In addition to the definitions set forth in Government Code
section
8869.82
and unless otherwise required by the context, the following terms as used in
this division are defined as follows:
"Accredited Investor", also known as a "Sophisticated
Investor", means an entity as defined by the United States Securities and
Exchange Commission under Rule 501, regulation D of the Securities Act of
1933.
"Allocation" means the portion of the State Ceiling awarded
by the Committee to an Applicant.
"Allocation Round" means a meeting or series of meetings of
the Committee during which a predetermined portion of the State Ceiling is made
available for allocation by the Committee to one or more Applicants selected by
the Committee during that meeting or series of meetings.
"Annual Applicant Public Benefits and Ongoing Compliance
Self-Certification (Revised 9/20/17)", hereby incorporated by reference, means
the document in the online compliance certification system to be completed by
the Issuer in which the Issuer certifies that the Project is in compliance with
all of the terms and conditions set forth in the Committee Resolution.
"Applicant" means the following entities submitting an
Application to the Committee:
* a state or local governmental agency; or
* a joint powers authority (JPA) applying for bond
allocation for a project, except for projects described in Government Code
Section
6586.5(c),
that is or will be located entirely within the geographical boundaries of one
or more of the JPA's members; or
* a special district; or
* a nonprofit public benefit corporation that issues only
student loan bonds; or
* any other public agency that is empowered to issue debt.
"Application" means the request by an Applicant to the Committee for an
Allocation of the State Ceiling which shall include the information specified
in article 4 of this chapter.
"Bond" means either a Qualified Private Activity Bond or a
Governmental Bond as defined in this section.
"Bond Default" means a material default as defined within
an Issuer's Bond documents, but does not include for the purposes of this
definition, defaults that are technical in nature such as a failure to maintain
covenants, failing to charge rates sufficient to meet rate covenants, failing
to maintain insurance on the Project, or failing to fund various
reserves.
"Bond Issuance and Post Issuance Compliance Policies" means
policies established by an Applicant to guide the process of issuing private
activity bonds and ensuring post-issuance compliance including but not limited
to a description of the fee structure, application and approval process
(including TEFRA), threshold eligibility criteria for applicants and projects,
long term regulatory requirements (if any), and monitoring practices.
"Bond Regulatory Agreement" means the agreement between the
Issuer, Project Sponsor, and any third party related to the ownership,
financing, and management of a proposed Qualified Residential Rental Project
that binds the parties to the commitments made in the Application that resulted
in the Allocation for the Project and any other requirements mandated by
26 U.S.C. section
142.
"CIEDB" means the California Infrastructure and Economic
Development Bank.
"Cash Flow Permanent Bond" means a bond where the
identified payment source is based on cash flow availability in the form of
residual payments and that are issued for the purposes of providing permanent
financing that (i) does not meet CDLAC's Debt Service Coverage Ratio
requirement in Section
5193 and that, (ii) together with
all other Bonds not meeting CDLAC's Debt Service Coverage Ratio requirements in
Section 5193 (if any), exceed 5% of the
total project cost.
"Census Designated Place" means a place designated as a
census designated place by the Bureau of the Census.
"Certificate of Completion for Non-Qualified Residential
Rental Projects" submitted by the Project Sponsor of a Non-Qualified
Residential Rental Project, certifies that all work on the Project was
substantially completed, along with the aggregate amount disbursed on the loan
for qualified project costs. In addition, the officer's signature indicates
that no more than 2% of the proceeds of the bonds issued were spent on the cost
of the bond issuance.
"Certificate of Completion for Qualified Residential Rental
Projects" submitted by the Project Sponsor of a Qualified Residential Rental
Project, and certifies that all work on the Project was substantially
completed, along with the aggregate amount disbursed on the loan for qualified
project costs. In addition, the officer's signature indicates that no more than
2% of the proceeds of the bonds issued were spent on the cost of the bond
issuance.
"Certification of Compliance I" means the document provided
in the Committee Resolution to be completed by the Project Sponsor in which the
Project Sponsor certifies that the Project is in compliance with all of the
terms and conditions set forth in the Committee Resolution.
"Certification of Compliance II for Non-Qualified
Residential Rental Projects" is a form for Applicant/Issuers awarded allocation
in 2017 forward. Applicant/Issuers retain the Certification form for a period
of three years in place of the Certification of Compliance I (11-16-16) to
ensure that the Project Sponsor is reporting all relevant compliance and
possible changes to the Project or program to the Applicant.
"Certification of Compliance II for Qualified Residential
Rental Projects" is a form for Applicant/Issuers awarded allocation in 2017
forward. Applicant/Issuers retain the Certification form for a period of three
years in place of the Certification of Compliance I (11-16-16) to ensure that
the Project Sponsor is reporting all relevant compliance and possible changes
to the Project or program to the Applicant.
"Committee" means the California Debt Limit Allocation
Committee established by California Government Code sections
8869.80 et
seq.
"Committee Resolution" means for any Allocation, the
resolution duly adopted by the Committee that, among other things, memorializes
the grant of the Allocation by the Committee to the Applicant.
"Competitive Application Process" means the procedure under
which the Committee shall evaluate an Application for an award of Allocation
that is competitive based upon the number of points each Application is
awarded. Applications submitted under this process shall be awarded points only
when the Project qualifies for those points and evidence supporting an award of
points is documented in the Application when submitted.
"Credit Enhancement" means the additional assurance
provided by a third party pursuant to a payment guaranty, letter of credit,
bond insurance or other similar vehicle with a marketable investment grade
credit rating.
"Credit Enhancer" means the party providing Credit
Enhancement.
"CSFA" means the California School Finance
Authority.
"CTCAC" means the California Tax Credit Allocation
Committee.
"Distressed Community" means a community that the Applicant
demonstrates to be any one or more of the following:
* A community with an unemployment rate equal to or greater
than 125% of the statewide average based on the California Employment
Development Department's most recent annual average for sub-county
areas.
* A community with median family income of less than 80% of
the statewide average based on the most recent census data available for cities
or Census Designated Places. If no city or Census Designated Place level data
is available, or if the Applicant chooses to identify a project benefit area
that is smaller than a city or Census Designated Place, such as census tract or
tracts, smaller areas will be used.
* A community with a poverty rate equal to or greater than
110% of the statewide average based on the most recent census data available
for cities or Census Designated Places. If no city or Census Designated Place
level data is available, or if the Applicant chooses to identify a project
benefit area that is smaller than a city or Census Designated Place such as a
census tract or tracts, smaller geographic areas will be used.
* A community or county affected by a state of emergency
within California and declared a disaster by the President of the United
States, the Administrator of the United States Small Business Ad ministration,
or the United States Secretary of Agriculture, or de clared to be in a State of
Emergency by the Governor of the State of California.
"Draw-down Bond Issuance" means a draw-down loan as defined
for purposes of 26 U.S.C.
sections 103 and
141 through
150 (generally, a Bond issue in
which Bonds are delivered to the Bond purchaser intermittently as funds are
needed by the Bond Issuer and the Bond Issuer only provides payments based on
the amount of Bonds drawn-down).
"Executive Director" means the Executive Director of the
Committee.
"Exempt Facility Project" means a Project financed with an
exempt facility bond satisfying the requirements of
26 U.S.C. section
142, except that airports, docks and wharves,
governmentally owned solid waste disposal facilities, and Qualified Residential
Rental Projects shall not be considered exempt facilities for purposes of these
regulations.
"Exempt Facility Project Pool" means the reserve of the
State Ceiling established by the Committee for Exempt Facility Projects.
"Extra Credit Teacher Home Purchase Program" means a
program offering Mortgage Credit Certificates or loans funded by Mortgage
Revenue Bonds to eligible teachers, eligible administrators, eligible
classified employees, and eligible staff members for the purpose of assisting
them in becoming homeowners.
"Extra Credit Teacher Home Purchase Program Pool" means the
reserve of the State Ceiling established by the Committee for the Extra Credit
Teacher Home Purchase Program.
"Federally Bond-Restricted Units" are Project units that
are restricted pursuant to 26 U.S.C. Section 142 (d)(1)(A) or
(B).
"General Project Pool" means a reserve within the Qualified
Residential Rental Project Pool that may be established by the Committee that
does not include either Rural Projects or Mixed Income Projects.
"Governmental Bond" means a Bond issued by or on behalf of
a governmental entity that is not considered a Qualified Private Activity
Bond.
"Investor Representation Letter" means a letter from
initial investors of a Bond offering that includes but is not limited to a
certification that they reasonably meet the standards of a Sophisticated
Investor or Qualified Institutional Buyer, that they are purchasing Bonds for
their own account, that they have the sophistication to evaluate the merits and
risks of the investment and suffer a loss of the investment, that they have
been furnished all the information which they and their advisers requested on
the offering and have had an opportunity to ask questions relating to that
information, and other such matters.
"Issuer" means an entity empowered to issue Bonds.
"Job Creation" means new permanent full-time jobs created
by the Project Sponsor. The number of jobs created shall be calculated after
deducting any jobs within the State that are eliminated by the company. Job
Creation must be met within two (2) years following the completion of the
Project. The Job Creation requirement may be monitored by CIEDB utilizing
California Employment Development Department employment statistics.
"Job Wage" means the average hourly general manufacturing
wage for the Metropolitan Statistical Area in which a Project is located, based
on the Bureau of Labor Statistics Series Code from the California Employment
Development Department. If a Project is not located in an area for which the
Employment Development Department keeps hourly wage data or not located in a
defined Metropolitan Statistical Area, the closest comparable area in which
hourly wage is available may be used.
"LEED Certified" means Leadership in Energy &
Environmental Design certification by the U.S. Green Building Council.
"Local Issuer" means a local government entity that issues
Mortgage Revenue Bonds or Mortgage Credit Certificates for Single Family
Housing Programs or small-issue industrial development Bonds or a joint powers
authority that issues small-issue industrial development Bonds on behalf of a
local government entity.
"Market Study" means a comprehensive document prepared by a
third party which contains information related to the Project's market
area.
"Metropolitan Statistical Area" means the geographic entity
defined by the U.S. Office of Management and Budget (OMB).
"Mixed Income Project" means a Qualified Residential Rental
Project that is a New Construction project and either (1) is not utilizing the
Average Income test of Internal Revenue Code Section
42
(g)(1)(C) and has 50% or fewer of its total
units designated as Restricted Rental Units, or (2) is part of the California
Housing Finance Agency Mixed-Income Program. In a Competitive Application
Process, a Mixed Income Project may only apply for an allocation of tax-exempt
bonds if the ratio of tax-exempt bonds, not including recycled bonds, to
aggregate depreciable basis plus land basis is less than or equal to the ratio
of units that will be restricted pursuant to a CTCAC regulatory
agreement.
"Mortgage Credit Certificate" means a mortgage credit
certificate as defined by 26
U.S.C. section
25(c)(1).
"Mortgage Revenue Bond" means a bond defined by
26 U.S.C. section
143(a).
"Mortgage Revenue Bond Program" means a program defined by
26 U.S.C. section
143(a).
"Nationally Recognized Statistical Rating Organization"
means credit rating agencies that satisfy the requirements of 15 U.S.C. section
78(c)(62).
"Open Application Process" means the procedure under which
the Committee will evaluate an Application for an award of Allocation that is
not competitive. The Committee will not review an incomplete Application except
to determine whether the Application is incomplete and notify the Applicant of
the deficiency.
"Performance Deposit Certification" means the form titled
"Performance Deposit Certification Form for an Application for an Allocation of
Qualified Private Activity Bonds" (revised 1-18-12), which is hereby
incorporated by reference.
"Placement Agent or Underwriter Statement" means the
statement provided by the firm contracted to market the Bonds proposed in the
Application that includes a brief paragraph on the firm's history and
principals, a summary of the firm's non-binding initial underwriting review, an
overview of proposed issuance structure including anticipated debt service
coverage ratio, and a statement certifying that the proposed transaction has
been initially underwritten and meets the firm's standards for
participation.
"Project" means the subject property for which an
Application for Allocation has been submitted.
"Project Sponsor" means the entity, or CDLAC authorized
affiliate thereof, using the proceeds of a Bond issue to complete the Project
described in the Application.
"Project Wage" means the average hourly wage of the jobs
created by a Project.
"Public Transit Corridor" means an existing or planned
public mass transit guide way or bus way station, or multimodal transportation
terminal serving public mass transit operations within one-third mile of the
Project.
"Qualified Institutional Buyer (QIB)" means an entity
defined by the United States Securities and Exchange Commission in Rule 144A
under the Securities Act of 1933.
"Qualified Private Activity Bond" means a Bond that
satisfies the requirements of
26 U.S.C. sections
141 et seq.
"Qualified Recovery Zone Bond Issuer" means eligible
Issuers of Recovery Zone Bonds including states, political subdivisions as
defined for purposes of U.S. Treasury Regulations, Section
103, and entities empowered to
issue Bonds on behalf of any such entity under rules similar to those used to
determine whether a Bond issued on behalf of a state or political subdivision
constitutes an obligation of the state or political subdivision for purposes of
U.S. Treasury Regulations, Section
103 and subchapter A, 1.103-1(b),
or eligible Issuers in conduit financing issues as defined in U.S. Treasury
Regulations, subchapter A, 1.150-1(b). An eligible Issuer may issue Recovery
Zone Bonds based on a volume cap allocation received by the eligible Issuer
itself or by a conduit borrower or other ultimate beneficiary of the issue of
the Bonds.
"Qualified Residential Rental Project (QRRP)" means a
qualified residential rental project as defined by
26 U.S.C. section
142(d)(1).
"Qualified Residential Rental Project Pool" means the
reserve of the State Ceiling established by the Committee for Qualified
Residential Rental Projects.
"Qualifying Bond Default" means a Bond Default in which the
final disposition resulted in bondholders involuntarily not being paid in whole
or in part.
"Recovery Zone" means an area designated by the local
issuing entity defined pursuant to
26 U.S.C. section
1400U-1(b) as meeting one of
the following criteria:
* Significant poverty, unemployment, rate of home
foreclosures or general distress
* Economically distressed because of military base closure
or realignment
* An area which has been designation as an empowerment zone
or a renewal community
"Recovery Zone Bond (RZB)" means a Bond issued as a
Recovery Zone Economic Development Bonds or a Recovery Zone Facility
Bonds.
"Recovery Zone Economic Development Bonds (RZEDB)" means a
type of Build America Bond issued before January 1, 2011 in which the Issuer
shall receive a credit from the Treasury Department equal to 45% of the
interest payment.
"Recovery Zone Economic Development Bond (RZEDB)
Reallocation Pool" means the reserve of the amount Deemed Waived by the
Committee for reallocation of Recovery Zone Economic Development Bonds.
"Recovery Zone Facility Bonds (RZFB)" means a category of
Bonds created by the American Recovery and Reinvestment Act of 2009 (ARRA) that
will be treated as Exempt Facility Bond Project as defined per
26 U.S.C. section
142.
"Recovery Zone Facility Bonds (RZFB) Reallocation Pool"
means the reserve of the amount Deemed Waived by the Committee for reallocation
of Recovery Zone Facility Bonds.
"Regulatory Period and/or Compliance Period" means for
projects awarded allocation after December 31, 2016 a period of time enumerated
in the CDLAC resolution whereby Annual Applicant Public Benefits and On-going
Compliance Self Certification is required to be submitted. For QRRP projects
the period of time will be consistent with Section
5192, for IDBs the longer of
project completion or 2 years after the project completion if a job creation
election is made, and for all other programs when the project is completed or
allocation has been utilized.
"Related Party" means the more stringent of the
constructive ownership provisions of
26 U.S.C. section
267 or the following:
* The brothers, sisters, spouse, ancestors, and direct
descendants of a person;
* A person and corporation where that person owns more than
50% in value of the outstanding stock of that corporation;
* Two or more corporations, general partnership(s), limited
partnership(s) or limited liability corporations connected through debt or
equity ownership, in which stock is held by the same persons or entities
for:
* At least 50% of the total combined voting power of all
classes that can vote, or;
* At least 50% of the total value of shares of all classes
of stock of each of the corporations, or;
* At least 50% of the total value of shares of all classes
of stock of at least one of the other corporations, excluding, in computing
that voting power or value, stock owned directly by that other
corporation.
* There exists concurrent ownership by a parent or related
entity, regardless of the percentage of ownership, or a separate entity from
which income is derived;
* There exists concurrent ownership by a parent or related
entity, regardless of the percentage of ownership, or a separate entity where a
sale-leaseback transaction provides the parent or related entity with income
from the property leased or that creates an undue influence on the separate
entity as a result of the sale-leaseback transaction;
* There exists concurrent ownership by a parent or related
entity, regardless of the percentage of ownership, of a separate entity where
an interlocking directorate exists between the parent or related entity and the
separate entity.
* A grantor and fiduciary of any trust;
* A fiduciary of one trust and a fiduciary of another
trust, if the same person is a grantor of both trusts;
* A fiduciary of a trust and a beneficiary of that
trust;
* A fiduciary of a trust and a corporation where more than
50% in value of the outstanding stock is owned by or for the trust or by or for
a person who is a grantor of the trust;
* A person or organization and an organization that is
tax-exempt under 26 U.S.C.
section 501(c)(3) or (4) and
that is affiliated with or controlled by that person or the person's family
members, as provided in the first bullet of this section, or by that
organization;
* A corporation and a partnership or joint venture if the
same persons own more than:
* 50% in value of the outstanding stock of the corporation;
and o 50% of the capital interest, or the profits' interest, in the partnership
or joint venture;
* One S corporation or limited liability corporation and
another S corporation or limited liability corporation if the same persons own
more than 50% in value of the outstanding stock of each corporation;
* An S corporation or limited liability corporation and a C
corporation, if the same persons own more than 50% in value of the outstanding
stock of each corporation;
* A partnership and a person or organization owning more
than 50% of the capital interest, or the profits' interest, in that
partnership; or
* Two partnerships where the same person or organization
owns more than 50% of the capital interests or profits' interests.
"Report of Action Taken" means a report provided by and due
to the Committee not more than fifteen (15) business days following the use of
Allocation to issue Bonds or Mortgage Credit Certificates.
"Report of Action Taken for Bonds" means the specific
Report of Action Taken due to the Committee following the use of Allocation for
Qualified Private Activity Bonds (excluding RZBs) titled "Report of Action
Taken Regarding the Issuance of Private Activity Bonds."
"Report of Action Taken for MCCs" means the specific Report
of Action Taken due to the Committee following the use of Allocation to issue
Mortgage Credit Certificates Bonds titled "Report of Action Taken Regarding
Mortgage Credit Certificate Program."
"Report of Action Taken for MCCs (Carryforward)" means the
specific Report of Action Taken due to the Committee following the use and/or
Carryforward of Allocation to issue Mortgage Credit Certificates titled "Report
of Action Taken Regarding a Carryforward Election and a Mortgage Credit
Certificate Program."
"Report of Action Taken for RZBs" means the specific Report
of Action Taken due to the Committee following the use of Allocation for RZBs
titled "Report of Action Taken Regarding the Issuance of Recovery Zone
Bonds."
"Restricted Rental Units" means tenant occupied units
within a Qualified Residential Rental Project that are restricted to households
earning 60% or less of the applicable median family income pursuant to a Bond
Regulatory Agreement.
"Rural Project" means a Qualified Residential Rental
Project that is a New Construction Project located in a rural area as defined
by Health and Safety Code section
50199.21
but shall not include a Mixed Income Project.
"Rural Project Pool" means a reserve within the Qualified
Residential Rental Project Pool that may be established by the
Committee.
"RZEDB Application" means the Application titled
"Application for an Award of American Recovery and Reinvestment Act of 2009
Recovery Zone Economic Development Bonds."
"RZFB Application" means the Application titled
"Application for an Award of American Recovery and Reinvestment Act of 2009
Recovery Zone Facility Development Bonds."
"Single Family Housing Program" means a program satisfying
the requirements of 26
U.S.C. section 25 and
26 U.S.C. section
143.
"Single Family Housing Program Bonus Pool" means a reserve
within the Single Family Housing Program Pool that may be established by the
Committee.
"Single Family Housing Program Pool" means the reserve of
the State Ceiling established by the Committee for Single Family Housing
Programs.
"Single Family Housing State Issuer" means any state agency
that issues Mortgage Revenue Bonds or Mortgage Credit Certificates for Single
Family Housing Programs.
"Small-Issue Industrial Development Bond Project" means a
Project that meets the requirements for a qualified small-issue Bond as
described under 26 U.S.C.
section 144.
"Small-Issue Industrial Development Bond Project Pool"
means the reservation of the State Ceiling reserved for Small-Issue Industrial
Development Bond Projects.
"Sophisticated Investor (SI)", see Accredited Investor
definition.
"Standard Permanent Bonds" means Bonds issued for the
purposes of providing permanent Project financing which (i) meet CDLAC's Debt
Service Coverage Ratio requirement in Section
5193 or (ii) are not Cash Flow
Permanent Bonds.
"State Ceiling" means the amount of Qualified Private
Activity Bonds that can be issued in California for each calendar year
specified by 26 U.S.C.
section 146(d), and the
amount reserved to California pursuant to sections
1112 and
1401 of the American Recovery and
Reinvestment Act of 2009 as established by and announced by the Committee in
accordance with article 2 of this chapter.
"State Ceiling Pools" means the individual pools created by
the Committee and as defined in this chapter.
"Student Loan Program" means a program that meets the
requirements for a qualified student loan Bond under
26 U.S.C. section
144(b).
"Student Loan Program Pool" means the reserve of the State
Ceiling established by the Committee for Student Loan Programs.
"Supplemental Allocation Pool" means the reserve of the
State Ceiling established by the Committee for supplemental allocation on
Qualified Residential Rental Projects.
"Taxable Debt" means conventional financing from a major
financial institution or taxable Bonds issued by a municipality including but
not limited to Build America Bonds or Recovery Zone Bonds.
"TEFRA Resolution (Tax Equity and Fiscal Responsibility Act
of 1982)" means an approval by the applicable elected representative of the
governmental unit having jurisdiction over the proposed Project, as required by
26 U.S.C. section
147(f), that is documented
and includes a certification executed by the applicable elected representative
or their designee.
"Travelling Investor Representation Letter" means the
certification from initial investor(s) of a Bond offering that they have no
present intention of reoffering the Bonds in a subsequent public offering, but
may be allow to subsequently transfer the Bonds in a limited offering to
another permitted transferee provided the transferee agrees to the same
representations.
"U.S. Treasury Designated Recovery Zone Bond Allocation"
means Allocation received directly from the federal government pursuant to the
American Recovery and Reinvestment Act of 2009.
"Undesignated Reserve Pool" (Pool) means a reserve of the
State Ceiling established by the Committee for which there is no demand at the
time the Pool is established.
"Verification of Zoning and Local Approvals" means the
document by which the appropriate local government planning official having
jurisdiction over the Qualified Residential Rental Project certifies at least
the following: the Project's name, address, parcel number, housing type, the
Project's compliance with all applicable local land use and zoning ordinances,
a description of the Project's current zoning, maximum per unit density allowed
for the Project's site, and whether the Project has obtained all local and
state land use related approvals.
"Veterans Home Loan Program" means a single family housing
program administered by the California Department of Veterans Affairs,
satisfying the requirements of
26 U.S.C. section
143, and that is restricted to California
veterans of military service.
"Welfare-to-Work Plan" means a plan as described by
sections 10531, et seq. of the California Welfare and Institutions Code.
"WELL" means a Building Standard, which is a
performance-based system for measuring, certifying and monitoring features of
the built environment that impacts human health and wellbeing through air,
water, nourishment, light, fitness, comfort and mind. WELL is managed and
administered by the International WELL Building Institute.
