1-18-02
DVA 11-2000, f. & cert. ef. 12-14-00
DVA 4-1998, f. & cert. ef. 3-26-98
DVA 4-1996, f. & cert. ef. 7-22-96
DVA 8-1991, f. & cert. ef. 12-3-91
DVA 4-1990, f. 7-13-90, cert. ef. 8-20-90
DVA 5-1988, f. & cert. ef. 10-27-88
DVA 3-1986, f. & ef. 2-18-86
DVA 12-1983, f. & ef. 10-7-83
DVA 9-1981, f. & ef. 11-19-81
DVA 2-1980, f. & ef. 5-16-80
DVA 1-1978, f. & ef. 4-20-78
DVA 46, f. & ef. 4-20-76
DVA 43, f. 10-22-73, ef. 11-11-73
DVA 41, f. 12-1-71, ef. 12-15-71

Or. Admin. R. 274-001-0010 Procurement Rules

(1) The Oregon Department of Veterans’ Affairs will comply with the following as they relate to public contracting and procurement:

(a) The Oregon Department of Administrative Services rules contained in OAR Chapter 125, Division 246 (General Provisions for Public Contracting) and Division 247 (Public Procurement of Supplies and Services);

(b) The Oregon department of Justice rules contained in OAR Chapter 137, Division 46 (Model Rules General Provisions Related to Public Contracting) and Division 47 (Model Rules Public Procurements for Goods or Services); and

(2) The above apply except as otherwise provided in ORS Chapters 406, 407, and 408.

History

Statutory/Other Authority: ORS 406.005
DVA 4-2023, adopt filed 12/29/2023, effective 01/01/2024

Division 6 CRIMINAL RECORDS CHECKS

Or. Admin. R. 274-006-0001 Purpose

These rules provide for the Department of Veterans' Affairs (Department) acquisition of information about a subject individual's criminal history through criminal records checks and its use of that information to determine whether the individual is fit to provide services to the Department as an employee, volunteer, contractor or vendor. The fact that the Department determines that an individual is fit does not guarantee the individual a position as a Department employee, volunteer, contractor or vendor or that the individual will be hired by the Department.

History

Statutory/Other Authority: ORS 181.534 and 406.030
Statutes/Other Implemented: ORS 181.534 and 406.030
DVA 1-2009, f. 12-22-09 cert. ef. 1-1-10

Or. Admin. R. 274-006-0002 Definitions

(1) "Criminal Offender Information" means records and related data concerning physical description and vital statistics, fingerprints received and compiled by the Oregon Department of State Police to identify criminal offenders and alleged offenders, records of arrests and the nature and disposition of criminal charges, including sentencing, confinement, parole and release records.

(2) "Criminal Records Check" means one or more of the following three processes undertaken by the Department to check the criminal history of a subject individual:

(a) A name-based check of criminal offender information conducted through the Law Enforcement Data System (LEDS) maintained by the Oregon Department of State Police, in accordance with the rules adopted and procedures established by the Oregon Department of State Police;

(b) A check of Oregon criminal offender information, through fingerprint identification and other means, conducted by the Oregon Department of State Police at the Department’s request (Oregon Criminal Records Check); or

(c) A nationwide check of federal criminal offender information, through fingerprint identification and other means, conducted by the Oregon Department of State Police through the Federal Bureau of Investigation or otherwise at the Department’s request (Nationwide Criminal Records Check).

(3) "Department" means the Department of Veterans’ Affairs as defined in ORS 406.005.

(4) "Fitness Determination" means a determination made by the Department, pursuant to the process established under OAR 274-006-0011, that a subject individual is fit or not fit to be a Department employee, volunteer, contractor or vendor in a position covered by OAR 274-006-0004(2).

(5) "Subject Individual" means an individual identified in OAR 274-006-0004 as someone from whom the Department may require a criminal records check.

History

Statutory/Other Authority: ORS 181.534, 406.030 & 2009 SB 94
Statutes/Other Implemented: ORS 181.534, 406.030 & 2009 SB 94
DVA 1-2009, f. 12-22-09 cert. ef. 1-1-10

Or. Admin. R. 274-006-0004 Subject Individual

The Department may require a subject individual to complete a criminal records check pursuant to these rules because the person:

(1)(a) Is applying for employment with the Department of Veterans’ Affairs in a position described in subsection (2) of this rule or is employed by the Department but is being transferred, promoted or demoted to a position described in subsection (2) of this rule; or

(b) Provides goods or services or seeks to provide goods or services to or on behalf of the Department as a contractor, subcontractor, vendor or volunteer, or as an employee, member or agent of a contractor, subcontractor, vendor or volunteer; and

(2) Is or will be working or providing services in a position in which the subject individual has:

(a) Control over, or access to, information technology systems would allow the person to harm the information technology systems or the information contained in the systems;

(b) Access to information that state or federal laws, rules or regulations prohibit disclosing or define as confidential;

(c) Responsibility for payroll, billing, collections or other financial transactions or for purchasing or selling property;

(d) Access to money, negotiable instruments or financial information of the Department;

(e) Mailroom duties;

(f) Responsibility for auditing the Department or other business entities doing business with the Department;

(g) Personnel or human resources functions or access to personnel information;

(h) Access to Social Security numbers, dates of birth or criminal background information of other persons;

(i) Access to tax or financial information of the Department or persons employed by the Department; or

(j) Access to tax or financial information collected by the Department about individuals or business entities.

History

Statutory/Other Authority: ORS 181.534, 406.030 & 2009 SB 94
Statutes/Other Implemented: ORS 181.534, 406.030 & 2009 SB 94
DVA 1-2009, f. 12-22-09 cert. ef. 1-1-10

Or. Admin. R. 274-006-0005 Criminal Records Check Process

(1) When a Criminal Records Check is Required. The Department may conduct, or request the Oregon State Police to conduct, a criminal records check when:

(a) An individual meets the definition of a subject individual; or

(b) Required by federal law or regulation, by state or administrative rule, or by contract or written agreement with the Department.

(2) Which Criminal Records Check is Conducted. When the Department determines under section (1) Of this rule that a criminal records check is needed, the Department may request or conduct a LEDS Criminal Records Check, an Oregon Criminal Records Check, a Nationwide Criminal Records Check, or any combination thereof.

(3) Disclosure of Information by Subject Individual.

(a) Prior to a criminal records check, an individual shall complete and sign the Department's Criminal Records Request form and, if requested by the Department, a fingerprint card within three business days of receiving the forms. The Department may extend the deadline for good cause. The Department’s criminal records request form will require the following information: name, birth date, social security number, physical characteristics, driver's license or identification card number and current address, prior residency in other states, military history, and any other identifying information deemed necessary by the Department.

(b) The Department may require additional information from the subject individual as necessary to complete the criminal records check and fitness determination, such as, but not limited to, proof of identity; or additional criminal, judicial, or other background information.

(c) The Department shall not request a fingerprint card from a subject individual under the age of 18 years unless the subject individual is emancipated pursuant to ORS 419B.550 et seq, or unless the Department also requests the written consent of a parent or guardian. In such case, such parent or guardian and youth must be informed that they are not required to consent. Notwithstanding, failure to consent may be construed as a refusal to consent under OAR 274-006-0011(3).

History

Statutory/Other Authority: ORS 181.534, 406.030 & 2009 SB 94
Statutes/Other Implemented: ORS 181.534, 406.030 & 2009 SB 94
DVA 1-2009, f. 12-22-09 cert. ef. 1-1-10

Or. Admin. R. 274-006-0010 Hiring or Appointing on a Preliminary Basis

(1) If the Department elects to conduct a criminal records check pursuant to these rules, the Department, in its sole discretion, may hire or appoint the subject individual on a preliminary basis pending completion of a criminal records check when:

(a) The subject individual has provided all information (including a fingerprint card, if requested) as required by the Department pursuant to OAR 274-006-0005; and

(b) The Department, in its sole discretion, determines that preliminary hiring is in the Department’s best interests.

(2) A subject individual hired or appointed on a preliminary basis under this rule may participate in training, orientation, or work activities as assigned by the Department.

(3) A subject individual hired or appointed on a preliminary basis is deemed to be on trial service.

(4) Nothing in this rule shall be construed as requiring the Department to hire on a preliminary basis.

History

Statutory/Other Authority: ORS 181.534, 406.005, 406.030 & 2009 SB 94
Statutes/Other Implemented: ORS 181.534, 406.005, 406.030 & 2009 SB 94
DVA 1-2009, f. 12-22-09 cert. ef. 1-1-10

Or. Admin. R. 274-006-0011 Final Fitness Determination

(1) If the Department elects to conduct a criminal records check, the Department shall make a fitness determination about a subject individual based on information provided by the subject individual under OAR 274-006-0005, the criminal records check(s) conducted, and any false statements made by the subject individual.

(2) In making a fitness determination about a subject individual, the Department will also consider the factors in subsections (a) through (f) below in relation to information provided by the subject individual under OAR 274-006-0005, any LEDS report or criminal offender information obtained through a criminal records check, and other information known by the Department. To assist in considering these factors, the Department may obtain any other information deemed relevant from the subject individual or any other source, including law enforcement and criminal justice agencies or courts within or outside of Oregon. To acquire other criminal offender information from the subject individual, the Department may request to meet with the subject individual, and may request to receive written materials or authorization to obtain other relevant information, from him or her. The subject individual shall meet with the Department if requested and provide additional information or authorization within a reasonable period of time, as established by the Department. The Department will use all collected information in considering:

(a) Whether the subject individual has been convicted, found guilty except for insanity (or a comparable disposition), has a pending indictment, has been arrested, or has an outstanding warrant for arrest for a crime listed in OAR 274-006-0012;

(b) The nature of any crime identified under section (2)(a) of this rule;

(d) Any facts that indicate the subject individual made a false statement;

(e) The relevance, if any, of a crime identified under section (2)(a) of this rule or of a false statement made by the subject individual to the specific requirements of the subject individual's present or proposed position, services or employment; and

(f) Intervening circumstances, including, but not limited to the following, and only to the extent that they are relevant to the responsibilities and circumstances of the services or employment for which the fitness determination is being made:

(A) The passage of time since the commission or alleged commission of a crime identified under section (2)(a) of this rule;

(B) The age of the subject individual at the time of the commission or alleged commission of a crime identified under section (2)(a) of this rule;

(D) The subsequent commission of another crime listed in OAR 274-006-0012;

(E) Whether a conviction identified under section (2)(a) of this rule has been set aside, and the legal effect of setting aside the conviction;

(F) A recommendation of an employer;

(G) Whether the subject individual has been adjudicated in a juvenile court and found to be within the court's jurisdiction for an offense that would have constituted a crime listed in OAR 274-006-0012 if committed by an adult.

(3) Refusal to Consent. If a subject individual refuses to submit or consent to a criminal records check including fingerprint identification, the Department will deny the employment of the subject individual or deny any applicable position or authority to provide services. A person may not appeal any determination made based on a refusal to consent.

(4) If a subject individual is determined to be not fit, the subject individual may not be employed by or provide services as a volunteer, contractor or vendor to the Department in a position described in OAR 274-006-0004(2).

(5) Final Order. A completed final fitness determination is a final order of the Department unless the affected subject individual appeals the determination by requesting a contested case hearing as provided by OAR 274-006-0018(2) or an alternative appeals process as provided by OAR 274-006-0018(6).

History

Statutory/Other Authority: ORS 181.534 & 2009 SB 94
Statutes/Other Implemented: ORS 181.534 & 2009 SB 94
DVA 1-2009, f. 12-22-09 cert. ef. 1-1-10

Or. Admin. R. 274-006-0012 Potentially Disqualifying Crimes

(1) Crimes Relevant to a Fitness Determination:

(a) All felonies;

(b) All misdemeanors;

(2) Evaluation of Crimes. The Department shall evaluate a crime on the basis of the law of the jurisdiction in which the crime or offense occurred, as those laws are in effect at the time of the fitness determination.

(3) Expunged Juvenile Record. Under no circumstances shall a subject individual be determined to be not fit under these rules on the basis of the existence or contents of a juvenile record that has been expunged pursuant to ORS 419A.260 and 419A.262.

History

Statutory/Other Authority: ORS 181.534 & 2009 SB 94
Statutes/Other Implemented: ORS 181.534 & 2009 SB 94
DVA 1-2009, f. 12-22-09 cert. ef. 1-1-10

Or. Admin. R. 274-006-0013 Incomplete Fitness Determination

(1) The Department will close a preliminary or final fitness determination as incomplete when:

(a) Circumstances change so that a person no longer meets the definition of a "subject individual" under OAR 274-006-0004.

(b) The subject individual does not submit materials or information within the time required under OAR 274-006-0005(3);

(d) The subject individual fails or refuses to cooperate with the Department’s attempts to acquire other criminal records information under OAR 274-006-0011(2); or

(e) The Department determines that the subject individual is not eligible or not qualified for the position (of employee, contractor, vendor or volunteer) for a reason unrelated to the fitness determination process.

(f) The position is no longer open.

(2) A subject individual does not have a right to a contested case hearing under OAR 274-006-0018(2) or a right to an alternative appeals process as provided by OAR 274-006-0018(6) to challenge the closing of a fitness determination as incomplete.

History

Statutory/Other Authority: ORS 181.534 & 2009 SB 94
Statutes/Other Implemented: ORS 181.534 & 2009 SB 94
DVA 1-2009, f. 12-22-09 cert. ef. 1-1-10

Or. Admin. R. 274-006-0014 Notice to Subject Individual of Fitness Determination

The Department shall inform the subject individual who has been determined not to be fit on the basis of a criminal records check, via personal service, or registered or certified mail to the most current address provided by the subject individual, of such disqualification.

History

Statutory/Other Authority: ORS 181.534 & 2009 SB 94
Statutes/Other Implemented: ORS 181.534 & 2009 SB 94
DVA 1-2009, f. 12-22-09 cert. ef. 1-1-10

Or. Admin. R. 274-006-0015 Fees

(1) The Department may charge a fee for acquiring criminal offender information for use in making a fitness determination. In any particular instance, the fee shall not exceed the fee(s) charged the Department by the Oregon Department of State Police and the Federal Bureau of Investigation to obtain criminal offender information on the subject individual.

(2) The Department may charge the fee to the individual on whom criminal offender information is sought, or, if the individual is an employee of a Department contractor or vendor and is undergoing a fitness determination in that capacity, the Department may charge the fee to the individual’s employer.

History

Statutory/Other Authority: ORS 181.534, 406.005, 406.030 & 2009 SB 94
Statutes/Other Implemented: ORS 181.534, 406.005, 406.030 & 2009 SB 94
DVA 1-2009, f. 12-22-09 cert. ef. 1-1-10

Or. Admin. R. 274-006-0018 Appealing a Fitness Determination

(1) Purpose. Sections (2) to (5) of this rule set forth the contested case hearing process a subject individual must use to appeal a completed fitness determination made under OAR 274-006-0010 that the individual is not fit to hold a position with, or provide services to the Department as an employee, volunteer, contractor, or vendor. Section (6) of this rule identifies an alternative appeal process available only to current Department employees.

(2) Appeal process.

(a) To request a contested case hearing, the subject individual or the subject individual's legal representative must submit a written request for a contested case hearing to the address specified in the notice provided under OAR 274-006-0014. To be timely, the request must be received by the Department at the specified address within 14 calendar days of the date stated on the notice. The Department shall address a request received after expiration of the deadline as provided under OAR 137-003-0528.

(b) When a timely request is received by the Department under subsection (a), a contested case hearing shall be conducted by an administrative law judge assigned by the Office of Administrative Hearings, pursuant to the Attorney General's Uniform and Model Rules, “Procedural Rules, Office of Administrative Hearings” OAR 137-003-0501 to 137-003-0700, as supplemented by the provisions of this rule.

(3) Discovery. The Department or the administrative law judge may protect information made confidential by ORS 181.534(15) or other applicable law as provided under OAR 137-003-0570(7) or (8).

(4) No Public Attendance. Contested case hearings on fitness determinations are closed to non-participants.

(5) Proposed and Final Order:

(a) Proposed Order. After a hearing, the administrative law judge will issue a proposed order.

(b) Exceptions. Exceptions, if any, shall be filed within 14 calendar days after service of the proposed order. The proposed order shall provide an address to which exceptions must be sent.

(A) Unless the subject individual makes a timely request for a hearing; or

(B) When a party withdraws a hearing request, notifies the Department or the ALJ that the party will not appear, or fails to appear at the hearing.

(6) Alternative Process. A subject individual currently employed by the Department may choose to appeal a fitness determination either under the process made available by this rule or through the process made available by applicable personnel rules, policies and collective bargaining provisions. A subject individual's decision to appeal a fitness determination through applicable personnel rules, policies, and collective bargaining provisions is an election of remedies as to the rights of the individual with respect to the fitness determination and is a waiver of the contested case process made available by this rule.

(7) Remedy. The only remedy that may be awarded is a determination that the subject individual is fit or not fit. Under no circumstances shall the Department be required to place a subject individual in any position, nor shall the Department be required to accept services or enter into a contractual agreement with a subject individual.

(8) Challenging Criminal Offender Information. A subject individual may not use the appeals process established by this rule to challenge the accuracy or completeness of information provided by the Oregon Department of State Police, the Federal Bureau of Investigation, or agencies reporting information to the Oregon Department of State Police or the Federal Bureau of Investigation.

(a) To challenge information identified in this section of the rule, a subject individual may use any process made available by the agency that provided the information.

(b) If the subject individual successfully challenges the accuracy or completeness of information provided by the Oregon Department of State Police, the Federal Bureau of Investigation, or an agency reporting information to the Oregon Department of State Police or the Federal Bureau of Investigation, the subject individual may request that the Department conduct a new criminal records check and re-evaluate the original fitness determination made under OAR 274-006-0010 by submitting a new Department criminal records request. This provision only applies if the position for which the original criminal history check was conducted is vacant and available.

(9) Appealing a fitness determination under section (2) or section (6) of this rule, challenging criminal offender information with the Department that provided the information, or requesting a new criminal records check and re-evaluation of the original fitness determination under section (8)(b) of this rule, will not delay or postpone the Department’s hiring process or employment decisions.

History

Statutory/Other Authority: ORS 181.534, 406.030 & 2009 SB 94
Statutes/Other Implemented: ORS 181.534, 406.030 & 2009 SB 94
DVA 1-2009, f. 12-22-09 cert. ef. 1-1-10

Or. Admin. R. 274-006-0020 Recordkeeping Confidentiality

Any information obtained in the criminal records check is confidential. The Department must restrict the dissemination of information obtained in the criminal records check. Only those persons, as identified by the Department, with a demonstrated and legitimate need to know the information, may have access to criminal records check records.

History

Statutory/Other Authority: ORS 181.534, 406.030 & 2009 SB 94
Statutes/Other Implemented: ORS 181.534, 406.030 & 2009 SB 94
DVA 1-2009, f. 12-22-09 cert. ef. 1-1-10

Division 7 CONFIDENTIALITY AND INADMISSIBILITY OF MEDIATION COMMUNICATIONS

Or. Admin. R. 274-007-0001 Confidentiality and Inadmissibility of Mediation Communications

(1) The words and phrases used in this rule have the same meaning as given to them in ORS 36.110 and 36.234.

(2) Nothing in this rule affects any confidentiality created by other law. Nothing in this rule relieves a public body from complying with the Public Meetings Law, ORS 192.610 to 192.690. Whether or not they are confidential under this or other rules of the agency, mediation communications are exempt from disclosure under the Public Records Law to the extent provided in 192.410 to 192.505.

(3) This rule applies only to mediations in which the agency is a party or is mediating a dispute as to which the agency has regulatory authority. This rule does not apply when the agency is acting as the "mediator" in a matter in which the agency also is a party as defined in ORS 36.234.

(4) To the extent mediation communications would otherwise be compromise negotiations under ORS 40.190 (OEC Rule 408), those mediation communications are not admissible as provided in 40.190 (OEC Rule 408), notwithstanding any provisions to the contrary in section (9) of this rule.

(5) Mediations Excluded. Sections (6)–(10) of this rule do not apply to:

(a) Mediation of workplace interpersonal disputes involving the interpersonal relationships between this agency's employees, officials or employees and officials, unless a formal grievance under a labor contract, a tort claim notice or a lawsuit has been filed; or

(b) Mediation in which the person acting as the mediator will also act as the hearings officer in a contested case involving some or all of the same matters;

(d) Mediation involving two or more public bodies and a private party if the laws, rule or policies governing mediation confidentiality for at least one of the public bodies provide that mediation communications in the mediation are not confidential; or

(e) Mediation involving 15 or more parties if the agency has designated that another mediation confidentiality rule adopted by the agency may apply to that mediation.

(6) Disclosures by Mediator. A mediator may not disclose or be compelled to disclose mediation communications in a mediation and, if disclosed, such communications may not be introduced into evidence in any subsequent administrative, judicial or arbitration proceeding unless:

(a) All the parties to the mediation and the mediator agree in writing to the disclosure; or

(b) The mediation communication may be disclosed or introduced into evidence in a subsequent proceeding as provided in subsections (c)–(d), (j)–(l) or (o)–(p) of section (9) of this rule.

(7) Confidentiality and Inadmissibility of Mediation Communications. Except as provided in sections (8)–(9) of this rule, mediation communications are confidential and may not be disclosed to any other person, are not admissible in any subsequent administrative, judicial or arbitration proceeding and may not be disclosed during testimony in, or during any discovery conducted as part of a subsequent proceeding, or introduced as evidence by the parties or the mediator in any subsequent proceeding.

(8) Written Agreement. Section (7) of this rule does not apply to a mediation unless the parties to the mediation agree in writing, as provided in this section, that the mediation communications in the mediation will be confidential and/or nondiscoverable and inadmissible. If the mediator is the employee of and acting on behalf of a state agency, the mediator or an authorized agency representative must also sign the agreement. The parties' agreement to participate in a confidential mediation must be in substantially the following form. This form may be used separately or incorporated into an "agreement to mediate."

AGREEMENT TO PARTICIPATE IN A CONFIDENTIAL MEDIATION

The Oregon Department of Veterans’ Affairs and the parties to the mediation agree to participate in a mediation in which the mediation communications are confidential and/or nondiscoverable and inadmissible to the extent authorized by OAR 274-007-0001(7) and this agreement.

This agreement relates to the following mediation:

To the extent authorized by OAR 274-007-0001(7), mediation communications in this mediation are: (check one or more)

___ Confidential and may not be disclosed to any other person.

___ Not admissible in any subsequent administrative proceeding and may not be disclosed during testimony in, or during any discovery conducted as part of a subsequent administrative proceeding, or introduced as evidence by the parties or the mediator in any subsequent administrative proceeding.

___Not admissible in any subsequent administrative, judicial or arbitration proceeding and may not be disclosed during testimony in, or during any discovery conducted as part of a subsequent administrative, judicial or arbitration proceeding, or introduced as evidence by the parties or the mediator in any subsequent administrative, judicial or arbitration proceeding.

Name of Agency: Oregon Department of Veterans’ Affairs

Signature of ODVA’s authorized representative (if ODVA is a party)

____________________________________________ Date ________

Signature of ODVA employee acting as the mediator (if ODVA is mediating the dispute)

____________________________________________ Date ________

Name of party to the mediation

Signature of party's authorized representative

____________________________________________ Date ________

Name of party to the mediation

Signature of party's authorized representative

____________________________________________ Date ________

(9) Exceptions to confidentiality and inadmissibility.

(a) Any statements, memoranda, work products, documents and other materials, otherwise subject to discovery that were not prepared specifically for use in the mediation are not confidential and may be disclosed or introduced into evidence in a subsequent proceeding.

(b) Any mediation communications that are public records, as defined in ORS 192.410(4), and were not specifically prepared for use in the mediation are not confidential and may be disclosed or introduced into evidence in a subsequent proceeding unless the substance of the communication is confidential or privileged under state or federal law.

(c) A mediation communication is not confidential and may be disclosed by any person receiving the communication to the extent that person reasonably believes that disclosing the communication is necessary to prevent the commission of a crime that is likely to result in death or bodily injury to any person. A mediation communication is not confidential and may be disclosed in a subsequent proceeding to the extent its disclosure may further the investigation or prosecution of a felony crime involving physical violence to a person.

(d) Any mediation communication related to the conduct of a licensed professional that is made to or in the presence of a person who, as a condition of his or her professional license, is obligated to report such communication by law or court rule is not confidential and may be disclosed to the extent necessary to make such a report.

(e) The parties to the mediation may agree in writing that all or part of the mediation communications are not confidential or that all or part of the mediation communications may be disclosed and may be introduced into evidence in a subsequent proceeding unless the substance of the communication is confidential, privileged or otherwise prohibited from disclosure under state or federal law.

(f) A party to the mediation may disclose confidential mediation communications to a person if the party's communication with that person is privileged under ORS Chapter 40 or other provision of law. A party to the mediation may disclose confidential mediation communications to a person for the purpose of obtaining advice concerning the subject matter of the mediation, if all the parties agree.

(g) An employee of the agency may disclose confidential mediation communications to another agency employee so long as the disclosure is necessary to conduct authorized activities of the agency. An employee receiving a confidential mediation communication under this subsection is bound by the same confidentiality requirements as apply to the parties to the mediation.

(h) A written mediation communication may be disclosed or introduced as evidence in a subsequent proceeding at the discretion of the party who prepared the communication so long as the communication is not otherwise confidential under state or federal law and does not contain confidential information from the mediator or another party who does not agree to the disclosure.

(i) In any proceeding to enforce, modify or set aside a mediation agreement, a party to the mediation may disclose mediation communications and such communications may be introduced as evidence to the extent necessary to prosecute or defend the matter. At the request of a party, the court may seal any part of the record of the proceeding to prevent further disclosure of mediation communications or agreements to persons other than the parties to the agreement.

(j) In an action for damages or other relief between a party to the mediation and a mediator or mediation program, mediation communications are not confidential and may be disclosed and may be introduced as evidence to the extent necessary to prosecute or defend the matter. At the request of a party, the court may seal any part of the record of the proceeding to prevent further disclosure of the mediation communications or agreements.

(k) When a mediation is conducted as part of the negotiation of a collective bargaining agreement, the following mediation communications are not confidential and such communications may be introduced into evidence in a subsequent administrative, judicial or arbitration proceeding:

(A) A request for mediation; or

(B) A communication from the Employment Relations Board Conciliation Service establishing the time and place of mediation; or

(D) A strike notice submitted to the Employment Relations Board.

(l) To the extent a mediation communication contains information the substance of which is required to be disclosed by Oregon statute, other than ORS 192.410 to 192.505, that portion of the communication may be disclosed as required by statute.

(m) Written mediation communications prepared by or for the agency or its attorney are not confidential and may be disclosed and may be introduced as evidence in any subsequent administrative, judicial or arbitration proceeding to the extent the communication does not contain confidential information from the mediator or another party, except for those written mediation communications that are:

(A) Attorney-client privileged communications so long as they have been disclosed to no one other than the mediator in the course of the mediation or to persons as to whom disclosure of the communication would not waive the privilege; or

(B) Attorney work product prepared in anticipation of litigation or for trial; or

(C) Prepared exclusively for the mediator or in a caucus session and not given to another party in the mediation other than a state agency; or

(D) Prepared in response to the written request of the mediator for specific documents or information and given to another party in the mediation; or

(E) Settlement concepts or proposals, shared with the mediator or other parties.

(n) A mediation communication made to the agency may be disclosed and may be admitted into evidence to the extent the Department of Veterans’ Affairs Director or designee determines that disclosure of the communication is necessary to prevent or mitigate a serious danger to the public's health or safety, and the communication is not otherwise confidential or privileged under state or federal law.

(o) The terms of any mediation agreement are not confidential and may be introduced as evidence in a subsequent proceeding, except to the extent the terms of the agreement are exempt from disclosure under ORS 192.410 to 192.505, a court has ordered the terms to be confidential under ORS 30.402 or state or federal law requires the terms to be confidential.

(p) The mediator may report the disposition of a mediation to the agency at the conclusion of the mediation so long as the report does not disclose specific confidential mediation communications. The agency or the mediator may use or disclose confidential mediation communications for research, training or educational purposes, subject to the provisions of ORS 36.232(4).

(10) When a mediation is subject to section (7) of this rule, the agency will provide to all parties to the mediation and the mediator a copy of this rule or a citation to the rule and an explanation of where a copy of the rule may be obtained. Violation of this provision does not waive confidentiality or inadmissibility.

[ED. NOTE: To view attachments referenced in rule text, click here to view rule.]

History

Statutory/Other Authority: ORS 36.224 & 184.340
Statutes/Other Implemented: ORS 36.224, 36.228, 36.230 & 36.232
DVA 2-2010, f. & cert. ef. 7-26-10
DVA 1-2010(Temp), f. & cert. ef. 6-1-10 thru 11-2-10

Or. Admin. R. 274-007-0002 Confidentiality and Inadmissibility of Workplace Interpersonal Dispute Mediation Communications

(1) This rule applies to workplace interpersonal disputes, which are disputes involving the interpersonal relationships between this agency's employees, officials or employees and officials. This rule does not apply to disputes involving the negotiation of labor contracts or matters about which a formal grievance under a labor contract, a tort claim notice or a lawsuit has been filed.

(2) The words and phrases used in this rule have the same meaning as given to them in ORS 36.110 and 36.234.

(3) Nothing in this rule affects any confidentiality created by other law.

(4) To the extent mediation communications would otherwise be compromise negotiations under ORS 40.190 (OEC Rule 408), those mediation communications are not admissible as provided in ORS 40.190 (OEC Rule 408), notwithstanding any provisions to the contrary in section (9) of this rule.

(5) Disclosures by Mediator. A mediator may not disclose or be compelled to disclose mediation communications in a mediation and, if disclosed, such communications may not be introduced into evidence in any subsequent administrative, judicial or arbitration proceeding unless:

(a) All the parties to the mediation and the mediator agree in writing to the disclosure; or

(b) The mediation communication may be disclosed or introduced into evidence in a subsequent proceeding as provided in subsections (c) or (h)–(j) of section (7) of this rule.

(6) Confidentiality and Inadmissibility of Mediation Communications. Except as provided in section (7) of this rule, mediation communications in mediations involving workplace interpersonal disputes are confidential and may not be disclosed to any other person, are not admissible in any subsequent administrative, judicial or arbitration proceeding and may not be disclosed during testimony in, or during any discovery conducted as part of a subsequent proceeding, or introduced into evidence by the parties or the mediator in any subsequent proceeding so long as:

(a) The parties to the mediation and the agency have agreed in writing to the confidentiality of the mediation; and

(b) The person agreeing to the confidentiality of the mediation on behalf of the agency:

(A) Is neither a party to the dispute nor the mediator; and

(B) Is designated by the agency to authorize confidentiality for the mediation; and

(C) Is at the same or higher level in the agency than any of the parties to the mediation or who is a person with responsibility for human resources or personnel matters in the agency, unless the agency head or member of the governing board is one of the persons involved in the interpersonal dispute, in which case the Governor or the Governor's designee.

(7) Exceptions to Confidentiality and Inadmissibility.

(d) The parties to the mediation may agree in writing that all or part of the mediation communications are not confidential or that all or part of the mediation communications may be disclosed and may be introduced into evidence in a subsequent proceeding unless the substance of the communication is confidential, privileged or otherwise prohibited from disclosure under state or federal law.

(e) A party to the mediation may disclose confidential mediation communications to a person if the party's communication with that person is privileged under ORS Chapter 40 or other provision of law. A party to the mediation may disclose confidential mediation communications to a person for the purpose of obtaining advice concerning the subject matter of the mediation, if all the parties agree.

(f) A written mediation communication may be disclosed or introduced as evidence in a subsequent proceeding at the discretion of the party who prepared the communication so long as the communication is not otherwise confidential under state or federal law and does not contain confidential information from the mediator or another party who does not agree to the disclosure.

(g) In any proceeding to enforce, modify or set aside a mediation agreement, a party to the mediation may disclose mediation communications and such communications may be introduced as evidence to the extent necessary to prosecute or defend the matter. At the request of a party, the court may seal any part of the record of the proceeding to prevent further disclosure of mediation communications or agreements to persons other than the parties to the agreement.

(h) In an action for damages or other relief between a party to the mediation and a mediator or mediation program, mediation communications are not confidential and may be disclosed and may be introduced as evidence to the extent necessary to prosecute or defend the matter. At the request of a party, the court may seal any part of the record of the proceeding to prevent further disclosure of the mediation communications or agreements.

(i) To the extent a mediation communication contains information the substance of which is required to be disclosed by Oregon statute, other than ORS 192.410 to 192.505, that portion of the communication may be disclosed as required by statute.

(j) The mediator may report the disposition of a mediation to the agency at the conclusion of the mediation so long as the report does not disclose specific confidential mediation communications. The agency or the mediator may use or disclose confidential mediation communications for research, training or educational purposes, subject to the provisions of ORS 36.232(4).

(8) The terms of any agreement arising out of the mediation of a workplace interpersonal dispute are confidential so long as the parties and the agency so agree in writing. Any term of an agreement that requires an expenditure of public funds, other than expenditures of $1,000 or less for employee training, employee counseling or purchases of equipment that remain the property of the agency, may not be made confidential.

(9) When a mediation is subject to section (6) of this rule, the agency will provide to all parties to the mediation and to the mediator a copy of this rule or an explanation of where a copy of the rule may be obtained. Violation of this provision does not waive confidentiality or inadmissibility.

History

Statutory/Other Authority: ORS 36.224
Statutes/Other Implemented: ORS 36.230(4)
DVA 2-2010, f. & cert. ef. 7-26-10

Division 10 EDUCATIONAL AID

Or. Admin. R. 274-010-0100 Definitions for 274-010-0100 to 274-010-0175

As used in these regulations or any amendments to them, or in any blank form, document, publication, or written instrument of any kind prescribed, provided, published, issued, or used by the Director or any of his duly authorized agents or employees in connection with the administration of the provisions of ORS 408.010 to 408.110, unless otherwise required by context:

(1) "Active Duty" or "Active Service" means that status in the Armed Forces in which the person on "active duty" is under the command of military or naval authorities, subject to military or naval discipline and on active duty pay status in the respective arm or branch of the Armed Forces in which the person is serving.

(a) Members of the reserve components of the Armed Forces, persons on a retired status in the military or naval forces of the United States, Cadets at West Point, Air Force Academy, and United States Coast Guard Academy and Midshipmen at the Naval Academy were on active duty only after reporting for active duty;

(b) Members of the National Guard were on active duty only after having been activated under Title 10 of the United States Code of Federal Regulations;

(2) "Armed Forces" means and includes:

(a) Army;

(b) Navy;

(d) Air Force;

(e) Coast Guard;

(f) Coast and Geodetic Survey (while serving with Army or Navy);

(g) Commissioned Officers of Public Health Service while serving with Army, Navy, Marine Corps, or Coast Guard.

(3) "Beneficiary" means any person eligible for educational aid as defined in ORS 408.010.

(4) "Veteran" means any person who served on active duty with the Armed Forces of the United States as defined in ORS 408.225.

(5) "Under Honorable Conditions" means that the official documents of discharge, service, or separation issued upon the termination of the veteran's active duty service with the Armed Forces are characterized as one of the following:

(a) "Honorable"; or

(b) "General” also known as “General Under Honorable Conditions".

(6) "Alien" means any person who is not a citizen of the United States.

(7) "Alien Enemy" means any person who is a citizen of any nation, country, or state, or ally thereof, with which the United States is at war.

(8) "Conscientious Objector" means any person who during his period of service refused on conscientious, political, or other grounds to subject himself to full military discipline and unqualified service.

(9) "Combat Zone" means any area designated by the President of the United States by executive order in which the Armed Forces of the United States or any subdivision thereof are or have engaged in combat.

(10) "Other Like Training Program" means college training while in service, which compares with the civilian professional training for which college credit was, or could be, obtained to apply toward graduation from an approved institution of higher learning.

(11) "Domicile" or "Residence" means that place which a person intends as their fixed place of abode or habitation; which they consider to be their permanent home; and to which, whenever away, they always intend to return:

(a) Temporary absence from the state does not destroy domicile;

(b) Temporary presence in the state without an intention to establish a permanent home does not support a contention of being domiciled within the state.

(12) "Accredited Institution" means any institution where training is offered that has been certified as meeting the minimum requirements prescribed by the accrediting agency having jurisdiction over standards of uniformity and accreditation (the State Department of Education).

(13) "Approved Course of Study or Vocational Training" means any course of training outlined in the material submitted to and approved by the State Department of Education.

(14) "Full Time College Course" means that the particular course has met the following standards:

(a) "Full time" — As defined by the approved institution where the course is being pursued;

(b) "College" — An institution fully accredited by the appropriate accrediting agency, as recognized by the State Approving Agency (the State Department of Education).

(15) "Current Term" means:

(a) Fall, winter, spring, or summer term in those institutions operating on a term or quarter basis;

(b) First or second semester or summer session in those institutions operating on a semester or half year basis; or

(c) Not later than six weeks following enrollment in a training institution where training is a continuous program, not divided into terms or semesters.

(16) "Executive Head of the Institution" means:

(a) The President of the University or College;

(b) The Principal of the School;

(d) The person or persons to whom the executive head of the institution has delegated authority to act in his stead.

History

Statutory/Other Authority: ORS 408 & 2013 HB 2633
Statutes/Other Implemented: ORS 408.010–408.090 & 2013 HB 2633
DVA 2-2013, f. & cert. ef. 7-8-13
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 1-2006, f. & cert. ef. 1-27-06
DVA 9-1993, f. 9-13-93, cert. ef. 11-4-93
DVA 32, f. 12-2-65, ef. 12-25-65
DVA 22, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-010-0105 Who May Apply for Educational Aid

Any person who qualifies as a beneficiary under the provisions of ORS 408.010 is eligible to apply for educational aid.

History

Statutory/Other Authority: ORS 408
Statutes/Other Implemented: ORS 408.010 - 408.030
DVA 9-1993, f. 9-13-93, cert. ef. 11-4-93
DVA 22, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-010-0115 Evidence Required to Establish Eligibility

Eligibility Form 1004-M shall be submitted to the Department of Veterans' Affairs accompanied by:

(1) Certified copy of evidence of separation.

(2) Proof of current Oregon residence.

(3) Proof of change in name:

(a) Where veteran's name has been legally changed since discharge, a certified copy of the Court Order, marriage certificate, or divorce decree will be furnished to the Department of Veterans' Affairs;

(b) Where veteran's name has been changed, but not legally, an affidavit from the veteran and affidavits from at least two disinterested persons will be required to show such change.

History

Statutory/Other Authority: ORS 408
Statutes/Other Implemented: ORS 408.010 - 408.040
DVA 1-2006, f. & cert. ef. 1-27-06
DVA 9-1993, f. 9-13-93, cert. ef. 11-4-93
DVA 22, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-010-0120 Applications

(1) All applications for educational aid shall be made upon Form ED-1 (Application Form), and shall be filed with the head of the training institution involved.

(2) Upon approval of training, the head of the institution shall forward the application to the Department of Veterans' Affairs.

(3) When an application is made for benefits to attend a course which may be considered an avocation or recreational in nature, or for a single subject course which is not directly related to the student's educational objective, the applicant shall include with the usual application a statement indicating how the desired courses will better prepare him to engage in a more gainful occupation.

History

Statutory/Other Authority: ORS 408
Statutes/Other Implemented: ORS 408.010 - 408.040
DVA 1-2006, f. & cert. ef. 1-27-06
DVA 9-1993, f. 9-13-93, cert. ef. 11-4-93
DVA 22, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-010-0125 Evidence Required for Out-Of-State Attendance

Where the applicant requests educational aid for out-of-state attendance, the following information, in addition to that required by OAR 274-010-0120, shall accompany the usual application, in order to satisfactorily show the necessity for this attendance:

(1) A detailed statement of the required academic course, which shall include a resume of the student’s educational background and experience as well as any additional information about the qualifications of the out-of-state school to provide the required training.

(2) When possible, the application should be accompanied by a statement from the Oregon institution where the applicant had previously attended or that would be most likely to offer the required training, certifying that the particular training required is not presently available.

(3) A statement from the out-of-state school confirming the enrollment of the applicant in the particular course as outlined.

(4) Evidence through school catalog or official certification, that the out-of-state school is fully accredited within its state to offer the required course.

History

Statutory/Other Authority: ORS 408
Statutes/Other Implemented: ORS 408.010 - 408.070
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-010-0130 Time for Filing Application

(1) Applications shall be submitted promptly following registration, or prior thereto for the courses or training for which aid is requested.

(2) Payments may be retroactive to the beginning of the school term only if the applicant provides justifiable reasons for the delay in making application. Being unaware of the educational aid program will not in itself be sufficient grounds for considering retroactive payments.

History

Statutory/Other Authority: ORS 408
Statutes/Other Implemented: ORS 408.010 - 408.070
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-010-0135 Additional Information and Evidence

The Department of Veterans' Affairs may, in addition to the information and evidence specified in the application, instructions, or rules and regulations, require such additional information and evidence as he deems necessary to establish the applicant’s eligibility.

History

Statutory/Other Authority: ORS 408
Statutes/Other Implemented: ORS 408.010 - 408.070
DVA 1-2006, f. & cert. ef. 1-27-06
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-010-0145 Computation of Payments

The following factors shall be used in computing the amount payable to the beneficiary:

(1) Length of service shall be computed in full months.

(2) For each month of active military service, not exceeding 36 months, claimant shall be entitled to receive:

(a) Up to $150 per month for each month of full-time study or professional training;

(b) Up to $100 per month for each month of part-time study or professional training.

(3) One month of entitlement will be deducted for each monthly payment covering any part of a calendar month.

(4) Payment for attendance shall be at the discretion of the Director and based on enrolled curriculum.

History

Statutory/Other Authority: ORS 408
Statutes/Other Implemented: ORS 408.020, 408.050 & 408.060
DVA 2-2007, f. & cert. ef. 9-24-07
DVA 1-2006, f. & cert. ef. 1-27-06
DVA 32, f. 12-2-65, ef. 12-25-65
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-010-0155 Approval to Receive Benefits

(1) The Department of Veterans' Affairs shall determine the applicant’s eligibility to receive benefits.

(2) The Department of Veterans' Affairs shall then determine:

(a) That the institution of learning is accredited and qualified to provide the training;

(b) That the tuition and other charges are reasonable;

(d) That the course of training, is satisfactorily completed, is likely to enable the beneficiary to become a more useful citizen.

(3) If all the conditions provided in section (2) of this rule are met, the Department of Veterans' Affairs shall approve the application.

(4) Where a satisfactory showing is made that the required training is not available at an approved Oregon institution, the Department of Veterans' Affairs shall permit the applicant to attend an out-of-state school or college.

(5) Upon approval of the application by the Department of Veterans' Affairs, benefits are payable:

(a) Beginning with the first day of applicant's attendance, subject to conditions under OAR 274-010-0120(2); or

(b) Beginning on the date application is filed with executive head of the institution. If the applicant has failed to file promptly following registration and the delay is found to be caused by inexcusable oversight or neglect.

History

Statutory/Other Authority: ORS 408
Statutes/Other Implemented: ORS 408.025 - 408.070
DVA 1-2006, f. & cert. ef. 1-27-06
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-010-0160 Reports by Executive Head of Educational Institution

On or before the tenth day of each calendar month, the executive head of each institution of learning shall submit certified copies of Form 1006-M (Statement of Educational Aid), containing the following information.

(1) Name of each beneficiary;

(2) Amount of training; and

(3) Progress.

History

Statutory/Other Authority: ORS 408
Statutes/Other Implemented: ORS 408.050
DVA 1-2006, f. & cert. ef. 1-27-06
DVA 9-1993, f. 9-13-93, cert. ef. 11-4-93
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-010-0165 Lost, Stolen, or Destroyed Warrant

If educational aid warrant is lost, stolen, or destroyed before negotiation, beneficiary may obtain payment of by furnishing to the State Treasurer evidence that value has not been received and an acceptable indemnity bond.

History

Statutory/Other Authority: ORS 408
Statutes/Other Implemented: ORS 408.060
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-010-0170 Addition, Amendment, or Repeal of Rules or Regulations

These rules and regulations shall have the effect of law and shall be binding in all instances on persons making application for educational aid, under ORS 408.010 to 408.090, but if any part of these regulations are found to be void or illegal, such illegality shall not affect the remaining provisions of the rules and regulations.

History

Statutory/Other Authority: ORS 408
Statutes/Other Implemented: ORS 408.010 - 408.090
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 1-2006, f. & cert. ef. 1-27-06
DVA 32, f. 12-2-65, ef. 12-25-65
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-010-0175 Procedure for Hearings

(1) Any interested person may petition the director requesting the promulgation, amendment, or repeal of any rule.

(a) Petition shall be in writing and shall set forth the requested change in detail;

(b) Director shall set time for hearing and shall notify petitioner of same;

(d) The final determination shall be made by the director.

(2) Any applicant making application for educational aid may request a review of the Department of Veterans' Affairs' decisions pertaining to educational benefits by filing a petition with the director.

(a) Petition shall be in writing and signed by or on behalf of the applicant. Petition shall contain a statement of facts requesting specific relief and sufficient information to indicate that the applicant is entitled to relief;

(b) Director shall set the time and place for a hearing and shall notify the applicant of same;

(d) The final determination shall be made by the director.

History

Statutory/Other Authority: ORS 183 & 408
Statutes/Other Implemented: ORS 408.040, 408.050 & 408.060
DVA 1-2006, f. & cert. ef. 1-27-06
DVA 6-1996, f. & cert. ef. 7-22-96
DVA 32, f. 12-2-65, ef. 12-25-65
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Division 12 OREGON VETERANS' EMERGENCY FINANCIAL ASSISTANCE PROGRAM

Or. Admin. R. 274-012-0001 Definitions for OAR 274-012-0001 through 274-012-0131

As used in Sections 0001 through 0131 of division 012, unless otherwise required by context:

(1) “Department” or “ODVA” means the State of Oregon Department of Veterans' Affairs.

(2) “Program” or “OVEFAP” means the Oregon Veterans' Emergency Financial Assistance Program as established in ORS 408.500.

(3) “Under Honorable Conditions” means that the official documents of discharge, service, or separation issued upon the termination of the veteran's active duty service with the Armed Forces are characterized by the relevant branch of the Armed Forces as one of the following:

(a) "Honorable"; or

(b) "General” also known as “General Under Honorable Conditions”.

(4) “Veteran” means a veteran as defined in ORS 408.500.

(5) “Immediate family” means a spouse, child or stepchild.

History

Statutory/Other Authority: ORS 406.030, 406.050, 406.130, 408.010, 408.225, 408.500 & 2013 HB 2633
Statutes/Other Implemented: 2013 HB 2633
DVA 2-2013, f. & cert. ef. 7-8-13
DVA 3-2008, f. & cert. ef. 2-22-08
DVA 1-2008(Temp), f. & cert. ef. 1-7-08 thru 6-30-08
DVA 4-2006, f. & cert. ef. 4-25-06
DVA 2-2006(Temp), f. & cert. ef. 2-23-06 thru 8-18-06

Or. Admin. R. 274-012-0100 Purpose and Objective

(1) It is the expressed policy of the Department to provide appropriate emergency financial assistance to veterans and their immediate families by means of the Department's Emergency Financial Assistance Program.

(2) Within the funds established by the Department, pursuant to ORS 408.500, an account is designated to be used by the Department consistent with this program. Funds held within this account will be used by the Department consistent with this division 012 and applicable law exclusively for the purpose of one-time assistance to veterans and their immediate family, as determined by the Department, who have insufficient funds to meet their financial needs or responsibilities. Such needs may include, but are not limited to:

(a) Emergency or temporary housing and related housing expenses, such as expenses for utilities, insurance, house repairs, rent assistance or food;

(b) Emergency medical or dental expenses;

(d) Expenses related to starting a business, such as business licenses or occupational licenses;

(e) Temporary income after military discharge; and

(f) Legal assistance.

History

Statutory/Other Authority: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
Statutes/Other Implemented: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
DVA 3-2008, f. & cert. ef. 2-22-08
DVA 1-2008(Temp), f. & cert. ef. 1-7-08 thru 6-30-08
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 4-2006, f. & cert. ef. 4-25-06
DVA 2-2006(Temp), f. & cert. ef. 2-23-06 thru 8-18-06

Or. Admin. R. 274-012-0105 Evidence Required to Establish Eligibility

The following documentation shall be submitted to the Department when applying for program funds:

(1) A copy of evidence of separation of military service under honorable conditions.

(2) Proof of current Oregon residence.

(3) Proof of any change in name:

(a) Where a veteran's name has been legally changed since discharge, a certified copy of the Court Order, marriage certificate, or divorce decree must be furnished to the Department;

(b) Where a veteran's name has been changed, but not legally, an affidavit from the veteran and affidavits from at least two disinterested persons must be furnished to the Department to show such change.

History

Statutory/Other Authority: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
Statutes/Other Implemented: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
DVA 4-2006, f. & cert. ef. 4-25-06
DVA 2-2006(Temp), f. & cert. ef. 2-23-06 thru 8-18-06

Or. Admin. R. 274-012-0110 Applications

(1) Applications for assistance from the Program shall be made in such manner and detail, and on such forms, as the Department, in its reasonable discretion, shall determine.

(2) Applications generally will be prioritized by the Department for consideration based on the date of completed receipt by the Department. The Department may, however, consider applications in such other order and at such other times as it deems reasonable.

History

Statutory/Other Authority: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
Statutes/Other Implemented: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
DVA 4-2006, f. & cert. ef. 4-25-06
DVA 2-2006(Temp), f. & cert. ef. 2-23-06 thru 8-18-06

Or. Admin. R. 274-012-0115 Evidence of Need

When an application is made for emergency financial assistance, the applicant shall provide the Department with the documentation required under Subsection 0105, together with statement(s) and other documentation satisfactory to the Department indicating how the desired financial assistance will benefit the veteran and his/her immediate family. The Department may require additional documentation or information from the applicant as it deems necessary or appropriate.

History

Statutory/Other Authority: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
Statutes/Other Implemented: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
DVA 4-2006, f. & cert. ef. 4-25-06
DVA 2-2006(Temp), f. & cert. ef. 2-23-06 thru 8-18-06

Or. Admin. R. 274-012-0120 Criteria for Determination of Emergency Financial Assistance

(1) When determining to whom and in what amount Program funds will be made available to applicants, the Department may take into consideration various factors, including but not limited to:

(a) The amount of available funds in the Program account;

(b) Anticipated future deposits into the Program account;

(d) Anticipated future commitments from the Program account;

(e) Comparative critical need by applicants as determined by the Department;

(f) The appropriateness of the requested assistance;

(g) The ability and established willingness of the applicant and the applicant’s immediate family to appropriately use program assistance and to take steps for permanent improvement of their financial circumstances;

(h) The eligibility of the applicant;

(i) The number of persons and ages of such persons in the immediate family of the applicant;

(j) The health and medical needs of the applicant and of immediate family members;

(k) Any disability, particularly a disability that limits gainful employment, by an applicant or of an immediate family member of the applicant; and

(l) Other available assistance or support to the applicant and the applicant’s immediate family, including but not limited to:

(A) United States Department of Veterans Affairs (USDVA) benefits;

(B) Social Security benefits;

(D) Millennium Bill benefits;

(E) Medicare benefits;

(F) Medicaid benefits;

(G) Annuities;

(H) Savings;

(I) Investments; and

(J) Income from other available resources.

(2) The payment of Program assistance is subject to the discretion of the Department in consideration of factors described above in Paragraph (1), together with any other factors, as deemed relevant by the Department. The Department may refuse, terminate, or suspend Program assistance to any veteran and the veteran’s immediate family at any time without notice. The Department shall be under no obligation to provide Program assistance to any applicant or to the immediate family of any applicant.

History

Statutory/Other Authority: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
Statutes/Other Implemented: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
DVA 3-2008, f. & cert. ef. 2-22-08
DVA 1-2008(Temp), f. & cert. ef. 1-7-08 thru 6-30-08 DVA 4-2006, f. & cert. ef. 4-25-06 DVA 2-2006(Temp), f. & cert. ef. 2-23-06 thru 8-18-06

Or. Admin. R. 274-012-0125 Misrepresentation of Emergency Financial Assistance

The Department may require immediate reimbursement of funds, either in total or in part, if it is determined that applicant intentionally submitted invalid, incomplete, or fraudulent information when applying for funds from this Program, or if it is discovered that the funds were not used for the approved purpose(s).

History

Statutory/Other Authority: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
Statutes/Other Implemented: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
DVA 4-2006, f. & cert. ef. 4-25-06
DVA 2-2006(Temp), f. & cert. ef. 2-23-06 thru 8-18-06

Or. Admin. R. 274-012-0130 Review of Decisions

Any person adversely affected by a decision of the Department with respect to program assistance may write a letter of complaint to the Department's Director. The Director, or the Director’s designee, will undertake such review of the complaint as deemed appropriate. The Director, or the Director’s designee, will endeavor to provide a written response within 30 days of receipt of the written complaint and shall direct the Department to take such corrective action as is determined to be appropriate.

History

Statutory/Other Authority: Ch. 831, OL 2005, ORS 406.030, 406.050, 406.130 & 408.010
Statutes/Other Implemented: Ch. 831, OL 2005, ORS 406.030, 406.050, 406.130 & 408.010
DVA 4-2006, f. & cert. ef. 4-25-06
DVA 2-2006(Temp), f. & cert. ef. 2-23-06 thru 8-18-06

Or. Admin. R. 274-012-0131 Waiver of Rules

Subject to the limitations of the law, and at its sole discretion, the Department of Veterans' Affairs may waive all or part of these administrative rules.

History

Statutory/Other Authority: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
Statutes/Other Implemented: ORS 406.030, 406.050, 406.130, 408.010 & 408.500
DVA 4-2006, f. & cert. ef. 4-25-06
DVA 2-2006(Temp), f. & cert. ef. 2-23-06 thru 8-18-06

Division 13 VETERANS' SMALL BUSINESS REPAIR LOAN PROGRAM

Or. Admin. R. 274-013-0000 Purpose and Objective

(1) OAR chapter 274, division 013 is promulgated to carry out the provisions of 2008 Oregon Laws chapter 18 as enacted by the Oregon Legislative Assembly through House Bill 3626 §§19 and 20, effective February 11, 2008 (the “Act”). These rules, related documents and relevant determinations by the Department constitute the Department's Veterans' Small Business Repair Loan Program (the “Program”). The Program is intended, inter alia, to facilitate the delivery of appropriate financial assistance to eligible veterans and to the unremarried surviving spouses of veterans who are deceased as a result of their mobilization or deployment as provided herein.

(2) Funds appropriated for the Program by the Oregon Legislative Assembly through 2008 Oregon Laws chapter 16 (Senate Bill 5556 §48) or otherwise are, consistent with House Bill 3626 §20, deposited in the Veterans’ Small Business Repair Loan Fund (the “Fund”) established in the State Treasury, separate and distinct from the General Fund. The Department will use Fund moneys consistent with this division for the purpose of providing interest-free loans to qualified applicants whose small businesses incur setbacks during the relevant veteran's mobilization or deployment.

History

Statutory/Other Authority: 2008 OL Ch. 18 & ORS 406.005
Statutes/Other Implemented: 2008 OL Ch. 18
DVA 6-2008, f. 9-30-08, cert. ef. 10-1-08

Or. Admin. R. 274-013-0010 Definitions

For the purposes of OAR chapter 274, division 013, the following terms have the following meanings, unless the context clearly indicates otherwise:

(1) “Act” means 2008 Oregon Laws, chapter 18 as enacted by the Oregon Legislative Assembly through House Bill 3626 §19 and 20, effective February 11, 2008.

(2) "Applicant" means any Veteran (individually or with his or her spouse) or Surviving Spouse applying for a Program loan from the Department on behalf of a Small Business in which the Applicant owns a Controlling Interest.

(3) "Borrower" means any successful Applicant, and/or the Small Business in which such successful Applicant owns a Controlling Interest, approved for and provided a Program loan from the Fund by the Department.

(4) "Collateral" means property subject to a security interest, security agreement, or otherwise pledged to the Department’s satisfaction for the repayment of a Program loan.

(5) "Controlling Interest" means more than 50 percent ownership (whether individually by a Veteran or a Surviving Spouse or jointly by a Veteran and his or her spouse) of a Small Business for which a Program loan is sought.

(6) "Department" means the Department of Veterans' Affairs created under ORS 406.005.

(7) "Deployment” means an act in which an individual was ordered to active military duty on behalf of the United States of America and was deployed outside the United States as defined in the Act.

(8) “Director" means the Director of the Department of Veterans' Affairs.

(9) "Equity" means unencumbered and unpledged cash, real property or personal property owned or controlled to the Department’s satisfaction by an Applicant or the Small Business in which the Applicant owns a Controlling Interest and committed to the Department’s satisfaction for use in the Project for which a Program loan is being sought by the Applicant. The valuation of such Equity shall be subject to determination by the Department in its reasonably conservative discretion.

(10) "Funds" means moneys available to the Veterans' Small Business Repair Loan Program from the Fund.

(11) "Mobilization" means an act which an individual left his or her home station and was transferred to a mobilization site for federal service as defined in the Act.

(12) "Person" means any individual, association of individuals, joint venture, partnership, corporation, limited liability company, sole proprietorship or other legal entity.

(13) "Project" means the repair, rehabilitation, operation or maintenance of a Small Business.

(14) "Setback" means a material business disruption incurred by a Small Business due to the Veteran's Mobilization or Deployment as determined by the Department.

(15) "Small Business" means a business that:

(a) Is a corporation, partnership, sole proprietorship or other legal entity licensed and located in Oregon and formed for the purpose of making a profit, and that is independently owned and operated from all other businesses; and

(b) Employs 50 or fewer persons.

(16) "Surviving Spouse" means the unremarried surviving spouse of a Veteran deceased as a result of the Veteran's Mobilization or Deployment.

(17) "Veteran" means an individual who (by himself or herself, or jointly with a spouse) owns a Controlling Interest in a Small Business and who, at the time of the individual's Mobilization or Deployment, is:

(a) A member of the Oregon National Guard; or

(b) A member of the reserves of the Army, Navy, Air Force, Marine Corps or Coast Guard of the United States and a resident of Oregon.

(18) "Veterans' Small Business Repair Loan Program" means these rules, related documents and relevant determinations by the Department, which are designed to assist any Veterans in addressing Setbacks to their Small Businesses due to the Veteran's Mobilization or Deployment.

History

Statutory/Other Authority: 2008 OL Ch. 18 & ORS 406.005
Statutes/Other Implemented: 2008 OL Ch. 18
DVA 6-2008, f. 9-30-08, cert. ef. 10-1-08

Or. Admin. R. 274-013-0020 Eligibility

(1) To be eligible for a Program loan, an Applicant must satisfy the definition of Applicant given in OAR 274-013-0010 and meet the following criteria:

(a) The Applicant must own a Controlling Interest in a Small Business;

(b) The Small Business must have incurred a Setback due to the relevant Veteran's Mobilization or Deployment. The Department may consider factors including, but not limited to the following in determining whether or not a Small Business has incurred a Setback:

(A) Whether or not the Small Business has experienced a material diminution or loss of income, customers, suppliers, operational integrity, relative competitive position or good will;

(B) Whether or not the Small Business has experienced an extraordinary depreciation in or loss of goods or capital; and

(C) Whether or not any factor identified in Subparagraphs (A) or (B) occurred during the relevant Veteran’s Mobilization or Deployment or as a demonstrable consequence of such Mobilization or Deployment.

(c) The Applicant must apply to the Department for a Program loan within 12 months after the relevant Veteran’s Demobilization or the date upon which the relevant Veteran would have been Demobilized but for his or her demise while on active duty.

(d) The relevant Veteran must have been discharged under honorable conditions or been eligible for honorable discharge at the time of his or her demise while on active duty.

(2) To be eligible for a Program loan, an Applicant also must complete and deliver to the Department an application, including other information and documents as required by the Department, in a manner consistent with Program requirements.

History

Statutory/Other Authority: 2008 OL Ch. 18 & ORS 406.005
Statutes/Other Implemented: 2008 OL Ch. 18
DVA 6-2008, f. 9-30-08, cert. ef. 10-1-08

Or. Admin. R. 274-013-0030 Application Procedure

(1) The Department may, from time to time, identify forms to be completed by Applicants and require such additional information or performance with respect to any application as it deems appropriate.

(a) The Department may require an Applicant to pay an application fee of not more than $250 to recompense the Department for its reasonable expenses in processing the application.

(b) The Department may require an Applicant to enroll in and successfully complete a business management program.

(c) The Department may require an Applicant to complete a business plan, including identification of the Applicant’s proposed use of the requested Program Loan and demonstration of the ability to repay the Program loan.

(2) Each Applicant must certify in a manner acceptable to the Department that they satisfy the eligibility requirements provided in OAR 274-013-0020(1).

(3) The Department may deny applications that are incomplete or otherwise inconsistent with Program requirements, including those where an Applicant has failed to satisfy any requirements to completion of a business management program or to complete a business plan. The Department will provide notice of such a denial to an Applicant at the address listed in the application.

(4) The Department may suspend consideration of an application during such periods when it has requested and is awaiting additional information or performance from the Applicant.

(5) The Department may limit or refuse to accept applications depending upon Funds availability.

(6) The Department may consider applications in such order as it deems appropriate. The Department may consider factors including, but not limited to the following in prioritizing its consideration of applications:

(a) When the application was made;

(b) The apparent need for a Program Loan;

(d) The potential for ongoing business disruption;

(e) Compliance by the Applicant with requests for information or performance; and

(f) The accuracy and completeness of the application.

(7) In determining whether or not to approve or deny a requested Program loan (in whole or in part), the Department may consider factors including, but not limited to the following:

(a) The eligibility of the Applicant;

(b) Factors identified above in Subparagraph (6);

(d) The likelihood and timeliness of loan repayment;

(e) Cooperation with and the results of any loan due diligence, including credit checks and appraisals;

(f) The willingness to provide, and the value of, any loan Collateral; and

(g) The availability of Funds.

(8) Upon completion of its review the Department may, in whole or in part, approve or deny the application. The Department will provide the Applicant notice of its determination at the address identified in the application. Notwithstanding anything stated in an application approval, any application approval is subject to the Applicant or Small Business successfully passing, to the Department’s satisfaction, such credit checks and other due diligence as the Department may require or perform. Furthermore, and notwithstanding anything stated in an application approval, any application approval also is subject to the Applicant and Small Business (together with such guarantors as may be required by the Department) executing, recording and delivering such documents and instruments as the Department may require.

History

Statutory/Other Authority: 2008 OL Ch. 18 & ORS 406.005
Statutes/Other Implemented: 2008 OL Ch. 18
DVA 6-2008, f. 9-30-08, cert. ef. 10-1-08

Or. Admin. R. 274-013-0040 Loan Conditions

(1) Before providing a Program loan, the Department may require or perform such further credit checks and other due diligence as it deems appropriate. The Applicant and proposed Borrower must cooperate to the Department’s satisfaction with respect to such credit checks and other due diligence.

(2) The Department may require that the Borrower and others execute, record and deliver such documents, including such representations, covenants and warranties, as the Department deems appropriate. The Borrower must cooperate fully with such document requirements.

(3) The Department may require such Collateral requirements as it deems appropriate. The Borrower and others shall provide such assurances of Collateral as the Department may require.

(4) The Department may require the payment of a loan fee of not more than one and one-half percent of the amount of the loan to recompense the Department for its costs of loan administration.

(5) Notwithstanding any Program loan commitments by the Department, all Program loans are subject to the availability of Funds as reasonably determined by the Department.

(6) The initial amount of any Program loan shall not exceed $20,000. The total amount of Funds loaned to any Applicant or Borrower shall not exceed $40,000.

(7) The Department may, in its reasonable discretion, disburse the proceeds of an approved loan in such amounts and at such times as the Department deems appropriate to ensure that loan proceeds are used for Project purposes and to preserve the integrity of the Fund. If the Department determines that the financial condition of the Borrower has deteriorated, the Department may suspend or terminate further Program loan disbursements. The Department also may exercise any other remedy available to it in law, contract or otherwise.

(8) The Borrower must abide by all laws and regulations applicable to the Project and provide evidence satisfactory to the Department of its receipt of all applicable federal, state and local permits and licenses before the Department will make any disbursement of Program loan Funds. The Borrower also shall fully and timely perform all Program loan obligations, including as provided in any Program loan documents. The Department may suspend, terminate or exercise any other remedy with respect to its Program loan upon a determination by the Department of any default or other failure of performance by the Borrower, including but not limited to any failure of timely completion of the Project, misallocation of Program loan funds or failure to make timely Program loan repayments.

(9) The Department may take such action as it deems appropriate in the review and enforcement of a Project or of a Program loan, including but not limited to entry onto Project property, inspection of a Project and review and copying of any Borrower documents with respect to a Project. The Borrower shall cooperate fully with the Department in such review and enforcement efforts and agrees to allow Project inspection and review and copying of Project documents as the Department deems appropriate.

(10) At the request of the Department, the Borrower will provide to the Department annual financial statements; copies of tax returns and other requested documents. The Department may require additional financial information or more frequent financial statements.

History

Statutory/Other Authority: 2008 OL Ch. 18 & ORS 406.005
Statutes/Other Implemented: 2008 OL Ch. 18
DVA 6-2008, f. 9-30-08, cert. ef. 10-1-08

Or. Admin. R. 274-013-0050 Loan Documents

(1) Program loan documents may contain such provisions as the Department deems appropriate, including but not limited to terms with respect to Program loan disbursements, Collateral, repayment, remedies, late fees and interest, collection charges, attorneys fees and costs and post-judgment interest.

(2) The Department may charge Borrowers for appropriate administrative costs, collection fees, late fees and attorney fees, as well as interest charges on the foregoing, and post-judgment interest.

History

Statutory/Other Authority: 2008 OL Ch. 18 & ORS 406.005
Statutes/Other Implemented: 2008 OL Ch. 18
DVA 6-2008, f. 9-30-08, cert. ef. 10-1-08

Or. Admin. R. 274-013-0060 Administrative Review

(1) Any Person adversely affected by a Department determination with respect to this Program, unless controlled by relevant loan documents, may request review of such determination by the Department's Director. The Director, or the Director’s designee, will undertake such review as he or she deems appropriate. The Director, or the Director's designee will endeavor to provide a written response within 30 days of receipt of the requested review.

(2) Any request for modification of any provision with respect to a Program loan must be made in writing to the Department. No Program loan modification or waiver of any term shall be effective unless in a signed writing by the Director.

(3) If the Director consents to any requested modification, the Department may require the Borrower to pay for related costs, including but not limited to all costs of modifying or amending any loan documents, filings, recordings or financing statements.

History

Statutory/Other Authority: 2008 OL Ch. 18 & ORS 406.005
Statutes/Other Implemented: 2008 OL Ch. 18
DVA 6-2008, f. 9-30-08, cert. ef. 10-1-08

Or. Admin. R. 274-013-0070 Waiver of Rules

The Department may waive or modify any requirements of OAR 274, division 013, in order to achieve substantial justice and the purposes of the Program unless such waiver or modification would violate applicable federal or state law.

History

Statutory/Other Authority: 2008 OL Ch. 18 & ORS 406.005
Statutes/Other Implemented: 2008 OL Ch. 18
DVA 6-2008, f. 9-30-08, cert. ef. 10-1-08

Division 15 CONSERVATORSHIP SERVICES

Or. Admin. R. 274-015-0010 Conservatorship Fees

(1) As used in this rule:

(a) “Department” means the Department of Veterans’ Affairs.

(b) “Protected person” means a person for whom a protective order has been entered by a count that appoints the Department as the conservator.

(c) "Ordinary services" means ordinary and routine conservatorship services performed by the Department on behalf of a protected person.

(d) "Unusual services" means conservatorship services performed by the Department on behalf of a protected person that are uncommon or unusual.

(e) “USDVA” means the Unites States Department of Veterans’ Affairs.

(2) The Department will charge the following fees when acting as the conservator of the estate of a protected person:

(a) For ordinary services, 7% of the income to the estate.

(b) For unusual services, $40 per hour except for real property inspections. The fee for real property inspections is $50 per inspection.

(3) The Department will impose a fee on the following sources of income to the estate of a protected person:

(a) USDVA compensation.

(b) USDVA pension.

(d) USDVA death indemnity compensation (DIC).

(e) USDVA death pension for a surviving spouse or child.

(f) USDVA education.

(g) USDVA rehabilitation.

(h) Social Security.

(i) State retirement.

(j) Federal Civil Service Retirement.

(k) Worker's compensation.

(l) Railroad retirement.

(m) Union pension.

(n) Life insurance annuity.

(o) Private disability insurance.

(p) Military retirement.

(q) Wages.

(r) Interest income on the funds in the estate earned through investments made by the Oregon State Treasurer.

(4) The Director of Veterans’ Affairs may waive all or any portion of the fees charged under section (2) of this rule if the director finds that payment of a claim, or a portion thereof, would pose a hardship to the protected person or would deplete the protected person’s estate.

(5) The director may retract a waiver made under subsection (4) of this rule if the director finds that payment of the claim, or a portion thereof, would no longer pose a hardship to the person from whose estate the claim is payable, or would no longer deplete the estate.

History

Statutory/Other Authority: ORS 406.005, 406.050 & 406.100
Statutes/Other Implemented: ORS 406.100, 406110 & 406.120, 2013 OL Ch. 258 & 190
DVA 12-2013, f. 12-20-13, cert. ef. 1-1-14
DVA 7-2013(Temp), f. 8-29-13, cert. ef. 8-30-13 thru 1-3-14
DVA 3-2013(Temp), f. & cert. ef. 7-9-13 thru 1-3-14
DVA 1-2012, f. & cert. ef. 2-22-12
DVA 4-1991, f. & cert. ef. 7-1-91
DVA 9-1987, f. 11-25-87, ef. 12-1-87

Or. Admin. R. 274-015-0020 Representative Payee

(1) The Director of Veterans' Affairs (DVA) may act as Representative Payee on behalf of a person deemed to be financially incapable at the request of any of the following:

(a) The United States Department of Veterans’ Affairs (VA);

(b) The Social Security Administration;

(d) Defense Finance and Accounting Service;

(e) Public Employees Retirement System;

(f) Any other payor of benefits.

(2) The Director of Veterans' Affairs (DVA) may charge fees when acting as the Representative Payee of a person deemed to be financially incapable. The fees DVA may charge are as follows:

(a) Up to four (4) percent of highest income source; or

(b) As stated in applicable law governing the payor.

(3) The sources of income upon which DVA may impose a fee are as outlined in OAR 274-015-0010(2).

(4) In deciding whether all or a portion of the fees will be waived, the Director shall consider the following:

(a) Whether the protected person has at least $2,000 in cash and investment assets;

(b) Whether, after payment of a fee, the protected person would have sufficient funds to pay all outstanding bills, and have money remaining to pay for such basic needs as food, shelter, clothing, and medical care;

(d) Whether all foreseeable expenses have been taken into account in deciding what the needs of the protected person will be; and

(e) Whether fees have been authorized by the payer of benefits.

History

Statutory/Other Authority: ORS 406.030, 406.040, 406.050, 406.100 & 113.085
Statutes/Other Implemented: ORS 406.030, 406.050, 406.100 & 406.110
DVA 1-2012, f. & cert. ef. 2-22-12

Division 20 VETERANS’ LOANS

Or. Admin. R. 274-020-0200 Definitions for OAR 274-020-0200–274-020-0450

As used in OAR 274-020-0200 to 274-020-0450:

(1) "Acquisition" means the purchase of a home or farm.

(2) "Department" means the Oregon Department of Veterans’ Affairs established under ORS 406.005.

(3) “Director” means the Director of the Oregon Department of Veterans' Affairs.

(4) "Farm" means a home, as defined in this rule, and a parcel of land being used to obtain a profit in money by utilizing accepted farming practices to raise crops or livestock or poultry or dairying or combinations thereof.

(5) "Home" means a residential structure, including a manufactured home or a condominium unit, which is established, maintained and used primarily as a principal residence by a veteran, and includes real property connected to a residential structure, including any long-term leasehold and any outbuildings.

(6) "Lease" means the giving of possession and use of profits of secured property for a period of time in return for compensation.

(7) "Lease Option" means a lease of real property with an option to purchase the property within a stipulated period of time.

(8) "Loan to Value Ratio" is the loan amount or balance divided by the net appraised value.

(9) “Manufactured home” means a structure that is:

(a) At least 20 feet in width;

(b) Constructed for movement on the public highways and that has sleeping, cooking and plumbing facilities;

(d) Being used for residential purposes;

(e) Classified and taxed as real property in the county where the structure is located; and

(f) Constructed in accordance with the Oregon Manufactured Dwelling Installation Specialty Code adopted under ORS 446.155 or the Model Manufactured Home Installation Standards established by the Department of Housing and Urban Development.

(10) “Mortgage” means a loan in which real property is used as collateral.

(11) "Net Appraised Value" means the lesser of the appraised value or the purchase price. The "appraised value" is the value established by an appraisal obtained by or at the direction of the Department, or an appraisal approved by the Department.

(12) “ODVA" means the Oregon Department of Veterans’ Affairs established under ORS 406.005.

(13) "Possession" means exclusive dominion and physical control of the secured property but occupancy is not necessary.

(14) "Rent" means the giving of possession of secured property for occupancy for a specific period of time in return for a stipulated amount of compensation.

(15) “Resides in the State of Oregon” means a person who:

(a) Maintains a primary legal residence in Oregon, or

(b) Intends to occupy a home in Oregon, secured by an ODVA loan, that will be their primary legal residence.

(16) "Security" means all of the real property that is to be acquired for a home and which serves as collateral for the loan.

(17) "Transfer" means a change of ownership, either by operation of law, act of the parties, or both, such as deed, contract, certificate, court decree, property settlement, foreclosure, easement, condemnation, or adverse possession of the premises.

(18) “Trust deed” means a deed, executed in conformity with ORS 86.705 to 86.815, that conveys an interest in real property to a trustee in trust to secure the performance of an obligation the grantor or other person named in the deed owes to a beneficiary.

(19) "Underwriter/Designated Loan Officers" means those employees of the Department whose paramount responsibility shall be the approval or rejection of all applications for loans.

(20) “Veteran” means a person who:

(a) Resides in the State of Oregon at the time of applying for a loan from the fund;

(b) Is a veteran, as that term is defined by Oregon law in ORS 407.087;

(d) Satisfies the requirements applicable to the funding source for the loan from the Oregon War Veterans' Fund.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407. 385; Oregon Constitution Article XI-A, Section 3
DVA 9-2020, amend filed 07/13/2020, effective 07/13/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
Reverted to DVA 2-2013, f. & cert. ef. 7-8-13
DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14
DVA 2-2013, f. & cert. ef. 7-8-13
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 5-1997, f. & cert. ef. 10-22-97
DVA 12-1995, f. & cert. ef. 9-22-95
DVA 10-1995, f. 9-11-95, cert. ef. 9-22-95
DVA 3-1990, f. & cert. ef. 5-1-90
DVA 4-1980, f. & ef. 12-1-80
DVA 1-1980, f. & ef. 1-15-80
DVA 50, f. 11-16-77, ef. 12-1-77
DVA 48, f. & ef. 1-3-77
DVA 47, f. & ef. 4-20-76
DVA 45, f. & ef. 12-1-75
DVA 43, f. 3-2-73, ef. 3-29-73
DVA 38, f. 5-10-71, ef. 6-11-71
DVA 35, f. 12-19-68, ef. 1-11-69
DVA 33, f. 12-7-66, ef. 1-11-67
DVA 32, f. 12-2-65, ef. 10-25-65
DVA 29, f. 7-3-63, ef. 9-2-63
DVA 26, f. 12-13-60
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0241 Authority to Protect the Security

At the discretion of the Director, funds can be disbursed to make repairs to correct a serious structural, safety, or sanitary deficiency discovered in a property that is security for a loan when it is determined such a disbursement is necessary to protect the interest of the state. This would occur when the following conditions exist:

(1) The present and probable future value of the property, without benefit of the needed repairs, is sufficiently low when compared to the existing loan balance that the state’s investment would be threatened; and

(2) The current owner is the original veteran borrower who lacks the financial means to make the needed repairs or corrections in a timely manner; and the funds required, when added to the existing loan balance, would exceed the maximum loan right or percentage of loan limitations; or

(3) The current owner is a transferee who lacks the financial means to make repairs or corrections in a timely manner.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407.115, 407.131, 407.135 & 407.145
DVA 5-1980, f. & ef. 12-1-80

Or. Admin. R. 274-020-0260 Who May Apply for Loan

(1) A loan shall be made only to an individual veteran as defined in OAR 274-020-0200.

(2) Joint loans or loans to a cooperative shall not be valid.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030, 407.115 & 407.125
DVA 7-2001, f. & cert. ef. 10-29-01
DVA 42, f. 3-2-73, ef. 3-20-73
DVA 32, f. 12-2-65, ef. 10-15-65
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0265 Evidence Required to Establish Eligibility

The applicant shall submit to the Director the following evidence to establish eligibility:

(1) Evidence of separation such as a photostat of Discharge or a Certificate of Satisfactory Service and a photostat of Notice or Report of Separation, Transfer, or Discharge.

(2) Certificate of Service and Casualty Report when applicant is the unremarried spouse of a person who died on active duty.

(3) Proof of Oregon residence.

(4) Proof of any change in name since discharge:

(a) Where legally changed, proof shall be by a certified copy of the Court Order, or a marriage certificate, or a divorce decree;

(b) Where not legally changed, proof shall be by an affidavit from the veteran and affidavits from at least two disinterested persons.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030, 407.075, 407.115 & 407.125
Reverted to DVA 1-1980, f. & ef. 1-15-80
DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14
DVA 1-1980, f. & ef. 1-15-80
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0266 Eligibility to Apply

Eligibility to apply for a loan under this division is subject to the eligibility criteria of Article X1-A of the Oregon Constitution and qualification under the Internal Revenue Code as a qualified veteran. The acceptance of an application and granting of a loan is further subject to the provisions of ORS Chapter 407, OAR division 020, 025, 045, other applicable law, and the policies and procedures of the Oregon Department of Veterans’ Affairs (ODVA), and at the discretion of the director of ODVA.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-020-0270 Forms and Signature

(1) Application for a loan from the state shall be made to the Director on forms provided by the Director.

(2) Applicants shall complete the appropriate department form to establish eligibility and shall sign their name as it appears on the discharge, unless their name has changed since discharge, in which case they shall use their present name.

History

Statutory/Other Authority: ORS 406 & 407
Statutes/Other Implemented: ORS 406.030, 407.075, 407.115 & 407.125
DVA 2-1985, f. 2-26-85, ef. 3-1-85
DVA 48, f. & ef. 1-3-77
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0280 Number of Applications Permitted

(1) Except as provided in section (2) and (3) of this rule, a veteran may have only one ODVA loan application pending at any time.

(2) A veteran may make application for another loan if conditions exist which entitle the veteran to another loan.

(3) A veteran may make an application for an additional loan if the veteran presently has a state loan.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 5-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
Reverted to DVA 1-1980, f. & ef. 1-15-80
Suspended by DVA 11-2013(Temp), f. & cert. ef. 11-15-13 thru 1-19-14
DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14
DVA 1-1980, f. & ef. 1-15-80
DVA 32, f. 12-2-65, ef. 10-25-65
DVA 29, f. 7-3-63, ef. 9-2-63

Or. Admin. R. 274-020-0285 Additional Loans

A veteran may receive this type of subsequent loan to replace an existing home unit on the existing ODVA security with a new home unit when the total funds do not exceed statutory limits.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407.205 & 407.265
Reverted to DVA 5-1997, f. & cert. ef. 10-22-97
DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14
DVA 5-1997, f. & cert. ef. 10-22-97
DVA 42, f. 3-2-73, ef. 3-20-73
DVA 29, f. 7-3-63, ef. 9-2-63
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0290 Second Loans

Before a second loan may be granted:

(1) The repayment shall have been satisfactory; and

(2) The amount shall be limited to the balance of the original or restored loan right.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407.205 & 407.265
Reverted to DVA 45, f. & ef. 12-1-75
Suspended by DVA 11-2013(Temp), f. & cert. ef. 11-15-13 thru 1-19-14
DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14
DVA 45, f. & ef. 12-1-75
DVA 42, f. 3-2-73, ef. 3-20-73
DVA 36, f. 7-25-69, ef. 8-25-69
DVA 29, f. 7-3-63, ef. 9-2-63
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0295 Modification of Application

An application may be modified such as to the amount of the loan requested, legal description, amount of security or plans and specifications, but the modification must be requested in writing by the veteran and shall be subject to the approval of the Director.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407.205, 407.225 & 407.265
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0300 Cancellation of Application

(1) An applicant may cancel his application for a state veterans' loan at any time prior to receipt of the loan proceeds.

(2) The Director may cancel any application if the applicant fails to comply with any of the conditions pertaining to the loan.

(3) The Director may destroy any application 25 months after the veteran applicant is notified of action taken on an application (whether credit was approved or adverse action was taken).

History

Statutory/Other Authority: ORS 183, 406.030, 407.115, 407.135, 407.145, 407.275, 407.305 & 407.375
Statutes/Other Implemented: ORS 406.030, 407.115, 407.265 & 407.385
DVA 7-2001, f. & cert. ef. 10-29-01
DVA 5-1993, f. 3-16-93, cert. ef. 3-21-93
DVA 21-1982, f. & ef. 9-15-82
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0305 Filing Period

An applicant may file to secure a veterans’ loan at any time after separation from the service, even though he has re-enlisted and is not separated at the time of application.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407.115, 407.125 & 407.205
DVA 35, f. 12-19-68, ef. 1-11-69
DVA 26, f. 12-13-60
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0310 Evidence of Acquisition

An applicant shall be required to furnish any of the following items applicable:

(1) A copy of the earnest money receipt or sales agreement, signed by all the parties if acquisition is by purchase.

(2) A copy of the contract of sale signed by all parties.

(3) A copy of the mortgage showing the recording data.

(4) Evidence of debt from F.H.A. Title 1 loan.

(5) Evidence of personal obligation incurred in acquiring the home.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407.115, 407.155 & 407.205
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0315 Evidence of Construction

An applicant shall submit complete plans, specifications, and cost estimates in applications for construction or improvements.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407.115, 407.225 & 407.265
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0322 Requirements for Farm Applicants

(1) Must complete the Department’s farm income, experience, and expense form.

(2) Must have capital or an equivalent line of credit to cover development costs and one year’s operating cost.

(3) Must show, to the satisfaction of the Director, that the farm portion of the loan security is capable of producing an annual income that will repay the loan allocated to the farm land and farm buildings.

History

Statutory/Other Authority: ORS 406 & 407
Statutes/Other Implemented: ORS 407.205, 407.265 & 407.385
DVA 20-1982, f. & ef. 9-15-82

Or. Admin. R. 274-020-0325 Security for the Loan

(1) The home or farm offered as security shall be owned in fee simple by the veteran at the time the loan is closed.

(2) The state shall have the first lien at the time of making the loan.

(3) The security for the loan shall consist of real or personal property and the mortgage or trust deed shall include all property to be acquired as a home. The Director may allow more than one parcel of real property to be included in the security.

(4) All security for the loan must include a home that is completed and ready for occupancy at the time the loan is closed.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407. 385; Oregon Constitution Article XI-A, Section 3
DVA 5-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 7-2001, f. & cert. ef. 10-29-01
DVA 45, f. & ef. 12-1-75
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0330 Legal Description of Property Offered as Security

(1) Property offered as security must have an adequate legal description from which the boundaries of the property may be located.

(2) The Director may require a survey to ascertain the boundary lines and location of all permanent improvements on the property.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407.225
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0335 Appraisal of Property

(1) An appraisal shall be made to assist in establishing the loan value only after a complete application has been received.

(2) On farms, the loan value allowable on the principal home unit portion of the property shall not exceed the amount needed for a maximum home loan.

History

Statutory/Other Authority: ORS 406.030, 407.115 & 407.225(3)
Statutes/Other Implemented: ORS 407.115 & 407.225
DVA 3-1990, f. & cert. ef. 5-1-90
DVA 3-1980, f. & ef. 7-1-80
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0340 Terms of Loan

(1) The loan value (net appraised value) shall be used as the basis for determining the maximum loan, subject to statutory limitations. Under the provisions of ORS 407.225(3), the maximum loan on a home which is real property may not exceed 100 percent of the loan value (net appraised value), but may be a lesser amount as determined from time-to-time by the Director of Veterans' Affairs, (Director):

(a) On farms, the maximum original loan allowable for acquisition of the principal home unit portion of the property shall not exceed the maximum home loan, whether it be for purchase, refinance, construction, improvements, or a combination of these; and the maximum additional loan or advance for improvements to the principal home shall not exceed the difference between the maximum home loan and that portion of the original loan granted on the principal home unit, except advances for protection of security improvements, taxes, and insurance premiums;

(b) Loans shall be made in multiples of $1.

(2) The Director shall determine the period and amount of repayment based on the age, condition, location, and useful life of the security, but the maximum period of repayment shall not exceed statutory limits.

(3) The borrower shall timely pay all property taxes and other assessments that may or do become a lien against the loan security.

(4) The borrower shall carry fire and extended coverage insurance on the security. The Director also may require that hazards other than fire be covered. All premiums and charges for said coverage shall be paid timely by the borrower:

(a) The Director may determine the form and amount of insurance coverage for the security;

(b) All insurance money shall be payable to the State of Oregon, Director of Veterans' Affairs, by endorsement of the Director-approved mortgagee clause;

(c) The Director may enter into agreements with companies engaged in the business of providing insurance management programs which, among other things, assure the Director that the required insurance is kept in force. Where the borrower fails or refuses to keep the property adequately insured, the Director may pay the premium charged by the company providing the insurance management service, and any payment of premium so made shall be added to the amount due from the borrower and shall bear interest at the same rate as the principal indebtedness. The loan payment may be increased to repay the money advanced to pay the insurance premium and accrued interest, over a period of 12 months;

(d) In case of loss, the Director shall determine the disposition of any and all funds received under the insurance policies.

(5) On all loans made on or after June 1, 1990, or as otherwise agreed to by the borrower and the Director, the Director may collect in advance from said borrowers together with their payments required under section (2) of this rule, sufficient amounts to pay property taxes, insurance premiums, and other charges related to the security. Such additional amounts collected by the Director shall be held in escrow pending payment of the obligations for which they are collected and interest on said amounts shall be paid to the borrower in the manner and at the rate of interest described in ORS 86.245(1).

(6) Property taxes, insurance premiums, and other charges may be paid by the Director from funds collected from the borrower for those purposes. The Director, in the absence of funds collected from the borrower (or if such funds are insufficient in amount), may, at his option, elect to pay property taxes, insurance premiums, and other charges from the Oregon War Veteran's Bond Sinking Account. Any amount paid by the Director from the Oregon War Veteran's Bond Sinking Account may be added to and become part of the loan principal and shall bear interest at the same rate as the balance of the principal indebtedness. On loans made after June 1, 1991, excluding qualified loan assumptions, the Director will not add amounts advanced for payment of property taxes or insurance premiums to the principal balance of the loan. On these loans, any amount advanced will be entered as a negative balance in the escrow account.

(7) The borrower's loan payment may be increased to repay the money advanced from the Oregon War Veteran's Bond Sinking Account to pay the property taxes, insurance premiums, and other charges against the security, together with interest thereon, within a maximum period of 12 months or such shorter time as established by the Director.

History

Statutory/Other Authority: ORS 291.021, 406.030, 407.115, 407.169, 407.179, 407.179, 407.181, 407.225(3) & 407.275
Statutes/Other Implemented: ORS 407
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 8-2005, f. & cert. ef. 12-27-05
DVA 11-2003, f. & cert. ef. 9-23-03
DVA 3-2003(Temp), f. & cert. ef. 4-7-03 thru 10-3-03
DVA 7-1993, f. 5-18-93, cert. ef. 5-21-93
DVA 1-1992, f. & cert. ef. 1-2-92
DVA 3-1990, f. & cert. ef. 5-1-90
DVA 3-1987, f. & ef. 5-1-87
DVA 3-1985, f. 2-26-85, ef. 3-1-85
DVA 6-1983, f. & ef. 5-3-83
DVA 3-1980, f. & ef. 7-1-80
DVA 1-1980, f. & ef. 1-15-80
DVA 45, f. & ef. 12-1-75
DVA 42, f. 3-2-73, ef. 3-20-73
DVA 32, f. 12-2-65, ef. 10-25-65
DVA 29, f. 7-3-63, ef. 9-2-63
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0341 Interest Rates for Loans

(1) The Director will prescribe interest rates for loans to be funded by the Department pursuant to this division. In prescribing interest rates, the Director will consider the following factors:

(a) The current value of funds;

(b) The solvency of the Department’s Loan Program; and

(2) In prescribing interest rates, the Department also may consider factors including, but not limited to the following:

(a) The projected value of funds;

(b) Any Federal tax law restrictions;

(d) The availability of funds;

(e) Actual or projected loan demand;

(f) The loan purpose; and

(g) The source(s) of funds.

(3) The Director may prescribe rates of interest of up to two percent per annum more than the applicable basic rate determined under sections (1) and (2) above for loans used to acquire manufactured homes if, upon consideration of the factors described in section (1) above, the Director determines that there is an economic need for such higher rate of interest.

(4) The Director periodically may change the prescribed rate of interest on a funded loan consistent with ORS 407.325(2) and applicable loan documents. In changing a prescribed rate of interest, the Director may exceed the limits in ORS 407.325(2) if the Director determines, in the Director’s sole discretion, that such a change reduces the probability that invoking the provisions of section 4, Article XI-A of the Oregon Constitution will become necessary.

(5) The Director periodically may change the prescribed rate of interest on a loan to be funded by the Department to reflect reconsideration of, or changes in, factors considered under sections (1) and (2) above, or in consideration of additional factors.

(6) The Director may apply different rates of interest to different loans, depending upon factors including, but not limited to the following:

(a) The time of an initial loan or commitment to fund a loan;

(b) The initial rate of interest on a loan;

(d) The status of the borrower;

(e) The status of the loan security;

(f) The perceived risk associated with the loan;

(g) Whether or not the department agreed to maintain an interest rate commitment within a certain range or for a certain time; and

(h) Whether or not the applicant abandoned a previous loan application or loan commitment.

(7) The Department will endeavor to record prescribed interest rates as reasonably as it is practical.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407. 385; Oregon Constitution Article XI-A, Section 3
DVA 5-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 3-2005, f. & cert. ef. 4-22-05
DVA 1-2005(Temp), f. 4-7-05, cert. ef. 4-8-05 thru 10-3-05
DVA 12-2004, f. & cert. ef. 9-22-04
DVA 10-2004(Temp), f. 8-18-04 cert. ef. 8-19-04 thru 10-4-04
DVA 9-2004(Temp), f. 8-5-04 cert. ef. 8-6-04 thru 10-4-04
DVA 8-2004(Temp), f. 5-10-04, cert. ef. 5-11-04 thru 10-4-04
DVA 7-2004(Temp), f. 4-28-04, cert. ef. 4-29-04 thru 10-4-04
DVA 5-2004(Temp), f. 4-6-04, cert. ef. 4-8-04 thru 10-4-04
DVA 4-2004, f. 3-25-04, cert. ef. 3-26-04
DVA 2-2004(Temp), f. 1-21-04, cert. ef. 1-22-04 thru 4-5-04
DVA 13-2003(Temp), f. & cert. ef. 10-8-03 thru 4-5-04
DVA 10-2003, f. & cert. ef. 9-23-03
DVA 8-2003(Temp), f. 8-14-03, cert. ef. 8-15-03 thru 10-17-03
DVA 7-2003(Temp), f. 7-31-03, cert. ef. 8-1-03 thru 10-17-03
DVA 6-2003(Temp), f. 7-24-03, cert. ef. 7-25-03 thru 10-17-03
DVA 4-2003(Temp), f. 4-18-03, cert. ef. 4-21-03 thru 10-17-03
DVA 2-2003, f,& cert. ef. 3-24-03
DVA 1-2003(Temp), f. 1-17-03, cert. ef. 1-21-03 thru 3-24-03
DVA 8-2002(Temp), f. 9-25-02, cert. ef. 9-26-02 thru 3-24-03
DVA 6-2002, f. & cert. ef. 9-24-02
DVA 5-2002(Temp), f. 6-26-02, cert. ef. 6-27-02 thru 9-27-02
DVA 3-2002(Temp), f. 3-29-02, cert. ef. 4-1-02 thru 9-27-02
DVA 2-2002, f. & cert. ef. 2-22-02
DVA 6-2001(Temp), f. 9-7-01, cert. ef. 9-10-01 thru 3-8-02
DVA 10-2000, f. 12-5-00, cert. ef. 12-10-00
DVA 9-2000(Temp), f. 9-8-00, cert. ef. 9-11-00 thru 12-9-00
DVA 8-2000(Temp), f. 7-14-00, cert. ef. 7-17-00 thru 12-9-00
DVA 7-2000(Temp), 6-12-00 thru 12-9-00
DVA 6-2000, f. & cert. ef. 5-23-00
DVA 2-2000(Temp), f. 3-30-00, f. 3-31-00 thru 6-12-00
DVA 4-1999(Temp), f. 12-14-99, cert. ef. 12-16-99 thru 6-12-00
DVA 2-1999, f. & cert. ef. 9-22-99
DVA 1-1999, f. & cert. ef. 1-22-99
DVA 8-1998(Temp), f. 7-28-98, cert. ef. 8-1-98 thru 1-27-99
DVA 6-1998, f. & cert. ef. 6-23-98
DVA 2-1998(Temp), f. 1-26-98, cert. ef. 2-2-98 thru 7-31-98
DVA 5-1997, f. & cert. ef. 10-22-97
DVA 3-1997, f. & cert. ef. 6-25-97
DVA 1-1997(Temp), f. 2-4-97, cert. ef. 2-7-97
DVA -1996, f. & cert. ef. 3-22-96
DVA 14-1995(Temp), f. 10-30-95, cert. ef. 11-1-95
DVA 13-1995, f. & cert. ef. 10-23-95
DVA 6-1995(Temp), f. 6-23-95, cert. ef. 6-26-96
DVA 4-1995(Temp), f. & cert. 5-18-95
DVA 3-1995(Temp), f. & cert. ef. 5-11-95
DVA 2-1995, f. & cert. ef. 3-23-95
DVA 6-1994(Temp), f. 11-15-94, cert. ef. 11-18-94
DVA 5-1994(Temp), f. 9-15-94, cert. ef. 9-20-94
DVA 4-1994, f. & cert. ef. 6-22-94
DVA 2-1994(Temp), f. & cert. ef. 4-15-94
DVA 1-1994, f. 1-10-94, cert. ef. 2-1-94
DVA 10-1993(Temp), f. 10-18-93, cert. ef. 11-1-93
DVA 8-1993, f. 7-30-93, cert. ef. 9-27-93
DVA 6-1993(Temp), f. 3-30-93, cert. ef. 4-1-93
DVA 1-1993, f. & cert. ef. 1-4-93
DVA 10-1992(Temp), f. & cert. ef. 8-17-92
DVA 9-1992, f. & cert. ef. 8-3-92
DVA 6-1992(Temp), f. & cert. ef. 4-15-92
DVA 10-1985, f. 8-23-85, cert. ef. 1-1-86
DVA 5-1983, f. & cert. ef. 2-15-83
DVA 27-1982(Temp), f. & cert. ef. 10-15-82
DVA 15-1982, f. & cert. ef. 6-1-82
DVA 11-1982, f. 4-23-82, cert. ef. 1-1-83
DVA 3-1982(Temp), f. & cert. ef. 2-3-82
DVA 10-1981(Temp), f. & cert. ef. 12-22-81
DVA 8-1981, f. 10-30-81, cert. ef. 12-1-81
DVA 7-1981, f. 10-30-81, cert. ef. 11-1-81
DVA 5-1981(Temp), f. & cert. ef. 8-10-81
DVA 4-1981, f. & cert. ef. 4-16-81
DVA 2-1981(Temp), f. 3-11-81, cert. ef. 4-1-81
DVA 1-1981, f. 3-1-81, cert. ef. 4-1-81
DVA 6-1980(Temp), f. 12-19-80, cert. ef. 1-1-81
DVA 4-1980, f. & cert. ef. 12-1-80
DVA 1-1979, f. & cert. ef. 12-5-79
DVA 2-1978, f. & cert. ef. 12-1-78
DVA 50, f. 11-16-77, cert. ef. 12-1-77
DVA 49, f. & cert. ef. 6-1-77
DVA 45, f. & cert. ef. 12-1-75
DVA 40, f. 5-27-71, cert. ef. 5-27-71

Or. Admin. R. 274-020-0342 Interest Rate on Assumptions by Eligible Veterans

(1) Effective February 3, 1982, a veteran eligible for a loan under ORS 407.075 to 407.595 and Article XI-A of the Oregon Constitution who assumes a loan, previously made by the Director, assumes at one of the following rates:

(a) If the previous loan was a fixed interest rate loan made to a veteran before May 27, 1971, the assumption will be at the fixed rate;

(b) If the previous loan was a variable rate loan made to a veteran on or after May 27, 1971, the assumption will be at the rate of the previous loan, and will remain variable, with the limitation that the rate will not decrease and will not increase more than an additional one percent or exceed the current veteran’s rate at the time of transfer;

(c) If the previous loan had been transferred to one other than the original borrower, the surviving spouse, unremarried former spouse, surviving child or stepchild of the original borrower, or other eligible veteran assuming pursuant to ORS 407.305, the assumption rate to the veteran will be at the rate of the transferred loan, and will not become variable until a subsequent transfer.

(2) Effective September 28, 1987, a veteran eligible for a loan under ORS 407.075 to 407.595 and Article XI-A of the Oregon Constitution who assumes a loan, previously made by the Director, assumes at 10.5 percent variable or at the existing rate on the loan, whichever is higher.

History

Statutory/Other Authority: ORS 406 & 407
Statutes/Other Implemented: ORS 407.285 - 407.335
DVA 6-1987, f. 9-24-87, ef. 9-28-87
DVA 24-1982, f. & ef. 10-1-82
DVA 10-1982, f. & ef. 4-15-82
DVA 6-1982(Temp), f. & ef. 3-11-82

Or. Admin. R. 274-020-0343 Interest Rates on Loans Secured by Property Transferred to Non-Veterans

(1) Effective February 3, 1982, the interest rate on all loans secured by property transferred before February 3, 1982 will not change on the first transfer on or after February 3, 1982, but on any subsequent transfer the interest rate will be as provided by this rule and will be variable, with the limitation that the rate will not decrease and will not increase more than an additional one percent, except as provided under ORS 407.335(4).

(2) Subject to the conditions and limitations of section (1) of this rule, the interest rate on real property loans, when the property securing the loan is transferred to someone other than those entitled to the veteran’s interest rate, shall be:

(a) Through August 21, 1969, 5 percent;

(b) Effective August 22, 1969, 6.2 percent;

(d) Effective December 10, 1969, 8.1 percent;

(e) Effective April 8, 1970, 7.8 percent;

(f) Effective August 19, 1970, 7.4 percent;

(g) Effective January 6, 1971, 6.4 percent;

(h) Effective May 27, 1971, 7 percent;

(i) Effective June 1, 1977, 8 percent;

(j) Effective December 1, 1977, 8.8 percent;

(k) Effective December 1, 1978, 9.8 percent;

(l) Effective December 1, 1979, 11 percent;

(m) Effective December 1, 1980, 13 percent;

(n) Effective December 1, 1981, 17 percent;

(o) Effective February 3, 1982, 12 percent;

(p) Effective October 15, 1982, 11.5 percent;

(q) Effective January 1, 1985, 11.52 percent;

(r) Effective January 1, 1986, 9.86 percent, or one percent higher than the rate on the original note, whichever is higher. “The rate on the original note” shall be the rate stated as such on the note;

(s) Effective January 1, 1987, 8.59 percent, or one percent higher than the rate on the original note, whichever is higher;

(t) Effective September 1, 1987, 10.75 percent, or the rate existing on the loan immediately prior to the transfer, whichever is higher.

(3) Subject to the conditions and limitations of section (1) of this rule, the interest rate on personal property loans, when the property securing the loan is transferred to someone other than those entitled to the veteran’s interest rate, shall be:

(a) Effective May 30, 1975, 9 percent. Personal property included leaseholds until leaseholds were defined as real property on October 4, 1977. On or after October 4, 1977, the interest rate on leaseholds is the real property interest rate;

(b) Effective December 1, 1977, 9.8 percent;

(d) Effective December 1, 1979, 12 percent;

(e) Effective December 1, 1980, 14 percent;

(f) Effective December 1, 1981, 18 percent;

(g) Effective February 3, 1982, 12 percent;

(h) Effective December 1, 1982, 12.5 percent;

(i) Effective January 1, 1985, 11.52 percent;

(j) Effective January 1, 1986, 9.86 percent, or one percent higher than the rate on the original note, whichever is higher. “The rate on the original note” shall be the rate stated as such on the note;

(k) Effective January 1, 1987, 8.59 percent, or one percent higher than the rate on the original note, whichever is higher;

(l) Effective September 1, 1987, 10.75 percent, or the rate existing on the loan immediately prior to the transfer, whichever is higher.

(4) This rule does not apply to transfers to the surviving spouse, unremarried former spouse, surviving child, or stepchild of the original borrower, who are entitled to the veteran’s interest rate.

History

Statutory/Other Authority: ORS 406 & 407
Statutes/Other Implemented: ORS 407.275 & 407.335
DVA 5-1987, f. & ef. 9-1-87
DVA 2-1987, f. & ef. 4-15-87
DVA 10-1986(Temp), f. 12-8-86, ef. 1-1-87
DVA 5-1986, f. 3-10-86, ef. 4-1-86
DVA 14-1985(Temp), f. 12-30-85, ef. 1-1-86
DVA 13-1985(Temp), f. 12-16-85, ef. 1-1-86
DVA 12-1984, f. 12-17-84, ef. 1-1-85
DVA 5-1983, f. & ef. 2-15-83
DVA 24-1982, f. & ef. 10-1-82
DVA 27-1982(Temp), f. & ef. 10-15-82
DVA 10-1982, f. & ef. 4-15-82
DVA 6-1982(Temp), f. & ef. 3-11-82

Or. Admin. R. 274-020-0344 Fixed Interest Rate

(1) Subject to the provisions of this rule, effective June 1, 1989, borrowers with ODVA loans being charged 7.2 percent variable interest may convert the loan to a fixed interest rate.

(2) Subject to the provisions of this rule, effective February 1, 1990, borrowers with ODVA loans being charged 7.7 percent variable interest may convert the loan to a fixed interest rate.

(3) The following loans do not qualify for the interest rate conversion:

(a) Accounts with 12 or less monthly payments, or one annual payment remaining before the loan will be paid in full;

(b) Accounts of borrowers in bankruptcy;

(d) Accounts two or more months delinquent;

(e) Accounts coded as questionable loans (propriety of loan being investigated);

(f) Loans, any portion of which is being charged an interest rate other than 7.2 percent or 7.7 percent (composite interest rate).

(4) Accounts on semi-annual or annual payment schedules can convert to a fixed interest rate. If the holder of a loan with semi-annual or annual payments would like a fixed interest rate loan, all provisions of this rule will apply, except sections (7) and (8) of this rule. Matters covered by sections (7) and (8) of this rule will be negotiated with the borrower.

(5) The remaining term on loans converted to a fixed interest rate will be shortened. The shorter term will be arrived at by using the current retirement date, or the remaining term on loans paying off earlier than the retirement date (larger than required payments were made), and deducting ten percent:

(a) The maximum term on loans converting to a fixed interest rate shall be 40 years;

(b) The fixed interest rate available will be based upon the remaining term of the loan (after shortening the term as provided above) and shall be as follows: Remaining Term On Loans Being Charged 7.2% Interest — Fixed Interest Rate:

(A) 5 years or less — 7.3%;

(B) 5 years 1 month to 9 years 11 months — 7.4%;

(D) 15 years to 19 years 11 months — 7.6%;

(E) 20 years to 24 years 11 months — 7.7%;

(F) 25 years or more — 7.8%.

(6) In order to convert a 7.2 or a 7.7 percent variable interest rate loan to a fixed interest rate loan, the borrower must agree to the following:

(a) Each year ODVA may adjust the payment on principal and interest to an amount that will cause the loan to pay in full by its retirement date. The payments on principal and interest will not be reduced to an amount lower than the amount established at the time of conversion to a fixed interest rate;

(b) If ownership of the property securing the ODVA loan is transferred, or ownership of any portion of the property securing the loan is transferred, the interest rate on the loan will be as provided by ORS 407.275(2), the due date on the loan will be the due date on the latest Note and Mortgage, Trust Deed, or Security Agreement, and the agreement allowing ODVA to annually adjust the payment on the loan to assure proper amortization will terminate.

(7) The procedure for implementing the interest rate conversion on loans being charged 7.2 percent variable interest rate shall be as follows:

(a) Whether the account qualifies for interest rate conversion will be determined by the status of the account on June 1, 1989, if payments are due on the first day of the month or June 15, 1989, if payments are due on the 15th day of the month;

(b) Borrowers desiring to make the interest rate conversion must notify ODVA in writing, by either mailing a post card furnished by ODVA, or by other written notification:

(A) By June 30, 1989, if payments are due on the 1st day of the month;

(B) By July 14, 1989, if payments are due on the 15th day of the month.

(c) Interest owing on June 1, 1989, or June 15, 1989 (as applicable) shall be added to the balance of the loan on August 1, 1989, or August 15, 1989 (as applicable);

(d) Any “paid ahead” or “delinquency” existing on the loan on June 1, 1989, or June 15, 1989, (as applicable), will be eliminated;

(e) The new terms of the loan shall be effective August 1, 1989, or August 15, 1989, (as applicable) and the new payments will begin September 1, 1989, or September 15, 1989 (as applicable).

(8) The procedure for implementing the interest rate conversion on loans being charged 7.7 percent variable interest shall be as follows:

(a) Whether the account qualifies for interest rate conversion will be determined by the status of the account on February 1, 1990, if payments are due on the 1st day of the month or March 15, 1990, if payments are due on the 15th day of the month;

(b) Borrowers desiring to make the interest rate conversion must notify ODVA in writing, by either mailing a postcard furnished by ODVA, or by other written notification:

(A) By February 23, 1990, if payments are due on the 1st day of the month;

(B) By April 9, 1990, if payments are due on the 15th day of the month.

(c) Any “paid ahead” or “delinquency” existing on the loan on February 1, 1990, or March 15, 1990 (as applicable), will be eliminated;

(d) The new terms of the loan shall be effective April 1, 1990, or May 15, 1990 (as applicable) and the new payments will begin May 1, 1990, or June 15, 1990 (as applicable).

(9) This rule does not apply to contracts for the purchase of State-owned property.

History

Statutory/Other Authority: ORS 406.030, 407.115 & 407.327
Statutes/Other Implemented: ORS 407.327
DVA 1-1990, f. & cert. ef. 1-2-90
DVA 1-1989, f. & cert. ef. 6-1-89

Or. Admin. R. 274-020-0345 Approval of the Loan

The approval of any loan shall be dependent upon the following:

(1) The veteran applicant must meet current industry standards determined by the Department to be applicable to the proposed loan. Applicable industry standards may include, but are not limited to:

(a) Local lending practices;

(b) FannieMae and other lending organization standards; and

(2) The veteran applicant may be required to have an equity in the property.

(3) Secondary financing may be permitted.

(4) Construction shall meet the minimum standards set by federal, state and local laws.

(5) A performance bond may be required for new construction.

(6) Inspections to prove the premises safe, sanitary, and structurally sound may be required, and the loan may be refused if the construction is inferior.

(7) The security shall be served by adequate means of legal and physical access and shall have an acceptable potable water supply.

History

Statutory/Other Authority: ORS 183, 406.030, 407.115, 407.135, 407.145, 407.275, 407.305 & 407.375
Statutes/Other Implemented: ORS 407.115, 407.125 & 407.225
DVA 6-2005, f. & cert. ef. 10-24-05
DVA 5-2005, f. & cert. ef. 7-22-05
DVA 4-2005(Temp), f. & cert. ef. 6-3-05 thru 11-30-05
DVA 7-1995, f. & cert. ef. 7-21-95
DVA 5-1993, f. 3-16-93, cert. ef. 3-21-93
DVA 3-1991, f. 5-30-91, cert. ef. 6-3-91
DVA 7-1982, f. & ef. 3-15-82
DVA 2-1978, f. & ef. 12-1-78
DVA 50, f. 11-16-77, ef. 12-1-77
DVA 32, f. 12-2-65, ef. 10-25-65
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0348 Grounds for Refusing to Make a Loan

The Director may refuse to make a loan to an applicant based on any of the following reasons:

(1) Prior loan experience with an applicant was unsatisfactory, including, but not limited to, late payment or nonpayment on loan and impairment of security.

(2) The applicant did not disclose all debts or obligations as required under the terms of the loan credit application.

(3) The applicant has a negative cash flow.

(4) The applicant has declared bankruptcy within the last three years unless:

(a) The applicant or the applicant’s spouse has been regularly employed, other than self-employed, since the discharge;

(b) The applicant has established credit since the bankruptcy and made timely and satisfactory payments on obligations; and

(c) The bankruptcy was caused by circumstances beyond the applicant’s control, such as uninsured medical expense, layoff, strike, or divorce.

(5) The applicant has declared bankruptcy between three and five years prior to application for a loan, unless the applicant has reestablished credit since the bankruptcy.

(6) Business bankruptcies will not be grounds for refusing to make a loan if:

(a) The applicant was self-employed and the bankruptcy was not due to misconduct; and

(b) There is no evidence of derogatory credit information prior to the self-employment or after the bankruptcy; and

(7) Chapter 13 bankruptcies will not be grounds for refusing to make a loan if: The applicant has made satisfactory payment of at least three-fourths of the total payments due the trustee.

(8) The applicant’s ability to repay the loan is insufficient, as determined by the Department of Veterans’ Affairs (Department) by applying relevant industry standards.

(9) The applicant is an unsatisfactory credit risk, as determined by the underwriting analysis of the credit rating agency selected by the Director. In that case, the Director shall advise the applicant of his refusal on this basis and supply to the applicant the name and address of any consumer reporting agency which provided the Director with information on the applicant. If the applicant requests in writing within 60 days after being notified of the refusal, the Director shall provide the applicant with the name of any person other than a consumer reporting agency who provided information which was, wholly or in part, a basis of such refusal.

(10) The applicant is involved in the following type of transactions:

(a) The purchase of property from a spouse where the amount which the applicant seeks to borrow from the Department exceeds the unpaid balance on loans used to acquire or improve the property;

(b) The purchase from a corporation wholly or substantially owned by the applicant;

(11) The applicant has or has had any interest, within the past three years, either title or contractual, in the property being purchased, except it will not be grounds for refusing to make a loan:

(a) If the applicant is purchasing a one-half interest from a divorced spouse. The sum shall be stated in the divorce decree;

(b) If the applicant acquired an interest in property by inheritance and is purchasing the interest which co-heirs have in the same property;

(d) If the application is for a rehabilitation loan or a loan to pay off a bridge loan. A “bridge loan” is temporary financing obtained for the purpose of financing the purchase of a home pending the sale of a home owned by the borrower and listed with a real estate broker or advertised for sale;

(e) If the application is for a loan to pay off an interim loan whose term does not exceed 24 months (not renewable);

(f) If the application is for a loan to pay off a construction period loan obtained not more than 24 months, and the construction was completed not more than 18 months before the veteran applied for a loan;

(g) If the application is for amount spent on the purchase of, or the value of, land only (whichever is less) and construction commences within 24 months of land acquisition and the loan is funded within 18 months of the start of construction.

(12) The applicant does not meet the applicable underwriting or industry property standards as determined by the Department.

(13) Effective with applications received after May 15, 1984, except for farm loans and loans for multi-family dwellings, if the applicant will use the property offered as security for the loan for a purpose that would jeopardize the tax-exempt status of interest to holders of Bonds issued by the Director of Veterans’ Affairs:

(a) Specifically excluded uses are:

(A) As an investment;

(B) As a recreational home;

(b) Examples of excluded uses (if a portion of the property is used regularly and exclusively in connection with a trade or business) are:

(A) Using any portion of the residence as a place to meet patients, clients, or customers in the normal course of business;

(B) Storage of inventory in a separate and identifiable fixed location and kept for the wholesale or retail selling of products as a part of the applicant’s trade or business which would entitle the applicant to a “Business Use of the Home” income tax deduction;

(C) Providing care for children, for the elderly, or for handicapped persons, if the nature and character of the care entitles the property owner to a “Business Use of the Home” income tax deduction.

(c) Any use of a residence which does not qualify for a “Business Use of the Home” income tax deduction shall not be considered as a use in a trade or business. Examples of such permitted uses are:

(A) Storage of inventory for the benefit of an employer or in conduct of a direct selling business, if the use is not exclusive of any personal use of that part of the residence;

(B) Babysitting, if the nature and character of the babysitting does not entitle the property owner to a “Business Use of the Home” income tax deduction;

(C) Engaging in person-to-person sales of consumer products to customers in the home, such as Tupperware, Amway, Avon, wicker, crystal, or similar products;

(D) Foster home established by Court Order, or designated by a Government Agency with jurisdiction to make such a designation;

(E) Using part of the residence to write legal briefs, prepare tax returns, read financial periodicals and reports, clip bond coupons, or engage in similar work, if the use is not exclusive of any personal use of that part of the residence.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407. 385; Oregon Constitution Article XI-A, Section 3
DVA 5-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
Reverted to DVA 6-2005, f. & cert. ef. 10-24-05
DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14
DVA 6-2005, f. & cert. ef. 10-24-05
DVA 8-2001, f. & cert. ef. 11-23-01
DVA 7-1995, f. & cert. ef. 7-21-95
DVA 5-1993, f. 3-16-93, cert. ef. 3-21-93
DVA 3-1991, f. 5-30-91, cert. ef. 6-3-91
DVA 6-1984, f. 7-25-84, ef. 8-1-84
DVA 3-1984, f. 5-2-84, ef. 5-15-84
DVA 8-1983, f. & ef. 6-1-83
DVA 7-1982, f. & ef. 3-15-82

Or. Admin. R. 274-020-0349 Loan Funding

(1) Funding by Oregon Department of Veterans’ Affairs (ODVA) of any loan is subject to the discretion of the Director of Veterans’ Affairs. In determining whether or not to fund any loan, the director may consider factors, including, but not limited to the following:

(a) Actual or projected cost of funds;

(b) Any applicable federal tax or other law;

(d) Actual or projected conventional mortgage rates;

(e) Actual or projected loan demand;

(f) Loan purpose;

(g) Eligibility of applicant;

(h) Credit worthiness of applicant;

(i) Adequacy of security for the loan.

(2) The director may from time to time establish priorities and other requirements with respect to the granting of loans under this Division.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-020-0350 Evidence of Title

(1) The veteran shall furnish at his expense a mortgagee’s title policy for the amount of the loan, a title company lien search, or a certificate of title.

(2) The title policy, or other reports, shall show that the state has a first lien except in the case of:

(a) Property taxes not payable;

(b) A lien of a bonded irrigation or drainage district, in which case all due assessments must be paid;

(c) A public improvement lien, bonded or being collected by the County Tax Collector in which case all due assessments must be paid;

(d) A lien for Reclamation Service of the United States Government, in which case all due assessments must be paid;

(e) A Mortgagee’s Title Insurance policy insuring the state against loss from any prior encumbrance, but the encumbrance must be acceptable to the veteran mortgagor.

(3) All water stock shall be endorsed to, and deposited with, the Director to be held by the state until its interest terminates.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030, 407.115 & 407.225
DVA 45, f. & ef. 12-1-75
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0355 Escrow Closing of Loans

(1) All loans made by the Director of Veterans' Affairs (except for protection of security loans) shall be closed by persons or firms licensed to engage in the escrow business under the Oregon Escrow Law (ORS 696.505 to 696.590), or an attorney at law rendering services in the performance of duties as attorney at law. This rule shall be effective on all loan applications received after May 31, 1984:

(a) The types of loans requiring escrow closing are:

(A) Original;

(B) Additional;

(D) Assumption of existing.

(b) A loan for protection of security does not require escrow closing;

(2) The escrow agent or attorney for closing the loan will be selected by the borrower and the borrower shall pay all escrow fees.

(3) Escrow closing shall not be waived except when in the Director's opinion, requiring escrow closing would cause an undue hardship.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407. 385; Oregon Constitution Article XI-A, Section 3
DVA 5-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 1-1984, f. & ef. 5-3-84
DVA 42, f. 3-2-73, ef. 3-20-73
DVA 37, f. 4-6-70, ef. 4-25-70
DVA 34, f. 8-18-67, ef. 9-11-67
DVA 29, f. 7-3-63, ef. 9-2-63
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0360 Disbursement of Loan Funds

(1) When a veteran is purchasing or refinancing, the loan funds may be disbursed when the loan is closed.

(2) When construction is involved and the property complies with the definition of a home, the loan funds may be disbursed after the loan is closed, but disbursement is limited to the maximum percentage permitted by statute of the net appraised value.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 5-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 2-1978, f. & ef. 12-1-78
DVA 39, f. 5-27-71, ef. 6-25-71
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0375 Lost, Stolen, or Destroyed Warrants or Checks

If loan proceeds in the form of a warrant or check issued by the Director are lost, stolen, or destroyed before negotiation, the payee may obtain payment by filing with the Director evidence that value has not been received.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407.115 & 407.495
DVA 21-1982, f. & ef. 9-15-82
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0380 Transfer of Ownership

(1) The director shall be notified in writing of any transfer of ownership or the right to possess property that is used as security for a loan with the Oregon Department of Veterans' Affairs (ODVA).

(2) The interest rate on any outstanding obligation will be adjusted at the time of the transfer as provided by ORS 407.335.

(3) The following are conditions which constitute a transfer of an ownership interest or the right to possess the loan security:

(a) A borrower takes title to the property with a person other than his or her legal spouse;

(b) Contract of sale;

(d) Any other indenture that purports to convey or transfer any portion of equitable title except for the following:

(A) Deed to create a life estate retained by the eligible veteran mortgagor; or

(B) Deed to a government entity for public use as noted in ORS 407.275(2).

(4) Other types of transactions that may provide for an automatic adjustment in interest rate include:

(a) A purchase option that extends for a period of 12 months and 32 days, or more;

(b) A lease that extends for more than the following periods:

(A) 60 months for farms of 20 acres or more;

(B) 12 months and 32 days for all properties other than farms of 20 acres or more.

(5) An assumption by an eligible veteran may be approved at the rate set under ORS 407.305 under the following conditions:

(a) The applicant uses his or her entitlement to make application to the Department for the assumption; and

(b) Meets the requirements for a new loan; and

(6) The director will not enter into an assumption agreement with a person (or persons) acquiring an ownership interest in ODVA security whereby the existing debtor is relieved of further liability on the debt, unless the new owner (or owners) meets current industry standards determined by the Department to be applicable to the proposed assumption. Applicable industry standards may include, but are not limited to, local lending practices, FannieMae and other lending organization standards, and Federal and state legal requirements. The director may on an individual case and with good and sufficient reason documented in the loan file enter into an assumption agreement which does not meet applicable underwriting requirements or industry property standards, if the director decides it is in the best interest of the Department to do so.

(7) The director will not consent to the assignment of a Land Sale Contract whereby the present purchaser is relieved of further liability on the contract, unless the assignee meets current industry standards determined by the Department to be applicable to the proposed assignment. Applicable industry standards may include, but are not limited to, local lending practices, FannieMae and other lending organization standards, and Federal and state legal requirements. The director may on an individual case and with good and sufficient reason documented in the file consent to an assignment which does not meet applicable underwriting requirements or industry property standards, if the director decides it is in the best interest of the Department to do so.

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.275, 407.305 & 407.335
Statutes/Other Implemented: 407.275 & 407.335
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 6-2005, f. & cert. ef. 10-24-05
DVA 12-1995, f. & cert. ef. 9-22-95
DVA 10-1995, f. 9-11-95, cert. ef. 9-22-95
DVA 7-1995, f. & cert. ef. 7-21-95
DVA 5-1993, f. 3-16-93, cert. ef. 3-21-93
DVA 3-1991, f. 5-30-91, cert. ef. 6-3-91
DVA 5-1989, f. & cert. ef. 11-15-89
DVA 28-1982, f. 12-30-82, ef. 1-1-83
DVA 25-1982, f. & ef. 10-1-82
DVA 17-1982, f. & ef. 7-1-82
DVA 2-1982(Temp), f. & ef. 1-21-82
DVA 45, f. & ef. 12-1-75
DVA 39, f. 5-27-71, ef. 6-25-71
DVA 36, f. 7-25-69, ef. 8-25-69
DVA 32, f. 12-2-65, ef. 10-25-65
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0381 Rental

The Director may approve the rental of a security, defined as a first lien interest of a home or farm, that has been occupied by the veteran as long as the rental shall not affect the tax exempt status of bonds issued by the Department. The Director, when determining whether to approve the rental of a home or farm that serves as security for a Department Loan, may consider the following factors including but not limited to the following:

(1) The effect on the tax-exempt status of bonds issued under Article XI-A of the Oregon Constitution.

(2) Whether the home or farm was and is appropriately used as the principal residence of the borrower(s).

(3) The financial integrity of the loan program.

(4) Any potential decrease in the value of the security.

(5) The impact on remedies available under the loan documents.

(6) Whether or not there has been or will be any material change in the borrower’s/spouse’s employment.

(7) The dissolution or annulment of the borrower’s marriage.

(8) A significant geographical relocation by the borrower.

(9) Any unusual hardship for the borrower(s).

(10) The borrower(s) ability to maintain the home or farm as his or her principal residence.

History

Statutory/Other Authority: ORS 406.030, 407.115 & 407.385
Statutes/Other Implemented: ORS 407.385
DVA 1-2000, f. & cert. ef. 1-24-00

Or. Admin. R. 274-020-0382 Interest Rate Payable When Property Transferred Back to Original Borrower

The interest rate on a loan secured by property transferred back to the original borrower depends upon whether the original borrower has an outstanding loan, with the interest rate under ORS 407.325 (Rate of Interest Payable by Applicant) at the time of the transfer, and whether the home will be used as the original borrower’s principal residence:

(1) If the original borrower does not have an outstanding loan with the interest rate under ORS 407.325 at the time of the transfer, and the home will be used as the original borrower’s principal residence, the interest rate will be the rate charged on the loan when made and as periodically adjusted under the “variable” provision of ORS 407.325.

(2) If the original borrower has an outstanding loan with the interest rate under ORS 407.325 at the time of the transfer, or said borrower will not use the home as the borrower’s principal residence, the interest rate will be the rate under ORS 407.335 (Rate of Interest Payable by Transferee).

History

Statutory/Other Authority: ORS 406 & 407
Statutes/Other Implemented: ORS 407.275, 407.325 & 407.335
DVA 5-1985, f. 2-26-85, ef. 3-1-85

Or. Admin. R. 274-020-0385 Modification of Mortgage

(1) A request for modification of a mortgage must be made in writing by the borrower.

(2) The borrower and the Director shall agree in writing to the terms of the modification, and it shall be recorded in the mortgage records in the county where the security is located.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407.115 & 407.155
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0386 Temporary Reduction of Payments

(1) In the event a veteran is unable to make required loan payments due to loss of income because of illness, injury, death, involuntary job loss, or economic stress due to factors beyond the veteran’s control, the veteran may apply for a temporary reduction of payments, provided that:

(a) The veteran is the original borrower or one who assumed the loan pursuant to ORS 407.305 (formerly 407.063);

(b) The veteran is residing in the property used as security for the loan at the time he or she requests the payment reduction;

(c) The veteran must request the loan reduction by writing to the Director of Veterans’ Affairs, c/o Collection Unit, 700 Summer Street, N.E., Salem, OR 97310. The written request must contain a statement describing the reason for the request, current income, source of income, and must be accompanied by a copy of the veteran’s previous two years’ federal income tax returns;

(d) The veteran must furnish any other documentation requested by the director relating to the reason for request.

(2) In determining the amount and term for reducing loan payments, the director shall consider the value of the security, the balance owing on the loan, the total assets of the borrower, past payment record of the borrower, and any other matters related to financial hardship to the borrower and the financial position of the loan program:

(a) Monthly loan payments may not be reduced to an amount less than the monthly loan cancellation life insurance premiums;

(b) The director may recapture the reduced portion of the monthly payment and any other accrued delinquency by whatever repayment methods are appropriate to individual circumstances;

(c) The terms and conditions of the payment reduction and repayment must be agreed upon, in writing, and approved by both the veteran and the director;

(d) The veteran may be required to submit information periodically regarding his income and financial affairs in order to reevaluate the necessity of continuing the reduction in payments. Following such reevaluation, the loan payment reduction may be modified by the director;

(e) The veteran must continue to reside in the loan security.

(3) A veteran whose loan is in foreclosure is not eligible under this program.

(4) Temporary reduction of loan payments is a benefit to be extended only in an extreme emergency and is not to be abused.

(5) Because of the effect of these reductions on the solvency of the loan program as a whole, on the probable financial position of the program in the future, on the condition of the tax-exempt bond market, and on other borrowers in the program, the director has determined that the maximum number of borrowers that can be accommodated under this program is approximately one percent of the total outstanding borrowers. Therefore, at any time, the director will enter into agreements as provided in subsection (2)(c) of this rule with no more than one percent of the total loan portfolio, the number to be specified by the director.

History

Statutory/Other Authority: ORS 406.030, 407.095 & 407.115
Statutes/Other Implemented: ORS 406.030, 407.095 & 407.115
DVA 7-1996, f. & cert. ef. 7-22-96
DVA 18-1982, f. & ef. 8-2-82
DVA 4-1982(Temp), f. & ef. 2-9-82

Or. Admin. R. 274-020-0387 Reamortization of Loans

The Director of Veterans’ Affairs may adjust payments and other terms of the loan under the following conditions:

(1) Tax adjustments.

(2) A change in the interest rate.

(3) A change in the insurance premiums.

(4) Errors or omissions on the operative loan documents.

(5) When the balance of the loan will not amortize within the terms of the security document.

(6) Any expenditure or advance of funds as provided under ORS 407.135 (formerly 407.080), 407.145(2) (formerly 407.090(2)), and the security document.

History

Statutory/Other Authority: ORS 406 & 407
Statutes/Other Implemented: ORS 407.095, 407.135 & 407.145
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 7-1996, f. & cert. ef. 7-22-96
DVA 12-1982, f. & ef. 5-17-82
DVA 9-1982(Temp), f & ef. 4-9-82

Or. Admin. R. 274-020-0388 Property Tax Amortization and Escrow Accounting

(a) The amounts shall be determined each year by dividing the amount advanced by the number of loan payments due during the year, increased to the next whole dollar;

(b) The amounts so determined shall be added to and become part of the loan payment unless full payment of the advance is made pursuant to subsection (c) or (d) of this section;

(c) As soon as possible after taxes are paid on November 15th of each year, the Director may notify each borrower by mail of the amount of the tax advance. If full payment of the tax advance is made to the Director, the amount determined in subsection (a) of this section shall be deleted from the loan payments. Upon such payment the borrower shall be credited with prior loan payments made to the extent of the amounts contained therein that represent repayment of the tax advance;

(d) If for any reason the taxes cannot be paid on November 15th, the Director will send the notice as provided in subsection (c) of this section as soon as possible after the taxes are paid;

(e) Effective with taxes paid in November of 1990 (1990–91 taxes) through November of 2003 (2003–2004 taxes), the Director generally did not advance funds for the payment of taxes on property that was security for a loan being charged less than seven percent interest unless an escrow account had been established on the loan for the payment of taxes. The interest rate charged was the "loan rate" or "composite rate" where more than one loan (with different interest rates) is secured by the property;

(f) Effective with taxes (including delinquent taxes) to be paid in November of 2004 (2004–2005 taxes), the Director may approve a borrower's request to advance funds for the payment of taxes on property that is security for a loan unless an escrow account had been established on the loan for the payment of taxes. The interest rate being charged is the "loan rate" or "composite rate" where more than one loan (with different interest rates) is secured by the property;

(g) Notwithstanding the provisions of subsection (1)(e) and (1)(f) of this rule, the Director may advance funds for the payment of taxes on property that is security for a loan under the provisions of the Servicemembers Civil Relief Act. In addition, the Director may advance funds to pay property taxes if sufficient funds are not available in the escrow account, by overdrawing the escrow account balance.

(2) The Director may allow owners of the security to directly pay the taxes and hazard insurance due on the security, subject to the following conditions:

(a) For existing accounts or qualified assumptions of existing accounts, the owner of the property must make written application to the Director on a form prescribed by the Director. Said application also must conform with the following:

(A) The application must be submitted by September 1st of the year application is made;

(B) At the time of application, payments on the loan must be current and the applicant's credit history must be satisfactory as determined by the Director at his sole discretion; and

(C) The loan balance, including any accruals, at the time of application must not be more than 80 percent of the "real market value" of the security as shown by the county tax assessor.

(D) If a request is approved, any funds the Director holds in an applicable escrow account, which are not scheduled for disbursement will be returned to the borrower and the borrower will be responsible for any future disbursements.

(b) For new loan applications, the applicant must make written request to the Director. Said application also must conform with the following:

(A) The loan-to-value ratio must be 80 percent or less of the net appraised value;

(B) The loan must have no restrictions by virtue of mortgage insurance that the lender pay taxes and insurance.

(3) All applications, for permission to pay taxes and hazard insurance directly, will receive a written approval or disapproval from the Director. If the application is approved, the applicant will be advised of the date when the Director will discontinue making disbursements, if applicable and the date the loan payment will be adjusted, if necessary.

(4) The Director may revoke any permission granted concerning the payment of taxes and hazard insurance on the security by giving the owner of the security 30 days written notice of the revocation, except as otherwise provided herein. If the Director advances funds to pay unpaid taxes or hazard insurance, any advance by the Director for such a shortage or deficiency also will constitute immediate revocation by the Director of permission for the owner to pay directly any taxes and hazard insurance due on the security, and the account will revert to the last signed agreement between the Director and borrower for the payment of taxes, hazard insurance and other obligations. Any advances by the Director, including any interest and fee, shall be paid back within the remaining payment/escrow year. The borrower may not change this obligation without prior written approval from the Director.

(5) Sections (1), (2), (3) and (4) of this rule are not applicable to payments made under contracts for the purchase of state-owned property. A contract purchaser may prepay the current year’s property taxes in a lump sum and have the tax portion removed from the following year’s payment(s).

(6) Pursuant to the provisions of ORS 407.169, beginning November 1, 1990, escrow accounts are available for the prepayment of estimated property taxes and insurance. All borrowers with loans, and all purchasers buying property from the Director on a land sale contract, based on a daily simple interest calculation, may make prepayments of estimated property taxes into an escrow account, subject to the following conditions:

(a) The owner of the property must make written application to the Director on a form prescribed by the Director;

(b) Applicants will have the option of either repaying the previous year's tax advance as provided by section (1) of this rule, or of permitting said tax advance to remain part of the principal balance on the loan with the payments of said loan adjusted to repay the tax advance with interest over the remaining life of the loan.

(7) On monthly simple interest loans with escrow accounts, the required escrow payment may be based, inter alia, on the preceding year's disbursements for such items as property taxes, hazard insurance premiums, other required insurance premiums, and condominium or homeowner’s association dues. In cases of un-assessed new construction, the estimate may be based, inter alia, on the assessment of comparable residential property in the market area.

(8) The Director will pay interest on the escrow account as provided by ORS 86.245(1).

(9) The definitions in section (10) of this rule apply to this section (9). Effective May 24, 1995, all escrow accounts on monthly simple interest loans and tax escrows on daily simple interest loans will be administered in the following manner:

(a) The Director may require a cushion that shall be no greater than 1/6 of the estimated total annual disbursements from the escrow account. Estimated disbursements may be modified by an amount not exceeding the most recent year's change in the national Consumer Price Index for all urban consumers (CPI, all items);

(b) At the end of an escrow account computation year, an aggregate analysis will be completed on each escrow account to determine the borrower's escrow account payment(s) for the new payment year. The borrower will be notified of any shortage, deficiency, or surplus in the escrow account and the amount of escrow account payment to be included in the loan payment;

(c) If the loan is two months or more delinquent in payments an analyzes will not be done until the loan is brought current.

(d) If the analysis determines there is not sufficient money in the escrow account to pay the required disbursements, the shortage or deficiency may be advanced by the Director. The required escrow payments on the loan will be increased to recover any interest, fee or advance by the Director for such a shortage or deficiency, or the borrower may repay the advance, interest or fee in a lump sum;

(e) If the analysis determines there is a surplus in the escrow account equal to or greater than $25, the entire surplus shall be refunded to the borrower. If the surplus is less than $25, this amount will be retained in the escrow account and credited against the next year's escrow payments;

(f) A statement itemizing all escrow account activity, (annual escrow statement) will be provided to the borrower each year.

(10) The following definitions apply to section (9) of this rule:

(a) "Aggregate analysis" means to analyze the escrow account by calculating the sufficiency of escrow funds as a whole, as opposed to calculating components separately.

(b) "Cushion" means funds that the Director may require a borrower to pay into an escrow account to cover unanticipated disbursements or disbursements made before the borrower's payments are available in the account.

(d) "Escrow account" means any account that the Director establishes or controls on behalf of a borrower to pay taxes, insurance premium, or other charges, as applicable.

(e) "Escrow account computation year" means a 12-month period that the Director establishes for the escrow account.

(f) "Shortage" means an amount by which a current escrow account balance falls short of the target balance at the time of escrow analysis.

(g) "Surplus" means an amount by which the current escrow account balance exceeds the target balance of the account.

(h) "Target balance" means the estimated month-end balance in an escrow account that is just sufficient to cover the remaining disbursements from the escrow account in the escrow account computation year, taking into account the remaining scheduled periodic payments, and a cushion.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 5-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 3-2004, f. & cert. ef. 2-24-04
DVA 1-2004(Temp), f. & cert. ef. 1-15-04 thru 7-13-04
DVA 5-2001, f. & cert. ef. 7-23-01
DVA 12-1995, f. & cert. ef. 9-22-95
DVA 11-1995, f. 9-11-95, cert. ef. 9-22-95
DVA 5-1995, f. 5-23-95, cert. ef. 5-24-95
DVA 7-1993, f. 5-18-93, cert. ef. 5-21-93
DVA 1-1991, f. & cert. ef. 5-1-91
DVA 2-1990, f. & cert. ef. 2-1-90
DVA 2-1989, f. & cert. ef. 6-1-89
DVA 9-1985, f. 6-20-85, ef. 7-1-85
DVA 10-1984, f. 10-8-84, ef. 10-15-84
DVA 10-1983, f. 9-8-83, ef. 2-1-84
DVA 13-1983, f. & ef. 11-1-83
Reverted to DVA 3-1983, f. 1-14-83, ef. 1-15-83
Suspended by DVA 4-1983(Temp), f. & ef. 2-1-83
DVA 3-1983, f. 1-14-83, ef. 1-15-83
DVA 26-1982(Temp), f. & ef. 10-1-82

Or. Admin. R. 274-020-0391 Discount for Early Payoff

(1) The balance on some loans and contracts may be discounted in consideration of the loan or contract being paid in full before its final payment date. The amount of the discount will be based upon a mathematical computation which uses a discount rate to compute the present value of the remaining scheduled payment stream of the loan or contract being considered for discount. The discounted amount may be further limited by a percentage based calculation determined by the Director. The Director will periodically fix the discount rate and the percentage based calculation, if any, taking into consideration:

(a) Market conditions (reinvestment opportunities);

(b) Financial statement conditions (health of programs);

(d) Balance and term of the loan or contract being considered for discount.

(2) The loans and contracts that will be discounted and the discount rate will be periodically determined by the Director and the information will be available to all interested persons making inquiry to the Director. The amount of the discount quoted by the Director shall include a per diem amount that must be added to the quoted payoff amount in order to arrive at a payoff amount for a specific day. The quoted discount amount shall be honored for 30 days following the date of the quote.

(3) Any loan or contract that does not amortize on the agreed-to retirement date will be reamortized and a new payment determined prior to the computation of a discount amount. The reamortized payment amount will be used only for the purpose of calculating the amount of the discount.

(4) Discounts shall not be available on loans or contracts being paid in full by the proceeds from Loan Cancellation Life Insurance or hazard insurance.

(5) This rule does not apply to loans or contracts after a default of the loan or purchase agreement has occurred and settlement negotiations are in process.

(6) No discount shall be given where the loan or contract is being paid in full in connection with a change in ownership of the property securing the loan or the property being purchased on contract.

History

Statutory/Other Authority: ORS 291.021, 406.030, 407.115, 407.169, 407.177, 407.179, 407.181 & 407.275
DVA 7-1993, f. 5-18-93, cert. ef. 5-21-93
DVA 8-1986, f. & ef. 8-18-86
DVA 2-1986(Temp), f. & ef. 2-13-86

Or. Admin. R. 274-020-0395 Partial Release of Security

(1) A partial release of security may be granted when the borrower or the contract purchaser of a State-owned property submits a complete application for one and the Director determines that granting the requested release would not jeopardize the Department of Veterans’ Affairs’ security position.

(2) The remaining property must qualify as security for the loan or contract balance under the provisions of ORS 407.225(3) and OAR 274-020-0325 to 274-020-0340.

(3) Notwithstanding compliance with section (2) of this rule, the Director may require that the loan or contract balance be reduced as consideration for granting the requested release.

History

Statutory/Other Authority: ORS 406 & 407
Statutes/Other Implemented: ORS 407.115 & 407.155
DVA 12-1985, f. & ef. 12-5-85
DVA 8-1985, f. 6-12-85, ef. 7-1-85
DVA 45, f. & ef. 12-1-75
DVA 39, f. 5-27-71, ef. 6-25-71
DVA 35, f. 12-19-68, ef. 1-11-69
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0405 Confidential Nature of Information Submitted by the Borrower

Information submitted by the veteran in support of his application shall be considered confidential and shall not be disclosed to persons outside the department, unless permission is given by the veteran to release the information, or the information is requested by a public agency in the exercise of its official duty and only then at the discretion of the Director.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407.181 & 407.201
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0410 Confidential Nature of Information Procured by the Director

Information secured by the Director in connection with a veteran’s application for a loan shall be considered confidential and shall not be disclosed to persons outside the employ of the department, unless such information is requested by a public agency in the exercise of its official duty, and only then the release shall be at the discretion of the Director.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 192, 406.030, 407.115, 407.181 & 407.201
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0411 Disclosure of Information and Fees

(1) Information in the custody of the Director of Veterans' Affairs (director) will be disclosed, or protected from disclosure, consistent with the provisions of ORS Chapter 192.

(2) Requests for information can be made verbally, but the director reserves the right to require the request to be in writing, signed and dated, naming or describing the information desired and the date the information is needed. A reasonable period of time must be allowed for the custodian of the records to locate and assemble the requested information. Restrictions may be placed upon where the information will be delivered or made available for inspection. The director shall designate a staff employee to be the department's records custodian, whose function is to perform the duties necessary to manage the department's records in accordance with all applicable laws. These duties may include, but are not limited to, certifying records to be true copies of the original documents on file in the custody of the director.

(3) Mailing lists of Oregon Department of Veterans' Affairs (ODVA) active account holders, and Vets News recipients, may be made available upon payment of the required fee. The mailing lists will not contain the names of persons who submit a written request for deletion of their name from the list on the basis that such disclosure would constitute an unreasonable invasion of privacy.

(4) The following information will not be disclosed except pursuant to an order issued by the director or by the Attorney General of the State of Oregon:

(a) Internal communications of an advisory nature preliminary to any final agency determination of policy or action;

(b) The name of a confidential informant or information submitted to the department in confidence where submission of the information was not required and the department has obliged itself in good faith not to disclose the information.

(5) The following information will not be disclosed except pursuant to an order issued by the Attorney General:

(a) Information relating to the appraisal of real and personal property prior to making a loan secured by that property;

(b) Information of a financial, medical, or personal nature relating to any individual, if such disclosure would constitute an unreasonable invasion of privacy.

(6) Fees will be charged to reimburse the department the cost of making information available or for producing copies of records:

(a) For mailing lists, the fee is derived from the actual production costs. The lists are available in alphabetical or zip code order;

(b) The director may require reimbursement for any additional costs actually incurred by the department;

(c) For all requests for copies of documents, the charge is based on the actual costs incurred for search of files and for documents provided;

(d) For necessary safeguard of documents where a requestor is allowed to research records on department premises, a staff employee, designated by the director, must be present. The fee to be charged for this service will be equal to the hourly pay of the employee designated. In appointing an employee to safeguard departmental records, the director shall consider whether the pay range of the designated employee is reasonable and appropriate, reflecting the technicality and sensitivity of the documents being researched;

(e) The director may waive the fees provided in subsections 6(a), 6(c) and 6(d) of this rule for city, county, state, and federal agencies, and for individuals obtaining information from their own files;

(f) The director may require payment of any and all fees identified in this section, in a form satisfactory to the director, prior to providing any disclosure of documents or information. Advance charges for anticipated labor expenses may be made by the director on an estimated basis.

(7) The purchase of a mailing list does not constitute permission to use ODVA's name in any marketing or advertising approach, whether expressly stated, inferred or implied.

History

Statutory/Other Authority: ORS 192, 406.030 & 407.115
Statutes/Other Implemented: ORS 192, 406.030 & 407.115
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 8-1996, f. & cert. ef. 9-23-96
DVA 2-1993, f. & cert. ef. 1-4-93
DVA 6-1989, f. & cert. ef. 12-1-89
DVA 3-1988, f. 6-30-88, cert. ef. 7-1-88
DVA 6-1986, f. & ef. 5-1-86
DVA 8-1984, f. 8-6-84, ef. 8-15-84
DVA 29-1982, f. 12-30-82, ef. 1-1-83

Or. Admin. R. 274-020-0420 Director’s Decisions Control in All Controversies

(1) The Director shall make all determinations as to the applicant’s eligibility for a loan.

(2) The Director shall make all determinations, based upon data and information in the file, as to whether the property offered is acceptable security and whether or not a loan shall be made.

(3) The Director’s decision shall be final in all matters pertaining to eligibility and the making of a loan.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030, 407.115, 407.125 & 407.225
DVA 3-1988, f. 6-30-88, cert. ef. 7-1-88
Reverted to DVA 22-1957, f. 11-15-57, ef. 11-14-57
DVA 6-1981(Temp), f. & ef. 8-13-81
DVA 3-1981(Temp), f. 4-3-81, ef. 4-6-81
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0421 Review of Loan Determinations and Other Decisions

(1) Any person adversely affected by a decision of a DVA official may write a letter of complaint to the Director. The Director or other designated official shall prepare and deposit in the ordinary mail, or personally deliver, a written response within 30 days of receipt of the written complaint.

(2) If the Director, or other designated official supports the decision, a request may be made for an informal hearing with a designated official at the Salem Central Office of the DVA.

(3) A request for an informal hearing shall be addressed to the Director and shall state the nature of the adverse decision, the date of and the person making the decision, and how the person requesting the hearing is adversely affected. A request for an informal hearing must be received by the Director within 60 days of the date of mailing or personal delivery of the response, provided for by section (1) of this rule. If no letter of complaint was ever written, the requirement for a letter of complaint may be waived, and the request for an informal hearing considered if the request is received by the Director within 90 days of the date of the decision leading to the request for an informal hearing. Unless ODVA received written notice of a complaint, the right to a hearing (both informal and contested) shall expire 90 days after the date the complainant had actual knowledge of, or by the exercise of due care would have had knowledge of, the occurrence in dispute.

(4) Within 30 days from receipt of a request for an informal hearing, the Director shall, by mail, notify the person making the request of the action taken on the request which may be:

(a) Designating an official to conduct an informal hearing;

(b) Reversing or modifying the adverse decision;

(5) Any denial of a request for an informal hearing shall state the reason for the denial. A request for an informal hearing may be denied if the Director finds:

(a) Litigation involving the issue in dispute is pending or imminent;

(b) The person making the request is not the person who would directly benefit from a modification or reversal of the adverse decision (not the real party in interest);

(c) A modification or reversal of the decision would affect persons who would not be bound by the modification or reversal (the Director is lacking power to resolve the dispute);

(d) The request was not received by the Director within the time allowed by section (3) of this rule.

(6) If an official is designated to conduct an informal hearing, the person requesting the hearing shall be notified by mail of the name and title of the official designated and the time and place for the hearing. A time for the hearing must be scheduled within 60 days of the hearing request unless otherwise mutually agreed by the parties.

(7) After conducting an informal hearing, the designated official shall prepare and submit to the Director for approval a written decision. Within 30 days after conducting an informal hearing, a decision approved by the Director shall be mailed to the person for whom the hearing was conducted.

(8) A decision of the designated official, after approval by the Director, shall be final except when, as defined by ORS 183.310(2), a “Contested Case” exists.

(9) When a “Contested Case” exists, and a contested case hearing is desired, it must be requested in writing and the request received by the Director within 20 days of the date of the mailing of the decision of the designated official if an informal hearing has been held, or within 20 days of service of the notice in a contested case under ORS 183.415.

(10) Contested case hearings will be conducted in accordance with the provisions of ORS 183.413 to 183.470 and the Attorney General’s Model Rules of Procedure, OAR 137-003-0001 to 137-003-0092.

History

Statutory/Other Authority: ORS 183, 406.030 & 407.115
Statutes/Other Implemented: ORS 183, 406.030 & 407.115
DVA 6-1990, f. & cert. ef. 11-26-90
DVA 1-1987, f. & ef. 3-16-87
DVA 10-1982, f. & ef. 4-15-82
DVA 6-1982(Temp), f. & ef. 3-11-82

Or. Admin. R. 274-020-0430 Effect

These rules and regulations shall have the effect of law and shall be binding in all instances on persons making application for a loan under Article XI-A of the Oregon Constitution and ORS 407.075 to 407.595, but if any part of the regulations are found to be void or illegal, the illegality shall not affect the remaining provisions of the rules and regulations.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406 & 407
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 22-1957, f. 11-15-57, ef. 11-14-57

Or. Admin. R. 274-020-0440 Fees

(1) The Department charges fees as provided in section (3) of this rule for the following processes:

(a) New Loan.

(b) Assumption of a loan by and eligible veteran.

(d) Partial Release, Easement, and Modification of Mortgage.

(e) Timber Release.

(f) Firewood Release.

(g) Purchase of State-Owned Property.

(h) Dishonored Check.

(i) Reissue of Stale, Lost, Destroyed or Missing Document.

(j) Mineral Rights and Geothermal Resource Rights Release.

(k) Borrower requests to cancel private mortgage insurance.

(l) Dishonored Electronic Funds Transfer.

(2) A fee will not be waived or reduced except when in the Director's opinion, requiring the fee would cause an undue hardship. In the case of a dishonored check, the fee will be waived if the check was dishonored because of a bank error.

(3) Fee Schedule.

(a) New Loan Fees.

(A) A credit report fee may be charged in an amount not to exceed the amount charged by the credit reporting firm. A credit report fee may be charged for each applicant unless a co applicant is the applicant's spouse;

(B) An appraisal report fee may be charged in an amount not to exceed the amount charged by the appraiser;

(C) In the event of cancellation of the application after acceptance for processing and collection of credit report and appraisal fees, any money not used or obligated for credit reports or appraisals shall be refunded;

(D) A loan fee shall be charged on a conventional loan not to exceed two percent (2%) of the loan amount;

(E) Flood determination fee for each loan may be charged in an amount not to exceed the amount charged by the flood determination company; and

(F) A processing fee in the amount of $600 will be charged for processing, document preparation, or other services.

(b) Assumption Fee. Assumption by an eligible veteran under ORS 407.305. Effective with applications received on or after July 1, 1985, the Director shall charge a fee of 1.125 percent of the total of the unpaid balance plus any new funds loaned. The minimum service fee shall be $100.

(A) Fees for transfer of ownership:

(i) Through June 30, 1985, 1 percent of the unpaid balance.

(ii) Effective July 1, 1985, 1.125 percent of the unpaid balance.

(iii) Effective May 1, 1992, $450.

(B) No fee will be charged when a transfer of ownership results from:

(i) Divorce.

(ii) Death.

(iii) Marriage.

(iv) Transfer of the interest of one or more current owners to the other owner or owners.

(v) Transfer to a relocation company on an unrecorded contract.

(d) Partial Release, Easement, and Modification of Mortgage Fees.

(A) $450 plus the cost of an appraisal for a partial release or modification of mortgage on an urban property. The appraisal fee will be refunded to the applicant if the request is withdrawn before the Director is obligated to an appraiser for the cost of a property appraisal.

(B) $450 plus the cost of an appraisal for a partial release or modification of mortgage on a farm property. The appraisal fee will be refunded to the applicant if the request is withdrawn before the Director is obligated to an appraiser for the cost of a property appraisal.

(D) $100 for partial release involving release of a manufactured home which is to be replaced with another home.

(E) $1,100 for a partial release involving release of water rights. $1,000 of the $1,100 fee will be refunded if the request is withdrawn before the Director is obligated to an appraiser for the cost of a property appraisal.

(F) $50 for processing request to relocate personal property manufactured home.

(G) A larger fee may be charged in complex cases to cover extra processing costs.

(H) A fee for the partial release of property to a government entity for public use as noted in ORS 407.275. This fee may be modified or waived at the discretion of the Director.

(e) Timber Release Fees.

(A) $200 for a release of more than 7,500 and less than 30,000 board feet of timber. No refund will be made after application.

(B) $1,200 for a release of 30,000 board feet or more of timber. $1,000 of the $1,200 fee will be refunded to the applicant if the request is withdrawn before the Director is committed to an appraiser for the cost of a property appraisal.

(D) An increased fee may be charged in complex cases to cover extra costs.

(f) Firewood Release Fees.

(A) $200 for a release of more than six and less than 20 cords of firewood. No refund will be made after application.

(B) $1,200 for a release of 20 cords or more of firewood. $1,000 of the $1,200 fee will be refunded to the applicant if the request is withdrawn before the Director is committed to an appraiser for the cost of a property appraisal.

(D) An increased fee may be charged in complex cases to cover extra costs.

(g) Purchase of State-Owned Property Fees.

(A) A credit report fee may be charged equal to the amount charged by the credit reporting firm. A credit report fee may be charged for each applicant unless a co-applicant is the applicant's spouse.

(B) A fee of 1.125 percent shall be charged on the amount of the contract on all properties whether or not the purchaser is a veteran. The minimum fee will be $250. There will be no fee for a cash sale.

(C) In the event of cancellation of an offer after acceptance for processing by Loan Processing, but prior to approval, all of the earnest money deposit except $200 shall be refunded ($200 to be retained by the Director). If an application is canceled after approval, the full amount of the earnest money deposit shall be retained by the Director.

(D) Notwithstanding the provisions of paragraph (3)(g)(C) of this rule, the Director may refund all of the earnest money deposit if cancellation of the application was necessitated by some unexpected event such as redemption of the property before closing, or the death, disappearance, serious injury, serious illness, job loss, or job transfer of one or more of the parties to the transaction. Parties to the transaction include members of the immediate family.

(h) Dishonored Check. Whenever a bank check issued in payment of an obligation due to the Director is dishonored by the bank upon which the check is drawn, a fee in the amount of $25 will be charged. If two dishonored checks are received from the same borrower within a 12-month period, the Director may require this borrower to make all future payments by cash, money order, cashier's check or certified check;

(i) Reissue of Stale, Lost, Destroyed or Missing Document. Whenever a document issued by the Director must be reissued because it has been outstanding too long without being used, or has been lost, destroyed or for some other reason is missing, a fee in the amount of $25 may be charged for this service. "Document" means deed, satisfaction of mortgage, satisfaction of judgment, request for reconveyance, reconveyance, assumption agreement, contract, partial release, modification of mortgage, escrow closing papers (or some other document substantially the same as the ones enumerated). This fee may be waived if there is good reason to believe that the person requesting the reissue was not responsible for the delay that caused the document to become stale or for the disappearance of the original issue.

(j) Release of Mineral Rights and Geothermal Resource Rights Fees. The Director may charge a fee of $150 for processing an application for release of mineral and geothermal resource rights. From this fee, the Department will pay the cost of recording any document issued. An additional $100 may be charged if the nature of the application requires a review by the Division of State Lands to determine the mineral and geothermal resource potential. A check or money order in the amount of $100 made payable to the Division of State Lands will be required when the Division of State Lands review is necessary.

(k) Borrower requests to cancel private mortgage insurance. The Department will not charge a fee to cancel private mortgage insurance. However, the borrower must provide the Department with a full appraisal at the borrower’s own cost.

(l) Dishonored Electronic Funds Transfer Fees. Whenever an electronic funds transfer (also known as ACH) is authorized for payment of an obligation due to the Department and is dishonored by the bank upon which the funds transfer is drawn, a fee in the amount of $25 will be charged. If two dishonored electronic funds transfers are received from the same borrower within a 12-month period, the Director may require this borrower to make all future payments by cash, money order, cashier's check or certified check.

(4) Fees will be collected in advance (except for dishonored checks and electronic funds transfers). Where the Director was not made a party to a transaction requiring payment of a fee, and the fee was not paid, the fee is due on demand. If payment is not made after 30 days written notice, it may be added to the amount due on the loan. The fee for dishonored checks may be added to the amount due on the loan when the check is returned by the bank. Any fee added to the amount due on the loan shall bear interest at the same rate as on the principal indebtedness. "Loan" means "contract" where context requires.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 5-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
Reverted to DVA 2-2012, f. & cert. ef. 6-25-12
DVA 3-2015(Temp), f. & cert. ef. 10-12-15 thru 4-8-16
DVA 2-2012, f. & cert. ef. 6-25-12
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 2-2002, f. & cert. ef. 2-22-02
DVA 6-2001(Temp), f. 9-7-01, cert. ef. 9-10-01 thru 3-8-02
DVA 3-1999, f. & cert. ef. 9-22-99
DVA 7-1998, f. & cert. ef. 6-23-98
DVA 1-1998(Temp), f. 1-26-98, cert. ef. 2-2-98 thru 7-31-98
DVA 5-1997, f. & cert. ef. 10-22-97
DVA 12-1995, f. & cert. ef. 9-22-95
DVA 10-1995, f. 9-11-95, cert. ef. 9-22-95
DVA 7-1995, f. & cert. ef. 7-21-95
DVA 5-1993, f. 3-16-93, cert. ef. 3-21-93
DVA 3-1993, f. & cert. ef. 1-4-93
DVA 12-1992(Temp), f. & cert. ef. 8-19-92
DVA 7-1992, f. & cert. ef. 5-1-92
DVA 7-1991, f. 10-31-91, cert. ef. 11-1-91
DVA 5-1991, f. 7-23-91, cert. ef. 7-24-91
DVA 5-1990, f. 8-20-90, cert. ef. 10-1-90
DVA 3-1989, f. & cert. ef. 8-16-89
DVA 4-1988, f. & cert. ef. 8-15-88
DVA 7-1985, f. 5-22-85, ef. 7-1-85
DVA 7-1984, f. 7-25-84, ef. 8-15-84
DVA 15-1983, f. 12-20-83, ef. 1-1-84
DVA 9-1983, f. & ef. 7-1-83
DVA 1-1983, f. 1-14-83, ef. 1-15-83
DVA 29-1982, f. 12-30-82, ef. 1-1-83
DVA 16-1982, f. & ef. 6-1-82
DVA 5-1982(Temp), f. & ef. 2-12-82

Or. Admin. R. 274-020-0445 Assumption of Loan by Eligible Veteran

When a veteran who is eligible to assume a loan under the provisions of ORS 407.305 seeks to acquire property and wishes to assume liability on the loan, the Director of Veterans' Affairs will approve the assumption subject to the following conditions:

(1) The applicant must submit the same evidence of eligibility and the same application as if an application were being submitted for a loan.

(2) The provisions of ORS 407.225(3) do not apply except when additional funds are being requested. If additional funds are not being requested, the applicant may be permitted to assume a loan with a balance in excess of 97 percent of the appraised value on homes which are real property, 85 percent of the appraised value on homes which are not real property, and 90 percent of the appraised value on farms.

(3) Notwithstanding the provisions of OAR 274-20-440, if additional funds are not being requested, an appraisal fee will not be collected by the director, and no appraisal of the property will be made. If additional funds are being requested, the provisions of ORS 407.225(3) and OAR 274-20-440 shall apply, and an appraisal of the property will be made.

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.225, 407.275 & 407.305
Statutes/Other Implemented: Ch. 238 OL 1995, ORS 407.225 & 407.275
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 11-2003, f. & cert. ef. 9-23-03
DVA 3-2003(Temp), f. & cert. ef. 4-7-03 thru 10-3-03
DV 12-1995, f. & cert. ef. 9-22-95
DVA 10-1995, f. 9-11-95, cert. ef. 9-22-95
DVA 9-1984, f. 8-6-84, ef. 8-15-84

Or. Admin. R. 274-020-0450 Due on Sale

(1) By ORS 407.335(5) the Director has discretion to decide when a second sale or transfer of the property, or any part thereof, securing an ODVA loan, will cause the entire balance of the loan to be immediately due and payable.

(2) Effective with sales, or transfers of ownership, occurring after June 30, 1989, the Director will not declare the entire unpaid balance on any loan to be immediately due and payable because of a second sale, or transfer of ownership, of the property or any part thereof, securing the loan.

History

Statutory/Other Authority: ORS 406 & 407
Statutes/Other Implemented: ORS 407.335
DVA 4-1989, f. & cert. ef. 10-4-89

Division 21 FORECLOSED AND DEEDED PROPERTY

Or. Admin. R. 274-021-0005 Foreclosed and Deeded Property

(1) When the Department sells a property acquired under ORS 407.135 and 407.145(1), the sale will be conducted under the provisions in ORS 407.375 and the following terms:

(a) The Department must first offer the property by sealed bid.

(b) The Department must advertise and give notice of the sale of the property in the local newspaper. at least once during the 15 days prior to the bid opening.

(A) Of all the bidders who are veterans for a home loan, the veteran who submits the highest bid shall be given the opportunity to purchase the property for the amount of a higher bid submitted by a person who is not a veteran and must submit a matching bid in writing no later than 5:00 p.m. on the date and at the place specified in the notification;

(B) The opportunity to submit a matching bid is only available to a veteran purchasing the property solely in his or her own name, or with a lawful spouse;

(D) State the minimum bid that will be accepted.

(2) When the Department sells a property acquired under ORS 407.135 and 407.145(1), the sale will be conducted under the provisions of ORS 407.377and under the following terms:

(a) The person with whom the Department has entered into a personal services contract to sell the property must post a "for sale" sign on the property; and

(b) The property must be advertised for sale at least once in a newspaper of general circulation where the property is located.

(3) The Director will determine interest rates for contract sales of ODVA properties and may apply different rates of interest to different contract sales. The Director may consider factors when determining contract interest rates, including, but not limited to:

(a) The current value of funds;

(b) The projected value of funds;

(d) The rates' effect on veterans and other purchasers;

(e) Any federal tax law restrictions;

(f) Actual or projected conventional mortgage rates;

(g) The availability of lendable funds;

(h) Actual or projected demand for ODVA properties;

(i) The source(s) of funds; and

(j) Whether or not the purchaser is providing any approved "work equity" as part of the down payment on the contract.

(4) The Director may change the prescribed rates of interest from time to time.

(5) The Department will endeavor to record prescribed interest rates as reasonably as it is practical.

(6) After the original purchase from the State of Oregon, each time ownership of the property is transferred to anyone (veteran or nonveteran), other than the surviving spouse, unremarried former spouse, surviving child, or surviving stepchild of the owner, the interest rate from the date of such transfer shall be the same as the then-prevailing interest rate under subsection (3)(a) of this section, or the existing interest rate on the contract, whichever is higher;

(7) The Director may modify the terms of the contract if agreeable to all parties.

(8) Each property will be sold on contract unless the Director finds that in a particular transaction it would be in the best interest of the Department that the property be sold on a Deed of Trust, or for cash. The terms of all sales will be as follows:

(a) Length:

(A) The maximum length of the contract will be established by the purchase price, as follows:

(i) $63,000 and over — 30 years;

(ii) $35,000–$62,999.99 — 25 years;

(iii) $15,000–$34,999.99 — 20 years;

(iv) $10,000–$14,999.99 — 10 years;

(v) Under $10,000 — 0 years (Cash Out Only).

(B) The Director may enter into a contract with terms different from the ones prescribed in this rule if the provisions of ORS 407.375(6) apply (no satisfactory bid received and sale negotiated).

(b) Down Payment:

(A) The term “purchase price" as used in this rule shall mean the actual purchase price agreed to by the purchaser and the Director;

(B) The minimum down payment required will be established by whether the property will be owner-occupied, whether the property is classified as farm, residential, personal property, unique, unusual, or bare land, the asking price and the purchase price, as follows:

(i) Residential — Asking price less than $80,000 — Five percent down payment if owner-occupied, otherwise 15 percent down payment. In cases where the purchase price is different than the asking price, the percentage (five or 15) will be applied to the purchase price;

(ii) Farm, Manufactured Home with Land, Bare Land, Residential — Asking price $80,000 or more — 10 percent down payment if owner-occupied, otherwise 20 percent down payment. In cases where the purchase price is different than the asking price, the percentage (10 or 20) will be applied to the purchase price;

(iii) Personal Property Manufactured— 20 percent down payment if owner-occupied, otherwise 30 percent down payment;

(iv) Unique or Unusual Property — The required down payment will be stated on the property description sheet in an amount or percentage determined by the Director.

(9) A purchase of property from the Oregon Department of Veterans’ Affairs will not be considered a loan under ORS 407.205.

(10) All purchasers must meet the department’s repayment ability requirements.

(11) If a prospective purchaser submits more than one bid for the same property, only the highest such bid will be considered.

(12) The property will not be sold on contract to anyone who had an interest in the property at the time foreclosure action was commenced or a deed-in-lieu of foreclosure was accepted.

(13) A purchaser who states that he or she will be occupying the property in order to pay a lesser percentage of down payment or to receive approval of work equity must:

(a) Occupy the property within 60 days after the sale closes; and

(b) Continuously occupy the property as his or her principal primary residence for a period of not less than 365 days from the date of closing or initial occupancy, whichever is later.

(14) In the event purchaser fails to occupy the property as stated, the Director may require cash payment of an additional down payment. The required additional down payment will be the amount the purchaser would have been required to pay if the property had been purchased as nonowner-occupied, less any cash down payment received at closing.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 3-2005, f. & cert. ef. 4-22-05
DVA 5-2003, f. & cert. ef. 4-23-03
DVA 9-2002(Temp), f. 10-30-02, cert. ef. 11-1-02 thru 4-29-03
DVA 3-1996, f. 6-21-96, cert. ef. 6-22-96
DVA 2-1991, f. 5-29-91, cert. ef. 6-3-91
DVA 5-1990, f. 8-20-90, cert. ef. 10-1-90
DVA 7-1987, f. 9-30-87, ef. 10-1-87
DVA 4-1987, f. & ef. 5-1-87
DVA 11-1985, f. & ef. 11-5-85
DVA 6-1985, f. 5-22-85, ef. 7-1-85
DVA 1-1985, f. & ef. 1-15-85
Reverted to DVA 14-1983, f. 11-29-83, ef. 12-1-83
DVA 5-1984(Temp), f. & ef. 7-17-84
DVA 14-1983, f. 11-29-83, ef. 12-1-83
DVA 7-1983, f. 5-13-83, ef. 5-15-83
DVA 13-1982, f. & ef. 5-17-82
DVA 8-1982(Temp), f. & ef. 4-6-82

Or. Admin. R. 274-021-0010 Escrow Closings of Contract Sales

Effective with offers accepted by the Director after June 30, 1988:

(1) All contract sales of real or personal property by the Director of Veterans' Affairs shall be closed by a person or firm licensed as an escrow agent under the Oregon Escrow Law (ORS 696.505 to 696.590) or an attorney at law rendering services in the performance of duties as attorney at law.

(2) The escrow agent or attorney shall be selected by the purchaser.

(3) The costs of the escrow closing shall be shared as follows:

(a) The Director of Veterans' Affairs will pay one-half of the escrow agent's fee;

(b) The purchaser will pay one-half of the escrow agent's fee;

(4) The requirement for licensed escrow (or attorney) closing shall not be waived except when in the Director's opinion, requiring such closing would cause an undue hardship.

History

Statutory/Other Authority: ORS 406 & 407
Statutes/Other Implemented: ORS 407.165 & 407.169
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 2-1988, f. 6-6-88, cert. ef. 6-30-88
DVA 2-1984, f. & ef. 5-3-84

Or. Admin. R. 274-021-0015 Mineral Rights and Geothermal Resource Rights

(1) As used in this rule “mineral” means oil, gas, sulfur, coal, gold, silver, copper, lead, cinnabar, iron, manganese and other metallic ore, and any other solid, liquid or gaseous material or substance excavated or otherwise developed for commercial, industrial or construction use from natural deposits, including mineral waters of all kinds. (This is the same definition as used in ORS 273.775.) As used in this rule “mineral” includes sand and gravel.

(2) As used in this rule “geothermal resource” means the natural heat of the earth, the energy, in whatever form below the surface of the earth present in, resulting from, or created by, or which may be extracted from, the natural heat, and all minerals in solution or other products obtained from naturally heated fluids, brines, associated gases, and steam, in whatever form, found below the surface of the earth, exclusive of helium or of oil, hydrocarbon gas or other hydrocarbon substances, but including, specifically:

(a) All products of geothermal processes, embracing indigenous steam, hot water and hot brines;

(b) Steam and other gases, hot water and hot brines resulting from water, gas, or other fluids artificially introduced into geothermal formations;

(d) Any by-product derived from them. (This is the same definition as used in ORS 522.005.)

(3) The Director of the Oregon Department of Veterans’ Affairs (ODVA) may sell, retain, assign, lease, release, develop, market or otherwise administer any mineral rights and geothermal resource rights obtained by ODVA after January 1974 pursuant to ORS 88.720, 406.050, 407.135, or 407.145(1):

(a) Prior to a release or transfer of any interest in mineral or geothermal resource rights pertaining to a property of three acres or more in Clatsop, Columbia, or Washington County, or of 40 acres or more in any other county, ODVA will request a review and recommendation from the Division of State Lands (DSL) regarding the potential for the occurrence of mineral or geothermal resources with value, excluding soil, clay, stone, sand and gravel. ODVA may, but shall not be required to, request a similar review and recommendation from DSL with respect to mineral or geothermal resource rights related to properties of lesser size. In any situation where additional professional services may be required by ODVA, the services shall be provided at the expense of the applicant for the release. ODVA may then, at the director’s discretion, administer such rights consistent with this section in any manner that the director determines will advance the interests of the Oregon War Veterans’ Fund, including the release by ODVA of all or part of such rights of the related property upon application and payment of the appropriate application fee together with such other consideration, required by ODVA;

(b) An application for any interest in mineral or geothermal resource rights held by ODVA must be completed and submitted directly to ODVA together with the documents and other information listed on the application form or otherwise required by ODVA, together with the appropriate application fee. Any or all of the application fee may be waived by ODVA if such waiver is determined by it to be in the economic interest of ODVA, or if ODVA determines that it would avoid undue hardship.

(4) Upon advice from DSL concerning potential mineral or geothermal resources, ODVA may change the acreage review for any county in Oregon at any time by administrative rule.

(5) Two years after the effective date of this rule, and each biennium thereafter, ODVA and DSL will review the rule and its effects for possible changes.

History

Statutory/Other Authority: ORS 88.720, 273.775, 406.030, 406.050, 407.115, 407.135 & 407.145
Statutes/Other Implemented: ORS 88.720, 273.775, 273.785, 407.135 & 407.145
DVA 3-1996, f. 6-21-96, cert. ef. 6-22-96
DVA 3-1992, f. & cert. ef. 3-23-92
DVA 6-1991(Temp), f. 9-25-91, cert. ef. 9-26-91

Or. Admin. R. 274-021-0020 Forcible Entry and Wrongful Detainer

Pursuant to ORS 105.130(5), in any action brought by the State of Oregon by and through the Director of Veterans' Affairs, pursuant to the provisions of ORS 105.105 to 105.168, to recover the possession of premises to which the Director of Veterans' Affairs is entitled, any officer or employee of the Department of Veterans' Affairs is authorized, on behalf of the Director of Veterans' Affairs, to:

(1) File the complaint; and

(2) Appear in District Court or Justice Court at the first appearance referred to in ORS 105.137, provided that the Attorney General has given written consent to such appearances.

History

Statutory/Other Authority: ORS 105.130(5), 406.030 & 407.115
Statutes/Other Implemented: ORS 407.115, 407.135 & 407.145
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 5-1992, f. & cert. ef. 4-2-92

Division 22 PROCUREMENT OF BENEFITS

Or. Admin. R. 274-022-0005 Loan Cancellation Life Insurance

(1) The Director of Veterans’ Affairs (DVA), prior to obtaining loan cancellation life insurance for any person who receives or assumes a loan or makes a contract with DVA for the acquisition of a home or farm, and the spouse or former spouse of that person, may enter into a contract with an insurance carrier which allows the carrier to:

(a) Require an application for insurance;

(b) Underwrite classes of prospective insureds on the basis of information, such as age and health status, contained in the application;

(d) Deny payment of benefits for suicide or certain preexisting, nonservice-connected disability.

(2) The Director will negotiate a contract with the insurance carrier as necessary to insure procurement and maintenance of adequate, solvent, and uninterrupted, long-term insurance coverage.

(3) The insurance contract may provide that loan cancellation life insurance on a loan or contract for the acquisition of a home or farm will be canceled after payments on the loan or contract become four months delinquent. Accounts due monthly are considered four months delinquent when the cumulative delinquency equals four times the standard monthly payment.

(4) Accounts due quarterly, semi-annually, or annually are considered four months delinquent when an amount that would equal four monthly payments (if payments were made monthly) remains unpaid four months after the due date.

(5) The insurance contract may provide that insurance canceled for the above reason cannot be reinstated unless payments are brought current and a new application for insurance is submitted. The provisions of section (1) of this rule will apply to the newly submitted application.

History

Statutory/Other Authority: ORS 406 & 407
Statutes/Other Implemented: ORS 407.465 - 407.490
DVA 8-1987, f. 11-17-87, ef. 12-1-87
DVA 11-1983, f. & ef. 9-22-83
DVA 2-1983, f. 1-14-83, ef. 1-15-83
DVA 22-1982, f. & ef. 9-22-82

Division 25 VETERANS’ LOAN PROGRAM 1990

Or. Admin. R. 274-025-0010 Purpose and Objectives

This Division 25 is established to administer and enforce ORS 407.075 through 407.595. Where context allows, the provisions of Divisions 20, 21, and 22, apply equally to the loans originated after April 1, 1990. The loans originated under this Division 25 are known as the " Veterans' Loan Program 1990" means all ODVA home loans originated after April 1, 1990, except financed contract sales of Department-owned properties.

(1) As used in this Division 25: (1) "Acquisition" means the purchase of a home.

(2) "Agreement" means the contract between the Department and the approved lender, setting forth the terms and conditions under which program loans made by the approved lender will be purchased by the Department.

(3) "ALTA Mortgagee's Title Insurance" means a title insurance policy issued in American Land Title Insurance form by a title insurer licensed by the State of Oregon

(4) "Approved Lender" means any "Lending Institution" as defined in ORS 407.177(8) that has entered into an agreement with the Department to originate residential loans or to act as a conduit for the origination of residential loans that are acceptable to ODVA. In determining whether or not to contract with a Lending Institution, the Department may consider factors including, but not limited to;

(a) The Department’s need for additional Approved Lenders, either on a statewide basis or in a specific geographical area.

(b) Whether the Lending Institution has had any complaints filed against it or against any of its employees, agents, officers, Directors, owners, or affiliates through the Consumer and Business Services Department of the State of Oregon, through any other regulatory agency or otherwise.

(d) The reputation of the Lending Institution, including its employees, agents, officers, Directors, owners or affiliates.

(e) The number and experience of Lending Institution employees and other personnel available to originate loans or to act as a conduit for the origination of residential loans acceptable to the Department.

(f) Status and character of the institution's loan policies and procedures.

(g) The financial capability of the Lending Institution to originate loans or to act as a conduit for the origination of loans.

(h) The Lending Institution's qualification as a loan originator that is duly registered with the National Mortgage Licensing Service (NMLS).

(i) Whether the deposits of the Lending Institution are insured by FDIC or some other federal agency or corporation.

(j) The experience, efficiency and performance of the Lending Institution in the area of residential lending and any other area of the Lending Institution's business.

(k) The willingness and commitment of the Lending Institution to accept and to fulfill the terms of a proposed contract with the Department.

(l) The result of any reference checks conducted by the Department.

(5) "Commitment" means a promise made by the Department to an Approved Lender, evidenced by a written commitment letter, setting forth the terms upon which the Department will purchase or accept by underwriting and closing a specific program loan made or processed by the Approved Lender pursuant to a commitment request, or commitments to make an individual loan to a qualified veteran.

(6) "Commitment Request" means a verbal or written request from an Approved Lender to the ODVA to purchase or accept for underwriting and closing a specific program loan.

(7) "Department" means the Oregon Department of Veterans’ Affairs established under ORS 406.005.

(8) “Director” means the means Director of the Oregon Department of Veterans' Affairs.

(9) "Home" means a residential structure, including a manufactured home or a condominium unit, which is established, maintained and used primarily as a principal residence by a veteran, and includes real property connected to a residential structure, including any long-term leasehold and any outbuildings.

(10) “Manufactured home” means a structure that is:

(a) At least 20 feet in width;

(b) Constructed for movement on the public highways and that has sleeping, cooking and plumbing facilities;

(d) Being used for residential purposes;

(e) Classified and taxed as real property in the county where the structure is located; and constructed in accordance with the Oregon Manufactured Dwelling Installation Specialty Code adopted under ORS 446.155 or the Model Manufactured Home Installation Standards established by the Department of Housing and Urban Development.

(11) “Mortgage” means a loan in which real property is used as collateral.

(12) "Lending Institution" means an entity which is licensed, or otherwise legally authorized, to conduct business in the State of Oregon exclusively or in part as a mortgage lender or a conduit for mortgage loans and that, in the judgment of the Department, is capable of meeting the needs of the Department in carrying out the purposes of ORS Chapter 407. In determining whether or not an entity that is licensed or otherwise legally authorized to conduct business in Oregon exclusively or in part as a mortgage lender or a conduit for mortgage loans is capable of meeting the needs of ODVA in carrying out the purposes of ORS Chapter 407, ODVA may consider factors including, but not limited to the following:

(a) Whether or not the entity qualifies as a "Banking Institution" or similar entity including, but, not limited to an "Extranational Institution," a "Federal Bank," a "Federal Savings Bank," or a "Financial Institution" under ORS 706.005, 706.008, 707.744, or 723.042.

(b) Whether or not the entity qualifies as a "mortgage broker" under ORS 59.840 through 59.980 for a period of three years.

(d) The reputation of the entity or of any of its employees, agents, officers, Directors, affiliates or owners.

(e) The financial capability of the entity to originate loans or to act as a conduit for the origination of loans.

(f) The entity's qualification as a loan originator that is duly registered with the National Mortgage Licensing Service (NMLS).

(g) The experience, efficiency, and performance of the entity in the areas of residential lending and any other area of the entity's business

(13) "Loan Origination Guide/Mortgage Loan Origination Guide" means the manual containing the origination instructions for the Veterans' Loan Program 1990, and any subsequent changes as they are effected.

(14) "ODVA" means the Oregon Department of Veterans' Affairs established under ORS 406.005.

(15) "Qualified Insurer" means a private mortgage insurance company licensed to do business in this state and that has entered into a master policy agreement with the Department.

(16) “Resides in the State of Oregon” means a person who:

(a) Maintains a primary legal residence in Oregon, or

(b) Intends to occupy a home in Oregon that will be secured by an ODVA loan a primary legal residence.

(17) "Security" means all of the real property that is to be acquired for a home and which serves as collateral for the loan.

(19) "Veteran" means a person who:

(a) Resides in the State of Oregon at the time of applying for a loan from the fund;

(b) Is a veteran, as that term is defined by Oregon law in ORS 407.087;

(d) Satisfies the requirements applicable to the funding source for the loan from the Oregon War Veterans' Fund.

(20) "Veterans' Loan Program 1990" means all ODVA home loans originated after April 1, 1990, except financed contract sales of Department-owned properties.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 4-2000, f. & cert. ef. 4-24-00
DVA 8-1995, f. & cert. ef. 7-21-95
DVA 1-1995(Temp), f. & cert. ef. 3-17-95
DVA 4-1993, f. & cert. ef. 1-4-93
DVA 11-1992(Temp), f. & cert. ef. 8-17-92
DVA 2-1992, f. & cert. ef. 1-2-92

Or. Admin. R. 274-025-0020 Approved Lenders

(1) Any lending institution, as defined in ORS 407.177(8) may apply to become an Approved Lender by submitting to the Director of Veterans' Affairs (director) information required by the Director which may include, but is not limited to the following for review:

(a) An application in the form prescribed by the Director, including a certificate of compliance with tax laws; and

(b) Its counsel's opinion regarding power and authority of the lending institution to enter into a purchase agreement with the director; and

(d) Its most recent, audited financial statements; and

(e) Financial Statement of Condition (Balance Sheet) for the last two fiscal years and Profit and Loss Statement; and

(f) Resumes of principal officers and key employees; and

(g) Company biography and background; and

(h) Signed and executed broker agreement; and

(i) Resolution of the Board of Directors/Certificate of Authorized Signatures; and

(j) Articles of Incorporation (if incorporated); and

(k) Signed Credit Release Authorization; and

(l) Applicable licenses as required by state and local law; and

(m) Explanation of Quality Control Procedures; and

(n) W-9; and,

(o) Any other documentation or information deemed necessary by the Director; and

(p) A credit report fee may be charged to the mortgage broker as part of the approved lender application process in an amount not to exceed the amount charged by the credit-reporting firm. Any funds not used or obligated for a credit report shall be refunded.

(2) A lending institution will qualify as an Approved Lender if the director determines that the applicant has the capability and resources to originate only or originate, underwrite and fund loans in a sound and professional manner. The director shall consider such factors as those itemized in 274-025-010(4)(a) through (l).

(3) To become an Approved Lender, a lending institution shall enter into an agreement with the Director, providing for the manner and terms of the sale or processing of loans. This agreement shall bein the standard form prescribed by the Director. Approved Lenders shall carry out such agreement in accordance with the procedures set forth in the agreement, the rules, and the Loan Origination Guide/Mortgage Brokers Loan Origination Guide. The Director may revise such procedures from time to time. The Director may terminate its agreement with an Approved Lender at any time on the terms and conditions stated in such agreement, the rules, or the Loan Origination Guide/Mortgage Brokers Loan Origination Guide.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 291.021, 406.030, 407.115, 407.177, 407.179, 407.181 & 407.275
Statutes/Other Implemented: ORS 407.125, 407.177, 407.205 & 407.275
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 4-2000, f. & cert. ef. 4-24-00
DVA 8-1995, f. & cert. ef. 7-21-95
DVA 1-1995(Temp), f. & cert. ef. 3-17-95
DVA 7-1993, f. 5-18-93, cert. ef. 5-21-93
DVA 2-1992, f. & cert. ef. 1-2-92

Or. Admin. R. 274-025-0030 Loan Requirements

(1) To be eligible for purchase or underwriting and closing by the ODVA pursuant to a commitment to an approved lender, a program loan shall be made or processed by the approved lender during the period of that commitment. The loan shall comply with the terms of such commitment, the requirements set forth in the agreement between ODVA and the approved lender, and the conditions set forth in the rules and the Loan Origination Guide/Mortgage Brokers Loan Origination Guide.

(2) Each Approved Lender shall make loans for single-family dwellings.

(3) Each program loan shall have a final maturity of at least 15 and not more than 40 years from the date of its mailing.

(4) Each program loan shall be secured by a first lien security instrument as defined or allowed pursuant to OAR 274-025-0010(11) and granted by the veteran on a home which is being financed. The veteran shall hold title to the home in fee simple.

(5) No program loan shall be made to refinance an existing loan, unless such loan was a temporary loan for the construction or rehabilitation of a home or other temporary initial financing. If a program loan is made to refinance such a loan, the approved lender shall certify to the ODVA that construction or rehabilitation has been satisfactorily completed before the delivery of the program loan for purchase.

(6) Each program loan shall be executed on forms approved by the ODVA. Such forms shall prescribe program loan requirements regarding insurance, escrow payments, late charges, defaults, and similar matters.

(7) The ODVA shall require that program loans be subject to acceleration at the option of the ODVA if at any time the veteran does not reside in the home as his/her primary residence, or if the veteran is determined to have been ineligible at the time the program loan was made.

(8) The interest rate on each program loan shall be at the rate stated in the applicable commitment issued by the ODVA.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.177, 407.179 & 407.181
DVA 4-2008, f. & cert. ef. 2-22-08
DVA 4-2000, f. & cert. ef. 4-24-00
DVA 2-1992, f. & cert. ef. 1-2-92

Or. Admin. R. 274-025-0040 Reservations of Funds and Commitments

(1) Under the Veterans’ Loan Program 1990, the Oregon Department of Veterans’ Affairs (ODVA) reserves funds for individual loans in the name of the veteran upon request from an Approved Lender or from authorized ODVA staff. ODVA may solicit applications and accept loan fund reservations from Approved Lender(s) subject to the terms of the appropriate agreements, and the rate and availability of funds.

(2) ODVA will reserve funds for applications at the time of:

(a) Acceptance of application for processing by ODVA; or

(b) A verbal or written request from an Approved Lender that an application for funding is being processed.

(3) Effective September 10, 2001, when ODVA reserves funds, an interest rate will be committed to this reservation and will be effective for a period of 60 days. The loan must be closed before the end of 60 days or the committed interest rate will expire. If the reservation is reissued, it will bear an interest rate at the "higher of" the expired/cancelled rate or the then-current interest rate at the time of reissue. This shall be called the "higher of" rate. If a veteran withdraws an application and subsequently re-applies for a loan on the same security, the "higher of" rule will apply for a period of 120 days from the date of withdrawal.

(4) If the loan is not presented to ODVA for purchase with all documentation in place within 90 calendars days of the final HUD-1 settlement date, ODVA may charge the Approved Lender a penalty fee of one basis point of the loan amount per calendar day, until the loan is approved for purchase.

Example: $150,000 loan closed and presented for purchase 120 calendar days after final HUD-1 settlement date. The penalty fee charged and deducted from the amount due to the Approved Lender is calculated as follows: $150,000 x .01% x 30 days = $450.

(5) The commitment letter to the Approved Lender will contain the following information:

(a) The dollar amount of the commitment;

(b) The interest rate for the loan;

(d) The mortgage insurance or guarantee required, if any;

(e) The period of time during which the ODVA will purchase the loan;

(f) The veteran who will be the borrower;

(g) The property identification (i.e., property address);

(h) Any additional information or conditions the ODVA considers appropriate in the commitment.

(6) The ODVA will promptly notify approved lenders when it will not accept a commitment request, for whatever reasons.

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.177, 407.179 & 407.181
Statutes/Other Implemented: ORS 407.177, 407.179 & 407.181
DVA 2-2002, f. & cert. ef. 2-22-02
DVA 6-2001(Temp), f. 9-7-01, cert. ef. 9-10-01 thru 3-8-02
DVA 4-2000, f. & cert. ef. 4-24-00
DVA 2-1992, f. & cert. ef. 1-2-92

Or. Admin. R. 274-025-0050 Title Insurance

Each loan shall be covered by a title insurance policy issued in American Land Title Association (ALTA) form by a title insurer licensed by the State of Oregon. Such policy shall be in an amount at least equal to the outstanding principal balance of the program loan. The benefits of the policy shall run to the ODVA as either named insured or assignee. The policy shall not be subject to any exceptions or conditions other than those previously approved by the ODVA.

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.177, 407.179 & 407.181
Statutes/Other Implemented: ORS 407.115, 407.177, 407.179 & 407.181
DVA 2-1992, f. & cert. ef. 1-2-92

Or. Admin. R. 274-025-0060 Hazard Insurance

The home securing a program loan shall be covered by hazard insurance, which meets the requirements of the rules and the Loan Origination Guide/Mortgage Brokers Loan Origination Guide. Such hazard insurance shall be in effect prior to purchase or funding of the program loan, and shall remain in effect for the term of the program loan. The ODVA shall be named as the mortgagee insured.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.177, 407.179 & 407.181
Statutes/Other Implemented: ORS 407.155, 407.165 & 407.169
DVA 4-2000, f. & cert. ef. 4-24-00
DVA 2-1992, f. & cert. ef. 1-2-92

Or. Admin. R. 274-025-0070 Flood Insurance

(1) Beginning September 1, 1995, the Director of the Oregon Department of Veterans' Affairs (Department) shall require that the location of the security on all loan applications received by the Department be reviewed and a determination made as to whether flood insurance will be required as a condition of the loan.

(2) A flood determination fee will be charged to the borrower equal to the amount charged by the flood determination reporting company at the time the application is submitted.

(3) All flood determinations are to be provided for the duration of the loan while it exists in the Department's portfolio (more commonly referred to as life-of-loan tracking).

(4) The flood determination company must meet the qualifications as determined by the Department by applying relevant industry standards.

(5) Based on the determination that the security for the loan is located in an area classified as a special flood hazard area, the director shall require the borrower to purchase flood insurance as a requirement of the loan.

(6) If following loan closing, it is determined that the security is located within a flood hazard area as defined by the National Flood Insurance Reform Act of 1994 (42 USCS 3701-4370a), the borrower may be required to purchase flood hazard insurance at no cost to the Department. If flood hazard insurance is not voluntarily acquired, the director may force place said insurance and:

(a) Disburse all costs associated with the acquisition of the coverage from the escrow account; or

(b) Add said cost to the balance of the loan and interest will be collected at the note rate; and

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.169, 407.177 & 407.275
Statutes/Other Implemented: ORS 407.169, 407.177 & 407.275
DVA 6-2005, f. & cert. ef. 10-24-05
DVA 2-1996, f. & cert. ef. 3-22-96
DVA 9-1995(Temp), f. 8-23-95, cert. ef. 9-1-95

Division 28 VETERANS’ HOME IMPROVEMENT LOAN PROGRAM

Or. Admin. R. 274-028-0001 Purpose and Objectives

(1) This division is established to administer the provisions of ORS 407.145 and 407.225. These rules, together with the Processing Manual, shall implement the Veterans' Home Improvement Loan Program.

(2) The program's objective is to provide funds to finance qualified improvements of owner occupied, residential housing for qualified veterans in the State of Oregon. Where context allows, the provisions of OAR chapter 274, divisions 020, 021, 022 and 025 apply equally to the Veterans' Home Improvement Loan Program loans for which applications are received on or after November 12, 1997. No improvement will be financed that is inconsistent with the provisions of ORS chapter 407, ODVA's Processing Manual, section 143 of the Internal Revenue Code of 1986 and any subsequent changes as they are effected. Copies of section 143 of the Internal Revenue Code of 1986 and the Processing Manual are on file with the Oregon Department of Veterans' Affairs, 700 Summer Street NE, Salem Oregon, and available to the public Monday through Friday between the hours of 8 a.m. and 5 p.m.

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.125, 407.145 & 407.225
Statutes/Other Implemented: ORS 407.115, 407.125, 407.145 & 407.225
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 6-1997, f. & cert. ef. 10-22-97

Or. Admin. R. 274-028-0005 Definitions

Selected words and terms as used in OAR chapter 274, division 028, are defined as follows:

(1) Veterans' Home Improvement loan means a loan or loans issued pursuant to OAR 274-028-0001 for not more than the total loan right where said loan funds are used to improve the basic livability of the home as defined in OAR 274-025-0010(7).

(2) Qualified improvements means the remodel or improvement of an existing home which will substantially enhance or protect the basic livability of the home.

(3) Processing Manual means the manual containing the policy for the Veterans' Home Improvement Loan Program, and any subsequent changes as they are effected.

(4) Veterans' Home Improvement Loan Program means all veterans' home improvement loans for which applications are received on or after November 12, 1997.

(5) Existing loan means any loan or loans obtained by the veteran to purchase or improve the property used as security for a loan with the Oregon Department of Veterans Affairs (ODVA).

(6) Loan to Value Ratio is the loan amount plus any outstanding balance owed to ODVA on the security divided by the net appraised value.

History

Statutory/Other Authority: Ch. 214 OL 1997 & ORS 406.030
Statutes/Other Implemented: Ch. 214 OL 1997 & ORS 406.030
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 6-1997, f. & cert. ef. 10-22-97

Or. Admin. R. 274-028-0010 Interest Rate

(1) The Director may prescribe interest rate(s) on veterans' home improvement loans in a manner consistent with OAR 274-020-0341. The prescribed interest rates shall be "fixed interest rates" consistent with the usage of that term in ORS Chapter 407.

(2) The Director will publish prescribed interest rates in the Department's Tables and Codes Manual. This publication will be available for viewing at the Oregon Department of Veterans' Affairs, 700 Summer Street NE, Salem, Oregon, as permitted by the Department, during regular business hours.

History

Statutory/Other Authority: Ch. 214 OL 1997 & ORS 407.327
Statutes/Other Implemented: Ch. 214 OL 1997 & ORS 407.327
DVA 3-2005, f. & cert. ef. 4-22-05
DVA 6-1997, f. & cert. ef. 10-22-97

Or. Admin. R. 274-028-0015 Approval of Veterans’ Home Improvement Loans

Veterans' home improvement loans will be processed using current industry standards determined by the Department to be applicable to the proposed loan as they relate to the borrower's ability and willingness to repay and the borrower having required funds for closing. Applicable industry standards may include, but are not limited to, local lending practices, FannieMae and other lending organization standards, and federal and state legal requirements.

History

Statutory/Other Authority: ORS 407.115 & 407.265
Statutes/Other Implemented: ORS 407.115, 407.145, 407.225, 407.265 & 407.325
DVA 6-2005, f. & cert. ef. 10-24-05
DVA 6-1997, f. & cert. ef. 10-22-97

Or. Admin. R. 274-028-0020 Terms of Veterans’ Home Improvement Loans

(1) The veterans' home improvement loan must be placed in the first lien position on the security or be an immediate subsequent lien to an existing ODVA lien. The first ODVA lien and any immediate subsequent lien made on the security by the director shall be deemed collectively as a first lien on the security.

(2) The net appraised value will be used as the basis for determining the maximum veterans' home improvement loan subject to statutory limitations.

(3) When a veterans' home improvement loan is made on a security with an existing balance owed to the director, the total of the unpaid balance of the existing loan and the veterans' home improvement loan shall not exceed 80 percent of the net appraised value as determined by the director.

(4) When a veterans' home improvement loan is made on a property where no balance is owing, the veterans' home improvement loan shall not exceed 97 percent of the net appraised value as determined by the director. If the loan-to-value ratio is greater than 80 percent of the net appraised value, the loan must be insured by mortgage insurance consistent with ORS 407.485.

(5) All existing nonamortizing ODVA loans on the security must be reamortized to bring the principal and interest payment and final payment date into conformance with ODVA policy as identified in the Processing Manual. A copy of the manual is on file with the Oregon Department of Veterans' Affairs, 700 Summer Street NE, Salem Oregon, and available to the public Monday through Friday between the hours of 8 a.m. and 5 p.m. All other terms of the existing loan on the security remain unchanged.

(6) Depending upon the loan amount, the maximum term of a home improvement loan may not exceed 20 years.

History

Statutory/Other Authority: Ch. 214 OL 1997, ORS 407.205, 407.275 & 407.485
Statutes/Other Implemented: Ch. 214 OL 1997, ORS 407.205, 407.275 & 407.485
DVA 11-2003, f. & cert. ef. 9-23-03
DVA 3-2003(Temp), f. & cert. ef. 4-7-03 thru 10-3-03
DVA 6-1997, f. & cert. ef. 10-22-97

Or. Admin. R. 274-028-0025 Appraisal of Property

An appraisal may be made at the discretion of the director to assist in establishing the net appraised value. A fee will be charged in accordance with OAR 274-020-0440.

History

Statutory/Other Authority: ORS 406.030 & 407.115
Statutes/Other Implemented: ORS 406.030 & 407.115
DVA 6-1997, f. & cert. ef. 10-22-97

Or. Admin. R. 274-028-0030 Transfer of Ownership

(1) The director may declare all veterans’ home improvement loan sums to be immediately due and payable if all or part of the security is sold or otherwise transferred by the borrower to anyone other than those qualified persons identified in ORS 407.275.

(2) The director shall be notified in writing by the borrower of any transfer of ownership or right to possess the security, including to those qualified persons identified in ORS 407.275, that is used as security for a home improvement loan with ODVA.

(3) The provisions of OAR 274-020-0380(2), (3), (4) and (5) apply to any transfer on a veterans’ home improvement loan.

History

Statutory/Other Authority: Ch. 214 OL 1997, ORS 406.030, 407.115, 407.275, 407.305 & 407.335
Statutes/Other Implemented: Ch. 214 OL 1997 & ORS 407.275
DVA 6-1997, f. & cert. ef. 10-22-97

Or. Admin. R. 274-028-0035 Taxes, Hazard Insurance and Flood Insurance

(1) For veterans' home improvement loans which are subsequent to an existing loan, the director may pay property taxes or hazard or flood insurance on the existing loan until the existing loan is paid in full, after which it will be the borrower's responsibility to pay these items directly.

(2) If delinquent taxes become a lien against the security, or the borrower fails to maintain the required insurance, the director may pay the taxes or insurance and if so paid, will collect the amount paid by ODVA from the borrower through an escrow account per the provisions of OAR 274-020-0388.

History

Statutory/Other Authority: Ch. 214 OL 1997, 407.115, ORS 407.165 - 407.181 & 407.275
Statutes/Other Implemented: Ch. 214 OL 1997, ORS 407.165 - 407.181 & 407.275
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 6-1997, f. & cert. ef. 10-22-97

Or. Admin. R. 274-028-0040 Title Insurance

Each loan shall be covered by a title insurance policy as designated by the director at the borrower’s expense.

History

Statutory/Other Authority: ORS 407.115, 407.177, 407.179 & 407.181
Statutes/Other Implemented: ORS 407.115, 407.177, 407.179 & 407.181
DVA 6-1997, f. & cert. ef. 10-22-97

Division 30 STATE FUNDS FOR COUNTIES AND VETERANS' ORGANIZATIONS

Or. Admin. R. 274-030-0500 Definitions for Division 30

(1) “Accredited” means an individual officially recognized and authorized by the United States Department of Veterans Affairs (USDVA) to assist in the preparation, presentation, and prosecution of a claim for USDVA benefits.

(2) "Advisory Committee" means the Advisory Committee to the Director defined in ORS 406.210.

(3) “Capital Assets” means tangible and intangible property as defined as “capital assets” in the State of Oregon Accounting Manual, Number 10.50.00 PR, as amended, that have initial estimated useful lives beyond a single year and have an initial cost of at least $5,000 and does not include items below $5,000. Examples of capital assets include land, land improvements, buildings and building improvements, motor vehicles, equipment and machinery, works of art and historical treasures, and infrastructure items such as state highways and airports.

(4) “Capital outlay” means expenditures for capital assets.

(5) “County” means a county that carries on a program of veterans' rehabilitation work described in ORS 406.320 and that contracts for or employs a part-time or full-time veteran service officer.

(6) “County Veteran Service Officer” means a person appointed by a county under ORS 408.410 who is contracted or employed as a part-time or full-time agent or employee of a county to carry on a program of veterans’ rehabilitation work.

(7) “Department” means the Department of Veterans' Affairs as defined in ORS 406.005.

(8) “Director” means the Director of Veterans' Affairs as defined in ORS 406.410.

(9) “Funds” means monies that have been appropriated to the Department for distribution to veterans’ organizations and counties under ORS 406.310 and 406.454.

(10) “Funds Available” shall mean the funds remaining, after any distributions have been made to veterans’ organization and counties, from those funds appropriated to the Department for distribution to veterans’ organizations and counties under ORS 406.310 and 406.454.

(11) “Qualified Veterans Organization” means a veterans’ organization qualified to apply for funds under ORS 406.310 and 406.320 that has carried on a program of veterans' rehabilitation work by employing a part-time or full-time paid veteran service officer in Oregon for not less than two years immediately preceding an application for funds under ORS 406.410.

(12) “Rehabilitation Program” means conducting a program, in acting under power of attorney for veterans in connection with claims for benefits, in assisting veterans in prosecutions of their claims and in solution of problems arising out of previous military service as provided in ORS 406.310.

(13) “Supplant funds” means to use funds appropriated to the Department and distributed to a county under ORS 406.310 and ORS 406.454 to replace county funds that were previously appropriated by the county for county veteran service officers and rehabilitation programs.

(14) “Veterans' Organization” means an organization recognized by the United States Department of Veterans Affairs (USDVA), Office of General Counsel, to assist claimants for USDVA benefits in the preparation, presentation, and prosecution of their claims.

(15) “Veteran Service Officer” means a part-time or full-time paid accredited employee of an accredited state or national veterans' organization, who is employed to represent veterans before rating boards of the United States Department of Veterans Affairs.

History

Statutory/Other Authority: ORS 406 & 408.410
Statutes/Other Implemented: ORS 406.030, 406.215, 406.217 & 406.450 - 462
DVA 3-2017, amend filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18
DVA 2-2008, f. & cert. ef. 2-4-08
DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08
DVA 1-2007(Temp), f. & cert. ef. 7-25-07 thru 1-18-08
DVA 4-1984, f. 6-15-84, ef. 7-1-84
DVA 28, f. 8-16-61

Or. Admin. R. 274-030-0505 Application for Funds by a Veterans’ Organization

A veterans’ organization applying for funds under ORS 406.310 must submit a written application to the Department, on an approved form, on or before August 15 of the application year. The application shall include the organization's eligibility for funds under ORS 406.320, a description of its rehabilitation program , and a copy of the approved budget for its program for the next fiscal year.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030 & 406.310 - 406.340
DVA 3-2017, amend filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18
DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08
DVA 1-2007(Temp), f. & cert. ef. 7-25-07 thru 1-18-08
DVA 4-1984, f. 6-15-84, ef. 7-1-84
DVA 28, f. 8-16-61

Or. Admin. R. 274-030-0515 Distribution of Funds to a Veterans’ Organizations

(1) The Department shall review the applications and qualifications of each veterans’ organization that applied for funds and distribute the funds appropriated to qualified veterans’ organizations based on the number of veterans served by the organization, the number of organizations applying for funds, and the amount of the organization’s financial contribution to its veterans’ rehabilitation program.

(2) After reviewing the quarterly reports required under OAR 274-030-0520, the Department shall distribute funds to veterans’ organizations on a quarterly basis, based on the Department’s fiscal year that begins on July 1 and ends June 30.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030, 406.210, 406.215 & 406.310 - 406.340
DVA 3-2017, amend filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18
DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08
DVA 4-1984, f. 6-15-84, ef. 7-1-84
DVA 28, f. 8-16-61

Or. Admin. R. 274-030-0520 Quarterly Reports and Audits from Veterans’ Organizations

(1) Veterans' organizations that receive funds from the Department shall submit quarterly reports of the activities of their accredited veteran service officers and program expenses on an approved form. The Department shall review and approve the quarterly reports, and authorize disbursement.

(2) The Director may audit and examine the activities and expenditures of veterans' organizations before approving reimbursements.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030 & 406.450 - 406.462
DVA 3-2017, amend filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18
DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08
DVA 1-2007(Temp), f. & cert. ef. 7-25-07 thru 1-18-08
DVA 4-1984, f. 6-15-84, ef. 7-1-84
DVA 28, f. 8-16-61

Or. Admin. R. 274-030-0525 Fiscal Division of Funds for Veterans’ Organizations

The Department shall not disburse more than one-half of the funds available for disbursement to veterans' organizations under ORS 406.310 during the first 12 months of the Department’s fiscal biennium.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030, 406.310 & 406.330
DVA 3-2017, amend filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18
DVA 4-1984, f. 6-15-84, ef. 7-1-84
DVA 28, f. 8-16-61

Or. Admin. R. 274-030-0535 Limitation on Distribution of Funds to Veterans’ Organizations

The Department shall not allocate funds to a veterans’ organization in an amount that is more than 50 percent of the organization’s approved budget. However, if the national headquarters of a state veterans’ organization bears the major portion of the expenses of the veteran service officer, the state veterans’ organization may submit as its own expense that portion of the annual member dues that are sent to its national headquarters as payment for a portion of the expenses of its veteran service officer. For purposes of this rule, a “veteran service officer” may be referred to by a veterans’ organization as a "State Service Officer" or a "National Service Officer."

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030, 406.210 - 406.217, 406.310 & 406.450 - 406.462
DVA 3-2017, amend filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18
DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08
DVA 4-1984, f. 6-15-84, ef. 7-1-84
DVA 28, f. 8-16-61

Or. Admin. R. 274-030-0541 Application of Rules

The rules under OAR 274-030-050 and 274-030-0541through 274-030-630 apply to all funds allocated to the Department and distributed to the counties under ORS 406.310 (Director authorized to aid veterans organizations) and under ORS 406.454 (Distribution formula; rules; use of funds).

History

Statutory/Other Authority: ORS 406.005, 406.330, 406.454 & 406.456
Statutes/Other Implemented: ORS 406.310, 406.320, 406.440, 406.450, 406.452, 406.454, 406.456, 406.460 & 406.462
DVA 3-2017, adopt filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18

Or. Admin. R. 274-030-0545 County Application for Funds

(1) A county applying for funds under ORS 406.310 and ORS 406.454 must submit written application to the Department, on an approved form, on or before August 15 of the application year. The application shall include budget reports, revenue and expense reports, and a copy of the approved budget for its program for the next fiscal year.

(2) A county may not apply for or use funds for capital outlay.

(3) A county may not apply for or use funds to supplant county funds that were previously appropriated by the county for county veteran service officers and rehabilitation programs.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030, 406.215 & 406.310
DVA 3-2017, amend filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18
DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08
DVA 1-2007(Temp), f. & cert. ef. 7-25-07 thru 1-18-08
DVA 4-1984, f. 6-15-84, ef. 7-1-84
DVA 28, f. 8-16-61

Or. Admin. R. 274-030-0550 Late Applications

The Director may approve a distribution of funds to a county that files an application under OAR 274-030-0550 after August 15 only if sufficient funds are available.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030, 406.215, 406.217, 406.450 & 406.450 - 462
DVA 3-2017, amend filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18
DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08
DVA 1-2007(Temp), f. & cert. ef. 7-25-07 thru 1-18-08
DVA 4-1984, f. 6-15-84, ef. 7-1-84
DVA 28, f. 8-16-61

Or. Admin. R. 274-030-0560 Quarterly Reports and Audits

(1) A county must submit quarterly reports and supporting documentation described in subsection (2) of this rule no later than the last working day of the month following the end of a fiscal quarter.

(2) The Department will distribute funds to a county on a quarterly reimbursement basis only after the Department has reviewed and approved both of the following reports and supporting documentation submitted by the county:

(a) Quarterly expense reports of the county’s veteran services program; and

(b) Quarterly county veteran service officer activity reports.

(3) The Director may audit and examine the activities and expenditures of a county before approving the disbursement of funds.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030 & 406.450 - 462
DVA 3-2017, amend filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18
DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08
DVA 1-2007(Temp), f. & cert. ef. 7-25-07 thru 1-18-08
DVA 4-1984, f. 6-15-84, ef. 7-1-84
DVA 28, f. 8-16-61

Or. Admin. R. 274-030-0565 Fiscal Division of Funds

The Department shall not disburse more than one-half of the total funds available for distribution to a county under ORS 406.310 and 406.454 during the first 12 months of the Department’s fiscal biennium.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030 & 406.450 - 462
DVA 3-2017, amend filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18
DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08
DVA 1-2007(Temp), f. & cert. ef. 7-25-07 thru 1-18-08
DVA 4-1984, f. 6-15-84, ef. 7-1-84
DVA 28, f. 8-16-61

Or. Admin. R. 274-030-0570 Formula for the Distribution of Funds to Counties under ORS 406.310 and 406.454

(1) The formula in subsection (2) of this rule for the distribution of funds described in ORS 406.310 and 406.454 to the counties is based on the consideration of the following factors:

(a) A base amount will be provided for each county;

(b) The number of veterans residing in each county;

(d) The rehabilitation of the greatest number of Oregon veterans; and

(e) The elimination, as much as possible, of any duplication of effort and inefficient expenditure of funds.

(2) The Department will review applications from all qualified counties and distribute funds allocated to the Department under ORS 406.310 and ORS 406.454 for counties based on the following formula:

(a) Base funds. The Department will distribute 55% of all funds available to qualified counties as a base amount. After subtracting the base funds distributed to the counties that share services of a county veteran service officer as described under section (3) of this rule, the remaining base funds will be distributed equally among the remaining counties that do not share a county veteran service officer.

(b) Veteran population funds. The Department will distribute 45% of all funds available to qualified counties based on the total veterans population in Oregon divided by the number of veterans residing in a county.

(3) As an allocation of the base funds available described under subsection (2)(a) of this rule, if two or more counties share the expenses of an accredited county veteran service officer who provides veteran services to these counties for at least 1,000 hours per year, the Director shall determine a base amount of funds for each of these counties and distribute that amount, after considering the following factors:

(a) Number of veterans served;

(b) Geographical accessibility to veterans served; and

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 406.030, 406.215, 406.217, 406.330 & 406.450 - 462
DVA 3-2017, amend filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18
DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08
DVA 1-2007(Temp), f. & cert. ef. 7-25-07 thru 1-18-08
DVA 4-1984, f. 6-15-84, ef. 7-1-84
DVA 28, f. 8-16-61

Or. Admin. R. 274-030-0630 Withholding Funds

(1) The Department may withhold funds from a county based on one or more of the following:

(a) A county failed to submit required quarterly reports to the Department in a timely manner as required under OAR 274-030-0620;

(b) A county submitted one or more required quarterly reports to the Department containing inaccurate or unverifiable information;

(c) A county used funds distributed by the Department for capital outlay, as defined in OAR 274-030-0500, which is prohibited under OAR 274-030-0545;

(d) A county supplanted funds previously appropriated by the county for county veteran service officers and rehabilitation programs with funds distributed by the Department to a county under ORS 406.310 and ORS 406.454.

(2) The Department may release funds to a county that were withheld under section (1)(a) of this rule when a county submits all required quarterly reports to the Department that were not submitted in a timely manner.

(3) The Department may release funds to a county that were withheld under section (1)(b) of this rule when a county submits all amended quarterly reports to the Department containing corrected, accurate and verifiable information.

(4) The Department may release funds to a county that were withheld under section (1)(c) of this rule when a county submits an amended and corrected report that demonstrates that funds used for capital outlay were county funds and not funds distributed to the county by the Department.

(5) The Department may release funds to a county that were withheld under section (1)(d) of this rule when a county amends and corrects the expense reports that showed the county supplanted funds. The amended and corrected report must demonstrate that funds distributed to the county by the Department were not used to supplant county funds.

(6) At the conclusion of the Department’s biennium, the Department may disburse withheld funds equally to all remaining counties as determined by the Director.

History

Statutory/Other Authority: ORS 406.030, 406.050, 406.310 - 406.340, 406.450 - 406.462 & 408.410
Statutes/Other Implemented: ORS 406.030, 406.050, 406.450 - 406.462 & 408.410
DVA 3-2017, amend filed 11/30/2017, effective 12/01/2017
DVA 1-2017(Temp), f. 7-20-17, cert. ef. 7-21-17 thru 1-12-18
Reverted to DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08
DVA 6-2013(Temp), f. & cert. ef. 7-24-13 thru 1-20-14
DVA 4-2007, f. 12-20-07, cert. ef. 1-1-08
DVA 1-2007(Temp), f. & cert. ef. 7-25-07 thru 1-18-08
DVA 6-2006, f. & cert. ef. 6-16-06
DVA 7-2005(Temp), f. 12-22-05, cert. ef. 12-23-05 thru 6-21-06

Division 31 VETERAN SERVICE OFFICER CERTIFICATION PROGRAM

Or. Admin. R. 274-031-0001 Purpose and Objectives

OAR 274 division 31 is established to administer and enforce ORS 406.452 and 408.095, which authorize the Department of Veterans’ Affairs (“ODVA”) to establish and administer a Veteran Service Officer (“VSO”) Certification Program (the “Program”). The essential objectives of the Program include assuring that each certified VSO receives appropriate initial and ongoing training, education, and experience sufficient to achieve and maintain competency in applying for applicable federal and state benefits on behalf of Oregon veterans, spouses and dependents of veterans or survivors of veterans.

History

Statutory/Other Authority: ORS 406.452 & 408.095
Statutes/Other Implemented: ORS 406.050, 406.452 & 408.095
DVA 1-2011, f. & cert. ef. 3-24-11

Or. Admin. R. 274-031-0002 Definitions

For the purposes of OAR chapter 274 division 031, the following terms have the following meanings, unless the context clearly indicates otherwise:

(1) "Certified" means that ODVA has provided specific written recognition that a particular person, employed by the state or county to counsel and apply for applicable state and federal veterans’ benefits on behalf of Oregon veterans, spouses and dependents of veterans or survivors of veterans, has received requisite training, and otherwise satisfied minimum standards of education and experience, consistent with ORS 406.452 and the Program to serve in that role as a VSO.

(2) "Director" means the Director of Veterans’ Affairs for the State of Oregon as defined in ORS 406.010.

(3) "ODVA" means the State of Oregon, acting by and through its Department of Veterans’ Affairs.

(4) "Veteran Service Officer" or “VSO” means a state or county employee who is designated to apply for applicable state and federal veterans’ benefits on behalf of Oregon veterans and certified by ODVA to so act consistent with this division.

(5) "Reestablished VSO" means a VSO who has not been employed as a VSO in the last three years.

(6) "Milestone Examination" means an examination administered by ODVA near the midpoint of the Training Program. This examination is designed to benchmark the progress, and future training needs, of the VSO related to defined training objectives as defined in OAR 274-031-0003.

History

Statutory/Other Authority: ORS 406.452
Statutes/Other Implemented: ORS 406.050 & 406.452
DVA 1-2011, f. & cert. ef. 3-24-11

Or. Admin. R. 274-031-0003 Minimum Training Standards for Certification

(1) As it deems appropriate, ODVA will make available or recognize training for VSO certification typically including, but not necessarily limited to the following:

(a) A multiple-day training course developed and provided on-site at ODVA’s Salem headquarters facility located at 700 Summer Street NE, Salem, Oregon;

(b) An introductory training course for new or reestablishing VSO applicants;

(d) Additional training approved by ODVA offered through official sanctioned veterans’ organizations.

(2) To receive VSO certification, persons must, as determined by ODVA, satisfactorily complete required training within the first 18 months of appointment, except as provided in section (5) of this rule.

(3) The training will be conducted under the supervision of ODVA's Training Coordinator or designee.

(4) Upon satisfactory completion of the training and a passing grade on the certification testing, as determined by ODVA, the VSO will qualify to become certified as determined by ODVA.

(5) VSO certification will terminate if the VSO has not been employed as a VSO in the last three years. The VSO must then satisfactorily complete the training program to qualify for certification. ODVA shall waive this requirement if the VSO:

(a) Successfully completes a written test; or

(b) Submits documentation of successful completion of equivalent training as determined by ODVA.

(6) ODVA may grant an extension of the time limit for the completion of the Training Program upon presentation of evidence by the employing agency that the VSO was unable to complete the required training due to illness, injury, military service, or other prudent reason(s).

History

Statutory/Other Authority: ORS 406.452
Statutes/Other Implemented: ORS 406.050 & 406.452
DVA 1-2011, f. & cert. ef. 3-24-11

Or. Admin. R. 274-031-0004 Certification Testing

ODVA shall require that all new VSOs and VSOs being reestablished must take the following examinations within a timeframe as determined by the Director or the Director's designee per OAR 274-031-0003:

(1) Milestone examination; and

(2) Certification examination.

History

Statutory/Other Authority: ORS 406.452
Statutes/Other Implemented: ORS 406.050 & 406.452
DVA 1-2011, f. & cert. ef. 3-24-11

Or. Admin. R. 274-031-0005 Minimum Certification Standards

(1) Each certification test will require a passing grade as determined by ODVA. If a passing grade is not achieved, the test will be readministered approximately 90 days thereafter.

(2) Newly appointed and reestablished VSOs must complete the minimum training standards for certification within the first 18 months of appointment.

(3) The Director, or designee, will assign a specific value to each training as outlined in 274-031-0003.

History

Statutory/Other Authority: ORS 406.452
Statutes/Other Implemented: ORS 406.050 & 406.452
DVA 1-2011, f. & cert. ef. 3-24-11

Or. Admin. R. 274-031-0006 Maintaining Certification

Each VSO must maintain certification by:

(1) Participating in six training units every year;

(2) Taking and passing the certification test once every two years; and

(3) Maintaining quality work performance as determined by the Director or designee.

History

Statutory/Other Authority: ORS 406.452
Statutes/Other Implemented: ORS 406.050 & 406.452
DVA 1-2011, f. & cert. ef. 3-24-11

Or. Admin. R. 274-031-0007 Denial/Revocation of Certification

The Director, or the Director's designee, may deny or cancel a VSO’s certification if the Director, or the Director's designee, determines that the VSO is not maintaining, but not limited to, the following:

(1) The minimum certification standards as outlined in 274-031-0005;

(2) Satisfactory completion and maintenance of training and education as set by ORS 406.452;

(3) Compliance with state or federal laws;

(4) Continued employment as a VSO;

(5) Lack of sanctions by the federal Veterans Administration;

(6) Quality of claims work.

History

Statutory/Other Authority: ORS 406.452
Statutes/Other Implemented: ORS 406.050 & 406.452
DVA 1-2011, f. & cert. ef. 3-24-11

Or. Admin. R. 274-031-0008 Hearings Request

Any person adversely affected by an ODVA determination with respect to this Program, may request review of such determination by the Director. The Director, or the Director’s designee, will undertake such review as he or she deems appropriate. The Director, or the Director's designee will endeavor to provide a written response within 30 days of receipt of the requested review.

History

Statutory/Other Authority: ORS 406.030 & 406.452
Statutes/Other Implemented: ORS 406.030 & 406.452
DVA 1-2011, f. & cert. ef. 3-24-11

Or. Admin. R. 274-031-0009 Waiver of Rules

ODVA may waive or modify any requirements of OAR 274, division 31, in order to achieve substantial justice and the purposes of the Program unless such waiver or modification would violate applicable federal or state law.

History

Statutory/Other Authority: ORS 406.030 & 406.005
Statutes/Other Implemented: ORS 406.030, 406.050 & 406.452
DVA 1-2011, f. & cert. ef. 3-24-11

Division 32 DISTRIBUTION OF FUNDS TO OREGON TRIBES

Or. Admin. R. 274-032-0100 Distribution of Pass-through Funds to Tribes; Background and Purpose

(1) In 2019, the Oregon State Legislature passed House Bill 5538 (Chapter 570, Oregon Laws 2019), the Department’s budget bill, which provided funds for a new position, a Tribal Veteran Coordinator, and pass-through funding for Tribal Veteran Offices. The budget note states that the purpose of these Pass-through Funds is for Tribal Veteran Offices to “expand and enhance their programs and services.”

(2) In 2019, the Department began working closely with various Tribes to establish formal relationships through a Memorandum of Understanding (MOU). The MOU provisions include that the Department would train and accredit Tribal Veteran Service Officers, and the Tribe would establish a Tribal Veteran Office and employ a Tribal Veteran Service Officer who would file United States Department of Veterans Affairs (USDVA) benefit claims for veterans under the Oregon Department of Veterans' Affairs’ power of attorney.

(3) The purpose of these rules is to describe the rationale, requirements and processes for the distribution of pass-through funds to Tribes.

History

Statutory/Other Authority: ORS 406.005
Statutes/Other Implemented: Chapter 570, Oregon Laws 2019 (HB 5538)
DVA 3-2020, adopt filed 03/26/2020, effective 03/27/2020
DVA 1-2019, temporary adopt filed 12/11/2019, effective 12/11/2019 through 06/07/2020

Or. Admin. R. 274-032-0110 Definitions for Division

As used in OAR chapter 274, division 32, unless the context of the rule requires otherwise, the following definitions apply:

(1) “Accredited” means an individual who is officially recognized and authorized by the United States Department of Veterans Affairs to assist in the preparation, presentation, and prosecution of a claim for USDVA benefits.

(2) “Available Funds” means Pass-Through Funds remaining and available for distribution, after any distributions have been made to the Tribes or held in reserve by the Department.

(3) “Biennium” means the Department’s two-year budget cycle that begins July 1 of odd-numbered years.

(4) “Capital Assets” means tangible and intangible property as defined as “capital assets” in the State of Oregon Accounting Manual, Number 10.50.00 PR, as amended, that have initial estimated useful lives beyond a single year and have an initial cost of at least $5,000 and does not include items below $5,000. Examples of capital assets include land, land improvements, buildings and building improvements, motor vehicles, equipment and machinery, works of art and historical treasures, and infrastructure items such as state highways and airports.

(5) “Capital Improvement” means an action that increases the useful life of a capital asset or adapts a capital asset to a new use.

(6) “Department” means the Department of Veterans' Affairs as defined in ORS 406.005.

(7) “Director” means the Director of Veterans' Affairs as defined in ORS 406.410.

(8) “MOU” means a Memorandum of Understanding between the Department and a Tribe that describes the roles and responsibilities of each of the parties in accrediting and training a Tribal Veteran Service Officer and the processes used when filing USDVA benefit claims for veterans.

(9) “Pass-Through Funds” means monies that have been allocated to the Department for distribution to the Tribes.

(10) “Tribal Veteran Service Officer” means a part-time or full-time Tribal employee who formally represents veterans during the USDVA disability claims process, and who is accredited or in the process of becoming accredited.

(11) “Tribal Veteran Service Office” means a Tribal office where a Tribal Veteran Service Officer provides veterans, spouses and dependents of veterans or survivors of veterans with information regarding benefit programs and assists veterans in applying for all federal and state veterans’ benefits.

(12) “Tribe” means a federally recognized Indian tribe in Oregon.

(13) “USDVA” means the United States Department of Veterans Affairs.

(14) “Veteran” means a veteran as defined in ORS 408.225.

(15) “Year One” means the first 12-month period of a Biennium.

(16) “Year Two” means the second 12-month period of a Biennium.

History

Statutory/Other Authority: ORS 406.005
Statutes/Other Implemented: Chapter 570, Oregon Laws 2019 (HB 5538)
DVA 3-2020, adopt filed 03/26/2020, effective 03/27/2020
DVA 1-2019, temporary adopt filed 12/11/2019, effective 12/11/2019 through 06/07/2020

Or. Admin. R. 274-032-0120 Eligibility, Application for Funds, Use of Funds

(1) Eligibility. A Tribe must have a current MOU with the Department and employ a Tribal Veteran Service Officer in order to apply for Pass-Through Funds.

(2) Application for Pass-Through Funds.

(a) A Tribe must apply to the Department for Pass-Through Funds on an agency-approved form that includes: information on the total budget for the Tribal Veteran Service Office; the proposed use of funds; and an agreement that the Tribe will comply with the rules in this division XX.

(b) A Tribe must provide sufficient funding for the Tribal Veteran Service Office to ensure its Tribal Veteran Services Officer:

(A) Works not less than 1,000 hours annually on providing veterans benefit claims services; and

(B) Demonstrates the ability to assist veterans in filing and appealing benefit claims to the USDVA.

(c) A Tribe may apply for funds for capital improvements. The Department will review the application and consult with the tribal applicant if the purpose of the proposed capital improvements do not appear meet the goal of expanding and enhancing access to services provided by Tribal Veteran Service Officers.

(d) A Tribe must submit a separate application for each year in the biennium.

(3) Use of funds. The purpose of the Pass-Through funds is to expand and enhance programs and services provided by the Tribal Veteran Service Officer.

History

Statutory/Other Authority: ORS 406.005
Statutes/Other Implemented: Chapter 570, Oregon Laws 2019 (HB 5538)
DVA 3-2020, adopt filed 03/26/2020, effective 03/27/2020
DVA 1-2019, temporary adopt filed 12/11/2019, effective 12/11/2019 through 06/07/2020

Or. Admin. R. 274-032-0130 Distribution of Pass-Through Funds

(1) The Department will review the applications and qualifications of each Tribe that applied for Pass-Through Funds and, except for the reservation of some funds as provided in subsection (2) of this rule, distribute the funds equally to approved Tribes.

(2) Year One Distributions. The Department will distribute no more than half the total Pass-Through Funds during Year One of the Biennium. The Department may reserve some of the Year One funds for distribution to Tribes who become eligible and apply for funds after the initial distribution during Year One.

(3) Year Two Distributions. At the end of Year One, the Department may add any undistributed reserved funds to Available Funds for distribution during Year Two.

(4) The Department will distribute funds to Tribes on a reimbursement basis outlined in OAR 274-032-0140.

History

Statutory/Other Authority: ORS 406.005
Statutes/Other Implemented: Chapter 570, Oregon Laws 2019 (HB 5538)
DVA 3-2020, adopt filed 03/26/2020, effective 03/27/2020
DVA 1-2019, temporary adopt filed 12/11/2019, effective 12/11/2019 through 06/07/2020

Or. Admin. R. 274-032-0140 Reimbursements, Quarterly Reports and Audits

(1) A Tribe must submit quarterly reports and supporting documentation described in subsection (2) of this rule no later than the last working day of the month following the end of a fiscal quarter.

(2) The Department will distribute funds to a Tribe on a quarterly reimbursement basis, in an amount not-to-exceed the Tribe’s total quarterly expenses, only after the Department has reviewed and approved both of the following reports and supporting documentation submitted by the Tribe:

(a) Quarterly expense reports of the Tribal veteran services program; and

(b) Quarterly Tribal Veteran Service officer activity reports.

(3) The Department, Secretary of State Audits Division or any other lawfully authorized governmental entity may audit and examine the activities and expenditures of the Pass-Through Funds.

History

Statutory/Other Authority: ORS 406.005
Statutes/Other Implemented: Chapter 570, Oregon Laws 2019 (HB 5538)
DVA 3-2020, adopt filed 03/26/2020, effective 03/27/2020
DVA 1-2019, temporary adopt filed 12/11/2019, effective 12/11/2019 through 06/07/2020

Division 35 GRANTS, DONATIONS AND GIFTS ACCEPTED BY ODVA

Or. Admin. R. 274-035-0005 Grants, Donations and Gifts Accepted by ODVA

The Director of Veterans’ Affairs may accept grants, donations, or gifts and deposit or disburse the proceeds from these as the Director deems appropriate for the benefit to Oregon’s veterans, spouses or dependents:

(1) Any grants, donations, or gifts that are accepted by the Director and that are designated, shall only be used for the purpose specified, unless the limitations are released by the donor or law.

(2) Any grants, donations, or gifts that are accepted by the Director, unless otherwise designated for a specific purpose, may be used for any purpose reasonably designated to benefit Oregon’s veterans, their widows and dependents.

(3) Any undesignated property, real or personal, that is accepted by the Director in the form of a grant, donation, or gift may be sold and the proceeds may be used for any purpose reasonably designated, including the deposition to the Veteran Home Trust Fund. Any designated property, real or personal, that is accepted by the Director also may be sold and the proceeds used for the benefit of the specified purpose, unless the limitations are released by the donor or law.

(4) Unless otherwise specified by the individual(s) or organization(s) making the grant(s), donation(s), or gift(s) accepted by the Director, the Director will determine which grant(s), donation(s), or gift(s) may be fully expended and those in which only the interest earnings may be disbursed.

History

Statutory/Other Authority: ORS 406.050, 408.510 & 408.530
Statutes/Other Implemented: ORS 408.090
DVA 3-1994, f. & cert. ef. 5-25-94

Division 36 VETERANS' EDUCATIONAL BRIDGE GRANT PROGRAM

Or. Admin. R. 274-036-0200 Veterans Educational Bridge Grant Program - Purpose

(1) The 2019 Oregon State Legislature passed House Bill 2201 (Chapter 527, Oregon Laws 2019), establishing a Veteran Educational Bridge Grant Program (Grant Program) to provide financial assistance to veterans who are unable to complete a degree program within the expected completion period due to the timing of course offerings.

(2) The 2023 Oregon State Legislature passed House Bill 2271 (Chapter 303, Oregon Laws 2023) which expands applicant eligibility for the Veteran Educational Bridge Grant Program. The maximum grant award remains at $5,000 lifetime but eligibility is expanded to include additional programs of study or training, veterans who do not have entitlement to U.S. Department of Veterans Affairs educational benefits, and veterans who have a debt on a student account preventing them from registering for future terms. Language was also updated to be inclusive of eligible non-academic programs including apprenticeships, on-the-job training (OJT), and career schools.

(3) The 2026 Oregon State Legislature passed House Bill 4132 which expands eligibility for the Veteran Educational Bridge Grant Program to include instances of financial hardship for veterans enrolled in eligible academic or training programs. Additionally, the requirement that a veteran prove eligibility for other federal or state financial assistance is eliminated, and the maximum grant award is increased to $10,000 per veteran over a lifetime.

History

Statutory/Other Authority: ORS 406.005(4) & ORS 406.030
Statutes/Other Implemented: ORS 408.115, ORS 408.125 & HB 4132 (2026)
DVA 1-2026, amend filed 06/30/2026, effective 07/01/2026
DVA 2-2023, amend filed 12/29/2023, effective 01/01/2024
DVA 11-2020, adopt filed 11/23/2020, effective 11/24/2020

Or. Admin. R. 274-036-0210 Definitions

These definitions apply to OAR 274-036-0200 through 274-036-0270

(1) "Applicant" means the person who applies to the Department for a grant under the Grant Program.

(2) "Approved Program" means an academic program or training approved to receive G.I. Bill® benefits under U.S. Code Title 38, Chapter 30, 32, or 33.; a career school licensed under ORS 345.010 to 345.450; an apprenticeship program that is registered with the State Apprenticeship and Training Council; or an On-The-Job training program offered by a public employer.

(3) "Department" or "ODVA" means the Oregon Department of Veterans' Affairs.

(4) "Grant Program" means the Veteran Educational Bridge Grant Program.

(5) "Resident" means a resident as defined in OAR 575-030-0005.

(6) "Veteran" means a veteran as defined in ORS 408.225.

(7) “Financial Hardship” is defined as one or more instances of unplanned or unexpected expenses that can impact a veteran’s ability to continue in their academic or training program.

History

Statutory/Other Authority: ORS 406.005(4) & ORS 406.030
Statutes/Other Implemented: ORS 408.115, ORS 408.125 & HB 4132 (2026)
DVA 1-2026, amend filed 06/30/2026, effective 07/01/2026
DVA 2-2023, amend filed 12/29/2023, effective 01/01/2024
DVA 11-2020, adopt filed 11/23/2020, effective 11/24/2020

Or. Admin. R. 274-036-0220 Eligibility Requirements

Eligible applicants must be:

(1) A veteran;

(2) An Oregon resident;

(3) Enrolled in an approved program;

(4) Unable to complete their academic or training program within the expected completion period due to the unavailability of one or more required courses or training hours; or.

(5) Has debt on a student account that does not exceed $5,000 and prevents enrollment in future terms or;

(6) Is experiencing a financial hardship impacting the veterans’ ability to continue their program of academic or training progress due to, but not limited to:

(a) Loss of employment or reduction in work hours of the veteran or a member of their household.

(b) Increase in housing costs such as unexpected moving expenses, increased rent, or unexpected home repairs.

(d) Loss of transportation or unexpected auto repair expenses.

(e) New or increased childcare expenses.

(f) Decrease or loss of federal or state benefits including Medicaid, Department of Veterans Affairs (VA) Compensation or Pension benefits, Social Security Disability Insurance (SSDI), or Supplemental Security Income (SSI).

(7) Otherwise making satisfactory academic or training progress in an approved program.

History

Statutory/Other Authority: ORS 406.005(4) & ORS 406.030
Statutes/Other Implemented: ORS 408.115 & HB4132 (2026)
DVA 1-2026, amend filed 06/30/2026, effective 07/01/2026
DVA 2-2023, amend filed 12/29/2023, effective 01/01/2024
DVA 11-2020, adopt filed 11/23/2020, effective 11/24/2020

Or. Admin. R. 274-036-0230 Application

(1) The Department will develop an application form.

(2) The following documentation shall be submitted by the applicant with the application:

(a) Evidence of service and separation must be documented on a certificate of discharge, DD Form 214, a DD214 with correction form DD215, a benefit determination letter issued by the U.S. Department of Veterans Affairs or other evidence of service provided by the Department of Defense, Department of Homeland Security, National Archives, or U.S. Department of Veterans Affairs that is satisfactory to the Department.

(b) Proof of current Oregon residence.

(c) If currently enrolled in an academic or training program, proof of current enrollment and proof that the program meets the criteria for an approved program.

(d) For qualifying situations: an academic plan, training plan, or training agreement created and executed by an academic advisor, or training supervisor and the applicant.

(e) The Department may, in addition to the information and evidence specified in the application, instructions, or rules and regulations, require such additional information and evidence as the Department deems necessary to establish the applicant’s eligibility.

History

Statutory/Other Authority: ORS 406.005(4), ORS 406.030 & ORS 408.518
Statutes/Other Implemented: ORS 408.115, ORS 408.125 & HB 4132 (2026)
DVA 1-2026, amend filed 06/30/2026, effective 07/01/2026
DVA 2-2023, amend filed 12/29/2023, effective 01/01/2024
DVA 11-2020, adopt filed 11/23/2020, effective 11/24/2020

Or. Admin. R. 274-036-0240 Criteria for Determination of Bridge Grant Award

(1) Applications generally will be prioritized by the Department for consideration based on the date of receipt of the completed application and documented financial need of the veteran. The Department may consider applications in such other order and at such other times as it deems appropriate.

(2) When determining to whom and in what amount Grant Program funds will be made available to applicants, the Department may take into consideration various factors, including but not limited to:

(a) The amount of available funds in the Grant Program account;

(b) The anticipated future deposits into the Grant Program account;

(d) The anticipated future commitments from the Grant Program account;

(e) The eligibility of the applicant.

(3) The payment of the grant is subject to the discretion of the Department in consideration of the factors described above in Paragraph (2), together with any other factors, as deemed relevant by the Department. The Department may refuse, terminate, or suspend Program assistance to any veteran at any time without notice. The Department shall be under no obligation to provide Program assistance to any applicant or to the immediate family of any applicant.

History

Statutory/Other Authority: ORS 406.005(4) & ORS 406.030
Statutes/Other Implemented: ORS 408.115 & ORS 408.125
DVA 1-2026, amend filed 06/30/2026, effective 07/01/2026
DVA 2-2023, amend filed 12/29/2023, effective 01/01/2024
DVA 11-2020, adopt filed 11/23/2020, effective 11/24/2020

Or. Admin. R. 274-036-0250 Grant Amount

(1) Veteran Educational Bridge Grant total disbursement amounts will not exceed $10,000 per veteran, per lifetime.

(2) Grant award amounts will be dependent upon financial need as documented by the veteran in the application provided by the Department.

History

Statutory/Other Authority: ORS 406.005(4) & ORS 406.030
Statutes/Other Implemented: ORS 408.115, ORS 408.125 & HB 4132 (2026)
DVA 1-2026, amend filed 06/30/2026, effective 07/01/2026
DVA 2-2023, amend filed 12/29/2023, effective 01/01/2024
DVA 11-2020, adopt filed 11/23/2020, effective 11/24/2020

Or. Admin. R. 274-036-0255 Evidence of Need

When an application is made for financial assistance, the applicant shall provide the Department with the documentation required under Subsection 0220, 0230, and 0240, together with statement(s) and other documentation satisfactory to the Department indicating how the desired financial assistance will contribute to the applicant’s ability to complete their educational or training goals. The Department may require additional documentation or information from the applicant as it deems necessary or appropriate.

History

Statutory/Other Authority: ORS 406.005(4) & ORS 406.030
Statutes/Other Implemented: ORS 408.115, ORS 408.125 & HB 4132 (2026)
DVA 1-2026, adopt filed 06/30/2026, effective 07/01/2026

Or. Admin. R. 274-036-0260 Procedures for the Disbursement of Grant Funds

(1) The Department will review applications as they are received and determine which eligible applicants will receive Grant awards based upon stated need and availability of Grant funds.

(2) The Applicant will provide all necessary information to the Department for the Grant award to be processed in the State’s accounting system.

(3) No payments will be made for credit cards, military charge cards, retail store cards, taxes (property or otherwise) or citations/fines.

History

Statutory/Other Authority: ORS 406.005(4) & ORS 406.030
Statutes/Other Implemented: ORS 408.115 & ORS 408.125
DVA 1-2026, amend filed 06/30/2026, effective 07/01/2026
DVA 2-2023, amend filed 12/29/2023, effective 01/01/2024
DVA 11-2020, adopt filed 11/23/2020, effective 11/24/2020

Or. Admin. R. 274-036-0270 Waiver of Rules

Subject to the limitations of the law, and at its sole discretion, the Director of the Department of Veterans’ Affairs may waive all or part of these administrative rules.

History

Statutory/Other Authority: ORS 406.005(4) & ORS 406.030
Statutes/Other Implemented: ORS 408.115 & ORS 408.125
DVA 1-2026, amend filed 06/30/2026, effective 07/01/2026
DVA 2-2023, amend filed 12/29/2023, effective 01/01/2024
DVA 11-2020, adopt filed 11/23/2020, effective 11/24/2020

Or. Admin. R. 274-036-0280 Misrepresentation of Emergency Financial Assistance

History

Statutory/Other Authority: ORS 406.005(4) & ORS 406.030
Statutes/Other Implemented: ORS 408.115, ORS 408.125 & HB 4132 (2026)
DVA 1-2026, adopt filed 06/30/2026, effective 07/01/2026

Or. Admin. R. 274-036-0290 Review of Decisions

History

Statutory/Other Authority: ORS 406.005(4) & ORS 406.030
Statutes/Other Implemented: ORS 408.115 & ORS 408.125
DVA 1-2026, adopt filed 06/30/2026, effective 07/01/2026

Division 37 CAMPUS VETERAN RESOURCE CENTER GRANT

Or. Admin. R. 274-037-0400 CAMPUS VETERAN RESOURCE CENTER GRANT PROGRAM Definitions

As used in OAR chapter 274, division 37, unless the context of the rule requires otherwise, the following definitions apply:

(1) “Applicant” means an Oregon Community College (ORS 341.005) or Public University (ORS 352.002) that has submitted a proposal to the Department.

(2) “Asset” means non-capital assets tangible or intangible property used in organization operations having a useful life beyond a single year and an initial cost (inclusive of ancillary charges) of less than $5,000. (Oregon Accounting Manual (OAM) 65.00.00 Glossary). Public stewardship, risk, and internal control concerns should govern the agency’s decision on how these assets are managed and tracked. OAM 10.50.00.PR.102

(3) “Award Letter” means an initial notification of award to a successful applicant, indicating the award amount, grant period and that a grant agreement will be prepared with all details as indicated in ORS 406.530 (7)(b).

(4) “Capital Assets” means tangible and intangible property as defined as “capital assets” in the State of Oregon Accounting Manual, Number 10.50.00, as amended, that have initial estimated useful lives beyond a single year and have an initial cost of at least $5,000 and does not include items below $5,000. Examples of capital assets include land, land improvements, buildings and building improvements, motor vehicles, equipment and machinery, works of art and historical treasures, and infrastructure items such as state highways and airports.

(5) “Capital Improvement” means an action that increases the useful life of a capital asset or adapts a capital asset to a new use.

(6) “Department” OR “ODVA” means the Oregon Department of Veterans' Affairs.

(7) “Evaluation Committee” means a committee selected by the Department to evaluate and score eligible grant proposals.

(8) “Grant Agreement” means a legally binding agreement between the Department and the recipient that contains the terms and conditions under which the Department is providing grant funds under ORS 406.530 (7)(b) and the Request for Grant Proposals (RFGP).

(9) “Grant Program” means the Campus Veteran Resource Center (CVRC) Grant Program.

(10) “Policy” means specific guidelines used by the Department in the decision-making process.

(11) “Proposal” means a grant application submitted to the Department in response to the Request for Grant Proposal (RFGP).

(12) “Recipient” means an applicant that was selected as a recipient of grand funds by the Department and that enters into a grant agreement with the Department to receive funds from the grant program.

(13) “Veteran” has the meaning given in ORS 408.225.

History

Statutory/Other Authority: ORS 406.005(4) & SB 35 (chapter 731 Oregon Laws 2019)
Statutes/Other Implemented: ORS 406.530
DVA 10-2020, adopt filed 10/23/2020, effective 10/24/2020
DVA 4-2020, temporary adopt filed 04/28/2020, effective 04/28/2020 through 10/23/2020

Or. Admin. R. 274-037-0410 Eligibility Requirements

Applicant must meet all eligibility requirements as set forth in ORS 406.530 (4)

History

Statutory/Other Authority: ORS 406.005(4) & SB 35 (chapter 731 Oregon Laws 2019)
Statutes/Other Implemented: ORS 406.530
DVA 10-2020, adopt filed 10/23/2020, effective 10/24/2020
DVA 4-2020, temporary adopt filed 04/28/2020, effective 04/28/2020 through 10/23/2020

Or. Admin. R. 274-037-0420 Use of Grant Funds

Grant funds may be used subject to all allowances and restrictions set forth in ORS 406.530(3) and other expenses such as capital improvement and capital assets, as provided for in policy and guidance by the Department.

History

Statutory/Other Authority: SB 35 (chapter 731 Oregon Laws 2019) & ORS 406.005(4)
Statutes/Other Implemented: ORS 406.530
DVA 10-2020, adopt filed 10/23/2020, effective 10/24/2020
DVA 4-2020, temporary adopt filed 04/28/2020, effective 04/28/2020 through 10/23/2020

Or. Admin. R. 274-037-0430 Grant Proposal Requirements

(1) The Department shall announce deadlines and RFGP requirements for grant program funding. The Department shall not consider RFGPs submitted after the deadline set by the Department.

(2) Applicants interested in receiving funds under the grant program must submit a proposal to the Department in a format prescribed by the Department that includes:

(a) measurable goals and outcomes;

(b) the estimated completion date for each goal’s objective.;

(d) demonstrated capacity to complete the proposal by the specified date in the RFGP.

History

Statutory/Other Authority: ORS 406.005(4) & SB 35 (chapter 731 Oregon Laws 2019)
Statutes/Other Implemented: ORS 406.530
DVA 10-2020, adopt filed 10/23/2020, effective 10/24/2020
DVA 4-2020, temporary adopt filed 04/28/2020, effective 04/28/2020 through 10/23/2020

Or. Admin. R. 274-037-0440 Maximum Amounts, Matching Requirements and Funding Criteria

(1) Applicants may not apply for grant amounts above $100,000, the maximum amount allowed for this grant program.

(2) ODVA may award a grant amount in part or in full of the proposal budget.

(3) If the proposal includes funds for a coordinator’s salary, the applicant shall identify matching sources and amounts in accordance with ORS 406.530(3)(c).

(4) ODVA may be ask the applicant to identify matching sources and amounts for other proposal goals.

(5) Grants funds must be used exclusively for purposes listed in ORS 406.530 (3)(a) and (b) or as indicated in the RFGP.

History

Statutory/Other Authority: ORS 406.005(4) & SB 35 (chapter 731 Oregon Laws 2019)
Statutes/Other Implemented: ORS 406.530
DVA 10-2020, adopt filed 10/23/2020, effective 10/24/2020
DVA 4-2020, temporary adopt filed 04/28/2020, effective 04/28/2020 through 10/23/2020

Or. Admin. R. 274-037-0450 Evaluation Committee, Grant Review and Scoring Process

(1) The department will select an evaluation committee(s).

(2) Each applicant’s proposal shall be reviewed and scored by members of an evaluation committee.

(3) The evaluation committee will score each proposal based on the rubric designed by the Department. The rubric shall be provided with the grant application and policy.

(4) Grant funds may be awarded to the highest ranked proposals, in priority order until all funds are exhausted.

(5) The evaluation committee may rank proposals based on which proposals:

(a) Are best designed to help veterans successfully transition from military service to college life, succeed in college, complete educational goals and transition from college to the workforce and the community; or

(b) Concentrate funds and resources in those areas of the state with the greatest need for veteran assistance programs.

(6) In addition to scored results of all proposals, the evaluation committee may consider the total amount of available grant funds and the total dollar amount requested in all grant proposals, when making the determination about a grant award amount.

(7) The Director of ODVA will review the recommendations and has final approval of awards.

History

Statutory/Other Authority: ORS 406.005(4) & SB 35 (chapter 731 Oregon Laws 2019)
Statutes/Other Implemented: ORS 406.530
DVA 10-2020, adopt filed 10/23/2020, effective 10/24/2020
DVA 4-2020, temporary adopt filed 04/28/2020, effective 04/28/2020 through 10/23/2020

Or. Admin. R. 274-037-0460 Grant Administration

The Department shall administer the grant program.

(1) The Department and recipient shall execute a written grant agreement in a form acceptable to the Department, prior to the disbursal of funds, for a proposal approved by the evaluation panel.

(2) The Department will prepare the grant agreement to include all requirements of ORS 406.530 and those outlined in these rules.

History

Statutory/Other Authority: ORS 406.005(4) & SB 35 (chapter 731 Oregon Laws 2019)
Statutes/Other Implemented: ORS 406.530
DVA 10-2020, adopt filed 10/23/2020, effective 10/24/2020
DVA 4-2020, temporary adopt filed 04/28/2020, effective 04/28/2020 through 10/23/2020

Or. Admin. R. 274-037-0470 Disbursement of Grant Funds

(1) The Department shall not distribute grant funds until a grant agreement is fully executed.

(2) The Department shall reimburse funds upon receipt and proper documentation as determined by the Department of request for reimbursements.

(3) Applicants may seek, at the Department’s discretion, reimbursement for expenses incurred after award notification but prior to the execution of the grant agreement

(4) Notwithstanding subsection (1) of this section, the Department may authorize a one-time pre-expense disbursement for program expenses identified in the proposal

(5) The Department may hold a percentage not to exceed five percent of the total award until all final project reports are submitted to the Department.

(6) All grant awards and subsequent disbursements are subject to availability of funding from the funding source.

History

Statutory/Other Authority: ORS 406.005(4) & SB 35 (chapter 731 Oregon Laws 2019)
Statutes/Other Implemented: ORS 406.530
DVA 10-2020, adopt filed 10/23/2020, effective 10/24/2020
DVA 7-2020, temporary adopt filed 07/13/2020, effective 10/23/2020 through 10/23/2020
DVA 4-2020, temporary adopt filed 04/28/2020, effective 04/28/2020 through 10/23/2020

Or. Admin. R. 274-037-0480 Recordkeeping and Reporting Requirements

(1) A quarterly report is due within 30-days after the end of each calendar quarter, each grant recipient shall provide a program report to the Department containing the information in ORS 406.530(8) as well as data on measurable outcomes as stated in the proposal and identified in the grant agreement.

(2) A final report is due within 60-days after the end of the grant period. Each grant recipient shall provide a program report to the department containing the information in ORS 406.530(8) as well as data on measurable outcomes as stated in the proposal, and a final budget report as identified in the grant agreement.

(3) Recipients must separately account for all moneys received from the Campus Veteran Resource Center Grant Program in project accounts in accordance with Generally Accepted Accounting Principles.

(4) Recipients must keep an inventory log of all assets purchased with grant funds. The log shall include the serial number of any electronic item, (cell phone, printer, etc.).

(5) The Department shall provide templates for the quarterly, final and budget reports.

(6) Grant recipients must keep all original documentation on file for at least six-years after the grant has closed.

(7) The grant agreement and any other contracts relating to this grant are to follow the retention policy in OAR 166-300-0010(8).

History

Statutory/Other Authority: ORS 406.005(4) & SB 35 (chapter 731 Oregon Laws 2019)
Statutes/Other Implemented: ORS 406.530
DVA 10-2020, adopt filed 10/23/2020, effective 10/24/2020
DVA 4-2020, temporary adopt filed 04/28/2020, effective 04/28/2020 through 10/23/2020

Or. Admin. R. 274-037-0490 Retention and Disposal of Assets

(1) Any asset purchased under this grant shall remain an asset in service of the Campus Veteran Resource Center for at least three years.

(2) Any capital asset purchased under this grant shall remain an asset in service of the Campus Veteran Resource Center for at least five years.

(3) If the Campus Resource Center should discontinue providing services to veterans prior to the above retention schedule, then the assets purchased with grant funds must be transferred to another organization that provides services to veterans.

History

Statutory/Other Authority: ORS 406.005(4) & SB 35 (chapter 731 Oregon Laws 2019)
Statutes/Other Implemented: ORS 406.530
DVA 10-2020, adopt filed 10/23/2020, effective 10/24/2020
DVA 4-2020, temporary adopt filed 04/28/2020, effective 04/28/2020 through 10/23/2020

Division 38 VETERAN SERVICES GRANT

Or. Admin. R. 274-038-0100 Definitions

As used in OAR chapter 274, division 37, unless the context of the rule requires otherwise, the following definitions apply:

(1) “Agreement” means a legally binding grant agreement between the Department and the applicant that contains the terms and conditions under which the Department is providing grant funds from the Request for Grant Proposals (RFGP).

(2) “Applicant” means an organization that has submitted a proposal to the Department.

(3) “Asset” means non-capital assets tangible or intangible property used in organization operations having a useful life beyond a single year and an initial cost (inclusive of ancillary charges) of less than $5,000.

(4) “Authorized Representative” means a person authorized by the applicant to make all representations, attestations, and certifications required in the grant proposal and to submit a proposal on behalf of the applicant.

(5) “Capital Assets” means tangible and intangible property that have initial estimated useful life beyond a single year and have an initial cost of at least $5,000 and does not include items below $5,000.

(6) “Capital Improvement” means an action that increases the useful life of a capital asset or adapts a capital asset to a new use.

(7) “Department” OR “ODVA” means the Oregon Department of Veterans' Affairs.

(8) “Evaluation Committee” means a committee selected by the Department to evaluate and score eligible grant proposals and make recommendations to the Department director for approval.

(9) “Grant Program” means the Veteran Service Grant Program.

(10) “Policy” means specific guidelines used by the Department in the decision-making process.

(11) “Proposal” means a grant proposal submitted to the Department in response to the Request for Grant Proposal (RFGP.)

(12) “Quasi-Public Agency” means a publicly chartered body that provides a public service and is controlled by a government appointed board.

(13) “Recipient” means an applicant that was selected as a recipient of grant funds by the Department and that enters into a written agreement with the Department to receive funds from the grant program.

(14) “Supplant funds” means to use grant funds to replace funds that were previously appropriated by another entity for the same purpose.

(15) “Veteran” has the meaning given in ORS 408.225

History

Statutory/Other Authority: ORS 406.030, & ORS 406.050
Statutes/Other Implemented: ORS 406.142 (2017 HB 2891)
DVA 1-2021, adopt filed 01/08/2021, effective 01/08/2021
DVA 8-2020, temporary adopt filed 07/13/2020, effective 07/14/2020 through 01/08/2021

Or. Admin. R. 274-038-0200 Eligibility Requirements

The following are eligible organizations and entities:

(1) Tribal, regional or local governments; or other state agencies under programs established under state or federal law;

(2) Oregon quasi-public agencies;

(3) Oregon intergovernmental entities formed under ORS 190; and

(4) Private non-profit organizations designated as a 501(c)(3), 501(c)(19) or 501(c)(23) tax exempt organizations that demonstrate in their grant proposal proof of:

(a) Current (active) business registration with Oregon Secretary of State Corporation Division;

(b) Registration with the Charitable Activities Section of the Oregon Department of Justice Oregon and the most recent Oregon Form CT-12 report filed with the Department of Justice; and

History

Statutory/Other Authority: ORS 406.030 & ORS 406.050
Statutes/Other Implemented: ORS 406.142 (2017 HB 2891)
DVA 1-2021, adopt filed 01/08/2021, effective 01/08/2021
DVA 8-2020, temporary adopt filed 07/13/2020, effective 07/14/2020 through 01/08/2021

Or. Admin. R. 274-038-0300 Purposes of Grant Funds

Grant funds may be used only for purposes set forth in ORS 406.142(2).

History

Statutory/Other Authority: ORS 406.030 & ORS 406.050
Statutes/Other Implemented: ORS 406.142 (2017 HB 2891)
DVA 1-2021, adopt filed 01/08/2021, effective 01/08/2021
DVA 8-2020, temporary adopt filed 07/13/2020, effective 07/14/2020 through 01/08/2021

Or. Admin. R. 274-038-0400 Grant Proposal Requirements

(1) The Department shall announce deadlines and RFGP requirements for grant program funding. RFGPs submitted after the deadline set by the Department may only be reviewed at the discretion of the Department.

(2) Applicants interested in receiving funds under the grant program must submit a proposal to the Department in a format prescribed by the Department that includes:

(a) Proof that the applicant meets the eligibility requirements;

(b) Measurable goals and outcomes;

(d) A detailed budget of projected funding needs;

(e) Demonstrated capacity to address and improve equity, diversity and inclusion in their services to veterans; and

(f) Demonstrated capacity to administer any funds awarded under this section in compliance with the requirements of this grant and all applicable federal and state laws; and

(g) Demonstrated capacity to complete the proposed work by the specified date in the agreement.

History

Statutory/Other Authority: ORS 406.030 & ORS 406.050
Statutes/Other Implemented: ORS 406.142 (2017 HB 2891)
DVA 1-2021, adopt filed 01/08/2021, effective 01/08/2021
DVA 8-2020, temporary adopt filed 07/13/2020, effective 07/14/2020 through 01/08/2021

Or. Admin. R. 274-038-0500 Minimum/Maximum Amounts and Funding Criteria

(1) Applicants may not apply for grant amounts below the minimum of $25,000 or above the maximum of $250,000 allowed for this grant program.

(2) ODVA may award a grant amount in part or in full of the proposal budget.

(3) Specific funding dates will be specified in the Request for Grant Proposal.

(4) When determining which grant proposals to fund, the Department shall make funds available statewide.

(5) ODVA may:

(a) Award funds to the highest ranked Proposals.

(b) Consider the total amount of available grant funds and the total dollar amount requested in all grant proposals, when making the determination about a grant award amount.

History

Statutory/Other Authority: ORS 406.030 & ORS 406.050
Statutes/Other Implemented: ORS 406.142 (2017 HB 2891)
DVA 1-2021, adopt filed 01/08/2021, effective 01/08/2021
DVA 8-2020, temporary adopt filed 07/13/2020, effective 07/14/2020 through 01/08/2021

Or. Admin. R. 274-038-0600 Evaluation Committee, Grant Review and Scoring Process

(1) The Department will select an evaluation committee.

(2) Each applicant’s proposal shall be reviewed and scored by members of the evaluation committee.

(3) The evaluation committee will score each proposal based on the rubric designed by the Department. The rubric shall be provided with the grant RFGP.

(4) Grant funds may be awarded to the highest ranked proposals, in priority order until all funds are exhausted.

(5) The evaluation committee will make recommendations to the Director of ODVA. The Director will have final approval of awards.

History

Statutory/Other Authority: ORS 406.030 & ORS 406.050
Statutes/Other Implemented: ORS 406.142 (2017 HB 2891)
DVA 1-2021, adopt filed 01/08/2021, effective 01/08/2021
DVA 8-2020, temporary adopt filed 07/13/2020, effective 07/14/2020 through 01/08/2021

Or. Admin. R. 274-038-0700 Grant Administration

The Department shall administer the grant program.

(1) The Department and recipient shall execute a written agreement, prior to the disbursal of funds.

(2) The Department will prepare the agreement.

History

Statutory/Other Authority: ORS 406.030 & ORS 406.050
Statutes/Other Implemented: ORS 406.142 (2017 HB 2891)
DVA 1-2021, adopt filed 01/08/2021, effective 01/08/2021
DVA 8-2020, temporary adopt filed 07/13/2020, effective 07/14/2020 through 01/08/2021

Or. Admin. R. 274-038-0800 Disbursement of Grant Funds

(1) An agreement must be fully executed before funds may be disbursed.

(2) The Department will disburse funds on a reimbursement basis, after substantiation of allowable costs and expenses.

(3) The Department will provide guidelines for proper documentation of allowable costs and expenses.

(4) The Department may hold a percentage not to exceed five percent of the total award until all final project reports are submitted to the Department.

(5) The Department may require recipients to hold a percentage of their grant award in reserve for a period of time during the grant period, based on the Department’s availability of funding, or other budgetary factors.

History

Statutory/Other Authority: ORS 406.030 & ORS 406.050
Statutes/Other Implemented: ORS 406.142 (2017 HB 2891)
DVA 1-2021, adopt filed 01/08/2021, effective 01/08/2021
DVA 8-2020, temporary adopt filed 07/13/2020, effective 07/14/2020 through 01/08/2021

Or. Admin. R. 274-038-0900 Record Keeping and Reporting Requirements

(1) A Quarterly report is due within 30-days after the end of each quarter, each recipient shall provide a program report to the Department containing the information required by the agreement as well as data on measurable outcomes as stated in the proposal and identified in the agreement.

(2) A final report is due within 60-days after the end of the grant period. Each recipient shall provide a final program report to the Department containing the information in ORS 406.530(8) as well as final data on measurable outcomes as stated in the proposal, and a final budget report as identified in the agreement.

(3) Recipients must separately account for all moneys received from the Veteran Services Grant Program in project accounts in accordance with Generally Accepted Accounting Principles.

(4) Recipients must keep an inventory log of all assets purchased with grant funds. The log shall include the serial number of any electronic item, (e.g. cell phone, printer, etc.).

(5) The Department shall provide templates for the quarterly, final and budget reports.

(6) Recipients must keep all original documentation on file for at least five-years after the grant project period has closed.

History

Statutory/Other Authority: ORS 406.030 & ORS 406.050
Statutes/Other Implemented: ORS 406.142 (2017 HB 2891)
DVA 1-2021, adopt filed 01/08/2021, effective 01/08/2021
DVA 8-2020, temporary adopt filed 07/13/2020, effective 07/14/2020 through 01/08/2021

Or. Admin. R. 274-038-0950 Retention and Disposal of Assets

(1) Any asset purchased under this grant shall remain an asset in service to veterans by recipient for at least three years.

(2) Any capital asset purchased under this grant shall remain an asset in service to veterans by recipient for at least five years.

(3) If the recipient should discontinue providing services to veterans prior to the above retention schedule, then the recipient must notify the Oregon Department of Veterans Affairs in writing at least 30 days in advance. ODVA will determine the disposition of assets purchased with grant funds in consultation with the recipient.

History

Statutory/Other Authority: ORS 406.030 & ORS 406.050
Statutes/Other Implemented: ORS 406.142 (2017 HB 2891)
DVA 1-2021, adopt filed 01/08/2021, effective 01/08/2021
DVA 8-2020, temporary adopt filed 07/13/2020, effective 07/14/2020 through 01/08/2021

Division 39 VETERANS' TRANSPORTATION GRANT PROGRAM

Or. Admin. R. 274-039-0010 Definitions

The following definitions apply to rules in chapter 274 division 39:

(1) “Administration” means the essential activities aquired by a Recipient.

(2) “Advisory Committee” means a committee appointed by a Recipient to advise and assist the Recipient in carrying out the purposes of the Rural Veterans Healthcare Transportation Program

(3) “Coordinated” means working cooperatively with Providers and other individuals and agencies representing Veterans, to more effectively apply funding and other resources to meet common transportation needs. Coordinated actions may reduce duplication of service, reduce cost, increase service levels or make services more widely available to eligible individuals.

(4) “District” means a mass transit district organized under ORS 267.010 (Definitions for ORS 267.010 to 267.394) to 267.390 (Acceptance of funds from United States) or a transportation district organized under ORS 267.510 (Definitions for ORS 267.510 to 267.650) to 267.650 (Finance elections).

(5) “Indian Tribe” means a federally recognized Indian Tribe in Oregon that has members residing on a reservation or tribal trust lands in Oregon.

(6) “Program Administrator” means the Oregon Department of Veterans’ Affairs or any government entity with whom the Department enters into an agreement to administer the RVHT program.

(7) “Project” means a Transportation Service, or any associated activity including, but not limited to, program administration, planning and needs assessment, training and research and that falls within the purposes of the RVHT program. A Project is eligible for a RVHT Grant if it will provide no-cost mental and physical health access transit services to veterans who reside in census tracts to which, as of July 3, 2019, the US Department of Agriculture assigned a primary Rural-Urban Commuting Area (RUCA) code of 4 through 10 or are recipients of Federal Highly Rural Veterans Transportation funding available in counties with a population density of less than seven people per square mile.

(8) “Provider” means a city, county, district, Indian Tribe, or any other public entity, that maintains, operates, or sponsors vehicles and facilities for Public Transportation Services for profit.

(9) “Recipient” means an entity receiving funding through the RVHT program.

(10) “RVHT Funds” means Rural Veteran Healthcare Transportation funding received by Oregon Department of Veterans’ Affairs (ODVA) for distribution to eligible agencies by ODVA, or its designee, for the purpose of program administration, for the purpose of financing and improving access to transportation programs and services for rural Veterans.

(11) “RVHT Program” means a set of policies and procedures that guide the expenditure of Rural Veterans Healthcare Transportation program funding by the Program Administrator, or its designee, to benefit transportation services for Veterans.

(12) “Transportation Service” means a project that provides no-cost rides or improves access to rides for Veterans.

(13) “Veteran” has the meaning given that term in ORS 408.225.

History

Statutory/Other Authority: ORS 406.005, 406.050 & 408.335
Statutes/Other Implemented: ORS 408.335 & 391.800-391.830
DVA 1-2023, adopt filed 06/14/2023, effective 06/14/2023

Or. Admin. R. 274-039-0015 Use of Funding

The RVHT funds are intended to provide a flexible, coordinated, reliable and continuing source of revenue in support of Transportation Services that provide transportation for Veterans pursuant to HB 2139 (2121).

(1) RVHT funding may be used for the following purposes:

(a) Maintenance of existing Transportation Services for Veterans;

(b) Expansion of such Transportation Services;

(d) Planning for, and development of, access to transportation for Veterans who are not currently served by transportation programs and services; and,

(e) RVHT funding may be used as matching funds for state and federal programs also providing transportation programs and services to Veterans.

(2) Use of RVHT funding:

(a) Projects using RVHT funding must comply with the requirements of USDOT Federal Transit Administration regulations, 49 CFR PART 37 TRANSPORTATION SERVICES FOR INDIVIDUALS WITH DISABILITIES (Americans with Disabilities Act) section 37.3, as applicable to the specific Project and Provider; and,

(b) Projects financed in whole or part with RVHT funding must be coordinated with other transportation programs and services to the maximum extent feasible.

(3) Except in the case of a uniform budget reduction, RVHT funding may not be used to supplant other funding currently appropriated to Providers for transportation projects benefiting Veterans.

History

Statutory/Other Authority: ORS 406.005, 406.050 & 408.335
Statutes/Other Implemented: ORS 408.335 & 391.800-391.830
DVA 1-2023, adopt filed 06/14/2023, effective 06/14/2023

Or. Admin. R. 274-039-0020 Recipient Eligibility

(1) Recipients eligible for RVHT funding provide mental and physical health access transit services to veterans who reside in census tracts to which, as of July 3, 2019, the US Department of Agriculture assigned a primary Rural-Urban Commuting Area (RUCA) code of 4 through 10 or are recipients of Federal Highly Rural Veterans Transportation funding available in counties with a population density of less than seven people per square mile.

(2) An entity is eligible to apply for RVHT Program grants if it is a County, Transportation District or Indian Tribe.

History

Statutory/Other Authority: ORS 406.005, 406.050 & 408.335
Statutes/Other Implemented: ORS 408.335 & 391.800-391.830
DVA 1-2023, adopt filed 06/14/2023, effective 06/14/2023

Or. Admin. R. 274-039-0025 Program Elements

(1)The Program Administrator, or its designee, may establish requirements necessary for the implementation or administration of the RVHT Program, including but not limited to:

(a) Specific goals and objectives;

(b) Minimum award value;

(d) Project type and purpose; and,

(e) Match contribution;

(f) Reporting and oversight requirements;

(g) Application and agreement process;

(h) Method of reimbursement;

(i) Advisory Committee or selection process;

(j) Any accounting requirements;

(k) Terms of agreement and process for amendments;

(L) Program Sustainability

(2) The RVHT Program will:

(a)Be available on a cycle to be determined by the Program Administrator, or its designee,

(b) Be a competitive award process; and,

(c)Award funding based on the requirements of the RVHT Program.

(3)The Program Administrator, or its designee, will announce the amount of funds available for distribution and will make applications and application procedures publicly available during open solicitations.

History

Statutory/Other Authority: ORS 406.005, 406.050 & 408.335
Statutes/Other Implemented: ORS 408.335 & 391.800-391.830
DVA 1-2023, adopt filed 06/14/2023, effective 06/14/2023

Or. Admin. R. 274-039-0030 Joint Management of RVHT Funding

(1)Two or more Providers may jointly manage their RVHT programs. Joint Management means two or more Providers joining together to manage their RVHT programs by consultation and acting independently, or by jointly managing the functions of the RVHT program.

(a) Coordinated program management does not require an agreement between the parties.

(b)Joint management of the functions including, and not limited to, pooling RVHT funding and jointly allocating funds to Projects, requires an agreement between the Providers.

(2)When two or more Providers jointly manage the functions of the RVHT programs, they will:

(a) Designate a lead Recipient who will perform all of the functions of the program as defined in this rule;

(b) Ensure that programs are coordinated by the lead Recipient and local veteran and transportation representatives are included; and

History

Statutory/Other Authority: ORS 406.005, 406.050 & 408.335
Statutes/Other Implemented: ORS 408.335 & 391.800-391.830
DVA 1-2023, adopt filed 06/14/2023, effective 06/14/2023

Or. Admin. R. 274-039-0035 Recipient Qualifications

(1)To be eligible to receive RVHT funding for a Project, a Recipient will meet, or have the capacity to meet, the following qualifications, as applicable to the type of Project being funded. A Recipient will:

(a) Be an entity eligible to enter into agreements;

(b) Have the legal, managerial and operational capacity to perform the Project;

(d) Maintain compliance with state and local laws and regulations including, and not limited to, those pertaining to passenger transportation, civil rights, labor, insurance, safety and health, as applicable;

(e) Comply with the laws or rules of this program;

(f) Properly use RVHT funding; and,

(g) Perform the Project in a safe, prudent and timely manner.

(2)A Recipient may require additional eligibility qualifications of sub-Recipients as necessary to implement a Project.

(3) The Program Administrator may require additional eligibility qualifications of sub- Recipients as necessary to implement the RVHT Program.

(4)The Recipient must confirm the eligibility of a sub-Recipient prior to awarding RVHT funding and entering into an agreement.

(5)The Recipient must ensure that sub-Recipients maintain eligibility while receiving RVHT funding.

(6)A sub Recipient found by the Recipient or Program Administrator to be ineligible may be required to repay funding received during the period of ineligibility.

History

Statutory/Other Authority: ORS 406.005, 406.050 & 408.335
Statutes/Other Implemented: ORS 408.335 & 391.800-391.830
DVA 1-2023, adopt filed 06/14/2023, effective 06/14/2023

Division 40 OREGON VETERANS’ HOME

Or. Admin. R. 274-040-0015 Eligibility for Admission to the Oregon Veterans’ Home

(1) To be eligible for admission to the Oregon Veterans' Home (Home), an applicant must be:

(a) A veteran as defined by United States Code, Title 38, section 101, as currently adopted (This publication is on file with the Oregon Department of Veterans' Affairs, 700 Summer Street NE, Salem, Oregon, and is available for public review Monday through Friday between the hours of 8 a.m. and 5 p.m.); or

(b) Spouse or surviving spouse as defined by United States Code, Title 38, section 3.50, as currently adopted (This publication is on file with the Oregon Department of Veterans' Affairs, 700 Summer Street NE, Salem, Oregon, and is available for public review Monday through Friday between the hours of 8 a.m. and 5 p.m.); or

(2) An applicant must also:

(a) Be able to pay the resident's portion of the cost of care;

(b) Require nursing home care as determined by a physician;

(d) Not have violent traits which may prove dangerous to the applicant, residents of the Home, staff or others, provided however, that nothing in this section shall be interpreted to prevent the admission of residents diagnosed with Alzheimer's Disease or other dementia for whom the facility is equipped and prepared to provide care for common behavior problems and recommended behavior management, and that no one shall be denied admission on the basis of being a potential danger to self or others unless that condition is documented by the attending physician.

(3) Eligible applicants, as determined by the Director of Veterans' Affairs (Director) will be scheduled for admission to the Home (or placed on a waiting list if no beds are available) based on the date that all of the required application materials have been received and level of care requirements can be satisfied, or in such other order as may be deemed appropriate by the Director.

(4) Priority for admission to the Home is as follows:

(a) Former residents of the Home who are eligible for readmission;

(b) Medal of Honor recipients;

(d) Non-resident veterans;

(e) Other applicants as defined in sections (1)(b) and (1)(c) above.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.030, 406.050, 408.510, 408.520 & 408.530
Statutes/Other Implemented: ORS 406.030, 406.040 & 406.050
DVA 8-2006, f. & cert. ef. 7-27-06
DVA 11-2004, f. & cert. ef. 8-25-04
DVA 15-2003, f. & cert. ef. 12-31-03
DVA 14-2003(Temp), f. & cert. ef. 11-14-03 thru 2-14-04
DVA 3-1998, f. & cert. ef. 3-13-98

Or. Admin. R. 274-040-0020 Review of Decisions and Procedures for Hearings

(1) Any person adversely affected by a decision of an ODVA official may write a letter of complaint to the Director. The Director shall prepare and send a written response within 30 days of receipt of the written complaint.

(2) If the Director supports the ODVA official’s decision, a request may be made within 60 days of the date of mailing of the director’s response for an informal hearing with a designated official.

(3) A request for an informal hearing shall be addressed to the Director and shall state:

(a) The nature of the adverse decision;

(b) The date of the decision;

(d) How the person requesting the hearing is adversely affected.

(4) Unless ODVA received written notice of a complaint, the right to a hearing (both informal and contested) shall expire 90 days after the date the complainant had actual knowledge of, or by the exercise of due care would have had knowledge of, the occurrence in dispute.

(5) Within 30 days from receipt of a request for an informal hearing, the Director shall notify the person making the request of the action taken on the request which may be:

(a) Designating an official to conduct an informal hearing;

(b) Reversing or modifying the adverse decision;

(8) A decision of the designated official, after approval by the Director, shall be final except when, as defined by ORS 183.310(2), a Contested Case exists.

(9) When a Contested Case exists, and a contested case hearing is desired, it must be requested in writing and the request received by the Director within:

(a) 20 days of the date of the mailing of the decision of the designated official if an informal hearing has been held; or

(b) 20 days of service of the notice in a contested case under ORS 183.415.

(10) Contested case hearings will be conducted in accordance with the provisions of ORS 183.413 to 183.470 and the Attorney General’s Model Rules of Procedure, OAR 137-003-0001 to 137-003-0092.

History

Statutory/Other Authority: ORS 183, 406.030, 406.040, 408.360 & 408.380
Statutes/Other Implemented: ORS 183, 406.030, 408.360 & 406.040
DVA 5-1998, f. & cert. ef. 4-22-98

Or. Admin. R. 274-040-0025 The Director of Veterans’ Affairs May Accept Gifts, Grants, and Donations for the Veterans’ Home and Its Residents

Monetary gifts, grants, and donations will be deposited into the Oregon Veterans’ Home Trust Fund.

(1) Any grant, donation, or gift that is accepted by the director, under ORS 408.365, whose use is for a designated purpose, shall only be used for the purpose specified, unless the limitations are released or modified by the donor or by law. Any designation for the use of a grant, donation, or gift may only be for a purpose related to the Veterans’ Home or its residents.

(2) Any grant, donation, or gift that is accepted by the director, under ORS 408.365, unless otherwise designated for a specific purpose, may be used for the general purpose of operating the Oregon Veterans’ Home including expenses that directly or indirectly benefit the residents.

(3) Any grant, donation, or gift, which had been submitted for a specific purpose for which it has been met, may be considered unrestricted and available for operational expenses upon notification to the donor.

(4) Any grant, donation, or gift of property, real or personal, that is accepted by the director under ORS 408.365, and is undesignated property, may be sold and the proceeds deposited into the Oregon Veterans’ Home Trust Fund. Any designated property, real or personal, that is accepted by the director also may be sold and the proceeds deposited into the Oregon Veteran’s Home Trust Fund and used for the benefit of the specified purpose, unless the limitations are released by the donor or law.

(5) Any non-monetary grant, donation, or gift of property, real or personal, that is accepted by the director, under ORS 408.365, for which it is determined by the director to have no practical value to ODVA, and can not be used or sold in a cost effective way, may be given or otherwise transferred to other organizations that assist veterans’ in a manner consistent with ORS 293.090, 293.235, 406.030, 406.040, 406.050, and 408.365. Separate and apart from the provisions of OAR 125-246-0720, prior to offering donated property for public sale through the state Surplus Property Program, the director may make surplus or donated property available to entities, including but not limited to, those whose purpose is the care of veterans, survivors, and dependents, such as:

(a) Federal agencies;

(b) State agencies;

(d) Political subdivisions of the state;

(e) Any non-profit organization qualified to acquire federal surplus property pursuant to OAR 125-035-0045; who meet the purpose requirements above; and

(f) Veteran's organizations; and

(g) The veteran’s organizations operated retail store in Oregon Veterans’ Home.

(6) Any real or personal property that is not used as designated in (5)(a) through (g), may be disposed of consistent with OAR 125-246-0720.

(7) As used in this division, operational expenses include but are not limited to:

(a) Purchase of equipment;

(b) Facility maintenance;

(d) Purchase of payment of services and supplies;

(e) Vehicle repair and maintenance;

(f) Vehicle purchases;

(g) Recreational activities for the veterans’ residents; and

(h) Any other expenditure that, at the discretion of the director, is to the benefit of the residents of the Oregon Veterans’ Home.

History

Statutory/Other Authority: ORS 183, 406.030, 406.040 & 408.365
Statutes/Other Implemented: ORS 183, 406.030 & 406.040
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 3-2000, f. & cert. ef. 4-21-00

Or. Admin. R. 274-040-0030 Purpose and Objective

(1) It is the expressed policy of the Department of Veterans’ Affairs (Department) to make the Oregon Veterans’ Home (OVH) financially available to current or potential OVH residents by means of the Department's Covered Care Program.

(2) Within the fund established by the Department pursuant to ORS 406.050, an account is designated for donations to be used by the Department consistent with this Covered Care Program. Funds held within this account will be used by the Department exclusively for the purpose of assisting OVH residents whose income, Medicare benefits, Medicaid benefits, and any other assets, as determined by the Department, are insufficient to meet the financial requirements necessary for the cost of OVH care.

History

Statutory/Other Authority: ORS 406.050, 408.360, 408.365 & 408.368
Statutes/Other Implemented: ORS 408.365 & 408.368
DVA 9-2006, f. & cert. ef. 7-27-06
DVA 5-2006, f. & cert. ef. 5-30-06
DVA 3-2006(Temp), f. & cert. ef. 3-31-06 thru 9-25-06
DVA 15-2003, f. & cert. ef. 12-31-03
DVA 14-2003(Temp), f. & cert. ef. 11-14-03 thru 2-14-04
DVA 12-2003(Temp), f. & cert. ef. 10-1-03 thru 2-17-04
DVA 9-2003(Temp), f. & cert. ef. 8-21-03 thru 2-17-04
Reverted to DVA 7-2002, f. & cert. ef. 9-24-02
DVA 10-2002(Temp), f. 12-27-02, cert. ef. 1-1-03 thru 6-27-03
DVA 7-2002, f. & cert. ef. 9-24-02
DVA 4-2002(Temp), f. & cert. ef. 4-5-02 thru 10-2-02

Or. Admin. R. 274-040-0031 Applications

(1) Applications for assistance from the Covered Care Program account shall be made in such manner and detail, and on such forms, as the Department shall determine.

(2) Applications generally will be prioritized for consideration based on the date of completed receipt by the Department. The Department may, however, consider applications in such other order and at such other times as deemed reasonable.

History

Statutory/Other Authority: ORS 406.050, 408.360, 408.365 & 408.368
Statutes/Other Implemented: ORS 408.365 & 408.368
DVA 9-2006, f. & cert. ef. 7-27-06

Or. Admin. R. 274-040-0032 Eligibility Factors

When determining to whom Covered Care Program assistance will be made available, the Department may take into consideration various factors, including but not limited to:

(1) The amount of funds in the Covered Care Program account available for this purpose;

(2) The anticipated future deposits into the Covered Care Program account;

(3) The amount of any present commitments from the Covered Care Program account;

(4) All available sources of revenue or income to a particular resident, including but not limited to:

(a) United States Department of Veterans Affairs (USDVA) payments;

(b) Social Security benefits;

(d) Millennium Bill benefits;

(e) Medicare benefits;

(f) Medicaid benefits;

(g) Annuities;

(h) Savings; and

(i) Investments.

(5) The amount of funds available to a particular or potential resident from members of his/her family, or others who are willing to provide financial assistance and agree to be legally obligated to meet such financial obligations of the resident;

(6) Whether or not the available Covered Care Program assistance will satisfy the entire gap in necessary funding for OVH care on behalf of the resident or potential resident;

(7) Whether or not the intended beneficiary of the Covered Care Program assistance is a current OVH resident.

History

Statutory/Other Authority: ORS 406.050, 408.360, 408.365 & 408.368
Statutes/Other Implemented: ORS 408.365 & 408.368
DVA 9-2006, f. & cert. ef. 7-27-06

Or. Admin. R. 274-040-0033 Refusing, Terminating or Suspending Funds

(1) The payment of Covered Care Program assistance on behalf of any OVH resident is subject to the sole discretion of the Department. The Department may refuse, terminate, or suspend Covered Care Program assistance to any OVH resident at any time without notice. The Department shall be under no obligation to provide Covered Care Program assistance to any OVH resident or to solicit funds to meet the financial needs of the OVH resident, his/her family, or others.

(2) When determining to terminate or suspend Covered Care Program assistance to any current recipient, the Department may take into consideration various factors, including by not limited to:

(a) Any reported change in the financial status of the recipient or other OVH care payment provider;

(b) Any misrepresentation or omission of material facts in the application for the Covered Care Program assistance or otherwise;

(d) The feasibility of appropriate care for the recipient at the OVH;

(e) The availability of funds in the Covered Care Program account.

(3) If all of the funding of an OVH resident, or potential resident, cannot be met with allowable assistance from the Covered Care Program, no amounts will be committed by the Department or paid from the Covered Care Program account.

History

Statutory/Other Authority: ORS 406.050, 408.360, 408.365 & 408.368
Statutes/Other Implemented: ORS 408.365 & 408.368
DVA 9-2006, f. & cert. ef. 7-27-06

Division 45 POST VIETNAM ERA VETERANS’ HOME LOAN PROGRAM

Or. Admin. R. 274-045-0001 Definitions for OAR 274-045-0001 to 274-045-0481

As used in this Division 45:

(1) "Acquisition" means the purchase of a home.

(2) "Agreement" means the contract between the Oregon Department of Veterans’ Affairs (ODVA) and the approved lender, setting forth the terms and conditions under which program loans made by the approved lender will be purchased by the ODVA.

(3) "ALTA Mortgagee's Title Insurance" means a title insurance policy issued in American Land Title Insurance form by a title insurer licensed by the State of Oregon.

(4) "Approved Lender" means any "Lending Institution" as defined in ORS 407.177(8) that has entered into an agreement with ODVA to originate residential loans acceptable to ODVA or to act as a conduit for the origination of residential loans acceptable to ODVA. In determining whether or not to contract with a Lending Institution, ODVA may consider factors including, but not limited to the following:

(a) ODVA's need for additional Approved Lenders, either on a statewide basis or in a specific geographical area,

(b) Whether or not the Lending Institution has had any complaints filed against it or against any of its employees, agents, officers, Directors, owners, or affiliates through the Consumer and Business Services Department of the State of Oregon, through any other regulatory agency or otherwise.

(d) The reputation of the Lending Institution, including its employees, agents, officers, Directors, owners or affiliates.

(e) The number and experience of Lending Institution employees and other personnel available to originate loans or to act as a conduit for the origination of residential loans acceptable to ODVA.

(f) Status and character of the institution's loan policies and procedures.

(g) The financial capability of the Lending Institution to originate loans or to act as a conduit for the origination of loans.

(h) The Lending Institution's qualification as a loan originator or a seller/servicer for the Federal National Mortgage Association, the Federal Home Loan Mortgage Association, or the United States Department of Veterans' Affairs.

(i) Whether or not the deposits of the Lending Institution are insured by FDIC or some other federal agency or corporation.

(j) The experience, efficiency and performance of the Lending Institution in the area of residential lending and any other area of the Lending Institution's business.

(k) The willingness and commitment of the Lending Institution to accept and to fulfill the terms of an ODVA proposed contract.

(l) The result of any references which are checked as part of the application process.

(5) "Commitment" means a promise made by the ODVA to an Approved Lender or veteran, evidenced by a written commitment letter, setting forth the terms upon which the ODVA will purchase, originate, or accept by underwriting and closing a specific program loan made or processed by the Approved Lender or ODVA pursuant to a reservation of funds.

(6) "Department" means the Oregon Department of Veterans’ Affairs established under ORS 406.005.

(7) “Director” means the means Director of the Oregon Department of Veterans' Affairs.

(8) "Home" means a residential structure, including a manufactured home or a condominium unit, which is established, maintained and used primarily as a principal residence by a veteran, and includes real property connected to a residential structure, including any long-term leasehold and any outbuildings.

(9) "Lease" means the giving of possession and use of profits of secured property for a period of time in return for compensation.

(10) "Lease Option" means a lease of real property with an option to purchase the property within a stipulated period of time.

(11) "Lending Institution" means an entity which is licensed, or otherwise legally authorized, to conduct business in the State of Oregon exclusively or in part as a mortgage lender or a conduit for mortgage loans and that, in the judgment of ODVA, is capable of meeting the needs of ODVA in carrying out the purposes of ORS Chapter 407. In determining whether or not an entity that is licensed, or otherwise legally authorized, to conduct business in Oregon exclusively or in part as a mortgage lender or a conduit for mortgage loans is capable of meeting the needs of ODVA in carrying out the purposes of ORS Chapter 407, ODVA may consider factors including, but not limited to the following:

(a) Whether or not the entity qualifies as a “Banking Institution” or similar entity including, but, not limited to an “Extranational Institution,” a “Federal Bank,” a “Federal Savings Bank,” or a “Financial Institution” under ORS 706.005, 706.008, 707.744, or 723.042.

(b) Whether or not the entity qualifies as a “mortgage broker” under ORS 59.840 through 59.965 for a period of three years.

(d) The reputation of the entity or of any of its employees, agents, officers, Directors, affiliates or owners.

(e) The financial capability of the entity to originate loans or to act as a conduit for the origination of loans.

(f) The entity’s qualification as a loan originator or a seller/servicer for the Federal National Mortgage Association, the Federal Home Loan Mortgage Association, or the United States Department of Veterans Affairs.

(g) The experience, efficiency, and performance of the entity in the areas of residential lending and any other area of the entity’s business.

(12) "Loan Origination Guide/Mortgage Loan Origination Guide" means the manual containing the origination instructions for the Post Vietnam Era Veterans' Home Loan Program, and any subsequent changes as they are effected.

(13) "Loan to Value Ratio" is the loan amount or balance divided by the net appraised value.

(14) “Manufactured home” means a structure that is:

(a) At least 20 feet in width;

(b) Constructed for movement on the public highways and that has sleeping, cooking and plumbing facilities;

(d) Being used for residential purposes;

(e) Classified and taxed as real property in the county where the structure is located; and

(15) "Net Appraised Value" means the lesser of the appraised value or the purchase price. The "appraised value" is the value established by an appraisal obtained by or at the direction of the Department, or an appraisal approved by the Department

(16) "ODVA" means the Oregon Department of Veterans' Affairs established under ORS 406.005.

(17) "Post Vietnam Era Veterans’ Home Loan Program " means all home loans originated under this Division.

(18) "Qualified Insurer" means a private mortgage insurance company licensed to do business in Oregon and with which ODVA has agreed to accept mortgage insurance coverage. When an ALTA mortgagee's title insurance policy is in force insuring the State against the usual losses covered by an ALTA policy as well as any loss from any prior encumbrance, and the encumbrance is acceptable to both the veteran and ODVA.

(19) "Rent" means the giving of possession of secured property for occupancy for a specific period of time in return for a stipulated amount of compensation.

(20) "Reservation of Funds" (Rate Lock) means the setting aside of specific funds at a designated interest rate for a specific period of time.

(21) “Resides in the State of Oregon” means a person who:

(a) Maintains a primary legal residence in Oregon, or

(b) Intends to occupy a home in Oregon, secured by an ODVA loan, that will be their primary legal residence.

(22) "Security" means all of the real property that is to be acquired for a home and which serves as collateral for the loan.

(23) "Transfer" means a change of ownership, either by operation of law, act of the parties, or both, such as deed, contract, certificate, court decree, property settlement, foreclosure, easement, condemnation, or adverse possession of the premises.

(24) "Underwriter/Designated Loan Officers" means those employees of ODVA whose paramount responsibility shall be the approval or rejection of all applications for loans.

(25) “Veteran” means a person who:

(a) Resides in the State of Oregon at the time of applying for a loan from the fund;

(b) Is a veteran, as that term is defined by Oregon law in ORS 407.087;

(d) Satisfies the requirements applicable to the funding source for the loan from the Oregon War Veterans' Fund.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
Reverted to DVA 2-2013, f. & cert. ef. 7-8-13
DVA 4-2013(Temp), f. & cert. ef. 7-23-13 thru 1-19-14
DVA 2-2013, f. & cert. ef. 7-8-13
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 9-2001, f. & cert. ef. 11-23-01
DVA 3-2001(Temp), f. & cert. ef. 6-15-01 thru 12-11-01
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0005 Purpose and Objectives

OAR 274, division 045, is established to administer and enforce ORS 407.075 through 407.595. These rules, together with the Post Vietnam Era Veterans' Home Loan Origination Guide/Mortgage Broker Loan Origination Guide, shall implement the Post Vietnam Era Veterans’ Home Loan Program. The program's objective is to provide funds to finance owner-occupied, residential housing for qualified veterans in the State of Oregon, thereby encouraging home ownership of residential housing by such veterans.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 291.021, 406.030, 407.115, 407.177, 407.179, 407.181 & 407.275
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0010 Eligibility Requirements

Eligibility to apply for a loan under this division is subject to the eligibility criteria of Article X1-A of the Oregon Constitution. The acceptance of an application and granting of a loan is further subject to the provisions of ORS Chapter 407, OAR divisions 020, 025, 045, other applicable law, the policies and procedures of the Oregon Department of Veterans’ Affairs (ODVA), and at the discretion of the Director of ODVA

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: OR Const. Art. XI-A, ORS 183, 406.030, 407.115 & 407.125
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01
DVA 1-2001, f. & cert. ef. 3-20-01

Or. Admin. R. 274-045-0015 Authority to Protect the Security

At the discretion of the Director, funds can be disbursed to make repairs to correct a serious structural, safety, or sanitary deficiency discovered in a property that is security for a loan when it is determined such a disbursement is necessary to protect the interest of the State. This would occur when the following conditions exist:

(1) The present and probable future value of the property, without benefit of the needed repairs, is sufficiently low when compared to the existing loan balance that the State’s investment would be threatened; and

(3) The current owner is a transferee who lacks the financial means to make repairs or corrections in a timely manner.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0020 Who May Apply for Loan

(1) A loan shall be made only to an individual veteran.

(2) Joint loans or loans to a cooperative shall not be valid.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0025 Evidence Required to Establish Eligibility

The applicant shall submit to the Director the following evidence to establish eligibility:

(1) Evidence of service and separation must be documented on DD Form 214, a DD Form 215 Correction to DD Form 214, or other evidence of service provided by the Department of Defense that is satisfactory to the Director.

(2) Certificate of Service and Casualty Report when applicant is the unremarried spouse of a person who died on active duty.

(3) Proof of Oregon residence.

(4) Proof of any change in name since discharge:

(a) Where legally changed, proof shall be by a certified copy of the Court Order, or a marriage certificate, or a divorce decree;

(b) Where not legally changed, proof shall be by an affidavit from the veteran and affidavits from at least two disinterested persons.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0030 Modification of Application

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0035 Cancellation of Application

(1) An applicant may cancel his or her application for a State veterans' loan at any time prior to receipt of the loan proceeds.

(2) The Director may cancel any application if the applicant fails to comply with any of the conditions pertaining to the loan.

(3) The Director may destroy any application 25 months after the veteran applicant is notified of action taken on an application (whether credit was approved or adverse action was taken).

History

Statutory/Other Authority: ORS 183, 406.030, 407.115, 407.135, 407.145, 407.275, 407.305 & 407.375
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0040 Security for the Loan

(1) The veteran shall own the home offered as security in fee simple at the time the loan is closed.

(2) The State shall have the first lien on the security at the time of making the loan.

(3) The security for the loan shall consist of real property and the mortgage or trust deed shall include all property to be acquired as a home. More than one parcel of real property may be included in the security.

(4) All security must include a home that is completed and ready for occupancy.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0045 Legal Description of Property Offered as Security

(1) Property offered as security must have an adequate legal description from which the boundaries of the property may be located.

(2) The Director may require a survey to ascertain the boundary lines and location of all permanent improvements on the property.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0050 Appraisal of Property

An appraisal shall be made to assist in establishing the loan value only after a complete application has been received.

History

Statutory/Other Authority: ORS 406.030, 407.115 & 407.225(3)
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0060 Terms of Loan

(1) The maximum amount allowed for a loan may not exceed the least of:

(a) The maximum original principal balance permitted on a single-family first mortgage loan by the Federal Housing Finance Agency.

(b) The maximum loan-to-value ratio or combined loan-to-value ratio permitted by the United States Department of Veterans’ Affairs for its Home Loan Guaranty Program (38 U.S.C 3701 et seq.; 38 C.F.R part 36).

(2) When calculating the maximum amount allowed for a loan, the Department of Veterans’ Affairs shall exclude:

(a) Funds disbursed under ORS 407.145 (2) and 407.275 (4); and

(b) The amount of a loan that has been repaid, or for which the property securing the loan has been transferred by deed or otherwise, if the property is destroyed by fire of other natural hazard; or is taken through condemnation of lost or disposed of for a compelling reason devoid of fault on part of the applicant.

(3) An eligible person may not receive or, under ORS 407.305, assume more than four loans. The borrower shall not receive any cash back from the ODVA loan.

(4) The Director shall determine the period and amount of repayment based on the age, condition, location, and useful life of the security, but the maximum period of repayment shall not exceed statutory limits.

(a) Loans shall be made in multiples of one dollar ($1.00).

(b) Each program loan shall have a final maturity of at least 15 and not more than 40 years from the date of purchase.

(c) A loan may be amortized over a period of not more than 40 years for a home other than a manufactured home. A loan for a manufactured home may be amortized over a period not exceeding the expected life of the manufactured home, as determined by the Department of Veterans’ Affairs. The limitations do not preclude the department from later extending the amortization period.

(5) The borrower shall timely pay all property taxes and other assessments that may or do become a lien against the loan security.

(6) The borrower shall carry hazard insurance on the security. The Director may also require that hazards other than fire be covered. All premiums and charges for said coverage shall be timely paid by the borrower, and

(a) The Director may determine the form and amount of insurance coverage;

(b) All insurance claims money shall be payable to ODVA under a provision in the mortgage or trust deed;

(c) In the event of failure to maintain coverage, the Director may acquire the necessary coverage and collect amounts due in a manner consistent with the mortgage or trust deed documents; and

(d) In case of loss, the Director shall determine the disposition of any and all funds received under claims submitted under the insurance policies.

(7) The Director may collect in advance, unless otherwise agreed, from said borrowers together with their payments required under section (3) of this rule, sufficient amounts to pay property taxes, hazard insurance premiums, and other charges related to the security. Such additional amounts collected by the Director shall be held in escrow pending payment of the obligations for which they are collected and interest on said amounts shall be paid to the borrower in the manner and at the rate of interest described in ORS 87.245(1).

(8) The Director may pay property taxes, hazard insurance premiums and other charges from funds collected from the borrower for those purposes. The Director, in the absence of funds collected from the borrower (or if such funds are insufficient in amount), may elect to pay property taxes, hazard insurance premiums, and other charges. Any amount paid by the Director may be collected in the manner consistent with the security documents or other manner agreeable to the Director and borrower. The Director will not add amounts advanced for payment of property taxes or hazard insurance premiums to the principal balance of the loan. On these loans, any amount advanced will be entered as a negative balance in the escrow account.

(9) The borrower's loan payment may be increased to repay the money advanced to pay the property taxes, hazard insurance premiums, and other charges against the security, together with interest thereon, within a maximum period of 12 months or such shorter time as established by the Director.

(10) No borrower is entitled to borrow more than the maximum amount allowed under ORS 407.215 other than for reasons specified in ORS 407.205 except that when the property on which the loan was made becomes the property of the applicant’s spouse as a result of a judgment declaring a marriage void or dissolved and the loan is repaid, the loan may be excluded from consideration in computing the maximum loan allowable under ORS 407.205.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 4-2008, f. & cert. ef. 2-22-08
DVA 8-2005, f. & cert. ef. 12-27-05
DVA 11-2003, f. & cert. ef. 9-23-03
DVA 3-2003(Temp), f. & cert. ef. 4-7-03 thru 10-3-03
DVA 9-2001, f. & cert. ef. 11-23-01
DVA 3-2001(Temp), f. & cert. ef. 6-15-01 thru 12-11-01
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0070 Interest

(1) The Director will prescribe interests rates for loans. In prescribing interest rates, the Director will consider the following factors:

(a) The current value of funds;

(b) The solvency of the Department's Loan Program; and

(2) In prescribing interest rates, the Department also may consider factors including, but not limited to the following:

(a) The projected value of funds;

(b) Any federal tax law restrictions;

(d) The availability of funds;

(e) Actual or projected loan demand;

(f) The loan purpose; and

(g) The source(s) of funds.

(3) The Director periodically may change the prescribed rates of interest for loans to be funded by the Department to reflect reconsideration of, or changes in, factors considered under sections (1) and (2) of this rule, or in consideration of additional factors.

(4) The Director may prescribe different rates of interest for different loans, depending upon factors including, but not limited to the following:

(a) The time of an initial loan or commitment to fund a loan;

(b) The initial rate of interest on a loan;

(d) The status of the borrower;

(e) The status of the loan security;

(f) The perceived risk associated with the loan;

(g) Whether or not the Department agreed to maintain an interest rate commitment within a certain range or for a certain time; and

(h) Whether or not the applicant abandoned a previous loan application or loan commitment.

(5) The Department will endeavor to record prescribed interest rates as reasonably as it is practical for the Department to do so, in its Tables and Codes Manual. This publication will be available for viewing at the Oregon Department of Veterans' Affairs, 700 Summer Street NE, Salem, Oregon, as permitted by the Department, during regular business hours.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 3-2005, f. & cert. ef. 4-22-05
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0080 Approval of the Loan

The approval of any loan shall be dependent upon the following:

(1) The veteran applicant must meet the current industry standards determined by the Department to be applicable to the proposed loan. Applicable industry standards may include, but are not limited to:

(a) Local lending practices;

(b) FannieMae and other lending organization standards; and

(2) The veteran applicant may be required to have equity in the property.

(3) Secondary financing may be permitted.

(4) Construction shall meet the minimum standards set by federal, state or local laws.

(5) A performance bond may be required for new construction.

(6) Inspections to prove the premises safe, sanitary and structurally sound may be required, and the loan may be refused if the construction is inferior.

(7) The security shall be served by adequate means of legal and physical access and shall have an acceptable potable water supply.

(8) The Director may approve a loan for the following purposes:

(a) Acquisition of a home;

(b) To refinance a construction, rehabilitation, or bridge loan within 24 months of the date of the loan; or

(c) To refinance a loan serving as a form of temporary financing that is permitted under federal tax law and acceptable to the Director.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 6-2005, f. & cert. ef. 10-24-05
DVA 5-2005, f. & cert. ef. 7-22-05
DVA 4-2005(Temp), f. & cert. ef. 6-3-05 thru 11-30-05
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0085 Loan Funding

(1) Funding by Oregon Department of Veterans’ Affairs (ODVA) of any loan is subject to the discretion of the Director of Veterans’ Affairs. In determining whether or not to fund any loan, the Director may consider factors, including, but not limited to the following:

(a) Actual or projected cost of funds;

(b) Any applicable federal tax or other law;

(d) Actual or projected conventional mortgage rates;

(e) Actual or projected loan demand;

(f) Loan purpose;

(g) Eligibility of applicant;

(h) Credit worthiness of applicant;

(i) Adequacy of security for the loan.

(2) The Director may from time to time establish priorities and other requirements with respect to the granting of loans under this Division.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0090 Grounds for Refusing to Make a Loan

The Director may refuse to make a loan to any applicant if he finds any of the following:

(1) Prior loan experience with an applicant was unsatisfactory, including, but not limited to, late payment or nonpayment on loan and impairment of security.

(2) The applicant did not disclose all debts or obligations as required under the terms of the loan credit application.

(3) The applicant has a negative cash flow.

(4) The applicant has declared bankruptcy within the last three years unless:

(a) The applicant or the applicant's spouse has been regularly employed, other than self-employed, since the discharge; and

(b) The applicant has established credit since the bankruptcy and made timely and satisfactory payments on obligations; and

(c) The bankruptcy was caused by circumstances beyond the applicant's control, such as uninsured medical expense, layoff, strike, or divorce.

(5) The applicant has declared bankruptcy between three and five years prior to application for a loan, unless the applicant has reestablished credit since the bankruptcy.

(6) Business bankruptcies will not be grounds for refusing to make a loan if:

(a) The applicant was self-employed and the bankruptcy was not due to misconduct; and

(b) There is no evidence of derogatory credit information prior to the self-employment or after the bankruptcy; and

(7) Chapter 13 bankruptcies will not be grounds for refusing to make a loan if the applicant has made satisfactory payment of at least three-fourths of the total payments due the trustee.

(8) The applicant's ability to repay the loan is insufficient, as determined by the Department of Veterans' Affairs (Department) by applying relevant industry standards.

(10) The applicant is involved in the following type of transactions:

(a) The purchase of property from a spouse where the amount that the applicant seeks to borrow from the Department exceeds the unpaid balance on loans used to acquire or improve the property;

(b) The purchase from a corporation wholly or substantially owned by the applicant;

(11) The applicant has or has had any interest, either title or contractual, in the property being purchased, except it will not be grounds for refusing to make a loan if:

(a) The applicant is purchasing a one-half interest from a divorced spouse, as stated in the divorce decree, and the new loan must be funded no more than 18 months from the date of the original purchase money obligation;

(b) Within the past 18 months, the applicant closed a non-ODVA loan or completed construction on a construction loan and is now applying for an ODVA loan to pay it off;

(c) If the application is for amount spent on the purchase of, or the value of, land only (whichever is less) and construction commences within 24 months of land acquisition and the loan is funded within 18 months of the start of construction.

(12) The applicant does not meet applicable underwriting or industry property standards as determined by the Department.

(13) If the applicant will use the property offered as security for the loan for a purpose that would jeopardize the tax-exempt status of interest to holders of Bonds issued by the Director:

(a) Specifically excluded uses are:

(A) As an investment;

(B) As a recreational home;

(b) Examples of excluded uses (if a portion of the property is used regularly and exclusively in connection with a trade or business) are:

(A) Using any portion of the residence as a place to meet patients, clients, or customers in the normal course of business;

(B) Storage of inventory in a separate and identifiable fixed location and kept for the wholesale or retail selling of products as a part of the applicant's trade or business which would entitle the applicant to a "Business Use of the Home" income tax deduction;

(C) Providing care for children, for the elderly, or for handicapped persons, if the nature and character of the care entitles the property owner to a "Business Use of the Home" income tax deduction.

(c) Any use of a residence which does not qualify for a "Business Use of the Home" income tax deduction shall not be considered as a use in a trade or business. Examples of such permitted uses are:

(A) Storage of inventory for the benefit of an employer or in conduct of a direct selling business, if the use is not exclusive of any personal use of that part of the residence;

(B) Babysitting, if the nature and character of the babysitting does not entitle the property owner to a "Business Use of the Home" income tax deduction;

(C) Engaging in person-to-person sales of consumer products to customers in the home, such as Tupperware, Amway, Avon, wicker, crystal, or similar products;

(D) Foster home established by Court Order, or designated by a Government Agency with jurisdiction to make such a designation;

History

Statutory/Other Authority: ORS 183, 286, 406.030, 407.115, 407.135, 407.145, 407.275, 407.305, 407.375 & Federal Tax Act of 1986
Statutes/Other Implemented: ORS 183 & 407
DVA 6-2005, f. & cert. ef. 10-24-05
DVA 8-2001, f. & cert. ef. 11-23-01
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0100 Evidence of Title

The veteran shall furnish at his or her expense an ALTA Mortgagee's Title Insurance policy for the amount of the loan, a title company lien search, or a certificate of title.

(1) The title policy, or other reports, shall show that the State has a first lien except in the case of:

(a) Property taxes not payable;

(b) A lien of a bonded irrigation or drainage district, in which case all due assessments must be paid;

(c) A public improvement lien, bonded or being collected by the County Tax Collector in which case all due assessments must be paid;

(d) A lien for Reclamation Service of the United States Government, in which case all due assessments must be paid;

(e) An ALTA Mortgagee's Title Insurance policy insuring the State against loss from any prior encumbrance, but the encumbrance must be acceptable to the veteran mortgagor.

(2) All water stock shall be endorsed to, and deposited with, the Director to be held by the State until its interest terminates.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0110 Escrow Closing of Loans

(1) All loans made by the Director of Veterans' Affairs (except for protection of security loans) shall be closed by persons or firms licensed to engage in the escrow business under the Oregon Escrow Laws (ORS 696.505 to 696.590), or an attorney at law rendering services in the performance of duties as attorney at law.

(2) The borrower will select the escrow agent or attorney for closing the loan and the borrower shall pay all escrow fees.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406 & 407
Statutes/Other Implemented: ORS 407
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0120 Transfer of Ownership

(1) The Director shall be notified in writing of any transfer of ownership or the right to possess property that is used as security for a loan with the Oregon Department of Veterans' Affairs (ODVA).

(2) The following are conditions that constitute a transfer of an ownership interest or the right to possess the loan security:

(a) A borrower takes title to the property with a person other than his or her legal spouse;

(b) Contract of sale;

(d) Any other indenture that purports to convey or transfer any portion of equitable title except for the following:

(A) Deed to create a life estate retained by the eligible veteran mortgagor;

(B) Deed to a government entity for public use as noted inORS 407.275(2);

(D) A purchase option with a consideration of three percent or more of the stated purchase price.

(3) If any or all of the above referenced conditions in subsection (2)(a) through (d) occur to the security of an ODVA loan, the entire balance of the loan will be immediately due and payable.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.275, 407.305 & 407.335
Statutes/Other Implemented: ORS 407.275 & 407.335
DVA 3-2007, f. & cert. ef. 9-25-07
DVA 9-2001, f. & cert. ef. 11-23-01
DVA 3-2001(Temp), f. & cert. ef. 6-15-01 thru 12-11-01
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0125 Rental

The Director may approve the rental of a security, that has been occupied by the veteran. The Director, when determining whether to approve the rental of a home that serves as security for an ODVA loan, may consider the following factors including but not limited to the following:

(1) The effect on the tax-exempt status of bonds issued under Article XI-A of the Oregon Constitution.

(2) Whether the home was and is appropriately used as the principal residence of the borrower(s).

(3) The financial integrity of the loan program.

(4) Any potential decreases in the value of the security.

(5) The impact on remedies available under the loan documents.

(6) Whether or not there has been or will be any material change in the borrower’s/spouse’s employment.

(7) The dissolution or annulment of the borrower’s marriage.

(8) A significant geographical relocation by the borrower.

(9) Any unusual hardship for the borrower(s).

(10) The borrower(s) ability to maintain the home as his/her principal residence.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.030, 407.115 & 407.385
Statutes/Other Implemented: ORS 407.385
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0130 Modification of Mortgage

(1) A request for modification of a mortgage must be made in writing by the borrower.

(2) The borrower and the Director shall agree in writing to the terms of the modification, and it shall be recorded in the mortgage records in the county where the security is located.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0140 Temporary Reduction of Payments

(1) In the event a veteran is unable to make required loan payments due to loss of income because of illness, injury, death, involuntary job loss, or economic stress due to factors beyond the veteran's control, the veteran may apply for a temporary reduction of payments provided that:

(a) The veteran is the original borrower or one who assumed the loan pursuant to ORS 407.305;

(b) The veteran is residing in the property used as security for the loan at the time he or she requests the payment reduction;

(c) The veteran must request the loan reduction by writing to the Director of Veterans' Affairs, c/o Collection Unit, 700 Summer Street, NE, Salem, Oregon 97301-1285. The written request must contain a statement describing the reason for the request, current income, source of income, and must be accompanied by a copy of the veteran's previous two years' federal income tax returns;

(d) The veteran must furnish any other documentation requested by the Director relating to the reason for request.

(2) In determining the amount and term for reducing loan payments, the Director shall consider the value of the security, the balance owing on the loan, the total assets of the borrower, past payment record of the borrower, and any other matters related to financial hardship to the borrower and the financial position of the loan program:

(a) Monthly loan payments may not be reduced to an amount less than the monthly loan cancellation life insurance premiums and the escrow portion of the monthly payment, if applicable;

(b) The Director may recapture the reduced portion of the monthly payment and any other accrued delinquency by whatever repayment methods are appropriate to individual circumstances;

(c) The terms and conditions of the payment reduction and repayment must be agreed upon, in writing, and approved by both the veteran and the Director;

(d) The veteran may be required to submit information periodically regarding his income and financial affairs in order to reevaluate the necessity of continuing the reduction in payments. Following such reevaluation, the Director may modify the loan payment reduction; and

(e) The veteran must continue to reside in the loan security.

(3) A veteran whose loan is in foreclosure is not eligible under this program.

(4) Temporary reduction of loan payments is a benefit to be extended only in an extreme emergency and is not to be abused.

(5) Because of the effect of these reductions on the solvency of the loan program as a whole, on the probable financial position of the program in the future, on the condition of the tax-exempt bond market, and on other borrowers in the program, the Director has determined that the maximum number of borrowers that can be accommodated under this program is approximately one percent of the total outstanding borrowers. Therefore, at any time, the Director will enter into agreements as provided in subsection (2)(c) of this rule with no more than one percent of the total loan portfolio, the number to be specified by the Director.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.030, 407.095 & 407.115
Statutes/Other Implemented: ORS 406.030, 407.095 & 407.115
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0145 Loan Cancellation Life Insurance

(1) The Director of the Oregon Department of Veterans' Affairs (Director), prior to obtaining loan cancellation life insurance for any person who receives or assumes a loan or makes a contract with ODVA for the acquisition of a home, and the spouse or former spouse of that person, may enter into a contract with an insurance carrier which allows the carrier to:

(a) Require an application for insurance;

(b) Underwrite classes of prospective insureds on the basis of information, such as age and health status, contained in the application;

(d) Deny payment of benefits for suicide or certain pre-existing, nonservice-connected disability.

(2) The Director will negotiate a contract with the insurance carrier as necessary to insure procurement and maintenance of adequate, solvent, and uninterrupted, long-term insurance coverage.

(4) The insurance contract may provide that insurance canceled for the above reason cannot be reinstated unless payments are brought current and a new application for insurance is submitted. The provisions of section (1) of this rule will apply to the newly submitted application.

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.465 & 407.475
Statutes/Other Implemented: ORS 407.115, 407.135, 407.145, 407.465 & 407.475
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0150 Property Tax Amortization and Escrow Accounting

(1) Except as otherwise provided herein, payments required on all loans shall include an amount, which represents advances, for taxes paid by the Director of Veterans' Affairs (Director) on the security. If for any reason the taxes cannot be paid on November 15th, the Director will send the notice as soon as possible after the taxes are paid.

(2) All applications, for permission to pay taxes and hazard insurance directly, will receive a written approval or disapproval from the Director. If the application is approved, the applicant will be advised of the date when the Director will discontinue making disbursements, if applicable, and the date the loan payment will be adjusted, if necessary.

(3) The Director may revoke any permission granted concerning the payment of taxes and hazard insurance on the security by giving the owner of the security 30 days written notice of the revocation, except as otherwise provided herein. If the Director advances funds to pay unpaid taxes and/or hazard insurance, any advance by the Director for such a shortage/deficiency also will constitute immediate revocation by the Director of permission for the owner to pay directly any taxes and hazard insurance due on the security, and the account will revert to the last signed agreement between the Director and borrower for the payment of taxes, hazard insurance and other obligations. Any advances by the Director, including any interest and fee, shall be paid back within the remaining payment/escrow year. The borrower may not change this obligation without prior written approval from the Director.

(4) Pursuant to the provisions of ORS 407.169, under this division, escrow accounts are available for the prepayment of estimated property taxes and hazard insurance premiums.

(5) On monthly simple interest loans with escrow accounts, the required escrow payment may be based, inter alia, on the preceding year's disbursements for such items as property taxes, hazard insurance premiums, other required insurance premiums such as mortgage insurance, and condominium or homeowner’s association dues. In cases of unassessed new construction, the estimate may be based, inter alia, on the assessment of comparable residential property in the market area.

(6) The Director will pay interest on the escrow account as provided by ORS 86.245(1) to (4).

(7) Under this Division, all escrow accounts on monthly simple interest loans will be administered in the following manner:

(c) Except if a loan is two (2) months or more delinquent in payments, an analysis will not be done until the loan is brought current;

(d) If the analysis determines there is not sufficient money in the escrow account to pay the required disbursements, the Director may advance the shortage/deficiency. The required escrow payments on the loan will be increased to recover any interest, fee or other advance by the Director for such a shortage or deficiency, or the borrower may repay the advance, interest or fee in a lump sum;

(f) A statement itemizing all escrow account activity, (annual escrow analysis) will be provided to the borrower each year.

(8) The following definitions apply to section (7) above:

(a) "Aggregate analysis" means to analyze the escrow account by calculating the sufficiency of escrow funds as a whole, as opposed to calculating components separately.

(d) "Escrow account" means any account that the Director establishes or controls on behalf of a borrower to pay taxes, insurance premium, or other charges, as applicable.

(e) "Escrow account computation year" means a 12-month period that the Director establishes for the escrow account.

(f) "Shortage" means an amount by which a current escrow account balance falls short of the target balance at the time of escrow analysis.

(g) "Surplus" means an amount by which the current escrow account balance exceeds the target balance of the account.

(h) "Target balance" means the estimated month end balance in an escrow account that is just sufficient to cover the remaining disbursements from the escrow account in the escrow account computation year, taking into account the remaining scheduled periodic payments, and a cushion.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0160 Partial Release of Security

(1) A partial release of security may be granted when the borrower submits a complete application for one and the Director determines that granting the requested release would not jeopardize the Department of Veterans' Affairs' security position.

(2) The remaining property must qualify as security for the loan balance under the provisions of ORS 407.225(3) and OAR 274-045-0040 to 274-045-0060.

(3) Notwithstanding compliance with section (2) of this rule, the Director may require that the loan balance be reduced as consideration for granting the requested release.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406 & 407
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0170 Confidential Nature of Information Submitted by the Borrower

Information submitted by the veteran in support of his or her application shall be considered confidential and shall not be disclosed to persons outside the Department, unless permission is given by the veteran to release the information, or the information is requested by a public agency in the exercise of its official duty and only then at the discretion of the Director.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0180 Confidential Nature of Information Procured by the Director

Information secured by the Director in connection with a veteran's application for a loan shall be considered confidential and shall not be disclosed to persons outside the employ of the Department, unless such information is requested by a public agency in the exercise of its official duty, and only then the release shall be at the discretion of the Director.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0190 Disclosure of Information and Fees

(1) Information in the custody of the Director of Veterans' Affairs (director) will be disclosed, or protected from disclosure, consistent with the provisions of ORS Chapter 192.

(2) Requests for information can be made verbally, but the director reserves the right to require the request to be in writing, signed and dated, naming or describing the information desired and the date the information is needed. A reasonable period of time must be allowed for the custodian of the records to locate and assemble the requested information. Restrictions may be placed upon where the information will be delivered or made available for inspection. The director shall designate a staff employee to be the Department's records custodian, whose function is to perform the duties necessary to manage the Department's records in accordance with all applicable laws. These duties may include, but are not limited to, certifying records to be true copies of the original documents on file in the custody of the director.

(3) Mailing lists of Oregon Department of Veterans' Affairs (ODVA) active account holders, and Vets News recipients may be made available upon payment of the required fee. The mailing lists will not contain the names of persons who submit a written request for deletion of their name from the list on the basis that such disclosure would constitute an unreasonable invasion of privacy.

(4) The following information will not be disclosed except pursuant to an order issued by the director or by the Attorney General of the State of Oregon:

(a) Internal communications of an advisory nature preliminary to any final agency determination of policy or action;

(b) The name of a confidential informant or information submitted to the Department in confidence where submission of the information was not required and the Department has obliged itself in good faith not to disclose the information.

(5) The following information will not be disclosed except pursuant to an order issued by the Attorney General:

(a) Information relating to the appraisal of real and personal property prior to making a loan secured by that property;

(b) Information of a financial, medical, or personal nature relating to any individual, if such disclosure would constitute an unreasonable invasion of privacy.

(6) Fees will be charged to reimburse the Department the cost of making information available or for producing copies of records:

(a) For mailing lists, the fee is derived from the actual production costs. The lists are available in alphabetical or zip code order;

(b) The director may require reimbursement for any additional costs actually incurred by the Department;

(c) For all requests for copies of documents, the charge is based on the actual costs incurred for search of files and for documents provided;

(d) For necessary safeguard of documents where a requestor is allowed to research records on Department premises, a staff employee, designated by the director, must be present. The fee to be charged for this service will be equal to the hourly pay of the employee designated. In appointing an employee to safeguard Departmental records, the director shall consider whether the pay range of the designated employee is reasonable and appropriate, reflecting the technicality and sensitivity of the documents being researched;

(f) The director may require payment of any and all fees identified in this section, in a form satisfactory to the director, prior to providing any disclosure of documents or information. The director may make advance charges for anticipated labor expenses on an estimated basis.

(7) The purchase of a mailing list does not constitute permission to use ODVA's name in any marketing or advertising approach, whether expressly stated, inferred or implied.

History

Statutory/Other Authority: ORS 192, 406.030 & 407.115
Statutes/Other Implemented: ORS 192, 406.030 & 407.115
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0200 Director’s Decisions Control in All Controversies

(1) The Director shall make all determinations as to the applicant's eligibility for a loan.

(2) The Director shall make all determinations, based upon data and information in the file, as to whether the property offered is acceptable security and whether or not a loan shall be made.

(3) The Director's decision shall be final in all matters pertaining to eligibility and the making of a loan.

History

Statutory/Other Authority: ORS 406
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0205 Review of Loan Determinations and Other Decisions

(1) Any person adversely affected by a decision of an ODVA official may write a letter of complaint to the Director. The Director or other designated official shall prepare and deposit in the ordinary mail, or personally deliver, a written response within 30 days of receipt of the written complaint.

(2) If the Director, or other designated official supports the decision, a request may be made for an informal hearing with a designated official at the Oregon Department of Veterans’ Affairs Office, located at 700 Summer Street, NE, Salem, Oregon 97301-1285.

(3) A request for an informal hearing shall be addressed to the Director and shall state the nature of the adverse decision, the date of and the person making the decision, and how the person requesting the hearing is adversely affected. The Director must receive a request for an informal hearing within 60 days of the date of mailing or personal delivery of the response, provided for by section (1) of this rule. If no letter of complaint was ever written, the requirement for a letter of complaint may be waived, and the request for an informal hearing considered if the request is received by the Director within 90 days of the date of the decision leading to the request for an informal hearing. Unless ODVA received written notice of a complaint, the right to a hearing (both informal and contested) shall expire 90 days after the date the complainant had actual knowledge of, or by the exercise of due care would have had knowledge of, the occurrence in dispute.

(4) Within 30 days from receipt of a request for an informal hearing, the Director shall, by mail, notify the person making the request of the action taken on the request which may be:

(a) Designating an official to conduct an informal hearing;

(b) Reversing or modifying the adverse decision;

(5) Any denial of a request for an informal hearing shall state the reason for the denial. A request for an informal hearing may be denied if the Director finds:

(a) Litigation involving the issue in dispute is pending or imminent;

(b) The person making the request is not the person who would directly benefit from a modification or reversal of the adverse decision (not the real party in interest);

(c) A modification or reversal of the decision would affect persons who would not be bound by the modification or reversal (the Director is lacking power to resolve the dispute);

(d) The Director did not receive the request within the time allowed by section (3) of this rule.

(8) A decision of the designated official, after approval by the Director, shall be final except when, as defined by ORS 183.310(2), a "Contested Case" exists.

(9) When a "Contested Case" exists, and a contested case hearing is desired, it must be requested in writing and the request received by the Director within 20 days of the date of the mailing of the decision of the designated official if an informal hearing has been held, or within 20 days of service of the notice in a contested case under ORS 183.415.

(10) Contested case hearings will be conducted in accordance with the provisions of ORS 183.413 to 183.470 and the Attorney General's Model Rules of Procedure, OAR 137-003-0001 to 137-003-0092.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 183, 406.030 & 407.115
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0220 Fees

(1) The Director of Veterans' Affairs (Director) imposes fees for the following:

(a) New Loan.

(b) Partial Release, Easement, and Modification of Mortgage.

(d) Reissue of Stale, Lost, Destroyed or Missing Document.

(e) Mineral Rights and Geothermal Resource Rights Release.

(f) Borrower requests to cancel private mortgage insurance.

(g) Dishonored Electronic Funds Transfer.

(2) The fee will not be waived or reduced except when in the Director's opinion, requiring the fee would cause an undue hardship. In the case of a dishonored check, the fee will be waived if the check was dishonored because of a bank error.

(3) Fee Schedule:

(a) New Loan Fees.

(A) A credit report fee may be charged in an amount not to exceed the amount charged by the credit-reporting firm. A credit report fee may be charged for each applicant unless a co-applicant is the applicant's spouse.

(B) An appraisal report fee may be charged in an amount not to exceed the amount charged by the appraiser or actual cost.

(D) The loan fee will not exceed two percent (2%) of the loan amount;

(E) Flood determination fee for each loan may be charged in an amount not to exceed the amount charged by the flood determination company;

(F) A processing fee in the amount of $600 will be charged for processing, document preparation, or other services.

(b) Partial Release, Easement, and Modification of Mortgage Fees:

(A) $450 plus the cost of an appraisal for a partial release or modification of mortgaged property. The appraisal fee will be refunded to the applicant if the request is withdrawn before the Director is obligated to an appraiser for the cost of a property appraisal.

(B) $50 for consenting to an easement.

(D) $1,100 for a partial release involving release of water rights. $1,000 of the $1,100 fee will be refunded if the request is withdrawn before the Director is obligated to an appraiser for the cost of a property appraisal.

(E) A larger fee may be charged in complex cases to cover extra processing costs.

(F) A fee for the partial release of property to a government entity for public use as noted in Chapter 238 Oregon Laws 1995. This fee may be modified or waived at the discretion of the Director.

(c) Dishonored Check Fee. Whenever a bank check issued in payment of an obligation due to the Director of Veterans' Affairs is dishonored by the bank upon which the check is drawn, a fee in the amount of $25 will be charged. If two dishonored checks are received from the same borrower within a 12-month period, the Director may require this borrower to make all future payments by cash, money order, cashier's check or certified check;

(d) Reissue of Stale, Lost, Destroyed or Missing Document Fee. Whenever a document issued by the Director must be reissued because it has been outstanding too long without being used, or has been lost, destroyed or for some other reason is missing, a fee in the amount of $50 may be charged for this service. "Document" means deed, satisfaction of mortgage, satisfaction of judgment, request for reconveyance, reconveyance, assumption agreement, contract, partial release, modification of mortgage, escrow closing papers (or some other document substantially the same as the ones enumerated). This fee may be waived if there is good reason to believe that the person requesting the reissue was not responsible for the delay that caused the document to become stale or for the disappearance of the original issue;

(e) Release of Mineral Rights and Geothermal Resource Rights Fees. The Director may charge a fee of $150 for processing an application for release of mineral and geothermal resource rights. From this fee, ODVA will pay the cost of recording any document issued. An additional $100 may be charged if the nature of the application requires a review by the Division of State Lands to determine the mineral and geothermal resource potential. A check or money order in the amount of $100 made payable to the Division of State Lands will be required when the Division of State Lands review is necessary.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 2-2012, f. & cert. ef. 6-25-12
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0230 Approved Lenders

(1) Any lending institution, as defined in ORS 407.177(8) may apply to become an Approved Lender by submitting to the Director of Veterans' Affairs (Director) information required by the Director which may include, but is not limited to the following for review:

(a) An application in the form prescribed by the Director, including a certificate of compliance with tax laws;

(b) Its counsel's opinion regarding power and authority of the lending institution to enter into a purchase agreement with the Director;

(d) Its most recent, audited financial statements;

(e) Financial Statement of Condition (Balance Sheet) for the last two fiscal years and Profit and Loss Statement;

(f) Resumes of principal officers and key employees;

(g) Company biography and background;

(h) Signed and executed broker agreement;

(i) Resolution of the Board of Directors/Certificate of Authorized Signatures;

(j) Articles of Incorporation (if incorporated);

(k) Signed Credit Release Authorization;

(l) Applicable licenses as required by state and local law;

(m) Explanation of Quality Control Procedures;

(n) W-9;

(o) Any other documentation or information deemed necessary by the Director;

(2) A lending institution will qualify as an Approved Lender if the Director determines that the applicant has the capability and resources to originate only or originate, underwrite and fund loans in a sound and professional manner. The Director shall consider such factors as those itemized in 274-045-0001(4)(a) through (l).

(3) To become an Approved Lender, a lending institution shall enter into an agreement with the Director, providing for the manner and terms of the sale or processing of loans. This agreement shall be in the standard form prescribed by the Director. Approved Lenders shall carry out such agreement in accordance with the procedures set forth in the agreement, the rules, and the Post Vietnam Era Veterans' Home Loan Origination Guide/Mortgage Brokers Loan Origination Guide. The Director may revise such procedures from time to time. The Director may terminate its agreement with an Approved Lender at any time on the terms and conditions stated in such agreement, the rules, or the Post Vietnam Era Veterans' Home Loan Origination Guide/Mortgage Brokers Loan Origination Guide.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407. 385; Oregon Constitution Article XI-A, Section 3.
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0240 Loan Requirements

(1) To be eligible for purchase or underwriting and closing by the ODVA pursuant to a commitment to an approved lender, a program loan shall be made or processed by the approved lender during the period of that commitment. The loan shall comply with the terms of such commitment, the requirements set forth in the agreement between ODVA and the approved lender, and the conditions set forth in the rules and the Post Vietnam Era Veterans' Home Loan Origination Guide/Mortgage Brokers Loan Origination Guide.

(2) Each Approved Lender shall make loans for single-family dwellings.

(3) Each program loan shall have a final maturity of at least 15 years and not more than 40 years from the date of its mailing.

(4) Each program loam shall be secured by a first lien mortgage or trust deed. The veteran shall hold title to the home in fee simple.

(5) No program loan shall be made to refinance an existing construction or rehabilitation loan, unless such loan was considered temporary financing. If a program loan is made to refinance such a loan, the approved lender shall certify to Oregon Department of Veterans' Affairs that the construction or rehabilitation has be satisfactorily completed before the delivery of the program loan for purchase.

(8) The interest rate on each program loan shall be at the rate stated in the applicable commitment issued by the ODVA.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 4-2008, f. & cert. ef. 2-22-08
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0250 Reservation of Funds and Commitments

ODVA reserves funds for individual loans in the name of the veteran upon request from an Approved Lender or from authorized ODVA staff. ODVA may solicit applications and accept loan fund reservations from Approved Lender(s) subject to the terms of the appropriate agreements, and the rate and availability of funds.

(1) ODVA will reserve funds for applications at the time of:

(a) Acceptance of application for processing by ODVA; or

(b) A verbal or written request from an Approved Lender that an application for funding is being processed.

(2) When ODVA reserves funds, an interest rate will be committed to this reservation and will be effective for a period of 60 days. The loan must be closed before the end of 60 days or the committed interest rate will expire. If the reservation is reissued, will bear an interest rate at the higher of the expired/cancelled rate or the then-current interest rate at the time of reissue. If a veteran withdraws an application and subsequently re-applies for a loan on the same security, the "higher of" rule will apply for a period of 120 days from the date of withdrawal.

(3) If the loan is not presented to ODVA for purchase with all documentation in place within 90 calendar days of the final HUD-1 settlement date, ODVA may charge the Approved Lender a fee of one basis point of the loan amount per calendar day, until loan is approved for purchased.

(4) The commitment letter to the Approved Lender will contain the following information:

(a) The dollar amount of the commitment;

(b) The interest rate for the loan;

(d) The mortgage insurance or guarantee required, if any;

(e) The period of time during which the ODVA will purchase the loan;

(f) The veteran who will be the borrower;

(g) The property identification (i.e., property address);

(h) Any additional information or conditions the ODVA considers appropriate in the commitment.

(5) The ODVA will promptly notify Approved Lenders when it will not accept a commitment request, for whatever reasons.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0260 Title Insurance

[ED. NOTE: Forms referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.177, 407.179 & 407.181
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0270 Hazard Insurance

The home securing a program loan shall be covered by hazard insurance, which meets the requirements of the rules and the Post Vietnam Era Veterans' Home Loan Origination Guide/Mortgage Brokers Loan Origination Guide, a copy of the Guide is on file with the Oregon Department of Veterans’ Affairs, 700 Summer Street NE, Salem, Oregon 97301-1285, and is available to the public during normal business hours. Such hazard insurance shall be in effect prior to purchase or funding of the program loan, and shall remain in effect for the term of the program loan. The ODVA shall be named as the mortgagee insured.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.177, 407.179 & 407.18
Statutes/Other Implemented: ORS 407
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0280 Flood Insurance

(1) The Director of the Oregon Department of Veterans' Affairs (Department) shall require that the location of the security on all loan applications received by the Department is reviewed and a determination made as to whether flood insurance will be required as a condition of the loan.

(2) A flood determination fee will be charged to the borrower equal to the amount charged by the flood determination reporting company at the time the application is submitted.

(3) All flood determinations are to be provided for the duration of the loan while it exists in the Department's portfolio (more commonly referred to as life-of-loan tracking).

(4) The flood determination company must meet the qualifications as determined by the Department by applying relevant industry standards.

(5) Based on the determination that the security for the loan is located in an area classified as a special flood hazard area, the Director shall require the borrower to purchase flood insurance as a requirement of the loan.

(a) Disburse all costs associated with the acquisition of the coverage from the escrow account; or

(b) If there is no established escrow account, disperse all costs of the acquisition and establish an escrow account to cover the cost; and

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.169, 407.177 & 407.275
Statutes/Other Implemented: ORS 407.169, 407.177 & 407.275
DVA 6-2005, f. & cert. ef. 10-24-05
DVA 2-2001, f. & cert. ef. 5-23-01

Or. Admin. R. 274-045-0401 Purpose and Objectives

(1) This subsection of division 045 is established to administer the provisions of Article XI-A of the Constitution of the State of Oregon as it applies to ORS Chapter 407. These rules, together with the Processing Manual, shall implement the Post Vietnam Era Veterans’ Home Improvement Loan Program.

(2) The program's objective is to provide funds to finance qualified improvements of owner occupied, residential housing for qualified veterans in the State of Oregon. No improvement will be financed that is inconsistent with the provisions of ORS Chapter 407, applicable federal tax laws, ODVA's Processing Manual and any subsequent changes as they are effected. Copies of the Processing Manual are on file with the Oregon Department of Veterans' Affairs, 700 Summer Street NE, Salem Oregon, and available to the public during normal business hours.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.125 & Art. XI-A OR Const.
Statutes/Other Implemented: ORS 407.115, 407.125 & Art. XI-A OR Const.
DVA 10-2001, f. & cert. ef. 12-26-01

Or. Admin. R. 274-045-0411 Definitions

Selected words and terms as used in OAR chapter 274, division 045, are defined as follows:

(1) Veterans' Home Improvement loan means a loan or loans issued pursuant to OAR 274-045-0401 for not more than the total loan right where said loan funds are used to improve the basic livability of the home as defined in OAR 274-045-0001(11).

(2) Qualified improvements means the remodel or improvement of an existing home which will substantially enhance or protect the basic livability of the home, which are consistent with provisions of applicable tax laws.

(3) Processing Manual means the Oregon Department of Veterans’ Affairs (ODVA) manual containing the policy for the Veterans' Home Improvement Loan Program and any subsequent changes as they are effected.

(4) Veterans' Home Improvement Loan Program means all veterans' home improvement loans for which applications are received on or after June 29, 2001, and the veterans eligible for this program.

(5) Existing loan means any loan or loans obtained by the veteran to purchase or improve the property used as security for a loan with the ODVA.

(6) Loan to Value Ratio is the loan amount plus any outstanding balance owed to ODVA on the security divided by the net appraised value.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.125 & Art. XI-A OR Const.
Statutes/Other Implemented: ORS 407.115, 407.125 & Art. XI-A OR Const.
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 10-2001, f. & cert. ef. 12-26-01

Or. Admin. R. 274-045-0421 Interest Rate

As provided by ORS 407.327, the interest rate on veterans' home improvement loans for which applications are received on or after June 29, 2001 shall be fixed and consistent with OAR 274-045-0070.

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.125 & Art. XI-A OR Const.
Statutes/Other Implemented: Art. XI-A OR Const.
DVA 10-2001, f. & cert. ef. 12-26-01

Or. Admin. R. 274-045-0431 Approval of Veterans' Home Improvement Loans

Veterans' home improvement loans will be processed using ODVA Processing Manual and current industry standards determined by the Department to be applicable to the proposed loan. Applicable industry standards may include, but are not limited to, local lending practices, FannieMae and other lending organization standards, and federal and state legal requirements. A copy of the Processing Manual is on file with the Oregon Department of Veterans' Affairs, 700 Summer Street NE, Salem Oregon, and is available to the public during normal business hours.

History

Statutory/Other Authority: Art. XI-A, OR Const., ORS 406.030, 407.115 & 407.125
Statutes/Other Implemented: Art. XI-A, OR Const., ORS 407.115 & 407.125
DVA 6-2005, f. & cert. ef. 10-24-05
DVA 10-2001, f. & cert. ef. 12-26-01

Or. Admin. R. 274-045-0441 Terms and Requirements of Veterans' Home Improvement Loans

(1) The veterans' home improvement loan must be placed in the first lien position on the security or be an immediate subsequent lien to an existing ODVA lien. The first ODVA lien and any immediate subsequent lien made on the security by the Director shall be deemed collectively as a first lien on the security.

(2) The net appraised value will be used as the basis for determining the maximum veterans' home improvement loan subject to statutory limitations and remaining loan right.

(3) When a veterans' home improvement loan is made on a security with an existing balance owed to the Director, the total of the unpaid balance of the existing loan and the veterans' home improvement loan shall not exceed 80 percent of the net appraised value as determined by the Director.

(4) When a veteran' home improvement loan is made on a property where no balance is owing, the veterans' home improvement loan shall not exceed 97 percent of the net appraised value as determined by the Director. If the loan-to-value ratio is greater than 80 percent of the net appraised value, the loan must be insured by mortgage insurance consistent with ORS 407.485.

(5) The borrower shall not receive any cash back from the home improvement loan.

(6) All existing nonamortizing ODVA loans on the security must be reamortized to bring the principal and interest payment and final payment date into conformance with ODVA policy as identified in the Processing Manual. A copy of the manual is on file with the Oregon Department of Veterans' Affairs, 700 Summer Street NE, Salem Oregon, and available to the public during normal business hours. All other terms of the existing loan on the security remain unchanged.

(7) Depending upon the loan amount, the maximum term of a home improvement loan may not exceed 20 years.

[Publications: Publications referenced are available from the agency.]

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.125 & Art. XI-A OR Const.
Statutes/Other Implemented: ORS 407.115, 407.125 & Art. XI-A OR Const.
DVA 11-2003, f. & cert. ef. 9-23-03
DVA 3-2003(Temp), f. & cert. ef. 4-7-03 thru 10-3-03
DVA 10-2001, f. & cert. ef. 12-26-01

Or. Admin. R. 274-045-0451 Appraisal of Property

An appraisal may be made at the discretion of the Director to assist in establishing the net appraised value. A fee will be charged in accordance with OAR 274-045-0220.

History

Statutory/Other Authority: Art. XI-A OR Const.
Statutes/Other Implemented: Art. XI-A OR Const.
DVA 10-2001, f. & cert. ef. 12-26-01

Or. Admin. R. 274-045-0461 Transfer of Ownership

The Director will call the entire balance of the loan due and payable if any of the conditions in OAR 274-045-0120(2) occur.

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.125 & Art. XI-A OR Const.
Statutes/Other Implemented: ORS 407.115, 407.125 & Art. XI-A OR Const.
DVA 10-2001, f. & cert. ef. 12-26-01

Or. Admin. R. 274-045-0471 Taxes, Hazard Insurance and Flood Insurance

If delinquent taxes become a lien against the security, or the borrower fails to maintain the required insurance, the Director may pay the taxes or insurance and if so paid, will collect the amount paid by ODVA from the borrower through an escrow account per the provisions of OAR 274-045-0150.

History

Statutory/Other Authority: ORS 406.005 & 407.115
Statutes/Other Implemented: ORS 407.075 to 407.385; Oregon Constitution Article XI-A, Section 3
DVA 6-2020, amend filed 07/10/2020, effective 07/11/2020
DVA 1-2020, temporary amend filed 01/21/2020, effective 01/22/2020 through 07/10/2020
DVA 2-2005, f. & cert. ef. 4-22-05
DVA 10-2001, f. & cert. ef. 12-26-01

Or. Admin. R. 274-045-0481 Title Insurance

Each loan shall be covered by a title insurance policy as designated by the Director at the borrower's expense.

History

Statutory/Other Authority: ORS 406.030, 407.115, 407.125 & Art. XI-A OR Const.
Statutes/Other Implemented: ORS 407.115, 407.125 & Art. XI-A OR Const.
DVA 10-2001, f. & cert. ef. 12-26-01