R990-200-5. Criteria for Allocating Volume Cap

  (1) Private activity bond volume cap allocations are made each calendar year based upon available volume cap.

  (a) The decision whether to allocate volume cap to an applicant shall be determined by the Board of Review, in its sole discretion.

  (b) Allocations are not made on a first-come-first-served basis.

  (c) Each complete application submitted before the deadline will be evaluated and scored in comparison with other applications for the same type of project use. The weight each evaluation criteria is given is as identified on the score sheet approved by the Board of Review.

  (d) The Private Activity Bond program staff and consultants under contract with the Board of Review will evaluate and score each application. In the event demand for funding exceeds the available volume cap, applications will be numerically ranked for the purpose of allocation.

  (e) When considering multiple applications at a meeting, the Board of Review may choose to award each applicant an equal share, pro rata share, priority for multi-family housing or other classification, or other division of available volume cap.

  (2) When deciding to allocate volume cap to an applicant, the Board of Review shall consider the criteria outlined in Section 35A-8-2105 and the following additional criteria:

  (a) timely submission of completed application;

  (b) timely payment of applicable fees;

  (c) applicant's experience in successfully completing projects utilizing private activity bonds;

  (d) project financing, including executed letters of intent for debt and equity funding;

  (e) project readiness, including required public entity approvals, site ownership, and architect and construction contracts;

  (f) timely response to any questions raised by the Board of Review and Private Activity Bond program staff;

  (g) status of project's financing at time of application;

  (h) appointment of bond counsel;

  (i) letter from bond counsel opining the project qualifies for private activity bonds;

  (j) appointment of investment banker or, if private placement, buyer of the bonds;

  (k) detailed commitment letters from financial entities involved;

  (l) ability to cause bonds to be issued within 12 months of allocation;

  (m) past history of forfeited allocation commitments;

  (n) length of tax-exempt bond amortization; and

  (o) other factors considered appropriate by the Board of Review.

  (3) Multi-Family Housing applicants must meet the criteria of the Low-Income Housing Tax Credit Program administered by the Utah Housing Corporation. In addition to the criteria in R990-200-5(2), the Board of Review shall consider the following criteria when deciding to allocate volume cap to Multi-Family Housing applicants:

  (a) bond amount per unit;

  (b) bond amount per affordable unit;

  (c) the percentage, in relation to the group of applications currently being evaluated, of the private activity bond allocation being requested;

  (d) percentage of public financing, including the value of grants, loans, fee waivers, and concessions, but excluding housing tax credits;

  (e) total cost per unit and per unit square footage;

  (f) percentage of developer fee contributed to project;

  (g) percentage of affordable units;

  (h) percentage of special needs units;

  (i) cash flow per unit;

  (j) percentage of taxable bonds;

  (k) location, with preference for projects located in:

  (i) underserved areas,

  (ii) communities without the same type of projects, and

  (iii) difficult to develop areas as defined by HUD;

  (l) project characteristics, including:

  (i) day care,

  (ii) education center,

  (iii) mixed income projects, with both affordable and market rate units, and

  (iv) size of proposed project;

  (m) mitigation of environmental issues, including installing radon gas extraction fans or removing the source of radon; and

  (n) acquisition, rehabilitation, and remediation of buildings with Utah or federal historic designation, including removal of hazards and including appraisals and a relocation plan for current residents.

  (4) In addition to the criteria in R990-200-5(2), the Board of Review shall consider the following criteria when deciding to allocate volume cap to Manufacturing Facility, Redevelopment and Exempt Facilities applicants:

  (a) new full-time-equivalent job creation, including a list of new positions and wages, and excluding construction and other temporary jobs;

  (b) retention of jobs;

  (c) training and education of employees;

  (d) bond amount to permanent full-time-equivalent jobs ratio;

  (e) permanent full-time-equivalent jobs created or retained that provide above average wages when compared to other applicants' average wages and the community average wage;

  (f) demonstrated need for tax-exempt financing, including:

  (i) projected cash flow for the first three years of operation, including supporting documentation, and

  (ii) explanation for selecting variable or fixed rates;

  (g) community support, including:

  (i) financial support,

  (ii) zoning approval,

  (iii) tax increment financing, and

  (iv) deferral of fees;

  (h) competitive costs for construction and equipment related expenses; and

  (i) ready-to-go status, including:

  (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.

  (5) Prior to considering an application, a Board of Review member shall disclose the substance of any communication the member has had outside of a public meeting with an applicant or other interested party regarding the project.

  (6) The allocation certificate issued for Multi-Family Housing volume cap shall restrict the occupancy of market rate rental units to families whose incomes do not exceed 150% of Area Median Income (AMI), adjusted for family size, for at least 51 years from the date on which at least 50% of the residential units in the project are first occupied.

  (a) Recipients and owners shall comply with any terms of the Certificate of Allocation, including any Additional Conditions approved by the Board of Review.

  (b) Recipients and owners shall submit documentation to Private Activity Bond program staff within 15 days after the issuance of bonds, and at other times upon request, to verify compliance with the terms of the Certificate of Allocation.

  (7) A recipient may not be awarded additional volume cap for a previously funded project. A recipient may relinquish allocated volume cap and submit a new application for the total amount requested.