PAB Program Descriptions

AAA

Private Activity Bond Authority Programs

Approved Programs

The following programs have been approved to use the State's tax-exempt bonding authority:

Detailed information on each program is listed below. 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.


Please mail all applications, along with the appropriate fees, to:
Roxanne C. Graham, Director
Private Activity Bond Authority Program
Governor's Office of Economic Development
60 East South Temple, 3rd Floor
Salt Lake City, Utah 84111

Multi-Family Housing

Applicants of this program are usually developers interested in building or rehabilitating multi-family apartments, which have a large percentage of affordable units compared to market rate units. There is a suggested cap of $12,000,000 for each allocation request. Requests over this amount are carefully reviewed by the board and approved per their discretion.

This application has been combined with the Utah Housing Corporation Low Income Tax Housing Credit 4% (LITHC) application. Be sure to complete the "Multi-Family Bond" section of the application and 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. Please visit the Utah Housing Corporation web site at www.utahhousingcorp.org for additional information or you may contact UHC directly at (801) 902-8200. The application can be found here. Any questions regarding the bond portion of the application, please contact Roxanne C. Graham at (801) 538-8699 (W), (801) 580-3317 (C) or at roxanneg@utah.gov.

Applicants must submit four (4) paper copies of the application (one original and three copies), and two (2) electronic copies on separate CDs along with the appropriate fees on or before the deadline for the upcoming board meeting. Please send all copies of the application and the Private Activity Bond Authority Application Fee to the address at the top of this page. The fee for Utah Housing Corporation should be sent directly to them.

Each application is thoroughly reviewed by Staff before it is submitted for approval to the Private Activity Bond Review Board. Missing information or fees may delay the application process and/or approval.

Applicants of this program are usually developers interested in building or rehabilitating multi-family apartments, which have a large percentage of affordable units compared to market rate units. There is a suggested cap of $12,000,000 for each allocation request. Requests over this amount are carefully reviewed by the board and approved per their discretion.

Manufacturing

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.

Definition for Manufacturing Facilities: A “Manufacturing Facility” according to the IRS Tax Code Section 144(a)(12)(C) defines a “manufacturing facility” as 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 to refinance debt, inventory, or operating capital. There are other important dollar limitations on the amount of bonds issued. Please view Dollar Limits on Bond Amounts Issued.

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.
  • Location of facility: rural areas with high unemployment rates, disadvantaged economic areas, etc.
  • Financial capacity of applicant.

Click here for a Manufacturing Informational Packet and Bond Process Flow Chart.

For more detailed information regarding manufacturing bonds, please view the Manufacturing Facility Application (PDF) (Word), the Manufacturing Facility Application Guidelines (PDF) and Policies & Procedures for Manufacturing Facility Applications (PDF).

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. Upon Board approval of the manufacturing project, the Certificate of Allocation is mailed to the applicant's bond counsel, usually 1-3 business days after the PAB Board Meeting. Upon receipt of the certificate, the bond closing can take place and proceeds from the transaction can be received by the applicant.

Applicants must submit two (2) paper copies (one original and one copy) and one (1) electronic copy on a CD of the application, including the appropriate fees, on or before the deadline for the target board meeting. Each application is thoroughly reviewed by an analyst and staff before it is submitted for approval to the Private Activity Bond Review Board. Missing information or fees may delay the application process.

Single Family Housing

The only applicant for the Single Family Housing Program is the Utah Housing Corporation (UHC). Please see their web site at www.utahhousingcorp.org for a description of their programs. This program is administered by UHC. For more information, you may contact Monica Spangle, at UHC or call (801) 902-8200.

 

Student Loans

The only applicant for the Student Loan Program is the Utah State Board of Regents, also known as the Utah Higher Education Assistance Authority (UHEAA). The Student Loan Program is administered through UHEAA. Please see their web site for a description of their programs. For more information, please contact UHEAA at uheaa@utahsbr.edu 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.

There is a 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 of the requirements for this type of project is at least 20% of the financing must be taxable.

Applicants must submit two (2) paper copies (one original and one copy) and one (1) electronic copy on a CD of the application, including the appropriate fees on or before the deadline for the target board meeting. Each application is thoroughly reviewed by an analyst and staff before it is submitted for approval to the Private Activity Bond Review Board. Missing information or fees may delay the application process.

Most of the information relevant to Exempt Facilities is requested on the Manufacturing Facilities Application. Please refer to the Manufacturing Facilities Application (PDF) (Word) for submission. After submission, if needed, applicants will be contacted for other pertinent information.

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.

At this time, an official application has not been formally approved by the PAB Board, due to the recent approval for volume cap allocation by the Legislature. Interested parties wanting to apply, please contact Roxanne Graham at (801) 538-8699 (W), (801) 580-3317 (C) or roxanneg@utah.gov.

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