Current through Register Vol. 54, No. 49, December 7, 2024
Section 63.1 - Allocations(a)Authority for allocations. The State unified volume cap for the issuance of qualified private activity bonds provided by 146(d) of the Internal Revenue Code (26 U.S.C.A. § 146(d)) for calendar year 1998 will be allocated utilizing the authority provided by 146(e) of the Internal Revenue Code and section 7(4) of the Tax-Exempt Bond Allocation Act (73 P.S. § 397.7(4)) in the manner provided by this chapter.(b)Housing related bonds. An amount equal to $160 million will be allocated for housing related bonds, including qualified residential rental projects and qualified mortgage bonds as defined by 142(d) and 143(a) of the Internal Revenue Code (26 U.S.C.A. §§ 142(d) and 143(a)). Requests to apply the housing related bond allocation to specific projects or uses, including mortgage credit certificate programs, will be reviewed and may be approved or disapproved by the Board of the Pennsylvania Housing Finance Agency. Applications for housing related bond allocations shall be made to the Executive Director of the Housing Finance Agency.(c)Qualified student loan bonds. An amount equal to $50 million will be allocated to the Higher Education Assistance Agency for qualified student loan bonds provided by 144(b) of the Internal Revenue Code (26 U.S.C.A. § 144(b)).(d)Qualified small issue bonds.(1) An amount equal to $175 million will be allocated for qualified small issue bonds under 144(a) of the Internal Revenue Code. Of this amount, $26,800,000 will be used to allocate $400,000 to each county. The remaining $148,200,000 will be allocated among the counties in accordance with the following formula: (i) The Secretary will determine the ratio of the county's total 1996 and 1997 allocation usage to the sum of every county's 1996 and 1997 allocation usage.(ii) The Secretary will multiply the ratio determined in subparagraph (i) by $148,200,000.(2) Requests to apply this allocation to specific projects or uses will be reviewed and may be approved or disapproved by the Secretary. Applications for allocations shall be made to the Private Capital Financing Office in the Department. The Secretary will provide allocations for qualified small issue bonds utilizing the procedures and subject to the requirements imposed by § 61.6 (relating to allocation procedures).(e)Other qualified private activity bonds. An amount equal to $166 million will be allocated to other qualified private activity bonds, including qualified redevelopment bonds as defined by 144(c) of the Internal Revenue Code, exempt facility bonds as defined by section 142 (excluding § 142(d)) of the Internal Revenue Code, and enterprise zone bonds as defined by 1394 of the Internal Revenue Code, all of which are subject to the unified volume cap provided by 146 of the Internal Revenue Code. Requests to apply this allocation to specific projects or uses will be reviewed and may be approved or disapproved by the Secretary. Applications for allocations shall be made to the Private Capital Financing Office in the Department. The Secretary will provide allocations for qualified private activity bonds utilizing the procedures and subject to the requirements imposed by § 63.3 (relating to procedures). An allotment of at least 25% of the total amount for other qualified private activity bonds is reserved for solid waste disposal projects.(f)Special allocation pool. The Secretary may utilize not more than $50 million for a special allocation pool for projects which require more bond authority than a given county currently has available to it. To qualify for consideration to use this pool, local issuing authorities shall demonstrate to the Secretary's satisfaction that they have acted responsibly in selecting projects which maximize long-term net new job creation, consistent with the intent of the Tax-Exempt Bond Allocation Act (73 P.S. §§ 397.1-397.8). Decisions regarding use of the special allocation pool for small issue purposes will be based upon the characteristics and merits of individual projects proposed, and upon the record of the issuing authority in utilizing industrial development financing to create or retain jobs. A project may be considered if the entire allocation for the county in which the project is proposed has been obligated. In determining approval or disapproval of allocation requests from this pool, the Secretary will consider the following: (1) The amount of the allocation available.(2) The size of the project.(3) The level of economic distress.(4) The number of net new jobs to be created.(5) The ability to undertake the project without approval.(6) The amount of private funds leveraged.(7) The project's consistency with the economic development plans of the Commonwealth and of municipalities and regions.(8) The date the bonds are to be issued.The provisions of this § 63.1 adopted January 16, 1987, effective retroactively to January 1, 1987, 17 Pa.B. 247; amended January 22, 1988, effective retroactively to January 1, 1988, 18 Pa.B. 333; amended April 1, 1988, effective retroactively to January 1, 1988, 18 Pa.B. 1486; amended June 16, 1989, effective 6/17/1989, 19 Pa.B. 2541; amended April 20, 1990, effective 4/21/1990, 20 Pa.B. 2154; amended August 23, 1991, effective 8/24/1991, 21 Pa.B. 3812; amended April 24, 1992, effective 4/25/1992, 22 Pa.B. 2240; amended July 30, 1993, effective 7/31/1993, 23 Pa.B. 3578; amended May 27, 1994, effective 5/28/1994, 24 Pa.B. 2697; amended May 5, 1995, effective 5/6/1995, 25 Pa.B. 1770; amended June 21, 1996, effective 6/22/1996, 26 Pa.B. 2905; amended April 4, 1997, effective 4/5/1997, 27 Pa.B. 1646; amended September 11, 1998, effective 9/12/1998, 28 Pa.B. 4629. This section cited in 12 Pa. Code § 61.5 (relating to allocations of tax-exempt bond authority); and 12 Pa. Code § 63.4 (relating to reallocations).