Oregon Administrative Rules Chapter 171 - OREGON INVESTMENT COUNCIL
Oregon Administrative Rules (OAR) Chapter 172 is dedicated to the Oregon Facilities Authority (OFA). The OFA is a crucial state agency in Oregon that facilitates low-cost financing for capital projects undertaken by qualifying nonprofit organizations through the issuance of tax-exempt conduit revenue bonds.
Here's a breakdown of the purpose and key aspects covered in OAR Chapter 172:
Purpose of the Oregon Facilities Authority (OFA):
The OFA was established by the Oregon Legislature in 1989. Its primary purpose is to help eligible nonprofit organizations (generally those qualifying as 501(c)(3) organizations under federal income tax law) access financing for their capital projects. By issuing tax-exempt revenue bonds, the OFA enables these organizations to achieve lower borrowing costs, as the interest earned by bondholders is exempt from federal and often state personal income tax.
Examples of capital projects that can be financed through OFA include:
Purchase of facilities or equipment
Major remodeling of facilities
Construction financing
Refinancing of loans originated for capital purposes
Projects for various types of institutions, including higher education, K-12 education, schools for persons with disabilities, housing, cultural institutions, and health care institutions.
The OFA's role is to evaluate proposed projects from nonprofits and make recommendations to the Oregon State Treasurer for bond issuance. The State Treasurer makes the final decision on whether to issue the bonds.
Key Divisions within OAR Chapter 172:
Division 1 - Notice of Proposed Rulemaking and Model Rules of Procedure: This division covers the general administrative procedures for the OFA, including how it provides notice of proposed rule changes and adheres to standard administrative rules of procedure.
Division 5 - Evaluating and Approving Projects Which Qualify for Tax-Exempt Financing: This is the core division of Chapter 172. It lays out the detailed criteria and processes for nonprofit organizations to apply for and receive tax-exempt financing through the OFA. This typically includes:
Form and Content of Application: What information and documentation applicants must provide.
Processing of Applications: The steps the OFA takes to review and process applications.
Consideration of Application by the Authority: The criteria the OFA uses to evaluate projects, including the financial viability of the project and the applicant organization.
Preliminary Agreement: The terms of initial agreements between the OFA and the applicant.
Approval of Financing by Authority; Issuance of Bonds; Single Meeting Approval Process: The formal approval process, including policies on investment grade bonds and requirements for underwriters.
Post-Issuance Compliance: Regulations to ensure ongoing compliance with tax-exempt bond requirements after the bonds are issued.
Fees: Details on the fees associated with OFA financing.
Waiver of Requirements: Conditions under which certain rules might be waived.
Importance of OAR Chapter 172:
For Nonprofit Organizations: This chapter is essential for any Oregon-based nonprofit looking to finance capital projects at a lower cost. It provides a clear roadmap for the application, approval, and compliance process for tax-exempt bond financing.
For the Public and Financial Entities: It ensures transparency and sets the standards for how the OFA operates, issues bonds, and manages its responsibilities in public finance.
Accessing the Rules:
To access the most current version of Oregon Administrative Rules Chapter 172, you should consult:
Oregon Secretary of State's Office (Oregon Administrative Rules website): This is the official and most authoritative source for all OARs. You can usually find it by searching for "Oregon Administrative Rules" on the Oregon.gov website.
Oregon Facilities Authority's Official Website (oregonfacilities.org): The OFA's website often provides direct links to the relevant administrative rules, as well as information about their programs, application forms, and contact details.
Legal Information Institute (LII) at Cornell Law School or Justia Regulations: These legal research platforms also provide access to the Oregon Administrative Rules in a searchable format.
It's always recommended to refer to the official sources for the most up-to-date and accurate information, as administrative rules can be amended periodically.
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