Policies and Tools

Policies

Extension Request Status Report

The Private Activity Bond Review Board adopted a new Extension Request Status Report policy, requiring all applicants requesting two or more extensions to complete this report for each request.

Applicants who are not able to close their bonds during  the initial 90-day period may request an extension from the Board.  Each extension request is valid for a period of 90 days or until the next PAB Board Meeting.  Extension approval is based on the project’s advancement.  Applicants are required to attend Board Meetings to answer any questions and update the Board on the progress of the development.

For two or more extension requests a comprehensive review of the project will be done prior to the Board Meeting.  Applicants will be required to complete the Extension Request Status Report prior to the Board Meeting.  Applicants are required to attend the Board Meeting to respond to the Status Report, provide information on any recent developments and answer any questions the Board may have.  The applicant may be asked to reapply after the third extension review if there is no substantial evidence of being able to close the bonds.  The Board reserves the right to approve or reject any extension based on the criteria set forth in Utah Code Section 63N-5-105.

Extension Requirements for Applicants Issued CarryForward Certificates of Allocation Policy

CarryForward Certificates of Allocation may be issued to projects with a City or County issuer, upon Board approval, in the December Board Meeting.  Applicants issued a CarryForward Certificate are required to follow the Extension Request requirements for each 90-day period their bonds are outstanding, which includes:

  • Attendance at each quarterly Private Activity Bond Review Board Meeting to: 1) update the Board on the progress of the development; and 2) address any questions.
  • Payment of the appropriate extension fee:

1st 90-Day Period – Free

2nd 90-Day Period – $2,000

3rd 90-Day Period – $4,000

Each Additional 90-Day Period – $4,000

(Note: Each previously granted 90-day extension must be counted when paying the appropriate extension fee.)

  • Completion of the Extension Request Progress Report if the bonds have not closed by the third 90-day period.

Payment of Extension Fees Policy

Applicants requesting an extension to a pre-approved volume cap allocation must pay the appropriate extension fee immediately after the board meeting in which the extension is approved.

Applicants’ account must be in good standing before subsequent extension requests will be reviewed by the Board; if not, the request will not be considered.

(Presented and Adopted at the Private Activity Bond Authority Board Meeting on April 11, 2007.)

Electronic Meeting Resolution and Authorization Requirements

In compliance with Utah Code listed below are the policies regarding the PAB Authority and conducting Electronic Meetings of the board.

ARTICLE I

Authority

The Private Activity Bond Authority Board (Board) is created by the authority of Utah Code Annotated §§63N-5-101 through 63N-5-109, as amended, and the purpose of this resolution is to further the objectives of the enabling legislation. https://le.utah.gov/xcode/Title63N/Chapter5/63N-5.html

(Presented and Adopted at the Private Activity Bond Authority Board Meeting on April 11, 2007.)

Relinquishment of Volume Cap Policy

Due to the length of time it is taking projects to close, the PAB Review Board established the following criteria that would require a developer to:  1) relinquish their current volume cap allocation; and 2) re-apply with the submission of a new application with updated information.  The PAB Review Board will consider these criteria for projects having several extension requests.

The criteria are:

  • Reduction of the total project’s affordable units is 10 percent or more.
  • Reduction of the total project’s units is 15 percent or more.
  • Change in project to a new site location.
  • Increased total costs/unit is 15 percent or more.
  • Increased total project costs are 20 percent or more.

(Presented and Adopted at the Private Activity Bond Authority Board Meeting on July 12, 2017.)

Private Activity Bond Authority Administrative Rule

Project Recognition of Financial Assistance Policy

In recognition of the Private Activity Bond Authority’s (PAB) support for projects approved for volume cap allocation, applicants are required to:

  • Acknowledge PAB’s financial contribution to their project in any media coverage, including, but not limited to, newspaper articles, interviews, press releases, groundbreaking ceremonies, etc.
  • Hang signage at the project site with the following requirements:
    • Minimum size of 24” H X 30” W.
    • Logo of Private Activity Bond Authority Program displayed.*
    • Language to the effect of, “Project Financing Assisted by the Private Activity Bond Authority Program” written above the logo.
    • Signage must be put up before construction begins. A separate sign is not necessary if information is included on a larger sign listing all financial partners.
    • E-mail a picture of signage after placement to the Private Activity Bond Authority Program Director.*

Signage requirements apply to the following types of projects:

  • Multi-Family Housing Developments
  • Manufacturing Facilities
  • Qualified Redevelopment Projects
  • Exempt Facilities
  • Qualified Energy Conservation Bond Projects

ENERGY STAR Policy  

Projects receiving Private Activity Bond Authority (PAB) volume cap must be ENERGY STAR qualified unless all cost effective measures have been implemented and a waiver is granted by the Department of Workforce Services. All multi-unit facilities must be rated by an independent certified Home Energy Rater.

PAB-funded units built and qualified as ENERGY STAR may use the ENERGY STAR Utility Allowance Baseline for proposed rents and calculation of project cash flow during the first year of occupancy following construction or rehabilitation. When units are ENERGY STAR qualified, the Differential Utility Allowances can be shifted to rent and cash flow. Since PAB uses a joint application with Utah Housing Corporation (UHC) for the allocation of 4 percent tax credits, applicants may need to use UHC’s Utility Allowance Baseline or work with the local housing authority to create an ENERGY STAR-based utility allowance.

(Presented and Adopted at the Private Activity Bond Authority Board Meeting on April 14, 2010.)

ADDITIONAL TOOLS

The following tools are provided to assist applicants using tax-exempt bonds. They are divided into individual categories as they pertain to the bonding process.

Team players in a bond issue:

Information Packets

Bonds Flow Chart

General Information about Bonds and Bond Issues

Related Articles to Federal Financing Options

Downloads