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~~ BOAR'D ~F SU'PERVI~SORS
*^ COUNTY OF J3UTT~, STATE OF CALIFORNIA.
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Resolution No. as-i~
RESOLUTIOPI ESTABLISHING POLICIES
AND PROCEDURES FOR ISSUING MULTI-
FAMILY RESIDENTIAL REVENUE BONDS
WHEREAS, Chapter 7 of Part 5 of Division 37 of the Health and
Safety Code of the State of California (the "Act") authorizes County to
issue revenue bonds for the purpose of financing the construction or
development of multi-family rental housing and for the provision of
capital improvements in connection with and determined necessary to such
multi-family housing, and the Act provides a complete, additional and
alternative method for doing the things authorized thereby;
WHEREAS, the Board of Supervisors hereby declares it is necessary,
essential and a public purpose for the county to engage in a program of
making direct or indirect loans to the owners of such multi-family rental
housing by the issuance of revenue bonds as authorized by the Act;
NOW, THEREFORE, BE IT RESOLVED, that in order to establish
policies and procedures for processing requests for issuance of multi-
family residential revenue bonds for private projects, the Board of
Supervisors adopts the following:
1. Administrative policy and procedure for request for
inducement resolution and issuance of revenue bonds (Exhibit 1},
2. County of Butte multi-family residential revenue bonds-
information sheet (Exhibit 2).
3. Applicant information statement - request to Board of
Supervisors for inducement resolution and issuance of multi-family
residential revenue bonds (Exhibit 3}.
4. Reverie? bond fee schedule (Exhibit 4).
PASSED AND ADOPTED by the Board of Supervisors of the County
of Butte, State of California, this 12th day of February 1985,
by the following vote:
AYES: Supervisors Dolan, McInturf, McLaughlin and Chairman Fulton
NOES: Supervisor Wheeler
ABSENT: None
NOT VOTING: None
ATTEST:
~~c
L FULTON, Chairman
B tte County Board of Supervisors
MARTIN 3. NICHOLS, Chief Administrative Officer
and Clerk of the Board of Supervisors
~ ~ CG. _ ~'Y OP BllTl•E Na .
s •
•~ ~ POj_ICY MANUAL
auri~{ Approved:
Subject Request for Inducment Resolution Superseding:
and Issuance of Multi-Family Resi-
dential Revenue Bonds _
I. Purpose:
Page 1 of 3
To establish a procedure for processing requests for inducement
resolution and issuance of multi--family residential revenue bonds for
private projects.
II. Pol_i~:
The City Council has adopted the following policies relating
to its consideration of applications for Revenue Bonds. These policies shall
app]y unless pre-empted by State or Federal l.aw.
A. The applicant shall pay the City the appropriate fee(s) as
set forth in the City's fee schedule and in the manner set forth in said
fee schedule.
B. For all multi-family residential projects processed pursuant
to the City's authority:
1. Twenty percent (20%) of the total units in the project
shall be set aside far low and moderate income households (below $0% of
median), at least half (5O%) of which (lO% of the total units in the ro'ect
shall be set aside for very low income households below 5O% of median .
Household income shall be calculated in the manner used for eligibility
for the HUD Section 8 Program in effect on the date of issue. Pursuant
to IRS regulations, occupants of a unit shall not be considered low or
moderate income if a17 the occupants are students no one of wham is en-
titled to file a joint income tax return.
2. Four percent (4%} of the units shall be fully accessible
to handicapped individuals, including 28" counters in kitchens.
3. In calculating the number of units required, under
1. and 2. above, all fractions will be rounded dawn to the nearest whale
number (e.g., fora 63-unit project:
2O% = 12.6, therefore, 12 units must be set aside for low and
moderate income households, at least 6 of which must be for very
low income.
4% = 2.52, therefore, 2 accessible units would be required.}
III. Procedure:
A. The Chief Administrative Officer will have available in
his office an informational packet relating to the issuance of revenue
bonds which will contain the fallowing:
1. A copy of this Administrative Policy and Procedure.
COU~tTY OF BUTTE No . 1--09
POLICY PIANUAL Pa q e 2 o f 3
2. "County of Butte Multi-Family Residential Revenue
Sands - Information Statement" to which is attached a memorandum relating
to "Proposed Regulations For Residential Rental Property." (Exhibit "2")
3. "Applicant Information Statement - Request to Board
of Supervisors for inducement resolution and issuance of multi-family
residential bonds" (Exhibit "3").
4. Copy of applicable fee schedule. (Exhibit "4")
B. An applicant for Request for Inducement Resolution and
issuance of Commercial Revenue Bands shall:
1. Obtain the necessary legal and financial counsel.
2. Complete the Applicant Information Statement (Statement)
and submit it to the Chief Administrative Officer along with the requested
fee(s). The application shall include the information required by the
state and such other information as the county may require.
C. The Chief Administrative Officer will forward the Statement
to the Clerk of the Board and request that it be scheduled for the next
available meeting of the Mortgage Revenue Bond Committee. {Committee
includes the Chief Administrative Officer, County Counsel, Treasurer-
Tax Collector,-and County Auditor.)
~. The Mortgage Revenue Sond Committee will consider the
request and forward its recommendations to the Board of Supervisors.
E. The Board of Supervisors approves or rejects the Revenue
Bond Project.
F. After the Board approves the Revenue Band Project "Statement,
the applicant. pays a fee of one-quarter percent of estimated maximum amount
of bonds.
G. The Board of Supervisors then adopts inducement resolution
authorizing project.
H. Clerk of the Board distributes resolution to concerned
County departments and Legal Counsel. Legal Counsel prepares resolution
authorizing issuance of bonds and other appropriate documents for review
and approval by County staff.
I. Upon review and approval by County staff, the Soard of
Supervisors approves resolution authorizing issuance of revenue bonds
and other appropriate documents for the project.
Y
~~....
COUNTY OF BiJTTE No • 1-09
POE.ICY P9A~flJAL Page 3 of 3
J. Chief Administrative Officer processes documents in connectio
with the project as previously approved by the Soard of Supervisors.
The Chief Administrative Office reviews all final documents and checks
them as follows:
1. Each document has appropriate .County authorization
(Resolution number and date approved typed ar stamped on it).
' 2. Each document has been approved as to form by County
,Counsel.
3. Each document has been affixed with a County seal.
4: .Each document requiring signature of County official
is properly executed.
5. Each document has appropriate notarization.
K. Documents are transmitted to Tegal; counsel who prepares
complete portfolio which includes a copy of all documents relating to
the project proceedings together with all of the; appropriate "closing
documents." These documents are submitted to the .Chief Administrative
Officer.
E. iJpon sale and issuance of bands,, Legal Counsel provides
for the County to be forwarded an additional one-half percent of actual
amount of bonds issued less amount paid under "F";above.
GOUNTY OF BUTTE
Chief Administrative Office
25 County Center Drive
OroviT1e, CA 95965
COUNTY OF BUTTE MULTI-FAMILY RESIDENTIAL REVENUE BONDS
INFORMATION STATEMENT
A. INTRODUCTION
The County of Butte has adopted a resolution authorizing the County
to issue tax-exempt revenue bonds for multi-family residential development.
This information statement describes how the County's band program works
generally, and answers commonly-asked questions.
B. WHAT SORT OF FINANCING IS AVAILABLE?
Tax-exempt revenue bonds simply a17ow private developers to obtain loans
from lending institutions at below-market interest rates. The program does not
involve the Toan of any County funds, and the County does not pledge any of its
taxes, assets or credit to pay the bonds. The only source of security for the
bonds is the developer and his project. In a nutshell, the County sells its
revenue bonds to a lender, and the County in turn Tends bond proceeds to the
borrower. The interest rate an the bonds equals the interest rate an the loan.
The County assigns all of its rights to the lender, so that the borrower and
the lender deal directly with each other. Tn practical operation, the Toan
works exactly Tike a conventional loan, except that by using the County's
bonding powers, the interest paid by the borrower is tax-exempt to the Tender.
Because the interest is tax-exempt, the interest rates will be below con-
ventional rates.
C. WHO TS ELIGIBLE?
Any owner or developer of a multi-family residential project in the
County is eligible. The major exceptions to this general rule are (1) bond
proceeds are not oval-Table to reimburse an owner or developer for expenditures
paid or incurred before the Board of Supervisors preliminarily approves the
financing, and (2) the size of the band issue, plus certain other capital
expenditures, cannot exceed $10 million.
D. WHAT CAN BOND PROCEEDS BE SPENT FOR?
Band proceeds may be spent for any costs of construction, land
acquisition, equipment, rehabilitation, remodelling, or any other cost of
depreciable real or personal property. Up to 10% of bond proceeds may be
spent for other items such as refinancing an outstanding debt on the property,
financing inventory, paying relocation costs, and the like.
(EXHIBIT 2)
E, WHO BUYS THE BONDS?
Finding a bond buyer to act as lender is the most critical and difficult
step which any borrower must complete, The County does not have arrangements with
underwriters or lenders to buy the bonds, and obtaining a bond buyer is the
borrower's responsibility. Most successful financings involve the borrower's
bank. Tn this case the bank reviews the project as if it were making a con-
ventional loan to the borrower, and agrees to finance the project on a tax-
exempt basis. Amore costly and difficult procedure involves the use of an
underwri-ter who buys the bonds and either sells them publicly or places them
with an institution such as an insurance company. Rn underwriter may require
the borrower to provide additional security for the bands, such as a letter of
credit, so that the bonds are eligible for an investment-grade rating. The
County can suggest a list of underwriters if the borrower cannot find a bank
wiT1ing to act as lender. Finally, it should be noted that some borrowers have
found private investors - usually investors with some financial interest in the
project or the developers - to buy the bonds, although bond counsel should be
consulted since federal tax law imposes restrictions on this method of investment.
F. HOW DOES THE PROCEDURE WORK?
Applications for financing must be filed with the Chief Administrative
Officer, and are subject to preliminary approval by an inducement resolution
adopted by the Board of Supervisors. The County is entitled to request infor-
mation and documentation from the applicant, as well as an agreement to pay all
costs relating to the bond issue. A11 issuance costs are paid from bond proceeds,
and the amount depends upon whether a private placement or public underwriting
method is used. At an early stage the applicant should consult with the County's
bond counsel to ensure that there are no pro b1 em areas under federal or state law.
Once the borrower has found a lender, the County's bond counsel prepares
all the required legal documents for approval by the Board of Supervisors. The
legal documents consist of a loan agreement between the County and the borrower
pursuant to which the County agrees to lend band proceeds to the borrower and
the borrower agrees to complete the project and repay the loan. Also, the Board
adopts a bond resolution ar trust indenture setting forth all of the terms and
conditions of the band issue. Additional documents might include deeds of trust,
collateral security agreements, guarantees, and other security devices required
by the lender. The County assigns ail of its rights under the loan agreement to
the lender, so that the borrower makes payments directly to the lender and the
lender holds the deed of trust and other security.
Once the basic financing documents have been approved, bond counsel
institutes superior court proceedings to declare the bonds valid. The pro-
ceeding takes about 100 days. Tf time is critical, the process can be started
at an early date before a 1 ender has agreed to buy the bands ,
While the validation proceeding is pending, the Board enters into a bond
purchase agreement with the lender, and bond counsel prepares all the documents
necessary to close the transaction. Once the validation judgment is final, the
financing may be completed. At the closing, bond counsel delivers an opinion to
the lender that the bonds are valid and tax-exempt, and the County delivers its
revenue bonds to the lender. Depending upon the terms of the band purchase agree-
ment, the lender may disburse bond proceeds to the harrower entirely at the
closing, or on a draw-down basis as needed for the project.
-2-
G. WHAT ARE THE TERMS OF THE FTNANCING?
The terms of the financing depend entirely on the negotiations between
the borrower and the 1 ender. For example, a bank may be willing to 1 end money
for the project for ten years at a floating interest rate equal to 75~ of its
prime rate, in which case the bonds and the loan are structured accordingly.
Any terms such as interest rate; maturity, prepayment privileges and penalties,
optional extension periods, draw-down procedures, security provisions, and so
on,may be incorporated into the transaction. The only significant difference
between the bond financing and a conventional loan is that the interest rates
are lower, as a result of the tax exemption for interest paid on the bonds.
H. LEGAL COUNSEL
The following two firms have represented private individuals or cor-
porations in matters relating to Mortgage Revenue Bonds.
hones HaT1 Hi11 & White
Attn: Charles F. Rdams
A Professional Law Corporation
Attorneys at Law
Four Embarcadero Center, Suite 1950
San Francisco, California 94111
Phone: (415) 391-5780
Sturgis, Ness, Brunsell & Sperry
Attn: Edwin N. Ness
P. 0. Box 8808
Emeryvi11 e, California 94608
Phone: {4T 5) 652-7588
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Sharon I~Jhi to
June 9, 1982
Proposed Regulations for Residential Rental Property
As you know, obligations of a political subdivision which constitute
industrial development bonds are nevertheless tax-es;2mpt if the bonds are issued to
provide residential rental property where 2D,o (15;o in a targeted area) of the units
are to be occupied by persons of iew or moderate income (within the meaning of
Section 167(k){3)(E) of the Internal Revenue Code). .
. The Internal Revenue Service has issued proposed regulations relating to the
above exemption, a copy of which is attached. Significant points of note in the
proposed regulations are as follows: ..
. 1. ~istered Form. The bonds must be issued as registered both as to
principal and interest trans~r"erable by surrender and reissuance or Herr issuance.
' 2. Ito Transients. All of the units in a project must-be for rental on
other than a transient basis. (Hotels, dormitories, rooming houses, hospii:als,
sanitoriums, rest homes and trailer courts do not qualify).
3'. Similar Units. Substantially all of a project must consist of
"-similar units".
4. Public Use Requirem_ant. A project must be available far rental to
members of the general public. ~~~~ ~.
5. Twenty-Year Pericd_ Each unit in the project must be re«ted or
available for rent fora period or not less than 2D years (tormenting with the later
of the date that the project is available for occupancy or the date of bond
issuance) even though the bonds are earlier retired. (After June 1, 195, the
applicable period is the later of 20 years or bond retirement.) 11n exar~ple of this
rule concludes noncompliance where the owner Converts 800 of the units to
condominiums within 6 years after bond issuance even though the remaining 20°~ of
the units are retained as rental for low income.
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6. Owner--Occu ant. The requirement for rental on a continuous basis
Ss not satisfied as to units occupied by an owner or a person related (family
member, 1% corporate shareholder, etc.) to an owner: .
• ~ 7. Change of Incone. A unit is occupied by~a person of low or
moderate income if it is initially so occupied even though such person ceases to be
' a person of low or moderate income.
~ 8. ~1ove-Qut. A unit is considered to be qualified as available for
occupancy by a person of law or moderate income if it is initially so occupied a~~d
the renter moves, until it is occupied by the next renter.
9. Taxability. Failure to comply will cause the bonds to be taxable
• as of the issue date unless a nonconformity occurring after issuance (e.g.,
sublease to a rich person) is corrected by the issuer within 60 days from t~~e•date
the error is discovered or should have been discovered. (the rule does not apply to
'nonconformity resulting from involuntary loss ar destruction if proceeds thereof
are used for bond retirement or rebuff]ding of a confor7ing project.)
10. ~iethodolooy. A covenant running with the land for 20 years with
power of enforcement in the issuer is provided as an exa7ple of a proper attempt at
compliance.
(It should be noted that no further guidance is provided on whether "Section
$ r~rles" regarding adjustment for firmly size, etc., must be satisfied.) .
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-i rly;E~ ~ [Oid /1i:D ACCOL'I~'i li3G
(N0, 11~)
T.D. 7F340. FINAL ]t•l7ERNAL REVE~tL'E S'=RVICE E~EGUt_ATIO~JS
ON IhIDUSTRIAL DEVEE_OPi.4EP•1T HONDS FOR RESIc7ENTIAL RENTAL t-{OUSItsG,
FILED OCT. 12. 1982 •
(TEY,T)
(Note:. T, D. 7S•f0 is•schcd~Icd to he pLShliskled xn the Fec~cral Register of Oct. ~S, 192,)
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[Final Drait of 9/29/82]
TITL?/ 26 -INTERNAL AE1"E\UE
CIiAPT1;Et I - INT1;R1dr1L Rsi~"ENL'E 5?;R~'1CE
bEPART,~tENT or THE TREASI:~•
SUBCHAPTER A -- INCO~lE TAX
(T.D, 78.10)
PART i -1hCO~lE TAX; T.~X::BLE ti'I;AF,S
IiEGINhIN'G AFTER DECE\1BE'R 31, 1953
industrial development bops for
residential rental hotain5
AC>:NCY: Internal Revenue Service, Treasur3".
ACT10~1: Final regulations.
SUhthJAR~': This documont co^ta±-ts ii:tal regula-
tions under section !03(b) relati;t~ to i~d::strial develon-
ment L•onds the nroc~eds of which are to L•~ used for
residential rcrtal housing. Changes to section •
103{b)(•1)(r1) of the ]nternal Revenue Ccde o; 195-1 :':ere
[Wade by sectia7s 1103 and 110•; of the C..^.^ib•~s :teccn-
ciliatian Act of 1930 (9.1 Stat, 2569} a::d scc:ic^ 221 of the
Tax >rquit}~ and Fiscal Responsibility ?.ct ^f 1952 (?0 5tat.
32.1). These final rc,t:lations i^tern.ct t::~s; ~ro•:isic.^.s.
DATES: In general, the final :ery::lztic::s are cifec-
tire with respect to obligations issued cite= .:p.il ''-i,
1`379. Regulations under F1.103-Sfb)(7j(ii) xre of:ecti~•e
With respect to obligations issued otter Serte::tber 3,
1482:
FOR FURTHER INFOR\tAT10\' CO\T ACT: [-[arold
T. Flanagan of the Lehislation and P.e~:tlaticns Di~•iston,
Office of the Chici Counsel, Internal i'~eti•c:,ua SPrvicc,
1111 Constit:,ticn r1ve. ~l.l;'., ~i'asl:i: 2tc.^. D.C. 2022Y
{Attention: CC:i.R:T) (202-565-329.1, r.ot a toll-free call).
SUPPi,1:,\1c.NTARY 1:iFOR\:r~.TIG~I: -
.. BACI:GROC;I~D
On ?[lay 2b, 1982, the FEl7EIt',L RECISTE'R pub-
~i5tted proposed regulations under section 103ib) of the
Internal Revenue Code of 1559, xelatin^ to ind::st: ial de-
velopment bonds for residential rental oralccts (K7 rR
229Gb). Numerous comments v:ere received and a public
hearing was rcyucstcd. In accordance Frith ~ ^oticc of
public hearinG published in the 1~)DER;iL tiE:::5TL'R on
June 30, 148?, (•17 FR 28.127), a hcari:tS eras geld nn July
27, 1982.
• On September 3, 1982, the Tax };gutty and Fiscal
Rcspvnsibility ~~ct of 1952 (96 Stat. 32•:') (l:e;~ctnaftcr
"TFFRA") vas enacted. Section 221 ai TErctA [:fade
certain amendments to section 103(b)(•;)(A).
EXPLrlNr1TION OP PRO~'1510NS
This document can.ains find rcGulativns relatins to
Industrial dcvclanmcnt honcis issued and'r scctton
103(b)(•I)(A) of tt;c Internal ltcvenue Ccdo of 1 ~9, as
amended by sections 1 L03 and 110.1 of the (_~tz:n:bus Rcc-
onciliation Act of ic130 (9.1 Stat. 2GG9) and scctton 221 of
TEr•RA.
Gcncr:tlly, interest an industrial development bands
is lncluditrle in the rccipicnt's f;ross tncnm~. Scccta:t
103{b)(•1)(A) Itrovidcs an cxcc:ptton for obligations ~chich
arc part of an issue substantiallt• all the proceeds o
trhich arc to be used for a restd~^tial rc ;:al lira?cot
Ject to certain additional renutre~.e: ts. interest on
obligations is not includible in gross incL::tc.
Under the proposed rcr_lattons a residential r
project would he any buildi:z or str::ctc,re (t:::rc,:~',i
"building") or scvera! intar:clatcd bu,id,r.rs each c
taming residential re:,ral units.chich arc tv l:c utiCd
other than a transiea basis and anv facilities ~rl:,c,:
functionally related a7d s;:s;ord:hate :k:_rcto. i•urt:^..
the proposed regulations r:c~,ad ra^t:ire :has a st;cc:i
percentage of units ie re:-~ted to i::divid::als nr 2'~a:r;i:
low or r.:oderatc income fora :...^.t:-:;:;;r n r:od ci r.:
years. Tltc fi.^.rsl regulations amc^d tho ±J-ac:osed r:
lions by providi^~ that a res:d•a::tiaJ :~or,ial nrolcct t:
building or structure which contains a un ; or s:r..ti:~
constructed units ~~•hiclt are to be Lscd c:t other t::.•,n
transicnc basis and and facilities «•hich ire fu: ct:on.
related a..,d subordinate tt:crcta. : tic final rct;::latic:
make sevc.al ether chanres to t'r,c dcftnition of rests
tlal rc:aal vrolect as proposed.
The final rc::u]a*.iv:~s nrn•:ido that a nrniccr is ,
building conta,:-:ir:g a s,r.~le•:,..a. Accor~':::~lt•, d4tac
houses, ro•.ti•i~ouse5, and-ct ar b:::ldia s containi^~ a
gIe d•,e~ilin7 u::it n;at• corstautc t:: n: cis. 'r::rtt;er.
final rcguiaticns urcer ;I .1J.; ;;f'•)(5)(i~:) r_:o•.:d~ .,..
build::, is a d:scrctc ediiicc co,s:st:nt-, ci as inti~:::~:
fe::::dauon: ante: ~~:tills, acrd roof..~1s suer:, units •...
are cart of a'~oi!di~ry (e.,yry. , ce::ai.^. to•;.:::ouscs c:
in a i;sildu:^, e~•en ii senaratoir o~•.~:ed) bit ~chich c.a
ccnstit:ae an entire build:,: arts not :4ss.^^atial :.....
projects. The i.: al regulations ceiete t^~ rt:ic that r.
property as a single cuildi:~~ or s:r::ct_: ° o:ply if a s;
election may be ,:.ado ~:ith respect to ssch property
section 1CS(al{3)lu){ii).
Section 1.103-3[b)l-:? also provides that sev~r_
buildings v:ltich are o~~aed b)' the Sarre ccrson ant :~:
are ii^anced n:.rsua:.t to a con:....,. a'.a:, t':ay :;e t:'c~.
part cf the same nrolcct. The r ::izrtcns nrovtd~ th
purposes of 81.103-i;{b) a cc~^~c : cl _.~ ci iina:tot^~
fists if all such buildings arc cro.•td~•d v::t;, tk:crrec::•.
the same issued. As such, the crv.•tstons of 51.1C:i-
8(b)(~)(ii), relating to the ia~': or ^cue:•ate incon:c r~
quirement, must be satisf:cd :~:ith respect to 20 rc.r
(13 l:crecrt in targeted areas) of fire un;.ts C011ta1,:tS
such b:,iidings.
Tnc final regulations clarii:~ ttte mcazing of :h
term "sir: filar units" by substttur7~ tt:~ ccr;,~ "sir:,,:
co:tstruccd ::nits". a si^•.i!arl~• co:7str.:ctcd unit ,s n
t~•ith sitrilar nualit~• and t~•rc o[ ccatructt~tt. such u
need not co7tatn tl:c same :tumcer of roa;;:s or rise s:.
amount of floor space.
The final reg_lations also clarii`• ,l:zt units occ
by resident manaficrs and other c^:ro•:ccs ~~:ho arc r
sonahl}' required to maintain s•csidc::acs un the nrot~~
arc functional)}• related anti sutaorda;zatc iacthttcs.
Proposed Sl.103-1i(b1(,){iii) is rcc?csirnatcd as
§1.103-3(b)(G) anal is amcndcci t:y this '1'rcayury i]Lct
so as to clarify that a rcasnnatac pcrtod tar the tssm
Wks action to cnrrcct a fatlurc to cnn:pl~• ~~:,th the rc
quircntcnts of paraGranh fh), so as to p:•crcrvc the t.
excml~t status of fife: of,•ht;attan, is at Iu.~~t GU cl,tvs, ,
longer pertcti is a!]o~rahlc nnl}• tf rcasnn:tL,l~• ncccss;
hurthcrmorc, the final ret;ulattans arc an:rnclccl so
provide that such period commences ~rlu:n .tst}• nancai
Publis},od by 71{E BUREAU OF NATIONAL, AFFAIRS, INC., Washington, O.C. 2447
... . .
' i ` _' ~ ~ 2 '' .-(Na:• •~9$) TAXA71Ot~ ANO ACCDUNT[h1G
pllance is first ciiscovercd or would have been discovered
through the exercise of reasonable diligence.
In tltc case of certain events caustnq a:t invaluntarv
noncampliancc,.thc final regulations moc7tfy the requirc-
mcnts of this paragraph (tl) fa: the prolcct, ~ti~ithout alter-
fng tltc tax-exctttpt status of the obligattotts, tieu•
Cxampies of such eve:tts r:hich [ermtnate tltc cen,itt;:o:ts
rental t•cquircntcnts arc the transfer of title ht• deed i;t
Iicu of foreclosure and certain actions•of a I=cderal aren-
cy after the date o[ issue v:ith respccf to the nro~cct. The
final rcFulations also provide that such termi:attc~ shall
not apply to a pro)ecr upon forcclasurc, transfer of title
by deed in lieu of foreclosure ar similar occur;•cace tt the
mortgagor or any related party thcrcafter r^at:t;ai, s or
acquires an oa:nership interest in the pro)ect for tax :.ar-
poses during tl:e qualified project period. As such, exer-
cise by a morttiagor of a statutory risht to rcdc^^;;;icn
after a sale by the mortgagee anon the default of tI:A
mortgagor wi•Ii mean that a project v:ill be recuired to
meet continuousl;: the requircr:~crts of g1.IG3-81~}(~}.
The xu]e contained in 81.103-8fb}(5)fi) of tI:° :dice
which ~~:ould prchiltit occunanc}• of any unit in a resicea-
tfal rcniai project by a person related to tl;c o::•ncr is d~-
Ieted. Aloreover, a unit that fs occupied by a restdsat
manager or other necessary c:rplot•ce (c.g, .^.tai :tc-
nancc and securit}' personnel) and That is a f~. ct'~; ;11 :•
related and subordinate facility ;Hair be occupied b•: t^e
onncr. i.'nder gI .103-8(b)(•;)(iv) any buildi:t5 :~:hic'; c;,n-
tains fc~ti•er than five units and one of the units of •.:-hich is
n~vncr-occupied is treated as an o~~mcr-occutied resi-
dence under section I03A and not as a residential re:.tal
project.
Section 22I of TEFRA amended section f03(b)l~){:~)
of the Code by pravidine that units in a project :r:-~st ~~
rrtaintained~as rental units fvr is dividuals a.•:d fa:::i:!es of
Iaw or moderate inco:^e during a qualifi•~d praj~ct ^~_i--
od. Further, the final resu]aticns provide tint a]i cf :~
units must be mainta!: ed as rental units fo_ t c- lc::~•: cf
{I) the qualified project period or (2) the tore", v.° t ~ :.s-
suc. As such, the regulations provide that ail of t"c
units, ~shether or Hat t?rgeted to individuals or fa:-:i~i~s
of lo~v or madcratc income, t:',ust 1<s maintai: ed as r:.:ttal
units for a mini:;;ur:•t of the qualified project l;ericd,
which is approximately eq;;al to the icnger vi {1} 17 ;:ears
after the date an v:hich 50 percc. t of tl:e u:tits are ?:: st
occupied, (2) vre-half of the term of the ]cn,est ^:at_,i:ti•
alpligation (includinfi any tofu"ding cbligaticns), cr l3} rho
period Burins v:hich section & assistance is pro•:•?c•d ;:•itlt
respect to the project. The rules provided b.: TE= ~: arc
effectiti•e tivith respect to obligations issued niter Sepient-
ber 3, 1982.
Se~•eral cammenrators rccornmendcd that the pro-
posed rule, refatins to the ]o::• or madcratc in,:omc occs-
pancy requirement, provided in S 1.103-ti(b)(5)(ii) we
deemed met tirhenever a dcvelct;cx of a project enters irro
a contract With a I=edcral or state agency which rec•~ires
chat at lcasi 20 percc^F of the units be maintained i~rr.~r-
sons of low or moderate income for 26 years ant: s::c:t
agency provides rent subsidies to such irdi~•tduals or
families. The rccon;mendation is based an a star^_;r:ent in
tits Icgislativc histaxy, Sec C:ottfcrcnce Report art the
Omnibus Rcconciliatton Act of 1?30, H.It. Rep. ,:o.
96-179, 96th Congress, ?nd Sess. 1SZ (1U30). The fi :s!
rcgu)ations under § I .1Q3-S(b}(7} adopt tttc rccorr.:r:c.^•d ••
cd, "safe harbor" trcatr^cnr, ho:revcr, as a result of
TfiFRA rite trcattnent anlv.applics io oblibauans issued
prior to Scptcr»i~cr •f, l982,
Finally, rite dcfirition of "individuals of Io:v or
madcratc income" ~t•as clarified by •l•Cl:R:1 so as to ara-
vldc that an individual or fanttly ;hall be dctcrr;:tncd to
Itavc a law or madcratc i:tcornc tf Such individual's or
family's incotnc is SUrcrccnt ai the avcraCC area median
lncatttc. '1'hc rcgutattons under g i , 103-8(fr)(Fs}(v) rcfIcct
such t:larificatton.
(DER) 10-13-82
REGI`%LATOitI" I'LE?~IIlIL1T1• e1CT
The Internal Revenue Service has concludccl that
these final.rceclations arc interprctattve and tiros riot
subject ro the rcGatrements of 5 U.S.C. 533, Acccrdtnc-
1}•, these fi;,al rcculattons do not constitute rcr,ulsttons•
subject to the tZeg:;latory Flexibility Act (~ U,S.C. Chap-
ter 6).
NON-APPLICATIO~E DF EXECL:TI~'E O;tDFR 12291
The Treasure Dcnartment has detcrmi.^.cri t"at
these firm re,~_latieas arc not subject to revtc:v ::n~'+^r
Executive O:car !2'_?i ar the Treasury and O\;, trnP;e_
mcr••taticn of the Order dated April 2S, i982.
DRAi~TI\G 1\rFOR\1r1TION
Tltc pri: cical author of ti;cse final rc~ulatio^s is
E•iarald T. 1~]s^a~an of the Lcpislatian an;4 Zcaul::::cns
17ivision of ti:_ +`~fftcc of Chief Counsel, Iatcr:;al ciavenue
Scn•iee, 1~ioa-e:•er, cerso;tstel fro:-n other offices of t}:c
Internal rZevca,c Servtce and Treasury Denartrncnt oar'
[icipated in dcvclcct^~ the rcSulatio:ss, both on trotters of
substance and st}•lc.
LIST OF SL'f3J>~CT5 ]N
2b CFR l.bl-1 --- 1.281-4
Income taxes, Taxable income, Deductions. Exer;ptions.
Industrial develap:r:ent bonds.
.4doptlan of a.^~: ~ments to the t•eg::latinns.
Accordi^,ly, the areoased a^tendr.^ents to rl:e In-
come Tax Ree::iattons (Zfi Ci•R Part 1) are adopted as
tollo•,vs:
Pararrap't I. Section ].103-8 is a-nendcd b:• revis-
ing the secc^d sc:tte: c: of oaragr2,.lt (a)(~}, b:• re:•is-
irs parar•-a^ , (b), by celetin~ Esa^-:pfes (l) -:d (2) of
paragrat;:t {ij a:;d r_dasiS:sartnS Exa-voles (3}, (;), (5),
(6)r (2)~' a::d {St th•srcof as ~'xan:pies (]), (-'), (3i, f''
(S), avid f6) rest;ectiveiy, a::d by a; ;e^di.^.~ redest~~
ing Exa:r~:c (fi) e: p2ra2rath (i}. Tire revised and
amended prcvisicas read as io]lows:
g 1.103-8 Irt~t cst on bonds to finance certain
exempt facili:ics. _
(-]) l.~ld,^:ate Lee of proceeds. •
i-or exc ;;nfe, such t;roceeds :~:ill be treated as used to
pro•:idc resid^^_iai .-e::-a1 t`rav_rt:•:~:hcther the 5:2~c or
local gave:^:-:e::_al u:;it (i}•co::str;:cts such prone:°•: a:td
leases or sc]ls it to .-t; person :rho is rot an c~:eTc; ;.cr-
son far use in s,ch re:•scn's trade or hvsi:toss o: l::sst:tt;
such prat;err:; (ii) le:;cs tl:c ^rocceds to am• sac; r~:•scn
for such pur~osc; o: (iii) le::ds the nrocecds to b~.^J;s or
other financial i::stitu,i;,ns in order: to increase t::c sue^ly
cf funds for ^orr_are ]e: Bier, u: der conditions rcy~~irtng
such banks ar cthcx ::~:t:scial institutions to use s::ch i~ro-
cccds only for iurth:r lending far residential rcr,tai
property.
(b) Residential rent.! proncrty- (1) C~ncr.~l rule
(or obli~attc:a l,s~~ed aRer:lpril ~-1, 1 U7.'J. 5ccnan
f03(h)(!} shall n:t[ a^:~1}• to ant• ahligation ~:•hich is issucrf
after :1pri1 2-1, 19;9, and is part of an sssuc substar;;tally
all of the proceeds o(:~:hich arc to ho used to pr,~ti•trfr~ a
resid4ntia] recta! era}ccF tn::•hieh'_0 percent ar r:;o:•e of
tic units are to L•e acct:~:.•tcd by tndi:•tduals or fa:;:tltcs of
lo:~• or moderate tncarr,c (as dufinc:l in paragra{~:r tt~1(5}(v)
of this section). In tl:e case of a tat•f;ctcd area ]reelect,
the mimn:um pcrcc^tarc ai units u•htclt are to he rrrcct:icd
by itdividuals cf lo:c• or moderate income is 15 percent.
Scc t;cncrall}• 4 1 .103-7 for rules rclauns to rctundtt:l;
issucs.•
PVbtiShod ny 71iE ElUREAU OF NA710NAL AfiFAtRS, 1NC., 1Yashington, I7.C. 20037•
' ' •'10-J.3-82~ ' . (DER} ,
i
.~
•
7AXATIOId AND ACCOUN~•
(3) Rc~istrarinn rcqufl•cmenr. An)• oUligatian (in-
cludinr any rcfurdinf; ct:li ativn) issue:~i niter Dcec:r:Lcr
31, 1951, tc provtdt: a resuicntral rental prolcct ::rust be
Issued as part of an tssuc, each ol:li:;atron of ~':hich is in
rcgistcrect furor (as dcitncd in paragraph (b)(8)(ii) of [his
section).
(3) Transitional rule. For purposes of rttis section.
obligations issued after .1ori1 2•l, ]179, may be treated
as issued before April 25, 1979, if ttte trarsittonal re-
quirements of section !iU•1 of the \fortyape Subsidy £,ond
Tax ~1ct of 19$0 (9-l Stat. 2G70) arc satisited,
(-1) Residential rcnral project. (i} Ingc::cral. ~-
residential rental project is a buildi:;g oI• strt;cu;c, to'
Berber with any functto::allt• related and subardinatc fa-
eilitics, containing; vnc or more similarly constructed
units -
(a) 1'Jhich arc used an other tha71 a transicrt basis,
and
(h) Which satisfy the rcquiretrcnts of ~ar2sraph
(b)(S}{i) of this section and are available :o r.:e;::be;s of
the f;eneral public in accordance v:ith t:•te requircrnent
of paragraph (a}(2) ci t::is section.
Substantially all of cacti crcjecr ; :us*. cot.*.ai:: st:ch u^its
and functionally rcia:ed and subordinate facilities. Ho-
tcls, motels, dormitories, fraterntrr a^d sorority
houses, rooming; i:ouses, hospitals, nursing ha:::es,
sanitariums, rest homes, and [railer parks ar•a courts
for use on a transicrt basis arc not residential rental
projects .
(ii) hlulriplc 6r•ild:rgs. (a) Proxi:::a[c buildi.-t~s or
structures (hercinaitcr "buildings") ~ehich have s:::ilzr-
ly constructed units are treated as Hart of trye sz:;:e n:o-
ject if tl:cy are ov.;tcd for Federal tan narcoses "•; the
same person and it the buiidir.,s are fi :azced pursuant to
a common plan.
{b} 13vildings arc proxi:::ate if they are lccated on a
single tract of lard, The term "tract" r.:eans any ;,ogee!
or parcels of lard v:hich are co,,^.tis'.:vus ezc~:;; fo_ t::e in-
terpOSiL10n Of a ro2d, Street, sLreai:i 0. S_:^ilzr nr0^er -
ty. Othen+rise, parcels are continuous ii tizeir boundaries
meet at one yr more poi..^.ts.
{c) A co;nmo:t t;lan of iina:!cin{ exists if, fur exam-
ple, all such buildi::SS arc gravided by t.".e sz:r:A issue or
several Issues subject to a common i.^,dent:.tre.
(iii) Fiuretionallr relat°d a,~d subordinate facilities.
[Jnder paragraph (a){3) of this section, iacilirias tE:at arc
functionally related and subordinate to residcntial rental
projects include facilities icr use b:• the to^,^;s, for e:c-
ample, sv:immins poufs, other rec:eario^al facilities,
parking areas, and other facilities v:hich arc -c,son~bl•,'
required for the project, for example, l:eatr ; and cool-
ing equipment, trash dtsnosal eauipr,;c:tt or Lass for
1`csident managers or oral^tenance Qersot ^.el.
(iv} Ott•ncr-ecctlpied reside;tces. ~~ar r::rposes of
section 103(b)(•t)(A) and this caraSrarh (b), rr,~ ter.;i
"residcntial rcnral nro}ect" does not i:tciuds any building
or structure ~ehich co::tarns fe::•cr titan rive u:Iits, one
unit o[ v:hich is occupied by an av.•n?r of the units.
(5) Rcquircmc::ts roust 1:e ccntl::;:ouslt• s3rlsiicd ---
(i) Rental requiren:cnt. C}nce available for occupancy,
eaclt unit (as defined in l:arat;ranh (b)(~)(i) of this section)
in a residcntial rcnral nro}ect r.3ust be rented or available
for rental on a continuous t~asis during tits lon~cr of --
(a) the rcmai:rips' tcrr:l of the at,iirauon, or
(b} the quattfic~f pro]cct puriad (as defined in para-
Sraph {b}(7} of this scctton),
(ii) Loty or tttorfarare income nccuna:tct• rerruire-
mcnt. Individuals or fanatics of lay: or n:udcratc trcamc
must occupy that pcrccnr,trc of cornnletcd units rn suclt
project agtplicablc to t1:c pro}ect antler ltara~rarh (b)(1) of
this section conunuously durln~ the Gualtirod nrolect pc~-
r1ot1, For this pur(tosc, a unit occi:ntcd t.}• an rndtvidua]
or family ~:•ho at the coatmcnccnu•nt of ih~ ccc::nancy is of
low or moderate itticomc is treated as occupied by such
• indi.•idual or family duri:t4 their te::anc•; in such unit,
,;yen thuu~h they subscttuen;J:• cease to ;•~ of lu:r or r.^cd
CraLC 1nC(}:'.tC, \iprCaNCr , Such unlL i5 trCu;cd a5 C..^CUt11
by an trdtaidl~al nr [amt'.v cf lo:r or ^:cc;cr~rc tacon:c !:n
rcocct:ntcd, otltcr than fur a tc:r,^.o;ar•: r.ortc;i, at:~.ti:ct
time the character of the unrt steal] L-c : rc:c•cr:r,rned. I7
no event shall such tc~:.rotary lter:ed exceed 31 days.
(6.) Eff_^ct afpos~-lssua: cc ::o.•trn.r.nlt.t^cc. (i) 1.•t
Cener.~1, l,n1C55 COrrCCLCd:':rtt:In a teas^::; fc rcrtca,
noncomuliancc :rith the rcc:arcr.:c~a of :;;r; nara~r.~ett
{b) st:all cause the pro}pct to be t-ra;~•d as ::;t:cr than a
project described in scctia:t !03(b;fy)t:,) a ;d thts Tara-
- graph (b) as of the date o: i=sLe. ~!_~:-.::t tss~c to tz.-::•:ir
such. project ceases to c+~alifv, su!'scc•_~,- ccafor:::::v
:ci[h the retluircr^.crzs:eill not alter t"e taxable status of
such issue.
(ii) Correction of rnrco.^:~liu :ce. if the issuer cos'
reds aav ro^co;;tplia:,cc a; is. ,torn e:•c:::s occur r is
after the issuance cf the c4~:i~atian :rith:a a : cason:t:;ley
pericd, such nor:cc ::L,liance (e.~., a_-t unac:;!:o;i~cd sub•
loose) shall rot cause the c:oicct to ~c a ;;; otect ^ot do-•
scribed is this >,ara~ra~a t~). A reasc:t~'-ie r•criod is at
Jeast t;Oda:•s after such error is first drscr•:crcd or
would have been discoc•ered w ih~ exercac o: rcasvnabi
dilige.^.ce.
{iii) L•t:olunrarr lass. (z) the rcuuirc^:ents of rare
graph (b) shall cease to a^pl~• to a t:reicct i:, t*~ event of
invoiusuar:•neacemphancc ca~,:sed U': (rrc seizure, :•eq
uisition, icrcclosure, tr=taf~r of ::?~ ~•: d•,~~ to lie:: ct
forcclasurc, ct:a:t~e to a : e~'craE lour c: az action of a
Federal atie::c)• allot the C?:C CI I$SCC :':n:Ch ^rcvcnts an
issuer frv~i c..iarctn~ :; r rccsircr^e^ts cf ti71$ Hato`
Brach. or con.._::^ns[tc:r or s:::::]_. o•,-.., "., onl:• if,
:':i*.h:n a rcasoaa"lc cer:cd, cut:cr :,.e col:r_a*.:on used to
prv:':de S::Ch nrDl:'CC :S r e_?r_~ CC a::C::::C5-c•cL'lt'cl4 aS ..
consceuence o: such event a: e aced to pro•::c~ a ora}cet
v:hicn r,:eets t::r require^:e.^.t of sectsel 1t7;:~:~}{1j{:.) ar.:i
this paragraph (b).
(6) T?:s provisions of naragrap;t {b){5){iii)(a) of t`:i<_
5eCL'On shall C~asC to akvl:' ;n s nr0:CC[ su:::°Ct to fOrC`
closure, ira::sfcr of title ~~ rep t :~li•au c: `.,reclosurc c
similar ever.[ if at arr~in:~ d_..-:5 t`:a* cast^ai the q::ali
lied eroject :.cried s::hsea::e^t to s_ch ev~ar the obl:rot
on the accui_~d p;srpo o^i: ;ton tas cc...._dtn ~1 .103
13(b)(-i){i~-}{3j) cr a reiaze~' ^~rscn (as d~....ed :n ~1 .103
10(c)) obtains an o:~;,ership•ii;zerest to s::'ch project for
tax purt;ascs.
(7) Q~~alified prolecr period. The term "qualifit:d
project peria~." :::ea.^.s---
(i) i•or cblit*attons issued ai:cr :~t:ril ~'~, 1979, ar.
prior to Sr .....~ 4, I9$^_ a per_.,u of ~'J rears cam-
+:.^^ei~s c;~,thc gat^, cf t!;c gate that ["e nro,cct bcco,;.c:
a:•, iJable for occut;a:sc.; cr t:^.c data ci i;s::c: of the ot~lic;.
lions. The rcacire~:ent a: cara~r?th (L•)(~)(ii) of this se
tio:t shall be dee^Ied meL if [ a o::~~; et tl:c rroicct
contracts ~+:ith ar'edeal or state ac.::c:• to n^atntatn aL
3east ~0 percent (vr ]~ rcrcent in the case e( [ar~etcd
areas) of the uat;s fer !o:': or :;:cdc:ate lac:,tc in~iivid-
vals yr fa,:alics (as deli:;^_d in t:aratirat;h [h)i5)(:•) of [his
scctivn} for 3U -•ears to ce:aiderat:oa i~r rrr,t suh;tdtcs
for such individuals or famrltes for such r.•_: tnd.
(ii) For obligations issued niter Scncc::-:tour 3, 195:
a pericd bGt;:^.n[ny on tits later of tt;o first av on r:hich
l~asC ]0 rcrccnt of tt:e units in t", nrolcct ar.: first nccu
pied yr rho elate of issue of an ahli~atton dascrtt:cd in sc
tiara 1U3(b)(•;.s(.a} and this paragraph and cr.Ut:tn on the
later DI [i:C date--
(~) 11'hich is d0 rears after the date en which at Ica
50 percent of ttte units in the prolcct arc first
• occupied,
(t+) 11'h?ch is a qualified number of tlars after the
date vn :chich any of the units in the pro]uct is first oc
cupicti, or
{c) On:L-hicft any assistance rrovided sith respect
the pro}cct under section 3 of it;c l;mtc~i States 1{ousin
Act of 1137 Lcrmtnatcs,
published by TH>w E3lJREAtJ QF NATiOt•tAL AFFAtF1S, i1QC.. VVashitlglan, D.C. 20037
' _ '~ =`~ • .(No. 158) .
.,
TAXAT1iJ[•1 AMID ACCOL7NTIHG -- (DER) ~0-13-S2
~~or purposes of this naracraplL (b)(7}(ii}, the term
."qualified number cf dat•s" means ~U percent of the total
nvtnllet• of days carr:prtsln;; the term of the ak:liCatlcn;vlth
the longest mawrit;• is tht: issue usctl to pro.•]c'.c tltc pro-
• fee[. In the case of•a :cf~~ndirg of such a;t issue, the ]unr-
est maturity is equal to the sum of tl:c >acriGd the prior
issue n•as outstanding and the lanrest term ai any refund-
ing ollligations
(8) Other definitions: For purposes of this para-
graph--
(i) Unit. The tcrt~t "unit" means any accamadatlon
Containing separate and com,rlete facilities fnr li;•inj;,
SlecpinG, ca[irlg, ccal:iag, and sanitation. Such accor:-t-
tnodations may be scr•:ed by cctttrall~• located ccuip-
mcnt, such as air co^dttionin~ or hcattrg. ; bus, for
example, aft apartt:".c::L containins; a li:•in; area, a slecn-
!ng area, bathi: p a: d saritaticn f~cilitics, a^d coci:ina
facilities cquif:pcd v:ith a coaling range, ref::it;erator,
atLd sir>l;, all of;~•hic`t ar~ separate and distinct from oth-
er apartments. ;~:auld constitt:Le a unit.
• .(ii} In re,:;isrered form. The term "in registered
form" has the same r:c:.nirg as in scctior. 50•;y. With re-
spect to obligations issUCd alter Dcce:rtbcr 31, 19B?,
sash term shall ha:•e t::e same meani.^.g as prescrited in
section 103 (j) (~incl~di: }the rcgulaticns thereunder).
{iii) Targeted a; ea prcr4ct. The tor^-I "tar¢eted
area project" mcaZS a prolcct located in a gt:alitied cen-
sus t. act (as defined in ;6a.103n-2(b)(•1)) o: an area of
chronic eeonamic distress (as defined in ~6a.103~1-
2(h)(~))
(iv} Buildi:l,~ or strscture. The term "building or
• structure" generail;; ,;:earls a discre?e edifice o: other
man-made coast: ~.lctto:t Consisting of an i^u~pendcnt
foundation, outer ::•a:is, a:.d root. :1 sin,~lc ::alt r:llich is
7tot an entire building i:::t is tncrcly a pa: t c; a bt;il~'•in~ is
• nor a iuilding or st:.t:.:t::rc ;:'ithin the r:eari::s of this sec-
tion, rls such, ::.hick si tae tor.•aho:acs arc ::at tr.::;!ings
if their foundation, c::?er:~:alls, and .oof ara :tat tr:dcpcn-
den[, detached houses a.^.d ro:rhouses are buiidt :gs.
(v} Loty or mcrjcrztc income. Indi ; ideals a :d fam-
ilies of Io:~: or r.';Ddcra;~ i; cone shall tre de[er;;^invd in a
m:SttllCr COn515[C .t :':1[.i G'Ctcrr^1nat1D:t5 GI lai%er 1nCC:'.":f;
families under section o cf the Uritcd States r:auslag ACC
o! 1937, as amended, excec: !hat the Ccrcc^tar!e of ; :edi-
an fiross income v:hich cvaliiics as loin or r.:cuera:c in-
come shall l1e 80 ccrcc:][. Therefore, ecc:a;arts of a unit
are considered irdi;:c::2is or far::ilics of lo•.;• or moderate
income only if their auius[ed income (co^:cs:tcd in the
manner prescrit°d :':it•}: 1. 1Gi(k)-3 {b)(3)j does net ex-
ceed $0 percent of the n-:adian gross inca^;c for the area.
Nancithstandiny the tc:~_oin the occt:t:~rts of a unit
shall not lac considered to be of law ar r-:adcratc income if
all the occupants arc st::dcnts (as dciined is section
15l(c}(Y)), no one of :•:^c,,, is entitled to file a joint rctulrn•
under section 6013. i}:; mc[]:ed of deLerminira lon• or
moderate income in effect on the daft of isss:e •;ti•ill be de-
[erminati~•e for such issue, even if such mcLl;ad is sGbse-
qucntly changed. In the c:•cnt prorrams under ~3{f} of the
Housing Act of 1937, as amended, arc torr.;inzted orior
io the date of issue, the anplicablc r.:ctl:ad shall be that in
cticet immediate!)' prior to the date of such termination.
(9) 13asmpl~s. '1"ha follov:ing examples ]llusn•atc the
application of this pararaph (b).
F.xsmple (1}, In :1::t;ust 1932, City !C issues S10
million of rcf;istercd r~•o:tds ::•itl: a term of 2J }'ears to be
used to finance tk:c construction Df an anartrr.cnt building
to he availalslc to rncr.? ors of the s-cncral public, \ tuans
the proceeds of tl:c bares to t.:arl;oratlnn ~1, the tax o;:71cr
of the project. T11e loan is secured by a prD:;:ISSar)' note
from t`1•and a mortgage on the prolcct. The r,tartgagc re-
quires aruxlal pa:'r„cots sutficicnt to arnortlzc the pi ]nci-
pal and ilucrest cln the t:oncis. {;tst'poratlon l~3 nlailualns
2f1 pcrccnr of flu units I:: the prolcct tar low ur nu1c14ratc
lncon;c indivisfuals ancf meets all of the requlren:ents of
this section until 2002, at :;'bleb tine \1 com•crts the nro-
jcct to cfilccs. The bonds arc ]ntiustrlak dc•:clc;r.^:cnt•
':o::~.ls, but because the nrocecds arc used for ccnstruc- •
lion o[ rLSldcatial rcntsl nroncrtp, ;~:hich a as cxcr.^^t
faciiit}• unc:cr section ]03fb){-~)(f~) arc} aara; r.zo;] flr) of
this sectica, sectlort 103(11)(]} does act ae~i:•.
Ea~~:::clc (°). The iacts arc tk:c saL::c :is in cxar.,nfc
(l}, exec; : tl:ai tllc building is co;lstructcd adracs^[ to a
factory, and tllc factors' cmploS•e~s ate Lo i~c ~trcn r-:ef-
erence in selecting tenants. The hD:,:is arc tn~ustrlal de-
velopmen: bonds and [lte faciliLr is not a ,exc::;at fucllin
u:;,-'.er section 103(11)(•1)(A) and paraprzph tt1) of i;:is sec-
cio:t heca~sc it is oat a facilit}• constructed for use by the
gercral o~.:'~lic.
~.rar,'+n1~ (.3). The facts are the sa^~e as iz ex.~mwle
(1), except that tl;c proceeds of the atilt at:on a.c rro-
vid_d to ,ti. a coopcrati;'c housir.5 ca: ca: a;;c;l, ro fin~acc
tl:c Bens;-~c;ion of a caoneratn•e 1:eusi::_ crc;ec;..~ sells
stet;; in such caoacr~tivc to sharchci~.~ers, so :-c of v:ba:n
occup•: t}:c tints in the ccnncrati:•c ar•3 so:::c ci ;~:;;;.::; rent
[hc t:nits to oti:cr persons. S::ch ora]cct is ;.ot a reside^-
tial re^:al praject;;•ithi:t the mean;^~ of scct:cn
]C3thj~-)(:~.) a::d :1.103-S1.:} uecausc !ess t1:~a X11 of the
ur.i:s in :hc b::i!di7~ arc L'SCd [cr re^tsl. F~:•ts-;cr, the
bo:~:s arc r.-:ortgage suLsid}' ba^ds 4:,aC': Sc:CC:Cn 1~~3.~ L•e-
cat:se r.:ore titan a slcnificant oortlo:: of t~, crccecds are
used to . ra.•tdc financl^ iar .cslc~ a, ;or.°,~ of r:hrch
arc oi;~cr-eccLricd a nd~somc ai:~:hict: arc us~•d in tale
trade or buslress of regal.
Ex3^:plc (Y). On rchruart• 1, 193.1, Co_::;•: Z issues
registered otligations;•:ith a tern cf 3 ~:eats and loans
t1:= t3rccc=ds to Corror.,;lo:] V to co^s;. pct ~a.,.aa
t).7.t,:.ertt rolaet for tenaa;s :cho ara n3;•~...~ o: oldc..
The rr.orr~aC: cn the pre]cct sec::: es : ~ Joan.`.=.t t'ra e::d
of 3 ; ea: s , 1' ectains r~rt-:a:..•u :i^ar..,.. fc..,. ;.: ol~ct
frc:•.: a ce....,:ercial Jcadc:. the crol•~ , i _ of ta. ...ed
zrc~ ^rolzc:. 1' ltas rot cent:acted ;~:I;7 z,•,• ___ra1 0+-
Sr?[c: a~~^C:' ?a nr0;'1C~ :'Coca! a55ist~a~c :.:~cr sccLi~
cf t'r.~ L: aad S::aes Houslns .•~ct of 13i ..a a co^;i;;IC,,.
far L}rG;'itil.^^. [; fi:7~.^.Cita IDr eG:ISC_.:C:IC.^, i.-C:',:1:C5 t{13t
the ~°C~ t0 CI:C t)rD]CCt eCn;~ln .. CUi':......'i: il'.4. . _ :rCs
tt:~ rro! °c: cc ,:std fnr ci~'c. i:• tc-1~..-s'._::a : ~~~-.:..= nc-
C_"?^.C\' C7 ~~ C~;'CC:1C D1 :lr~ t::1I'. ;::.,._ t: ,'0?~C? LO L::iiL-
1:d_3d5 Cr 1?:7:1!1:'.3 DI loi': O: %.CdC':~[L' ... .°':C. ,; Cr:l:°''
th_ do°d ro;•iucs that "Such co;•e..~.._ s::_11 ru::.:ith an.~~
L•i:.d t::~c la: d i:c:n the da;c that :c: c~rce^. of t::.. u:ii;s
in thn :._ oi;;ct a, c first ecct:oicd c::t:i tc^ i•ca: s alto. the
d.::te t^st at Jeast halt the u.^.trs are :.. st ccc•.:c:e:s. T`re
ri~;1t to er:iorce these restric[iors is ;~cs?~d to Co::::t:•
Z." I^ ly?0, 1:o:•:cver, loss t;t:r. 30t:e:car; ci ti;_ .:alts
ate occ_t:ted h', fat~illcs ar i::d! :d::ais of lo:>; or :~cder-
zte i :Ca,':':e5, a^~ th:c° r.^.0:1Li75 alter Jc,rr.::a O: tia5 COn-
d"sties? Ca:::*:• 7. }:ad oat co-n,:.c teed c:^.:a_cen:c:.; cf Lhe
ct;vcrant. ?.ltho:rz;l] on the dare o: iss;:c the crocce :s of
tl:c a;,iir3ticn v:erc used to provide a resi~~r:;I:li :~cntal
protect, t~,e ablicatlon:;•ill rot be trc~ted as vrc•:idl^~ a
resi~c^tla] rental proleo n'it}tin ti:e ^'~~..^.ln~ of ,ectlon
l03~};)fY}(A) as of Fcs~ruary 1, 193.1, because ;he prolcct
d:d rcL r.:ect the rctluirc:rrcnts of this Sara^.ra^!1 for at
Joist 10 years after a[ least SU pcrcc^t of ttte unlLS arc
first cccupicd.
Ex.~;;:plc (; ). On]anuary 15, 1933, Sta*.e \ issues
rc~istcrcd Dbli~ations i;•tth a term of i~ }'cars, the pr~-
ceeds o[ r:itich arc loaned to Cort;ora:fan i to constr:,ct an
apartrt:cnt buildin. , ThL prolcct •:eill t:c a "t.'.rt;ctc~i arcs
prolcct", irtttun the n;cantnti of 5 1.103-$(iaistflii). i;or-
por~ttcn P i;;;c;:ds to rcpt ail the v::tts [o ]n: I:•]tlaal~ for
their resi•acnecs. mauttaininG J3 p,re::n; of the unttS ]n
the prolcct iar trciividuals ha;•Inr, lo:;• ar rneverate ut-
cc.^.:cs, for 1~ )•cars. ]]i ]tI&S, lto:;•c:•cr, C~~rl~ora;lap p
co; :•cr?s 30 t:~rccnt of the units to cond~:::Irsu:ns. Lorpo-
ratlon f' rcpa;•s the loilt to State X ;;•ltlch, In Lurn, rc-
dic:m5 the obkl,~anons. l'hc nt111~;auDns arc not usi•d to
pro;•ICie .t ressdclltial rental nrojrct .~:ltln:] th:: ntc.tlung of
scctit,n l03(h)(•1)(r1), .loll ;:ll the ]ntcrrst l1.el~l ur tnl14 f::lst.i
an such abllsattons;;•ill l:c inclu~.l.tblu ts: f;ross lI1CC;trtc.
Published by Tlt~ t3UREAU OF NATIDNAI. AFFAIRS, iNC., Washington, p.C. 20037
."~. ~•. •' * 10•-13-8•-. (DER) TaXArtor~ nr.t~ ~`,cco>_1rrT.~.~ ~ {I~o, x.95) J T
Esatrrfrlc {6). On Januar}~ !5, 195-;. State Z issues
rcfilstcrctl nktlrtiattons a•itlt a term of 1S }'cars the pro-
CCC(1S Ot t:'111C1y L~:111 i'C [15(:[1 tU aC[lUll'C anti rcno•:atc a
i'esi[lcntia] apartr::G; t hutltling. Z sells rite project to
Corporation L and receives a 30-}'car ; ;ot•tcafic. Un junc
1, 1935, the first cccura:us of the prn)cct oo: ;r^ence
their tenancies. ~t least 50 ltercc^z ci tra [:airs in the
project at•c occunicd on jul:• 1, 1955. Q:t;a roar}~ 1~,
1988, "L isr:uos 3~~-:'car rcfundin:, ro^ds the crccceds of
~t•hieh arc used to retire rite oL']ira,io•;s tssucd in 19Sn•.
The prior issue v:ili he discharged ht• ~!a:•cit 15, 1935. l:t
order to meet the renuirc^tcnt of ;, 1.103-~fi:j(5)(ii}, at
least 20 percent of scch oasts must be occa:cied bt• i;•di-
viduals of ]otv or r.:odet•ate income until l:t:~t:art• 1, 2005.
Exarrrl~le (T). Tltc facts arc the sa; ;e ~s i^ exan;pli'
(6) except that in 193; , the apartme::t h::ildi'S is substan-
tially des[ra:•cd b:• fire. 'f'ire building t':as i :s•~red at its
fair marker'.•a]LF•. L: does not intend to :etc::struct the
buiItlinr but uses a nartion of rite ins:,; a^cu nrocccds to
repo}' the unpaid 4ala :ce of the mortc^ e. Z uses this
a[nount to redeem tit, outstandin; bo ds at t::^.c first avail-
able cal] date. 5i;.t:e the project u•as s::is;aatiMll~ de-
stro}•cd by fire ar:d tlt~ outstandi.^.~ bo:;ds are ;cared at
the first avail: L'lc call date, the rccuirz:::~: ;; cf section
103(b)(•7)(A) and this porn ;rarh (b) ara satisfted tt•ith re-
spect to the oblitations. -
Examole (b'). The facts ,•trc the sa:e as i:s exa:rnle
(b) except that is 198; i! deiauits cn zhe r.:o: t_~_e, and Z
obtains title to the t:roject t':ithour instit:ai:.~ for eclosure
pt•ocecdinSs, Z sells the project to S a-:d ::s2s t.".e pro-
cccds to retire the outstanding bend; , Si:tc° S d!d . at ob-
tain the project :':it;, ccliaations descrt~~•d in sectro:z
1U3(b}(-7), 5 is not = equi: ed to rrect tl:e re~::i: e:::c7ts of
sectio*t 103(b)(5)(-) a;.d this t:ararrsr°t. r::<<<cr, the
39$-7 obligations are obligations described i:r sectton
Exa,-npl~ (9). L-t Septc:r,ber 1983, State 1Y'issues S10
milli ;n of registered bonds:':it5 a to -t c: 3 tears, the
prrcceds of such are to ~~ loaned to Ccr~~-atioa ~' to fi-
nance the coast: [:coon of aa.a anart:;;e::t r::ddi.-:g is a ru-
ral cammuniL}•. at the erd o: 3 ~,•ears, 1' caa;ns
permanent financi::~ f:o:;t Federal :;_rcact• i ..a'erct' T
twill not allot:~ the ['-ecd to contain a rest. icti•: e cot•cnant
relating tc the use of the project. [ a ^: rcae: al ]acv,
hotset•er, ~- rccui_ as that Y' mai:ttain zii c: t ~ :n•: its in tl;e
project far rental to lo:':-income fa;-::::':c:!;^:; for t:•:e
term of the r:sorr~age, ::•hich is 20:•ea-s. i••.::!:cr, the
mortgage benvice:t T ,..:.d \' provides t::at if T dctcrinines
that low-income housing is no longer required is ;he
community' in t:•hich tre proiect is co:a:r::ctc•,: t!:;:n t!tc
repayment of the r.:orrgagc n7a}~ h~ accel°_ate•?. i dctcr-
mines as of tl;c date of issac that to::•-i^cc:::e boost: fi ['rill
he needed in rite cc:ri::t:^tty far at lest ~Q ['cars. l;t
1987, the proiect fails to meet rite recui:•_.'::c::ts ci sec-
tion I.103-b(k~)(Sj(ii), relating to ccr_oaacv i:: ir.,:i:•id-
uals or families of let:' or moderate iacc:ae. rurthcr, T
does not require \' to correct th:: failu_o. 1}ased cn the
foregoing, the l:ord; issued by 1V v:ill he Ercated as de-
scribed in sccticn 103(b)(•;)(;~).
E,ranrplc (!t7). The facts arc rite same as in cxamnlc
(9) except tiro[ in 1957, rite federal la•.:' rs arterdcd to •
provi[]c that Agency T may not ettfnrcc its lc:v-income
occupancy requirc^:c:u. •1`hc result is t!tc sa:;te.
Example (I1), The facts arc the sa:r.e as in example
(9) except that in 1957 Agcncti• •I' cictez•:r:i::us that disc to a
chan(;c in circurtswnccs to the coramur.ct}• in tt•ttich the
project is lncatcd lot':-incornu rental hc•.:st^g is no lont;cr
required. As such, T re[[uires ~' to repay t1:e rnortt;as;e.
SEnce the oUEic;aucns hat•c been repaid, 1F h:ts r.o Icral
right Eo enforce tt:c rcr[utrcmcnts of porn; raph tbl t':ith
respect to the prol;:ct. Suh,c[lurat t:ot;caasarmtty of the
pro)cct with rite rcgsi:'ctttcnts of §1.103-i;fh) under these
tircurnstanccs tvtll not cat:sc the c}ts]irattons tssucd kry lV
to he inclustrta] dc:•ulopmcn[ i)Ulzds tvttlun rho mcatting of
section lU3(h)(1),
t!
(10) Ct1~lir~riona f cs,trd 7:cfcrc :1;,;•i/ 'S, l9Ta --- {i
C~net•al t•ules. Section 10?(l~)(1) sl:a[1 ne::,;-;,I;• to c`alr:;
[ions tssucd before April 25, 1?~~, v:;;,;h a~;c ra.t n( ar
issue suhsta ;Bally al] cf t!:c t`rccccas ci v.iu, fi arc to l:~
used to pro.iclc residcraial real c:o~crt•: fcr (a:rtdv
units. la e.d~;. to t;uahf}• un;!~~r tit ;•;,arar•,raL:, thl as an
cxer::p; iacilit•; , tl:c factlt;t• nas;t sattsft• t°:~ m:hiic use
requircrr,cnt of oaragray:h fa;(~) of ;;cis cctno:: bt' hcsny
available for u5c by rrtentt:crs cf t`•c ~encra! ;-••~ltc.
(ii) Fan:ih' urns dct7:::~. Far n::.pos^s cf ;hts
para~ra~h (bj [he tcr^t "fa.:,t;t' unit" ~ca:a a l:url.!i: c;
ant' pert+ca thct•cof v:ttich CO11ta1:15 CO:::u1C'^ ]n•i::~ fact!
tics •::I;ich arc to be used ort ether [!tan a t:.,:tstc~t t:ast~
t:r enc ar iac:•c persons, ar:d fa~ili:.os f~ ^ct:rnailt• .?Ia
ed ar.:l succr;;i::ate t!:creto. Th::s, an anart:`c^t ::~t,ich i
to 1;;::acd on other than a i:a:tsic-:t casts as a residcnc,
ht~ a si7~'.o r.^-rsnn or b}• a ta-;:i:•: a:td:~:hick cn~ta,:~s co:
pieta :acil:;ics far livinfi, sl:.•o^i::~, cart :~ cookt-:~, ar.
sa;titaticn, co:tstittstes a fam:li• ::.... Such a :::tit rr:~:• c[
served b;: ccntrall}• Iecated r°:ac::i::ert• and crutr.:^er:r ._.
in a rt-pical arart::,~nt l:uiid!: ^. To cLa!ii.: as a rar.tily~
unit, the iiri; ;; :?GI]Ilc'.S mL'~t i:C Z 50~ ara:e, scif-cen-
tai.^ad c::ilc'i:;~ or ccastirute o:tc un:t in a buildin;, sub-
stanttalit• ail cf t':i:ich conststs of si::;i1,r ' ::its. SO^,ethC
t:•ith fc::c;ic::zl]}' related and s;:cc;dia~te {aci!itres~and
areas. l;css]s, r.:otefs, dor.^.-aa: cs, i;a:cr::t•; and so-
rcrit:• !:ccses, rcerair:~ hcuses, hcscita!s, s~atta.tu::a
rest }t:,:::es, a^d [toile; parks a^d co~~rts io:- ::sc on a
tra:.sicnt casts do not const;t:ac :csidontiz3 real f;ropcr
for fa.,;it• untts.
(iiij r;:.~crio::.~llr:•elared a::~ s:~bo:o:natc f.~cflltic:
.! `nde: oarac:•aah (a)(3j of t!t:s sec::vn, facilities which
are f~n~t:c:ta~~; related znd sci;o:ri:::.:c to .esr^.~nti~l
real e,o~_r'r act::~ll; ~scd fa.._::;iir u:::*.s i::cl_.. far
~,
exar::plc•, f,cilitics io_,use b}• t"~ ccct:par.a such as a
stt•i ;:^:t^~ pool, a parking zrca, and recreati:,:tal
facilities.
.~.\•i.:rClt'. (C]. Cl[y' G iss~.:cs 5~'0 rtilliaa of its hcr.ci:
and ::ill too ~6 rtillion to fi::arcc : e=_i~o:,tial rca*.a! or
crt:_ :':!:ic;t ctualifies as an exe:-• iaciltt', t:::cr sec .,.>~
• IG3(b}(.;)!:1) a;:u ra_asraoii fcj c•'t-:s scc::o :. ~a -^r~il:o:
t6 f`~ :;CC LCiS[°'_CC:C:t Oi a sta~a:~•: '.':PkCtl C'.;aliflCS a5 ?.
C.l'2:::~t 1~Cilit}' [:.^.der SCCC;Da l~~iw)(•^1(:;I ~'-.•+:! t_a:'a~ranh
(c] ci•tris sactic:L, and $5 ^^illia:t for co7t•~at:o:t factlz:i:
• •z i;~• as exempt foci:itics t:::~~r s_ctie:t
103ib)(~)(C) and paratiraph fd) of t^.s sect[„:t. T;:,. facili
ties [';ill bo -cd is t; e trades o: ~':a:..csses of aa: ~x~::::
perso-ts z.::dVrca;:,] na}•r.:onts ..:*.;t ,cscec± ro st:ch iaciii-
tics a:.d the facilities theti:sc.'•:cs t•.-;il Le t': ~ scc:u.:;+• ter:
the be::~s. it:e Uon:ls arc i^v::s;:r~] det•elc^--;~::*. t,on;is,
bur str.cc all tl:e nrocecds a. c to ire used io~:- i ~Lilit:es
u9tich are cxc^,nt factlitics c:~cr section 10 (L){=], sec
Clon li)=y;:)(1) does nCt aopl\~ L'ii!^_SS Li:^ L'6\•1~1C::S aI sG'C
[ion 103(b)(10} and ;1 1l?3-11 -:e:t•. Tl•,_ resulr:t•oui:l !:_
[he sartc rf, i,.stcad of usinc *9 r:alioa [a fi::ancc cun-
srrt:cticn cf a stadium, tt:e ~ miili~n tccrc tac.l to fi-
nl:tce constt•uctton of a capitol budding. [:tc~,. gi .103-8
Par. 2. Section 1.103-10 is atrtendcd ht' rcdcsit:ns~
inG caracraCh (1~ as par:ts;ratth (gl and 1:t• at!dtnr, a net:'
parar~rat,tt (t~ i::t:;tedrat~ly niter' parac;:apkt (c}, tic+t• par.
];t'aph !1~ reads as faliott•s:
§1 .103-l0 f~acmptian for certain small issues of is
dustrial dcvc][~ltntent bonds.
• . •
(f) 1~lC(Itr,tlfjfCa(fp1] prCCt'faln S,T.a111~5U;'S. (1) 5ct
[ion 103 (L) (6) shall not apply to any c171t,ratt[~n tssuct!
after :lprtl ^•;. 1970, tt~hich is ];art of an t,sur, ,a srl;:ttfi
uan[ horirnn of thr. proceeds of t:•hich arc to he usctl tlt-
rcctly or tn;iircctly tc prot•idc: restticnttal real l,ropurty
t'uGllshc[3 ay 7F11; f3tlfiCAl3 OF NAT10F1111. AFfAl125, t`TC., 1.lasttfngton, p.C. 20037
~• ~ -
,'' '~J ~- 6 (3~0•. X98) TAXATION ANE) ACC0~7NT1tlG - (DER) 10-1 i-S2
'for [amil}~ units, I:or ps~rpa5cs of tE:e precedin; Sentence, Tltis Treasury ciccisinn is issued under tl;e ~s:~hor-
• tl~e tern "resiclcnttal real prupert}~ for fantitl}• u: its" itv cont.~inccl in section 750 of tE~c [nte:nal ne.•snue Cude
means resident~aE rcnwE prolccrs (~.~~ithin the ~-:ecninti of o[ 19.1 (GS:I Stat. 917,; 26 li.S.C. f505).
§l.lQ3-8(b)) anci a~~ncr-occ~picd resiclcnces (•.~•itl~aa [hc (si~ncd) ~oscoc l... r;pbcr, jr.
meaning n( sect:on 1173.0. •
(2) Far purposes of paragraph (f) (1),,a significant Commissioner of Interns]
portion of the proceeds of ~n issue are used to p:ovidc Kevenuc
res:dcntial real propert}• for family units if a percent or
~tlare of the proceeds are so used. Approved: 8 October 1982
(signed) David G. Glickr:an
~ ~ ~ Acting .~ssistar.t Secretary of
. the T:-casur}'
-End of Text--
. -~ End of ~ectian j --
pubfislTed by THE E3UREAU OF fJATIONAL AFFA1~i5, Ii~C.,lYashington, p.C. 20Da7
COUNTY OF BUTTE
APPLICANT
INFORMATION STATEMENT (1)
REQUEST TO BOARD OF SUPERVISORS FOR INDUCEh1ENT
RESOLUTION AND ISSUANCE OF h1ULTT-FAMILY
-RESIDENTIAL REVENUE BONDS
A. APPLICANT.
Name _
Address
Brief description of App1icant's background.
B. DESCRIPTION OF PROJECT.
Provide a brief but complete description of the project.}
C. DESCRIPTION OF ACTIVITY AND USES.
Provide a brief but complete description of the activity and uses which
are to be financed by the bonds.}
D. ESTIMATED COST OF PROJECT.
Provide estimated cost of project. The estimate should include land cost, if
any, building improvem ent cost; and other major items which are to be financed
by the bonds . )
(1) Use Exhibits 1, 2, etc. for explanations where space under items is insufficient.
If information is not availa ble at this time, indicate when it will be provided
to County and the reasons} it is not available. .
DATE
- (EXHIBIT 3}
E. MAXIMUM AMOUNT OF BONDS pROpOSED TO BE ISSUED.
Provide the total maximum amount of bonds requested for the project.}
F. DESCRIPTION OF PROP05ED ISSUANCE OF BONDS.
Describe the proposed issuance of bonds including the security therefor, the
revenue to 6e used in paying debt service and whether the bonds are proposed
to be used in exchange for one or more outstanding bonds, or bonds or claims,
or partly in such exchange and partly for cash or property.}
G. PUBLIC BENEFIT.
Provide a description of the publ is benefit which would accrue from the project,
including but not limited to employment during construction of the project and
the number of permanent jobs created by the project. Indicate how many of the
permanent jobs are provided for moderate or low income persons and whether the
jobs will be filled by local persons or persons transferred from other com-
munities.}
H. PUBLIC DETRIMENT.
Provide a description of any public detriment which would occur by virtue of
the project which will be financed by the bonds.)
-2 --
I. DESCRIPTION OF STATE-WIDE OR NATIONRL OPERATION OF APPLICANT.
Describe the state-wide or national size or location of the operations of
the applicant both at the time of application and as projected upon completion
of the project. )
J. ENERGY CONSERUATION.
Describe energy conservation measures which are proposed for the project.)
K. OTHER INFORE+IATION.
Provide any additional information which applicant believes will assist the
Board in malting a determination concerning applicants request for inducement
resolution and bonds.)
Signature
Titl e
-3-
couNrv aF BurTE
FEE FOR ISSUANCE OF REVENUE BONDS
(for private projects )
I. GENERAL PROVISIONS
A. The fees set forth herein shall be in addition to any fees charged by
the State of California or other entities for processing revenue bond,
appl ications. If required, County will collect and process any such
fees.
B. The Chief Administrative Officer shall collect the fees required
pursuant to this schedule and deposit said fees in the Revenue Bond
Trust Fund. If payment is required to another entity, the Chief
Administrative Officer shall pay said fees for the Fund.
C. The fees set forth herein are non--refundab1 e.
II. FEE FOR ISSUANCE OF REVENUE BONDS
A. At time of fit ing of application
B. Upon County approval of application
(fee must be paid prior to further
processing by County)
C. Upon issuance of bands
Page 1 of 1
$1 , 2 50
1/4~ of esti-
mated maximum
amount of bonds
1/23 of actual
amount of bonds
issued less amount
paid under B. above
(EXHIBIT 4}