Skip to Content

Roxanne C. Graham
Program Director
801-538-8699

Contact Roxanne »
  • A
  • A
  • A


PAB Policies

APPLICATION SCORING CRITERIA

The Private Activity Bond Review Board made changes to the Multi-Family and Manufacturing/Exempt Facility Application Scoring Criteria Policies at the October 12, 2016, Private Activity Bond Authority Board Meeting.  The policies go into effect for all applications submitted for funding in 2017.

Multi-Family Applications

The Private Activity Bond Authority (PAB) Staff and approved consultants will evaluate all Private Activity Bond (PAB) applications submitted. In the event that demand for funding exceeds the supply of PAB volume cap, the applications will be scored and numerically ranked for the purpose of allocation.  All applications must meet the criteria of the Low-Income Housing Tax Credit (LIHTC) Program administered by Utah Housing Corporation and address any questions and/or concerns raised by PAB Staff.

PAB reserves the right of administrative prerogative in the allocation of private activity bonds.

The criteria used to score applications is outlined in UCA 63N-5-105 and the Private Activity Bond Authority Program Administrative Rule R357-8-4.  Points will be awarded in the following areas:

  1. Efficiency – Category weighting – X30

a. Tax-Exempt (TE) Bonds per Affordable Unit. Projects will be scored by the amount of TE bonds/affordable unit.  The lower the amount of TE bonds per affordable unit, the higher the score.  Development costs must be reasonable as determined by staff.

            Points will be awarded as follows:

Placement Points Awarded
Lowest Ratio 20
2nd Lowest Ratio 15
3rd Lowest Ratio 10
4th Lowest Ratio 5

b.  Reasonable Costs. Applicants providing verified reasonable costs will receive 15 points.  Verified costs include bids from a general contractor or estimated costs provided by a commercial construction estimating service.  A signed letter must be submitted from one of those parties signifying that such verified costs are in character with the proposed project.  Staff must concur with the reasonableness of such bids or estimated costs.

  1. Underserved Locations – Category weighting – X1

Projects located in any county of the state other than Salt Lake, will receive 20 points.

  1. Readiness – Category weighting – X20

In addition to the threshold requirements (see LIHTC application), projects will receive points for each item completed.

Building Readiness:

a.  Final density approved. (5 points)
b.  All public body approvals. (15 points)
c.  Building permit can be issued. (20 points)

Financial Readiness:

a.  Signed Letter(s) of Intent from lender(s) – must be the “long form,” showing a level of underwriting and present specific conditions relating to the commitment of the project.  (20 points)
b.  Signed Letter(s) of Intent from investor(s) – must show a level of underwriting and present specific conditions of underwriting, e.g., schedule of investor payments, pay rate for credits, etc. (20 points)
c.  Letters accepted and signed by the developer. (20 points)

  1. Experience – Category weighting – X10

a.  Applicants* that have previously developed a multi-family project of 50 or more units in Utah will receive 10 points.
b.  Applicants* that have previously developed a multi-family project using Private Activity Bonds and/or 9% LIHTC will receive 20 points.
c.  Applicants* that have previously developed two or more Utah multi-family projects using Utah Private Activity Bonds will receive 10 points for every project developed, up to a maximum of two projects.

(* Staff will determine the experience of the individual or ownership that is applying as the “applicant.”)

  1. Mixed-Income Project – Category weighting – X20

A mixed-income project uses three or more different rent schedules, including market-rate units.  A mixed-income project will receive 10 points if:

a.  The following three rent schedules are used: 1) market-rate; 2) 60% AMI; and 3) 40% AMI; AND
b.  Each rent tier must have at least 10% of the total number of units in the project, except the 40% AMI tier, which can have 7% of the project’s units.

  1. Taxable Bonds and Other Debt Financing – Category weighting – X20

Currently, there is no requirement to use taxable bonds.

a.  A project with any debt financing (other than Private Activity Bonds) that exceeds 10% of the total debt will be awarded 10 points. (Excludes deferred developer fee structured as debt.)
b.  For every 5% increase above the 10% threshold, the project will receive an additional 10 points.

  1. Community Involvement – Category weighting – X10

Projects that include grants, loans or financial concessions applied for from a public entity or have formally applied for grants, loans or financial concessions will receive points.  This community involvement does not include acquisition of property from a public entity.  The total amount of each financing source must equal at least ½ of 1% of the total project cost.  For every source of financing, up to a maximum of five, the applicant receives 15 points.

Recognizing that some communities cannot provide direct financial support to an affordable housing project, if the community makes a concession, which is out of the ordinary and benefits the project, the applicant can receive 10 points.

  1. Difficult to Develop Areas – Category weighting – X5

a.  Projects developed on a site that has documented environmental issues will receive 40 points.
b.  Applicants working to correct the environmental issues with the site will receive 15 points, if all the following requirements are met:  1) define the environmental issues to be addressed; and 2) submit a firm written commitment to mitigate issues; and 3) submit a process schedule to correct all environmental issues along with a financial analysis/cost estimate.
c.  Projects developed in a Qualified Census Tract Area (30% Bonus Area) will receive 55 points.

  1. Acquisition/Rehabilitation/Historic Projects – Category weighting – X1

There is no separate pool of tax-exempt bonds (“Bond Cap”) for Acquisition/Rehabilitation (A/R) projects; however, the preservation and reuse of buildings when economically feasible and when renovations can meet current codes is a worthy objective.

a.  Projects that include buildings with historic designation by appropriate
state and federal agencies will receive 10 points.
b.  Projects that use historic tax credits will receive 10 points.
c.  Projects that include buildings with lead-based paint will receive 10 points.
d.  Funding obtained from a government agency for remediation of lead-based paint or asbestos will receive 5 points.
e.  Projects that address issues with lead-based paint and/or asbestos with a capital assessment or separate report will receive 10 points (see requirement below).

To receive A/R points, the following requirements must be met:

a.  If 30% of residents will be displaced as a result of higher rents, a relocation plan and a current rent roll must be included in the application.  If there are no current residents, this requirement is not applicable.
b.  A current appraisal (no more than 6 months old) must be submitted with the application.  A letter updating the appraisal will be acceptable after 6 months.  A new appraisal will be required after 12 months.
d.  A/R projects must address the issues of lead-based paint and asbestos with a capital assessment or separate report.

  1. Project Costs Efficiency – Category Weighting X15

The following types of costs will be judged on both the residential unit cost and the square footage cost per application:

a.  Site and Direct Costs (Site and Direct Costs less permit and impact fees.)  Note:  For Acquisition/Rehabilitation projects the purchase price of the existing structure(s) will be included as part of the Site Costs.
b.  Total Development Costs (Total Development Costs less permit fees and land.)

Points will be awarded as follows:

Placement – Points S/D Costs/Unit S/D Costs/SF Total DC/Unit Total DC/SF
Lowest Costs – 20
2nd Lowest – 15
3rd Lowest – 10
4th Lowest – 5

2017 PAB Multi-Family Application Scoring Criteria2017 PAB Multi-Family Application Scoring Criteria Matrix

(Note:  The scoring matrix is for your information only.  Staff will use the matrix to score the applications.  Applicants are not required to complete this as part of their application.)

 ________________________________

Manufacturing and Exempt Facility Projects

The Private Activity Bond (PAB) Authority Staff and approved consultants will evaluate all manufacturing and exempt facility applications submitted for Private Activity Bonds. In the event that the demand for PAB exceeds the supply of volume cap, the applications will be scored or numerically ranked for the purpose of allocation.

  1. Employment
    The primary goal of allocating Private Activity Bonds for manufacturing or exempt facility projects is to generate permanent employment. For example, a project requesting $5 million that generates 100 new jobs has a bond per job ratio of $50,000 ($5 million/100 jobs). A project requesting $5 million that generates 50 new jobs has a bond per job ratio of $100,000. The project with the lowest bond per new job ratio will receive 15 points.
    The following requirements must also be met:
    a. The number used for the number of new jobs created will be for the jobs generated by the third year of operation.
    b. Temporary jobs, such as construction, are not considered.
    c. Companies currently in operation that have existing employment, will only have the net job gain associated with the bond request considered.
    d. Only Full Time Equivalent (FTE) jobs are considered.
  2. Wages
    The project with the highest average wage will receive 15 points. (Example: Project A’s average wage is $12/hr. Project B’s average wage is $20/hour.)
  3. Community Support
    Projects with some type of financial support, such as grants, loans, forgiveness of fees or property tax, by a community will receive 10 points.
  4. Rural Project
    Projects located in any county of the State other than Salt Lake, Weber, Davis and Utah County will receive 10 points.
  5. Target Area
    a. Projects developed in a census tract, city, town or county where the area median income (AMI) is 60% of the State’s AMI, will receive 10 points.
    b. Projects developed on Native American property will receive 10 points.   

2017 Manufacturing/Exempt Facility Application Scoring Criteria2017 Manufacturing/Exempt Facility Application Scoring Criteria Matrix

(Note:  The scoring matrix is for your information only.  Staff will use the matrix to score the applications.  Applicants are not required to complete this as part of their application.)

(Presented and Adopted at the Private Activity Bond Authority Board Meeting on October 12, 2016.)

_________________________________

New Extension Request Progress Report Requirement

The Private Activity Bond Review Board adopted a new Extension Request Progress Report policy, requiring all applicants requesting three 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 advancement.  Applicants are required to attend Board Meetings to answer any questions and update the Board on the progress of the development.

For three 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 Progress Report prior to the Board Meeting.  Applicants are required to attend the Board Meeting to respond to the Progress 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 December 9, 2015.)

___________________________________

Private Activity Bond Board Appeal Rule

(1) Introduction and Authority:

(a) This rule sets forth the administrative hearing procedures for the Board.

(b) This rule is authorized by Utah Code § 63N-5-109

(2) Definitions:

(a) “Action” means an action by the Fund that affects the legal rights of a person or group of persons, but not including rules made under the Utah Administrative Rulemaking Act, Title 63G, Chapter 3.

(b) “Administrative Law Judge” or ALJ means the person appointed to conduct an adjudicatory proceeding or the presiding officer.

(c) “Ex Parte Communication” means direct or indirect communication in connection with an issue of fact or law between the ALJ and one party only.

(d) “Order” means a ruling by an ALJ that determines the legal rights, duties, privileges, immunities, or other legal interests of one or more specific persons.

(e) “Petitioner” means any group or individual who is adversely affected by any action or inaction of the Board.

(f) “Board” means the Private Activity Bond Review Board established under Utah Code § 63N-5-102.

(3) Computation of time:

Unless otherwise provided in a specific section of these rules, time shall be computed in accordance with the Utah Rules of Civil Procedure.

(4) Commencement of adjudicative proceedings:

(a) The Board may commence adjudicative proceedings by issuing a notice of agency action in accordance with Utah Code § 63G-4-201.

(b) An aggrieved person may file a written request for agency action pursuant to Utah Code § 63G-4-201, and in accordance with this rule.

(c) Hearings must be requested within 30 calendar days from the date that the Board sends written notice of its action.

(d) Failure to submit a timely request for a hearing constitutes a waiver of a respondent’s due process rights. The request must explain why the party is seeking agency relief, and the party must submit the request on the “Request for Hearing/Agency Action” form. The party must then mail or fax the form to the address or fax number contained on the notice of agency action.

(e) The Board considers a hearing request that a recipient sends via mail to be filed on the date of the postmark. If the postmark date is illegible, erroneous, or omitted, the Board considers the request to be filed on the date that the Board receives it, unless the sender can demonstrate through convincing evidence that it was mailed before the date of receipt.

(5) Designation of Proceedings Informal or Formal:

(a) Informal proceedings are authorized by the Board. Any party may move the ALJ to convert a formal adjudicative proceeding to an informal adjudicative proceeding, or an informal adjudicative proceeding to a formal adjudicative proceeding.

(b) The ALJ may convert the proceeding in accordance with Utah Code 63G-4-202.

(c) All hearings will be conducted in accordance with the Utah Administrative Procedure Act, Utah Code §§ 63G-4-202, 203, 209, 302, 401, 402, 405, 501, 502, 503, and 601.

(6) Service:

(a) The individual or party that files a document with the Board shall also serve the document upon all other named parties to the proceeding and file a proof of service with the Office that consists of a certificate, affidavit or acknowledgment of service.

(b) If the Board must provide notice of a hearing, the notice becomes effective on the date notification is sent.

(7) Availability of Hearing:

(a) All requests for Hearings/Agency Action shall be set for an initial hearing in accordance with subsection 11.

(b) The ALJ will conduct an evidentiary hearing in connection with the agency action if the aggrieved person requests a hearing and there is a disputed issue of material fact. If there is no disputed issue of fact, the ALJ may deny a request for an evidentiary hearing and issue a recommended decision without a hearing. There is no disputed issue of fact if the aggrieved person submits facts that do not conflict with the facts that the agency relies upon in taking action or seeking relief.

(c) The Board may deny or dismiss a request for a hearing if the aggrieved person:

(i) withdraws the request in writing;

(ii) verbally withdraws the hearing request at a prehearing conference;

(iii) fails to appear or participate in a scheduled proceeding without good cause;

(iv) prolongs the hearing process without good cause;

(v) cannot be located or agency mail is returned without a forwarding address; or

(vi) does not respond to any correspondence from the ALJ.

(d) If the aggrieved person objects to the hearing denial, the person may raise that objection as grounds for relief in a request for reconsideration with the Agency board in accordance with Utah Code §63G-4-302 or seek judicial review in accordance with Utah Code §§ 63G-4-401 to 405.

(8) Administrative Law Judge:

(a) The Board shall appoint an impartial ALJ to conduct any hearing provided under these rules. Previous involvement in the initial determination of the action precludes an ALJ from appointment. ALJ’s shall comply with Utah Code § 67-19E-101 et seq in fulfilling their duties.

(b) The ALJ shall maintain order and may recess the hearing to regain order if a person engages in disrespectful, disorderly or disruptive conduct. The ALJ may remove any person, including a participant, from the hearing to maintain order. If a person shows persistent disregard for order and procedure, the ALJ may:

(i) restrict the person’s participation in the hearing;

(ii) strike pleadings or evidence; or

(iii) issue an order of default.

(9) Modifying Requirements of Rules:

(a) Except as provided in this paragraph, the requirements of these rules may be modified by order of the ALJ for good cause.

(b) The requirements for timely filing a Request for Hearing under section (4) may not be modified.

(10) Ex Parte Communications:

(a) Ex parte communications are prohibited.

(b) The ALJ may not listen to or accept any ex parte communication. If a party attempts ex parte communication, the ALJ shall inform the offeror that any communication that the ALJ receives off the record will become part of the record and furnished to all parties.

(c) Ex parte communications do not apply to communications on the status of the hearing and uncontested procedural matters.

(11) The Informal Adjudicative Proceedings:

(a) Unless otherwise provided in this section, informal adjudicative proceedings shall be conducted in accordance with Utah Code § 63G-4-202 and 203.

(b) As set forth in subsection (7) all request for hearings/agency action shall be set for initial hearing within 30 days, only after at least 10-day notice of all parties.

(c) The Board shall notify the Petitioner and Board representative of the date, time and place of the hearing at least ten days in advance of the hearing. Continuances of scheduled hearings are not favored, but may be granted by the president officer for good cause shown. Failure by any party to appear at the hearing after notice has been given shall be grounds for default and shall waive both the right to contest the allegations and the right to the hearing.

(d) The Petitioner named in the notice of agency action and the Board shall be permitted to testify, present evidence, and comment on the issues. Formal rules of evidence shall not apply.

(e) Testimony may be taken under oath at the ALJ’s discretion.

(f) All hearings are open to all parties.

(g) Discovery is prohibited; informal disclosures will be ruled on at the pre-hearing conference.

(h) Subpoenas and orders to secure the attendance of witnesses or the production of evidence shall be issued by the ALJ when requested by a respondent or the Board, or may be issued by the ALJ on his/her own motion. Subpoenas shall comport with Utah Rule of Civil Procedure 45.

(i) A respondent shall have access to relevant information contained in the Board’s files and to material gathered in the investigation of respondent to the extent permitted by law.

(j) The ALJ may cause an official record of the hearing to be made, at the Board’s expense.

(k) Disposition of the ALJ’s Order:

(i) Within a reasonable time, not to exceed 60 days after the close of the informal proceeding, the ALJ shall issue a signed recommended decision in writing, to the Executive Director, that includes a findings of fact and conclusions of law, and time limits for appeals rights, and administrative or judicial review in accordance with Utah Code § 63G-4-203(i) .

(12) Formal Adjudicative Proceedings:

(a) Unless otherwise provided in this section, formal adjudicative proceedings shall be conducted in accordance with Utah Code §§63G-4-201, 202, 203 to 208.

(b) As set forth in subsection (7) all request for hearings/agency action shall be set for initial hearing within 30 days after receipt of the responsive pleading and only after at least 10-day notice of all parties.

(c) The Board shall notify the Petitioner and Board representative of the date, time and place of the hearing at least ten days in advance of the hearing. Continuances of scheduled hearings are not favored, but may be granted by the president officer for good cause shown. Failure by any party to appear at the hearing after notice has been given shall be grounds for default and shall waive both the right to contest the allegations and the right to the hearing.

(d) All testimony presented at the hearing, if offered as evidence to be considered in reaching a decision on the merits, shall be given under oath.

(e) The hearing shall be recorded at the agency’s expense.

(f) A responsive pleading containing the requisite elements in Utah Code §63G-4-204, and filed with the Board with 30 days of the receipt of the notice of agency action or request for agency action.

(g) Discovery shall be governed by the Utah Rules of Civil Procedure. All parties are restricted to the discovery methods and limitations, and timing of a Tier 2 case, under Utah Rule of Civil Procedure 26(c).

(h) The ALJ may limit or expand the scope of discovery in the interest of justice, administrative efficiency or reasonably necessary to adjudicate the matters at issue in the proceeding.

(i) The Petitioner named in the notice of agency action, the Board, and any aggrieved party shall be permitted to testify, present evidence, and comment on the issues. Formal rules of evidence shall not apply.

(j) Intervention is authorized in accordance with Utah Code § 63G-4-207.

(k) Within a reasonable time, not to exceed 60 days after the close of the formal proceeding, the ALJ shall issue a signed recommended decision in writing, to the Executive Director that includes findings of fact and conclusions of law, in accordance with Utah Code §63G-4- 208.

(13) Recommended Decision and Final Agency Review

(a) At the conclusion of the either a formal or informal adjudicative proceeding, the ALJ shall take the matter under advisement and submit a recommended decision to the Board. The recommended decision shall be based on the documents contained in the Board’s files, testimony and evidence entered at the hearing.

(b) The recommended decision must contain the appropriate requirements under Utah Code §63G-4- 208, for formal proceedings.

(c) The Executive Director of the Governor’s Office of Economic Development may:

(i) adopt the recommended decision or any portion of the decision;

(ii) reject the recommended decision or any portion of the decision, and make an independent determination based upon the record; or

(iii) remand the matter to the ALJ for further proceeding, and the ALJ thereafter shall submit to the Executive Director a new recommended decision.

(d) The Executive Director decision constitutes final administrative action and is subject to judicial review.

(e) The Executive Director shall send a copy of the final administrative action to each party or representative and notify them of their right to judicial review.

(f) The parties shall comply with a final decision from the Executive Director reversing the agency’s decision within ten calendar days.

(14) Declaratory Orders.

(a) Any person may file a request for Board action, requesting that the Board issue a declaratory order determine the applicability of a statute, rule, or order within the primary jurisdiction of the Office in accordance with 63G-4-503.

(b) Petition Form.

The petition shall:

(1) Be clearly designated as a request for a declaratory order;

(2) identify the statute, rule, or order to be reviewed;

(3) describe the situation or circumstances giving rise to the need for the declaratory order or in which applicability of the statute, rule, or order is to be reviewed;

(4) describe the reason or need for the applicability review;

(5) identify the person or agency directly affected by the statute, rule, or order;

(6) include an address and telephone where the petitioner can be reached during regular work days; and

(7) be signed by the petitioner.

(c) The provisions of Sections 63G-4-202 through 63G-4-302 apply to declaratory proceedings.

(d) The Board will not issue a declaratory order that deals with a question or request that the ALJ determines is:

(1) Not within the jurisdiction and competence of the Office;

(2) trivial, irrelevant, or immaterial;

(3) not one that is ripe or appropriate for determination;

(4) currently pending or will be determined in an on-going judicial proceeding;

(5) prohibited by state or federal law; or

(6) challenge the validity of a federal statute or regulation.

(Presented and Adopted at the Private Activity Bond Authority Board Meeting on December 9, 2015.)

___________________________________

Additional Conditions for Multi-Family Housing Volume Cap Allocation

As a condition of an allocation of Private Activity Bond Volume cap, the Issuer of Bonds shall require the owner of the related project to enter into the following covenants:

The project must meet the requirements of subparagraph (A) or (B), whichever is elected by the owner, for a period of not less than 51 years:

(A) 20-50 Test. 20 percent or more of the residential units in such project are both rent-restricted and occupied by individuals whose income is 50 percent or less of area median gross income.

(B) 40-60 Test. 40 percent or more of the residential units in such project are both rent-restricted and occupied by individuals whose income is 60 percent or less of area median gross income.

Project owners shall maintain records evidencing compliance with the rent and occupancy requirements set forth above, shall deliver compliance reports to the related Bond Issuer at least once each year and shall allow audits by the related Bond Issuer or by representatives of the State of Utah of its records and the related project upon request.

The provisions hereof, including terms which are not defined, shall be interpreted and construed in accordance with the rules, definitions and requirements of Section 42 of the Internal Revenue Code of 1986, as amended.

(Presented and Adopted at the Private Activity Bond Authority Meeting on July 8, 2015.)

_______________________________________

Private Activity Bond Authority Administrative Rule

Private Activity Bond Authority Administrative Rule (PDF)

R357. Governor, Economic Development.

R357-8. Allocation of Private Activity Bond Volume Cap.

R357-8-1. Purpose. 

The purpose of this rule is to establish a formula for determining the amount of volume cap to be allocated to an applicant applying for an allocation of private activity bond volume cap.

R357-8-2. Authority. 

UCA 63N-5-104 requires the Private Activity Bond Review Board to promulgate rules for the allocation of volume cap for private activity bonds.

R357-8-3. Definitions. 

(1) “Applicant” means an issuing authority submitting an application for an allocation of volume cap or a project sponsor submitting an application on behalf of an issuing authority for an allocation of volume cap.

(2) “Available Volume Cap” means the unencumbered volume cap.

(3) “Application” means:

(a) the State of Utah Federal Low-Income Housing Credit Consolidated Application Form for multi-family applicants;

(b) the Private Activity Bond Authority Manufacturing Facility Application for the manufacturing, redevelopment or exempt facility applicants; or

(c) the Private Activity Bond Authority Application for Single Family or Student Loan applicants.

(4) “Project” or “Program” means the applicant’s plan for which the private activity bonds are being sought.

(5) All other terms are used as defined by UCA 63N-5-102.

R357-8-4. Formula for Allocating Volume Cap.

(1) Allocations of the volume cap will be made during each calendar year based upon available volume cap. Availability shall depend upon the date an applicant submits a completed application.

(2) The decision to allocate volume cap to an applicant shall be determined by the board of review.

(a) When deciding to allocate volume cap to an applicant, the board of review shall consider the criteria outlined in UCA 63N-5-105 and shall consider the following additional criteria.

(i) Multi-Family Housing applicants:
(A) Bond amount per unit;
(B) Percentage of private activity bonds per percentage of total cost;
(C) Bond amount per number of households served;
(D) Percentage of public financing;
(E) Total cost per unit;
(F) Percentage of developer fee contributed to project;
(G) Average rent as a percentage of Area Median Income;
(H) Number of special needs units;
(I) Cash flow per unit;
(J) Percentage of taxable bonds;
(K) Project location–stronger consideration is given to projects located in:
(I) Underserved areas;
(II) Communities without projects; and
(III) Difficult to develop areas as defined by HUD.
(L) Project characteristics including:
(I) Day Care;
(II) Education center;
(III) Applicant’s experience with bonds; and
(IV) Size of project developed.
(M) Other considerations deemed appropriate by the board of review.

(ii) Manufacturing Facility, Redevelopment and Exempt Facilities applicants:
(A) New job creation;
(B) Retention of jobs;
(C) Training and education of employees;
(D) Bond amount to jobs ratio;
(E) Jobs created and/or retained that provide above average wages when compared to the community average wage;
(F) Demonstrated need for tax-exempt financing;
(I) Show of realistic cash flow for the first three years of operation; and
(II) Explanation for selecting variable or fixed rates.
(G) Community Support;
(I) Financial support;
(II) Zoning approval;
(III) Tax increment financing; and
(IV) Deferral of fees.
(H) Competitive costs for construction and equipment related expenses;
(I) Ready-to-go Status;
(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.
(J) Status of project’s financing at time of application;
(K) Selection of bond counsel;
(L) Letter from bond counsel opining the project qualifies for private activity bonds;
(M) Selection of investment banker or, if private placement, buyer of the bonds;
(N) Detailed commitment letters from financial entities involved;
(O) Ability to cause bonds to be issued within the calendar year of allocation; and
(P) Other considerations deemed appropriate by the board of review.

(iii) Student Loan and Single Family Housing applicants:
(A) Completed application; and
(B) Payment of all mandatory fees.

(iv) All applicants:
(A) Overall community need and impact of the project or program;
(B) Applicant’s past and current experience and utilization of private activity bonds; and
(C) Other considerations deemed appropriate by the board of review.

(b) When considering multiple applications at a meeting, the board of review may choose to award each applicant an equal share, pro rata share, or other division of available volume cap determined by the Board, provided that each applicant shall have submitted its application prior to the deadline posted on the website of the board of review.

(c) The staff of the board of review will work with each applicant prior to each board of review meeting to ensure that all materials necessary to be considered by the board of review are completed and available at such meeting. Forms of applications and other materials shall be made available on the website of the board of review. Applications will not be considered unless and until all materials are provided and complete.

(Presented and Adopted at the Private Activity Bond Authority Board Meeting on January 14, 2015.  Became effective on June 8, 2015, through the Administrative Rule process.)

______________________________________

GRAMA Request Policy
(Government Records Access and Management Act)

Record Accessibility

All proposals, applications and other exhibits, submitted to the PAB Review Board for funding consideration, become the property of the Private Activity Bond Authority Program (PAB). These materials are generally subject to the Utah Government Records Access Management Act (“GRAMA”) (Utah Code Ann. §§63G-2-l 01 et seq) and are considered public records after the evaluation process has been completed and a final decision made.

The Act, however, does protect trade secrets, commercial information and non-individual financial information which, if disclosed, would give an unfair advantage to the recipient of that information, as opposed to the person who submitted the application.

The following records are protected under Section 63G-2-304, if, properly classified by a governmental entity:

  1.  Trade secrets as defined in Section 13-24-2, if the person submitting the trade secret has provided the governmental entity with the information specified in Section 63G-2-308;
  2.  Commercial information or non-individual financial information obtained from a person if:
    (a) disclosure of the information could reasonably be expected to result in unfair competitive injury to the person submitting the information or would impair the ability of the governmental entity to obtain necessary information in the future;
    (b) the person submitting the information has a greater interest in prohibiting access than the public in obtaining access; and
    (c) the person submitting the information has provided the governmental entity with the information specified in Section 62G-3-308

Protected Information Request

GRAMA provides that if a person submits trade secrets, commercial information, or non-individual financial information to a government entity, they may request that information be classified as a protected record. To request any portion of a proposal, application or other exhibits to be classified as a protected record, applicants must complete the “Claim of Business Confidentiality Request.” The completed and signed form must be submitted with the proposal. The person submitting the application must clearly identify the specific information for which the protected classification is requested. Failure to provide this, risks having the entire submission be considered a public record.

Please Note: An entire submission may not be protected under a claim of business confidentiality.

Request Procedure

To request records held by the Private Activity Bond Authority Program (PAB), a GRAMA Form must be completed and signed. The form may be e-mailed, faxed, or mailed to:

Roxanne C. Graham, Program Director
Private Activity Bond Authority Program
60 East South Temple, 3rd Floor
Salt Lake City, UT 84111
E-mail: roxanneg@utah.gov
Fax: (801) 538-8888

A GRAMA Form is available here. Additional information about GRAMA and the process is available from the Attorney General’s web site. If preferred, requesting entities and/or individuals may directly contact the PAB Program Director for a copy of the form. To avoid unnecessary charges or delays, requestors are encouraged to provide the most detailed description possible of the information sought.

GRAMA Requests will be processed within 10 business days.

Fees

Fees will not be charged for:

  • Reviewing a record to determine whether it is subject to disclosure, except:
    o    To inspect the record.
    o    Costs of Staff time for search, retrieval and other direct administrative costs for complying with the request.
  • The first quarter hour of staff time.

A GRAMA Request may be provided without charge if it is determined that:

  • Releasing the record primarily benefits the public rather than a person.
  • The individual requesting the record is the subject of the record.
  • The requester’s legal rights are directly implicated by the information in the record and the requester is impecunious.

Fees charged for processing GRAMA Requests cover the actual costs of providing the record, which may include:

  • Costs of Staff time for compiling, formatting, manipulating or tailoring the record into an organized report or to meet the person’s request.
  • Costs of Staff time for search, retrieval and other direct administrative costs for complying with the request.
  • Actual costs of providing electronic services and products for a record that was originally submitted in a format other than word processing.

Entities and/or individuals making GRAMA Requests to PAB:

  • Will be charged the following rates for copying:
    o      $.25 – black and white;
    o      $.35 -color.
    o      These rates are per page. Double-sided copies count as two pages.
  • Will be charged an hourly rate, not to exceed the salary of the lowest paid employee who, in the discretion of the custodian of records, has the necessary skill and training to perform the request per statute.  Staff time will be charged at $45.00 per hour after the first 15 minutes.
  • Will receive a detailed receipt, indicating the number and type of copies made and the amount of time spent by the employee fulfilling the GRAMA Request.
  • May be required to submit payment on the estimated fees to fulfill the request before the request will be processed if:
    o       Fees are expected to exceed $100; or
    o       Fees from previous request have not been paid.
  • Can request the completed GRAMA Request be formatted in an electronic record compatible for e-mailing upon completion.

(Presented and Adopted at the Private Activity Bond Authority Board Meeting on July 10, 2013.)

PAB Grama Request Policy
________________________________

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:
    o      Minimum size of 24” H X 30” W.
    o      Logo of Private Activity Bond Authority Program displayed.*
    o      Language to the effect of, “Project Financing Assisted by the Private Activity Bond Authority Program” written above the logo.
    o      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.
    o     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

*To obtain copy of PAB Logo, please contact Roxanne C. Graham at (801) 538-8699 or roxanneg@utah.gov.

(Presented and Adopted at the Private Activity Bond Authority Board Meeting on October 10, 2012.)

_________________________________

ENERGY STAR Policy  EnergyStarLogo

ENERGY STAR built units and energy-saving features are typically 15% more energy efficient than units built to the standard IRC (International Residential Energy Code). ENERGY STAR units and products use substantially less energy which has the following results:

Long-term affordability of units.

  • Lower maintenance costs.
  • Lower heating, cooling and water heating utility bills.
  • Better protection and greater durability against the elements.
  • Quieter and more comfortable living space.
  • Improved air quality for consumer’s health.
  • Helps prevent greenhouse gas emissions.

For these reasons, 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 Governor’s Office of Economic Development. 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% 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.)
_________________________________

Payment of Extension Fees Policy

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.

ARTICLE II

Electronic Meetings

The Board may hold electronic meetings pursuant to provisions of the Utah Open and Public Meetings Act, UCA §52-4-101 et.seq.

52-4-207. Electronic meetings – Authorization – Requirements

A public body that convenes or conducts an electronic meeting shall:

  • Give public notice of the meeting:
    o      (i) in accordance with Section 52-4-202; and
    o      (ii) post written notice at the anchor location;
  • In addition to giving public notice required by Subsection (3)(a), provide:
    o      (i) notice of the electronic meeting to the members of the public body at least 24 hours before the meeting so that they may participate in and be counted as present for all purposes, including the determination that a quorum is present; and
    o      (ii) a description of how the members will be connected to the electronic meeting;
  • Establish one or more anchor locations for the public meeting, at least one of which is in the building and political subdivision where the public body would normally meet if they were not holding an electronic meeting;
  • Provide space and facilities at the anchor location so that interested persons and the public may attend and monitor the open portions of the meeting; and
  • If the meeting includes a public hearing, provide space and facilities at the anchor location so that interested persons and the public may attend, monitor, and participate in the open portions of the meeting.

Compliance with the provisions of this section by a public body constitutes full and complete compliance by the public body with the corresponding provisions of Sections 52-4-201and 52-4-202.

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

New Utah Code Title for Private Activity Bond
All Sections Listed Below are Effective May 12, 2015

Utah Code — Title 63N
Governor’s Office of Economic Development

Chapter 5
Private Activity Bonds

Part 1
Private Activity Bonds

63N-5-101 Title — Purpose.

 (1) This chapter is known as “Private Activity Bonds.”

(2) It is the intent of the Legislature to establish procedures to most effectively and equitably allocate this state’s private activity bond volume cap authorized by the Internal Revenue Code of 1986 in order to maximize the social and economic benefits to this state.

Renumbered and Amended by Chapter 283, 2015 General Session

63N-5-102 Definitions.

 As used in this part:

(1) “Allocated volume cap” means a volume cap for which a certificate of allocation is in effect or for which bonds have been issued.

(2) “Allotment accounts” means the various accounts created in Section 63N-5-106.

(3) “Board of review” means the Private Activity Bond Review Board created in Section 63N-5-103.

(4) “Bond” means any obligation for which an allocation of volume cap is required by the code.

(5) “Code” means the Internal Revenue Code of 1986, as amended, and any related Internal Revenue Service regulations.

(6) “Form 8038” means the Department of the Treasury tax form 8038 (OMB No. 1545-0720) or any other federal tax form or other method of reporting required by the Department of the Treasury under Section 149(e) of the code.

(7) “Issuing authority” means:

(a) any county, city, or town in the state;

(b) any not-for-profit corporation or joint agency, or other entity acting on behalf of one or more counties, cities, towns, or any combination of these;

(c) the state; or

(d) any other entity authorized to issue bonds under state law.

(8) “State” means the state of Utah and any of its agencies, institutions, and divisions authorized to issue bonds or certificates under state law.

(9) “Volume cap” means the private activity bond volume cap for the state as computed under Section 146 of the code.

(10) “Year” means each calendar year.

Renumbered and Amended by Chapter 283, 2015 General Session

63N-5-103 Private Activity Bond Review Board.

(1) There is created within the office the Private Activity Bond Review Board, composed of the following 11 members:

(a) (i) the executive director of the office or the executive director’s designee;

(ii) an employee of the office designated by the executive director;

(iii) the state treasurer or the treasurer’s designee;

(iv) the chair of the Board of Regents or the chair’s designee; and

(v) the chair of the Utah Housing Corporation or the chair’s designee; and

(b) six local government members who are:

(i) three elected or appointed county officials, nominated by the Utah Association of Counties and appointed by the governor with the consent of the Senate; and

(ii) three elected or appointed municipal officials, nominated by the Utah League of Cities and Towns and appointed by the governor with the consent of the Senate.

(2) (a) Except as required by Subsection (2)(b), the terms of office for the local government members of the board of review shall be four-year terms.

(b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of board members are staggered so that approximately half of the board is appointed every two years.

(c) Members may be reappointed only once.

(3) (a) If a local government member ceases to be an elected or appointed official of the city or county the member is appointed to represent, that membership on the board of review terminates immediately and there shall be a vacancy in the membership.

(b) When a vacancy occurs in the membership for any reason, the replacement shall be appointed within 30 days in the manner of the regular appointment for the unexpired term, and until his successor is appointed and qualified.

(4) (a) The chair of the board of review is the executive director of the office or the executive director’s designee.

(b) The chair is nonvoting except in the case of a tie vote.

(5) Six members of the board of review constitute a quorum.

(6) Formal action by the board of review requires a majority vote of a quorum.

(7) A member may not receive compensation or benefits for the member’s service, but may receive per diem and travel expenses in accordance with:

(a) Section 63A-3-106;

(b) Section 63A-3-107; and

(c) Rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.

(8) The chair of the board of review serves as the state official designated under state law to make certifications required to be made under Section 146 of the code including the certification required by Section 149(e)(2)(F) of the code.

Renumbered and Amended by Chapter 283, 2015 General Session

63N-5-104 Powers, functions, and duties of board of review.

The board of review shall:

(1) make, subject to the limitations of the code, allocations of volume cap to issuing authorities;

(2) determine the amount of volume cap to be allocated with respect to approved applications;

(3) maintain a record of all applications filed by issuing authorities under Section 63N-5-105 and all certificates of allocation issued under Section 63N-5-107;

(4) maintain a record of all bonds issued by issuing authorities during each year;

(5) determine the amount of volume cap to be treated as a carryforward under Section 146(f) of the code and allocate this carryforward to one or more qualified carryforward purposes;

(6) make available upon reasonable request a certified copy of all or any part of the records maintained by the board of review under this part or a summary of them, including information relating to the volume cap for each year and any amounts available for allocation under this part;

(7) promulgate rules for the allocation of volume cap under this part; and

(8) charge reasonable fees for the performance of duties prescribed by this part, including application, filing, and processing fees.

Renumbered and Amended by Chapter 283, 2015 General Session

63N-5-105 Allocation of volume cap.

(1) (a) Subject to Subsection (1)(b), the volume cap for each year shall be distributed by the board of review to the various allotment accounts as set forth in Section 63N-5- 106.

(b) The board of review may distribute up to 50% of each increase in the volume cap for use in development that occurs in quality growth areas, depending upon the board’s analysis of the relative need for additional volume cap between development in quality growth areas and the allotment accounts under Section 63N-5-106.

(2) To obtain an allocation of the volume cap, issuing authorities shall submit to the board of review an application containing information required by the procedures and processes of the board of review.

(3) (a) The board of review shall establish criteria for making allocations of volume cap that are consistent with the purposes of the code and this part.

(b) In making an allocation of volume cap the board of review shall consider the following:

(i) the principal amount of the bonds proposed to be issued;

(ii) the nature and the location of the project or the type of program;

(iii) the likelihood that the bonds will be sold and the timeframe of bond issuance;

(iv) whether the project or program could obtain adequate financing without an allocation of volume cap;

(v) the degree to which an allocation of volume cap is required for the project or program to proceed or continue;

(vi) the social, health, economic, and educational effects of the project or program on the local community and state as a whole;

(vii) the anticipated economic development created or retained within the local community and the state as a whole;

(viii) the anticipated number of jobs, both temporary and permanent, created or retained within the local community and the state as a whole;

(ix) if the project is a residential rental project, the degree to which the residential rental project:

(A) targets lower income populations; and

(B) is accessible housing; and

(x) whether the project meets the principles of quality growth recommended by the Quality Growth Commission created under Section 11-38-201.

(4) The board of review shall evidence an allocation of volume cap by issuing a certificate in accordance with Section 63N-5-107.

(5) (a) From January 1 to June 30, the board shall set aside at least 50% of the Small Issue Bond Account that may be allocated only to manufacturing projects.

(b) From July 1 to August 15, the board shall set aside at least 50% of the Pool Account that may be allocated only to manufacturing projects.

Renumbered and Amended by Chapter 283, 2015 General Session

63N-5-106 Allotment accounts.

 (1) There are created the following allotment accounts:

(a) the Single Family Housing Account, for which eligible issuing authorities are those authorized under the code and state statute to issue qualified mortgage bonds under Section 143 of the code;

(b) the Student Loan Account, for which eligible issuing authorities are those authorized under the code and state statute to issue qualified student loan bonds under Section 144(b) of the code;

(c) the Small Issue Bond Account, for which eligible issuing authorities are those authorized under the code and state statute to issue:

(i) qualified small issue bonds under Section 144(a) of the code;

(ii) qualified exempt facility bonds for qualified residential rental projects under Section 142(d) of the code; or

(iii) qualified redevelopment bonds under Section 144(c) of the code;

(d) the Exempt Facilities Account, for which eligible issuing authorities are those authorized under the code and state statute to issue any bonds requiring an allocation of volume cap other than for purposes described in Subsections (1)(a), (b), or (c);

(e) the Pool Account, for which eligible issuing authorities are those authorized under the code and state statute to issue any bonds requiring an allocation of volume cap; and

(f) the Carryforward Account, for which eligible issuing authorities are those with projects or programs qualifying under Section 146(f) of the code.

(2) (a) The volume cap shall be distributed to the various allotment accounts on January 1 of each year on the following basis:

(i) 42% to the Single Family Housing Account;

(ii) 33% to the Student Loan Account;

(iii) 1% to the Exempt Facilities Account; and

(iv) 24% to the Small Issue Bond Account.

(b) From July 1 to September 30 of each year, the board of review may transfer any unallocated volume cap from the Exempt Facilities Account or the Small Issue Bond Account to the Pool Account.

(c) The board of review, upon written notification by the issuing authorities eligible for volume cap allocation from the Single Family Housing Account or the Student Loan Account that all or a portion of volume cap distributed into that allotment account will not be used, may transfer the unused volume cap between the Single Family Housing Account and the Student Loan Account.

(d) From October 1 to the third Friday of December of each year, the board of review shall transfer all unallocated volume cap into the Pool Account.

(e) On the third Saturday of December, the board of review shall transfer uncollected volume cap or allocated volume cap for which bonds have not been issued prior to the third Saturday of December into the Carryforward Account.

(f) If the authority to issue bonds designated in any allotment account is rescinded by amendment to the code, the board of review may transfer any unallocated volume cap from that allotment account to any other allotment account.

Renumbered and Amended by Chapter 283, 2015 General Session

63N-5-107 Certificates of allocation.

(1) (a) After an allocation of volume cap for a project or program is approved by the board of review, the board shall issue a numbered certificate of allocation stating the amount of the allocation, the allotment account for which the allocation is being made, and the expiration date of the allocation.

(b) The certificates of allocation shall be mailed to the issuing authority within 10 working days of the date of approval.

(c) No bonds are entitled to any allocation of the volume cap unless the issuing authority received a certificate of allocation with respect to the bonds.

(d) (i) Certificates of allocation shall remain in effect for a period of 90 days from the date of approval.

(ii) If bonds for which a certificate has been approved are not issued within the 90-day period, the certificate of allocation is void and volume cap shall be returned to the applicable allotment account for reallocation by the board of review.

(2) (a) An issuing authority receiving an allocation of volume cap from the Carryforward Account shall receive a certificate of allocation similar to the certificates of allocation described in Subsection (1) from the board of review stating the amount of allocation from the Carryforward Account that has been allocated to the issuing authority and the expiration of the allocation.

(b) If in the judgment of the board of review an issuing authority or a person or entity responsible for a project or program receiving an allocation from the Carryforward Account does not proceed with diligence in providing for the issuance of the bonds with respect to the project or program, and because of the lack of diligence the volume cap cannot be used, the board of review may exclude from its consideration for a given period of time, determined by the board of review, an application of the issuing authority, person, or entity. The board of review may, at any time, review and modify its decisions relating to this exclusion.

Renumbered and Amended by Chapter 283, 2015 General Session

63N-5-108 Issuing authorities — Limitations — Duties.

(1) (a) Any law to the contrary notwithstanding, an issuing authority issuing bonds without a certificate of allocation issued under Section 63N-5-107, or an issuing authority issuing bonds after the expiration of a certificate of allocation, is not entitled to an allocation of the volume cap for those bonds.

(b) An issuing authority issuing bonds in excess of the amount set forth in the related certificate of allocation is not entitled to an allocation of the volume cap for the excess.

(2) Each issuing authority shall:

(a) advise the board of review, within 15 days after the issuance of bonds, of the principal amount of bonds issued under each certificate of allocation by delivering to the board of review a copy of the Form 8038 that was delivered or shall be delivered to the Internal Revenue Service in connection with the bonds, or, if no Form 8038 is required to be delivered to the Internal Revenue Service, a completed copy of a Form 8038 prepared for the board of review with respect to the bonds; and

(b) if all or a stated portion of the bonds for which a certificate of allocation was received will not be issued, advise the board of review in writing, within 15 days of the earlier of:

(i) the final decision not to issue all or a stated portion of the bonds; or

(ii) the expiration of the certificate of allocation.

(3) Failure by an issuing authority to notify the board of review under Subsection (2), including failure to timely deliver a Form 8038, may, in the sole discretion of the board of review, result in the issuing authority being denied further consideration of applications.

Renumbered and Amended by Chapter 283, 2015 General Session

63N-5-109 Procedures — Adjudicative proceedings.

 The board of review shall comply with the procedures and requirements of Title 63G, Chapter 4, Administrative Procedures Act, in its adjudicative proceedings.

Renumbered and Amended by Chapter 283, 2015 General Session

63N-5-110 Duties of office.

 (1) The office is recognized as an issuing authority as defined in Section 63N-5-102, entitled to issue bonds from the Small Issue Bond Account created in Subsection 63N-5-106(1)(c) as a part of the state’s private activity bond volume cap authorized by the Internal Revenue Code and computed under Section 146, Internal Revenue Code.

(2) To promote and encourage the issuance of bonds from the Small Issue Bond Account for manufacturing projects, the office may:

(a) develop campaigns and materials that inform qualified small manufacturing businesses about the existence of the program and the application process;

(b) assist small businesses in applying for and qualifying for these bonds; and

(c) develop strategies to lower the cost to small businesses of applying for and qualifying for these bonds, including making arrangements with financial advisors, underwriters, bond counsel, and other professionals involved in the issuance process to provide their services at a reduced rate when the division can provide them with a high volume of applicants or issues.

Enacted by Chapter 283, 2015 General Session

Downloads

PAB GRAMA Request Form
PAB GRAMA Request Policy