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PAB Program Descriptions

Private Activity Bond Authority Programs

Approved Programs

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

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

Detailed information on each program is listed below. All applications are thoroughly reviewed by staff and an analyst before submitted for approval to the Private Activity Bond Review Board. Missing information or fees may delay the application process. Please mail the correct number of applications, indicated in the sections below, to the following address:

Roxanne C. Graham, Director
Private Activity Bond Authority Program
Governor’s Office of Economic Development
60 East South Temple, 3rd Floor
Salt Lake City, UT 84111

For assistance or questions about the different programs or applications, please contact Roxanne Graham at (801) 538-8699 (work), (801) 580-3317 (cell) or roxanneg@utah.gov.

Required Recognition of Financial Assistance

Any project approved for an allocation of volume cap is required to recognize PAB’s financial assistance by:

  • Acknowledging its financial contribution to the project in any media coverage: newspaper articles, interviews, press releases, groundbreaking ceremonies, etc.
  • Signage at the project site, meeting the following requirements:
  • Must include the PAB Logo and language to the effect of, “Project financing assisted by the Private Activity Bond Authority Program” above it. (Please contact Roxanne C. Graham for a copy of the PAB Logo.)
  • Minimum size requirements are 24” X 30” (H X W).
  • Must be put up before construction begins. A separate sign is not necessary if this information is included on a larger sign listing all financial partners.
  • Please e-mail a picture of the signage after it is placed at the project site to Roxanne C. Graham at roxanneg@utah.gov

Signage requirements apply to the following types of projects:

  • Manufacturing
  • Multi-Family Housing
  • Exempt Facilities
  • Qualified Redevelopment Projects

Helpful Tools

As a courtesy to help clients through the intricate tax-exempt bond process, PAB has developed a Service Provider Contact List of bond attorneys and financial advisors. This is not an endorsement from PAB of the parties listed or for the services they provide.

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% 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:

Application submission requirements are as follows:

  • Two (2) paper copies (one original and one copy).  Applications must be copied one-sided only.  Please ensure the binder can adequately hold the application and exhibits with room to turn pages easily.  Label the front and side of the binder with the project name.
  • One (1) electronic copy of the application only sent by e-mail to Roxanne C. Graham, at roxanneg@utah.gov. 
  • All copies must be submitted to our office by the specified deadline.
  • Appropriate application fee.
  • Submit on or before the deadline for the meeting you wish your project to be reviewed by the Board.  (Meeting Schedule)
  • Please send all copies of the application and the application fee made payable to “Private Activity Bond Authority” to:
    Roxanne C. Graham, Director
    Private Activity Bond Authority Program
    60 East South Temple
    Salt Lake City, UT  84111

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 Governor’s Office of Economic Development. All multi-unit facilities must be rated by an independent certified Home Energy Rater.

The Multi-Family Application has been combined with the Utah Housing Corporation Low Income Housing Tax Credit 4% (LIHTC) application.  Be sure to complete the “Multi-Family Bond” section of the application.  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.  Visit Utah Housing Corporation’s web site for application information or contact UHC directly at (801) 902-8200.  Any questions regarding the bond portion of the application, please contact Roxanne C. Graham at (801) 538-8699 (work), (801) 580-3317 (cell) or at roxanneg@utah.gov.

Application submission requirements are as follows:

  • Two (2) paper copies of the application (one original and one copy).  Both applications (Excel spreadsheet) must be copied one-sided only and in color.  Please ensure the binder can adequately hold the application and all exhibits with room to turn pages easily.  Label the front and side of the binder with the project name.
  • One (1) electronic copy of the application only (Excel spreadsheet) sent by e-mail to Roxanne C. Graham, at roxanneg@utah.gov.   
  • All copies must be submitted to our office by the specified deadline.
  • Submit on or before the deadline for the meeting you wish your project to be reviewed by the Board.  (Meeting Schedule)
  • Please send all copies of the application and the application fee made payable to “Private Activity Bond Authority” to:
    Roxanne C. Graham, Director
    Private Activity Bond Authority Program
    60 East South Temple
    Salt Lake City, UT  84111
  • 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 web site 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 web site 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% 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.

Application submission requirements are as follows:

  • Two (2) paper copies (one original and one copy).  Applications must be copied one-sided only.  Please ensure the binder can adequately hold the application and exhibits with room to turn pages easily.  Label the front and side of the binder with the project name.
  • One (1) electronic copy of the application only sent by e-mail to Roxanne C. Graham, at roxanneg@utah.gov. 
  • All copies must be submitted to our office by the specified deadline.
  • Appropriate application fee.
  • Submit on or before the deadline for the meeting you wish your project to be reviewed by the Board.  (Meeting Schedule)
  • Please send all copies of the application and the application fee made payable to “Private Activity Bond Authority” to:
    Roxanne C. Graham, Director
    Private Activity Bond Authority Program
    60 East South Temple
    Salt Lake City, UT  84111

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.

 Qualified Redevelopment Projects

Private Activity Bonds issued for Qualified Redevelopment Projects are used for one or more redevelopment purposes in a designated blighted area.

The term “Redevelopment Purposes” in regards to a designated blighted area means:

  • Acquisition of the real property must be done by a governmental unit having the power to exercise eminent domain.
  • The clearing and preparation of the land for redevelopment, acquired by a governmental unit.
  • The rehabilitation of real property located in the designated blighted area, which was acquired by a governmental unit.

New construction is not permitted. “Redevelopment Purposes” does not include the construction (other than the rehabilitation) of any property or the enlargement of an existing building.

Blighted areas are determined by the substantial presence of:

  • Excessive vacant land on which structures were previously located.
  • Abandoned or vacant buildings.
  • Substandard structures.
  • Vacancies.
  • Delinquencies in payment of real property taxes.

Designations of blighted areas are made by local governmental units in the same jurisdiction as such areas are located. Designated areas may not exceed 20% of the total assessed valued or real property in a government’s jurisdiction. This percentage does not include previously designated blighted areas if there are no qualified redevelopment bonds (or similar bonds) outstanding for such areas.

A redevelopment plan must be adopted before the issuance by the governing body with respect to the designated blighted area.

Proceeds from a “Qualified Redevelopment” bond issue must meet the following requirements:

  • No more than 25% of the net proceeds can be used to provide for (including the provision of land) facilities for retail food and beverage, auto sales and service and recreation/ entertainment.
  • No portion of the proceeds can be used for (including the provision of land) any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, racetrack or other facility used for gambling, sky box, health club, airport or any store in which the principal business is the sale of alcoholic beverages for consumption off the premises.

All potential projects should be approved by bond counsel to ensure meeting the legal requirements before submitting their application.

Most of the information relevant to Qualified Redevelopment Projects is the same as requested for a Manufacturing Facility so the same application is used.

Application submission requirements are as follows:

  • Two (2) paper copies (one original and one copy).  Applications must be copied one-sided only.  Please ensure the binder can adequately hold the application and exhibits with room to turn pages easily.  Label the front and side of the binder with the project name.
  • One (1) electronic copy of the application only sent by e-mail to Roxanne C. Graham, at roxanneg@utah.gov. 
  • All copies must be submitted to our office by the specified deadline.
  • Appropriate application fee.
  • Submit on or before the deadline for the meeting you wish your project to be reviewed by the Board.  (Meeting Schedule)
  • Please send all copies of the application and the application fee made payable to “Private Activity Bond Authority” to:
    Roxanne C. Graham, Director
    Private Activity Bond Authority Program
    60 East South Temple
    Salt Lake City, UT  84111

Downloads

Manufacturing Bonds Flow Chart

Housing Bonds Flow Chart

Manufacturing Informational Packet

Service Provider Contact List of bond attorneys

Service Provider Contact List of  financial advisors