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Private Activity Bond Authority

Announcements

Upcoming Private Activity Bond Authority Board Meetings

The next Private Activity Bond Authority Board Meeting for funding consideration will be held on Wednesday, December 20, 2017, at 9:00 a.m., at the Governor’s Office of Economic Development, World Trade Center at City Creek, 60 East South Temple, 3rd Floor, Canyonlands Conference Room, Salt Lake City, Utah (Map).  A copy of the agenda will be posted approximately one week before the meeting.

Applications for PAB funding consideration are being accepted for review at the December 20, 2017, Board Meeting and must be submitted by 5:00 p.m., on Monday, October 30, 2017.

Qualified Energy Conservation Bond Application

The Qualified Energy Conservation Bonds (QECBs) Application is available for any Utah county, town or city interested in applying for the remaining amount of the State’s $4,306,920 portion from the total $28,389,000 volume cap received. The Private Activity Bond Authority Review Board is accepting the applications for review at the December 20, 2017, Board Meeting. The next submission deadline for applications is Monday, October 30, 2017, at 5:00 p.m.  Additional information is available on the QECB Program page.

Click on the following links for additional information about the PAB Program:

New Information

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.

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

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

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

Extension Request Progress Reports

The Private Activity Bond Review Board in the June 2017 Board Meeting made changes to the Developer’s Project Activity Progress Report for multi-family housing projects when seeking an extension request and created the same report for developers seeking extensions for manufacturing/exempt facility projects.  The new reports are listed here and on the PAB Applications and Fees web pagePAB Multi-Family Extension Request Status Report  PAB Manufacturing Extension Request Status Report

Scoring Criteria Changes

The Private Activity Bond Review Board in the April 2017 Board Meeting made one change to the Scoring Criteria for both multi-family housing and manufacturing/exempt facility projects.  The change is in the first paragraph and reads as follows:  “The Private Activity Bond (PAB) Staff and approved consultants will evaluate and score all PAB applications submitted.  In the event that demand for funding exceeds the supply of PAB volume cap, the applications will be numerically ranked for the purposes of allocation.”

Extension Requirements for Applicants Issued CarryForward Certificates

The Private Activity Bond Review Board adopted a new policy “Extension Requirements for Applicants Issued CarryForward Certificates of Allocation Policy” in the January 11, 2017 Board Meeting.  The full policy can be found on the PAB Applications and Fees web page.

 

Programs Administered by the Private Activity Bond Authority

Private Activity Bonds

The Private Activity Bond (PAB) Program is Utah’s tax-exempt bonding authority creating a lower cost, long-term source of capital under the Federal Tax Act of 1986.  The Federal Government allocates over $37 billion per year to states on a per capita basis, with Utah receiving $305,315,000 in 2017.  Each state establishes its usage priorities by statute.  For more information on the PAB Program click here.

Qualified Energy Conservation Bonds

Program provisions for QECB were provided in The Energy Improvement and Extension Act of 2008, part of the Emergency Economic Stabilization Act of 2008. The American Recovery and Reinvestment Act of 2009 amended this act and increased the volume cap for QECB issued after October 3, 2008, from $800 million to $3.2 billion. Volume cap was allocated to States in proportion to their population with Utah receiving $28,389,000.

Qualified Energy Conservation Bonds (QECB) are issued for any of the following energy conservation purposes:

  • Capital expenditures to reduce energy consumption in publicly owned buildings by 20%, implementing green community programs, rural development involving the production of electricity from renewable energy or any qualified facility.
  • Expenditures by research facilities and research grants to support research of non-fossil fuels, carbon dioxide sequestration, increasing efficiency of existing technology for producing non-fossil fuels, automobile battery technology and other technologies to reduce fossil fuel consumption in transportation or technology to reduce energy use in buildings.
  • Mass commuting facilities.
  • Demonstration projects that promote green building technology, conversion of agricultural waste for use in the production of fuel, advanced battery manufacturing technology, reduction in peak use of electricity technology, carbon dioxide capture and sequestration technology.
  • Public education campaigns to promote energy efficiency.

More information can be found on the QECB Program web page.

Recovery Zone Bonds

The Recovery Zone Bond (RZB) Program expired on December 31, 2010. Information about the program can still be found by clicking here. The Final Report on Volume Cap Allocation and Issuance for the State can be found hereRZB Volume Cap Issuance Final Report

Links

Contact PAB
Helpful Tools
PAB Agendas & Minutes
PAB Applications and Fees
PAB Approved Projects
PAB Board Members
PAB Meeting Schedule
PAB Policies
PAB Program
PAB Program Descriptions
Qualified Energy Conservation Bonds
Recovery Zone Bonds
Volume Cap – 2013
Volume Cap – Available Allocation

Downloads

2015 QECB Application
City Creek Parking Instructions