Utah Admin. Code R990-200-5 - Criteria for Allocating Volume Cap
(1) Private activity bond volume cap
allocations are made each calendar year based upon available volume cap.
(a) The decision whether to allocate volume
cap to an applicant shall be determined by the Board of Review, in its sole
discretion.
(b) Allocations are not
made on a first-come-first-served basis.
(c) Each complete application submitted
before the deadline will be evaluated and scored in comparison with other
applications for the same type of project use. The Board of Review has adopted
Policies governing program administration and application scoring. The Policies
may be amended from time to time and may be found on the Department of
Workforce Services Housing and Community Development website. Applicants and
recipients must be aware of and comply with the Policies.
(d) The private activity bond program staff
and consultants under contract with the Board of Review will evaluate and score
each application. In the event demand for funding exceeds the available volume
cap, applications will be numerically ranked for allocation.
(e) When considering multiple applications at
a meeting, the Board of Review may choose to award each applicant an equal
share, pro rata share, priority for multi-family housing or other
classification, or other division of available volume cap.
(2) When deciding to allocate volume cap to
an applicant, the Board of Review shall consider the criteria outlined in
Section 35A-8-2105 and the following
additional criteria:
(a) timely submission of
completed application;
(b) timely
payment of applicable fees;
(c)
applicant's experience in successfully completing projects utilizing private
activity bonds;
(d) project
financing, including executed letters of intent for debt and equity
funding;
(e) project readiness,
including required public entity approvals, site ownership, and architect and
construction contracts;
(f) timely
response to any questions raised by the Board of Review and private activity
bond program staff;
(g) status of
project's financing at time of application;
(h) appointment of bond counsel;
(i) letter from bond counsel opining the
project qualifies for private activity bonds;
(j) appointment of investment banker or, if
private placement, buyer of the bonds;
(k) detailed commitment letters from
financial entities involved;
(l)
ability to cause bonds to be issued within 12 months of allocation;
(m) past history of forfeited allocation
commitments;
(n) length of
tax-exempt bond amortization; and
(o) other factors considered appropriate by
the Board of Review.
(3)
Multi-family housing applicants must meet the criteria of the Low-Income
Housing Tax Credit program administered by the Utah Housing Corporation. In
addition to the criteria in Subsection
R990-200-5(2),
the Board of Review shall consider the following criteria when deciding to
allocate volume cap to multi-family housing applicants:
(a) bond amount per unit;
(b) bond amount per affordable
unit;
(c) the percentage, in
relation to the group of applications currently being evaluated, of the private
activity bond allocation being requested;
(d) percentage of public financing, including
the value of grants, loans, fee waivers, and concessions, but excluding housing
tax credits;
(e) total cost per unit
and per unit square footage;
(f)
percentage of developer fee contributed to project;
(g) percentage of affordable units;
(h) percentage of special needs
units;
(i) cash flow per
unit;
(j) percentage of taxable
bonds;
(k) location, with
preference for projects located in:
(i)
underserved areas;
(ii) communities
without the same type of projects; and
(iii) difficult to develop areas as defined
by HUD;
(l) project
characteristics, including:
(i) day
care;
(ii) education
center;
(iii) mixed income
projects, with both affordable and market rate units; and
(iv) size of proposed
project;
(m) mitigation
of environmental issues, including installing radon gas extraction fans or
removing the source of radon; and
(n) acquisition, rehabilitation, and
remediation of buildings with Utah or federal historic designation, including
removal of hazards and including appraisals and a relocation plan for current
residents.
(4) In
addition to the criteria in Subsection
R990-200-5(2),
the Board of Review shall consider the following criteria when deciding to
allocate volume cap to manufacturing facility, redevelopment and exempt
facilities applicants:
(a) new
full-time-equivalent job creation, including a list of new positions and wages,
and excluding construction and other temporary jobs;
(b) retention of jobs;
(c) training and education of
employees;
(d) bond amount to
permanent full-time-equivalent jobs ratio;
(e) permanent full-time-equivalent jobs
created or retained that provide above average wages when compared to other
applicants' average wages and the community average wage;
(f) demonstrated need for tax-exempt
financing, including:
(i) projected cash flow
for the first three years of operation, including supporting documentation,
and
(ii) explanation for selecting
variable or fixed rates;
(g) community support, including:
(i) financial support;
(ii) zoning approval;
(iii) tax increment financing; and
(iv) deferral of fees;
(h) competitive costs for construction and
equipment related expenses; and
(i)
ready-to-go status, including:
(i)
manufacturing facility zoned for use;
(ii) proximity of infrastructure to
site;
(iii) need for special
infrastructure;
(iv) environmental
study, if required by lender;
(v)
current title report and site plan of project; and
(vi) building
description.
(5) Before considering an application, a
Board of Review member shall disclose the substance of any communication the
member has had outside of a public meeting with an applicant or other
interested party regarding the project.
(6) The allocation certificate issued for
multi-family housing volume cap shall restrict the occupancy of market rate
rental units to families whose incomes do not exceed 150% of AMI, adjusted for
family size, for at least 51 years from the date on which at least 50% of the
residential units in the project are first occupied.
(a) Recipients and owners shall comply with
any terms of the Certificate of Allocation, including any additional conditions
approved by the Board of Review.
(b) Recipients and owners shall submit
documentation to private activity bond program staff within 15 days after the
issuance of bonds, and at other times upon request, to verify compliance with
the terms of the Certificate of Allocation.
(7) Subject to Subsection
R990-200-5(7)(e),
if a recipient undergoes any change in ownership or management after an
allocation is awarded to it, the Board of Review may, in its discretion,
require that the allocation be relinquished. Such change includes the addition
or removal of one or more directors or managing partners. For purposes of
Subsection R990-200-5(7),
"removal" or "removed" shall apply to any director, partner, or other official
whose association with the recipient ends voluntarily or involuntarily, by
resignation or discharge.
(a) Recipients shall
be required to notify the Board of Review, in writing and at least 30 business
days in advance, of any changes or anticipated changes in the recipient's
ownership or management. Such notice shall include, at a minimum, the effective
date of the change or anticipated change and the full names and current
business addresses of each additional or removed director, managing partner, or
other official.
(b) In determining
whether to require relinquishment of the previously awarded allocation, the
Board of Review shall evaluate the recipient's new ownership or management
composition based on the qualifications and criteria detailed in Subsections
R990-200-5(1)(a) through
(e) as well as any additional factors it
deems relevant.
(c) The Board of
Review will make every effort to hold a meeting before the effective date of
the change in ownership. At said meeting, the Board of Review shall decide, in
its sole discretion, whether to require relinquishment of the recipient's
allocation. The previously awarded allocation shall remain effective until the
effective date of the change in ownership or until the first Board of Review
meeting following the recipient's advance written notice to the Board of
Review, whichever is sooner. If the effective date of the change in ownership
occurs before the Board of Review can hold a meeting, the recipient's
allocation will be paused from the effective date until the Board of Review has
held a meeting and decided whether to require relinquishment.
(i) If the Board of Review votes to require
relinquishment, the relinquishment shall become effective on a date specified
by the Board of Review on the record at the meeting at which it
votes.
(ii) If the Board of Review
votes not to require relinquishment, the allocation shall remain in effect.
Within ten business days of the Board of Review's vote, each new owner or
manager shall provide to the chair a signed acknowledgement that the recipient
is bound by all terms and conditions in the Certificate of Allocation. If any
new owner or manager fails to submit such an acknowledgement as required, the
Board of Review reserves the right to vote at the next Board of Review meeting
to require relinquishment of the allocation.
(d) If a recipient fails to make the Board of
Review aware of a change or anticipated change in ownership in keeping with
Subsection R990-200-205(7)(a), the Board of Review reserves the right, in its
sole discretion, to take either or both of the following actions:
(i) revoke the recipient's allocation at the
first Board of Review meeting following the date on which the Board of Review
became aware of the change or anticipated change in ownership; or
(ii) prohibit the recipient from applying for
any additional volume cap allocations for one year following the date on which
the Board of Review became aware of the change or anticipated change in
ownership.
(e) Subsection
R990-200-5(7)
shall not apply when the recipient is one of the following:
(i) the state or any of the state's agencies,
institutions, or divisions; or
(iii) any county, city, or town in the state
or any of a county, city, or town's agencies, institutions, or
divisions.
Notes
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