Section R990-200-7 - Extensions(1) Certificates of allocation shall remain in effect for a period of 90 days following the date of Board of Review approval. A recipient that has not closed its volume cap allocation within such 90-day period may request an extension from the Board of Review. A recipient requesting an extension shall submit to the Board an application for an extension no later than the 90th calendar day after the date of the Board of Review's approval of the initial allocation. The counting of the 90-day period shall be paused from the date of submission, pending the Board of Review's review of the application for extension, and the Certificate of Allocation shall remain effective until the Board of Review has voted whether to approve or deny the application for extension. The application for extension shall be approved or denied in the Board of Review's sole discretion. (a) Manufacturing projects, qualified redevelopment projects, and exempt facility projects are not eligible to carry forward their volume cap allocation beyond the end of the calendar year in which they received the allocation. Such bonds must close by the third Saturday in December in the same year the recipient received the allocation. Any volume cap not issued by this date is automatically relinquished back to the Board of Review.(b) The Board of Review makes no representation as to whether an issuer will allow the allocation to be transferred to another project if the previously approved transaction fails.(2) Unless program staff agree to a different deadline, a recipient requesting an extension of a previously approved and current volume cap allocation shall submit a completed extension form to the private activity bond program staff no later than 55 calendar days before the Board of Review meeting at which the extension request is to be considered.(3) An extension request will not be presented to the Board of Review unless the recipient's account is in good standing.(4) An extension request for a second or more extension will be evaluated, scored, and considered by the Board of Review, subject to Subsection R990-200-7(6).(5) An extension approval may not exceed 90 calendar days from the date of approval or until the Board of Review holds its next meeting, whichever is sooner.(6) Unless program staff agree to a different deadline, no later than 55 calendar days before the Board of Review meeting at which the extension is to be considered, a recipient requesting an extension shall submit a completed extension request status report and extension fee on the form provided on the website of the Board of Review, together with each request.(a) Private activity bond program staff shall perform a comprehensive progress review before the Board of Review meeting where an extension will be considered, and shall prepare a recommendation.(b) The applicant may be required to reapply after the third extension review if there is no substantial evidence of being able to close the bonds.(7)(a) Absent a legislative occurrence, a recipient may not receive more than five extensions.(i) In the event of a legislative occurrence, a recipient may submit a sixth extension application. A sixth extension application shall include a written explanation of why a sixth extension is necessary and how the legislative occurrence substantially affects the project's ability to close. In its sole discretion, the Board of Review may grant or deny a sixth extension.(ii) A request for a sixth extension that omits the written explanation required in Subsection (7)(a)(i) will not be presented to the Board of Review, and the previously allocated volume cap shall be revoked.(b) A request for a seventh extension for any reason will not be presented to the Board of Review, and the previously allocated volume cap shall be revoked.(8)(a) Except as provided in Subsection R990-200-7(8)(c), a recipient requesting an extension shall attend, either virtually or in person, the Board of Review meeting at which the extension is considered, prepared to update the Board of Review on the progress of the development and answer any questions. If the recipient does not attend, the Board of Review will table consideration of the extension. Within 48 hours of the Board meeting at which the extension was to be considered, the recipient shall submit to the Board of Review a written explanation of its failure to attend. The extension will be considered at the following Board of Review meeting, and the Board of Review, in its sole discretion, shall approve or deny the extension request at that time.(b) When a recipient fails to attend a meeting, the Board of Review shall treat such a missed meeting as a granted extension request, such that the missed meeting will count as one of the five extensions a recipient is allowed under this rule.(c) Subsections R990-200-7(8)(a) and (b) shall not apply when the Board of Review determines, in its sole discretion, that the recipient's failure to attend a meeting is the result of extraordinary circumstances beyond the recipient's control. Even in such extraordinary circumstances, though, a recipient shall make every effort to send a designee to attend and provide updates at the meeting. Any such designee shall speak on behalf of the recipient, and the recipient will be bound by the designee's representations to the Board of Review.(9) A City or County issuer may submit a request for a Carryforward Certificate no later than 21 calendar days before the December Board of Review meeting.(10) A City or County issued a Carryforward Certificate shall comply with the extension request requirements for each three month period after an allocation has been made to a project, including: (a) attendance at each Board of Review meeting, prepared to update the Board of Review on the progress of the development and answer any questions; and(b) submission of a complete comprehensive progress report.(11) The Board of Review reserves the right to approve or reject an extension or Carryforward Certificate in accordance with the criteria established by this rule.(12) In the event an extension or Carryforward Certificate request is untimely, denied by the Board of Review in its sole discretion, or otherwise not presented to the Board of Review in accordance with this rule, the allocation shall be revoked.Utah Admin. Code R990-200-7
Adopted by Utah State Bulletin Number 2019-16, effective 7/30/2019Amended by Utah State Bulletin Number 2022-01, effective 12/22/2021Amended by Utah State Bulletin Number 2023-04, effective 2/7/2023Amended by Utah State Bulletin Number 2023-21, effective 10/24/2023