Programs

The following programs have been approved to use the State’s tax-exempt bonding authority through the Private Activity Bond Authority Program:

  • Manufacturing
  • Multi-Family Housing
  • Single Family Housing
  • Student Loans
  • Exempt Facilities
  • Qualified Redevelopment Projects

Small Issue Account

Volume Cap Amount: $78,166,192
Multi-family: $439,083,096
Manufacturing: $479,083,096 
Percent of Total Volume Cap: 24 percent
Users: Manufacturing Facilities (credit-worthy companies starting or expanding their business by building/buying new structure facilities, equipment, and/or land), Multi-Family Affordable Housing (apartments) and Qualified Redevelopment Projects. The Small Issue Account allocates volume cap to meet two critical state needs: build essential multi-family housing and create high paying jobs that will support a family. Through the use of Multi-Family Housing Bonds and Manufacturing Facility Bonds, i.e., Industrial Development Bonds (IDBs) or Industrial Revenue Bonds (IRBs), long-term capital is made available at 100 to 300 basis points (1 to 3 percentage points) less than market rates for periods of 20 to 40 years.

Single Family Account

Volume Cap Amount: $136,790,835
Percent of Total Volume Cap: 42 percent
Users: Utah Housing Corporation for first-time single family homeowners.

Student Loan Account

Volume Cap Amount: $107,478,513
Percent of Total Volume Cap: 33 percent
Users: Utah State Board of Regents for university and college students.

The Single Family Mortgage and Student Loan Programs lower thousands of Utahns’ long-term costs annually for their first home mortgage or college student loan.

Exempt Facility Account

Volume Cap Amount: $3,256,925
Percent of Total Volume Cap: 1 percent
Users: Water Facilities, Sewage, Pollution and Solid Waste Control Projects

Program Information

Manufacturing Facilities

Manufacturing facilities interested in expanding their business can apply for tax-exempt bonding authority through the Manufacturing Facility Program (also known as Industrial Development or Revenue Bonds IDBs/IRBs). The size of the expansion, number of new jobs and higher than average wages are important factors in weighing approval of the application.

The definition for a “Manufacturing Facility” according to IRS Tax Code Section 144(a)(12)(C) is “any facility, which, is used in the manufacture or production of tangible personal property, including the processing resulting in a change in the condition of such property.”

Facilities that are: (a) “functionally related and subordinate” to a manufacturing facility; and (b) located at the same site are treated as part of the manufacturing facility, and are not subject to the 25 percent limit on financing for “ancillary facilities” under the regular rules.

There is a cap of $10,000,000, as mandated by the Federal Government for each allocation request. Bond proceeds cannot be used for inventory, operating capital or to refinance debt. There are other important dollar limitations on the amount of bonds issued. Please view Dollar Limits on Bond Amounts Issued for this information.

The project must comply with requirements from the Internal Revenue Code as well as other evaluation criteria such as:

  • Capital expenditure limitation of $20,000,000, if the par amount of proposed bonds together with prior outstanding issues (outstanding principal balance) is in the same jurisdiction.
  • The sum of all other industrial development revenue bonds used by the developer cannot exceed $40,000,000, nationwide.
  • Public benefit to the community and state, including:
    New employment.
    Wages and distribution of wages.
    Programs promoting employee education and skill, etc.
  • Community support and sponsorship.
  • Efficiency as measured by employee/bond ratio.
  • Demonstrated need for tax-exempt financing.
  • Innovative financing (i.e., use of other sources of funding).
  • Construction and equipment costs.
  • Financial capacity of applicant.
  • Location of facility, including:
    Rural areas with high unemployment rates.
    Disadvantaged economic areas, etc.

For more detailed information regarding manufacturing bonds, please view the following materials:

Manufacturing tax-exempt bond allocations face a one-year calendar period to close; January 1 to the third Saturday in December of the same year. It is essential to have the necessary financing steps completed at the time of submission. The following steps take place after a project receives funding approval from the Board:

  • Invoice for confirmation fees is sent to applicant.
  • Receipt of confirmation fee payment generates a Certificate of Allocation.
  • Certificate of Allocation is mailed to applicant’s bond counsel.
  • Financial arrangements finalized by applicant before issuance of bonds.
  • Bond closing can be scheduled any time after receipt of the certificate by bond attorney.
  • Proceeds received by applicant at bond closing.
  • Refer to Manufacturing Bonds Flow Chart for complete process.

Multi-Family Housing

Applicants of this program are usually developers interested in building or rehabilitating multi-family apartments, which are totally, or have a large percentage of, affordable units compared to market rate units.

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.

The Multi-Family Application is the “Consolidated Application Form” (Application) used by Utah Housing Corporation, the Olene Walker Housing Loan Fund (OWHLF) and the Private Activity Bond Authority (PAB).  The Application is used for the allocation of Federal and State Housing Credits, PAB tax-exempt volume cap and OWHLF loans.  Applicants are required to detail all construction costs and expenses to avoid delays in the application process or the possibility of not being reviewed due to an incomplete application.  Be sure to complete the “Multi-Family Bond” section of the application.  Visit Utah Housing Corporation’s website for application information or contact UHC directly at (801) 902-8200.  Any questions regarding the bond portion of the application, please contact Jess Peterson at 385-235-2975 (work) or at jesspeterson@utah.gov.

The separate application fee and copies of the application for Utah Housing Corporation should be sent directly to their office.  Please contact Claudia O’Grady for their application deadline.  (801) 902-8200

The following steps take place after a project receives funding approval from the Board:

  • Invoice for confirmation fees is sent to applicant.
  • Receipt of confirmation fee payment generates a Certificate of Allocation.
  • Certificate of Allocation is mailed to applicant’s bond counsel.
  • Financial arrangements finalized by applicant before issuance of bonds.
  • Bond closing can be scheduled any time after receipt of the certificate by bond attorney.
  • Proceeds received by applicant at bond closing.
  • Refer to Housing Bonds Flow Chart for complete process.

Single Family Housing

The only applicant for the Single Family Housing Program is the Utah Housing Corporation (UHC), which also administers the Program. Please see their website for a description of their various programs or call UHC or (801) 902-8200.

Student Loans

The only applicant for the Student Loan Program is the Utah State Board of Regent’s Utah Higher Education Assistance Authority (UHEAA), which also administers the Program. Please see their website for a description of their programs or call (801) 321-7200.

Exempt Facilities

Applicants for the Exempt Facilities Program are for the following types of facilities who are interested in expanding their business:

  • Solid Waste Disposal Facility.
  • Sewage Facility.
  • Qualified Hazardous Waste Facility.
  • Environmental Enhancements of Hydroelectric Generating Facility.
  • Local District Heating or Cooling Facilities.
  • Qualified Green Building and Sustainable Design Projects.
  • Facilities for the Furnishing of Water.
  • The size of the expansion, the number of new jobs, and high wages are important factors in weighing the approval of the application.

The Board has a suggested cap of $10,000,000 for each allocation request; however, if the project can show good reason for a waiver of this cap, the Board can allocate a higher amount. One requirement for this type of project is at least 20 percent of the financing must be taxable.

Most of the information relevant to Exempt Facilities is the same as requested for a Manufacturing Facility so the same application is used.

The following steps take place after a project receives funding approval from the Board:

  • Invoice for confirmation fees is sent to applicant.
  • Receipt of confirmation fee payment generates a Certificate of Allocation.
  • Certificate of Allocation is mailed to applicant’s bond counsel.
  • Financial arrangements finalized by applicant before issuance of bonds.
  • Bond closing can be scheduled any time after receipt of the certificate by bond attorney.
  • Proceeds received by applicant at bond closing.

Refer to Manufacturing Bonds Flow Chart for complete process.