Kentucky Administrative Regulations › Title 200 - FINANCE AND ADMINISTRATION CABINET › Chapter 15 - Kentucky Private Activity Bond Allocation Committee › Section 200 KAR 15:010 - Formula for allocation of private activity bonds

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				103.200(1)(k), (l), (m), (n),
				(2),
				103.2101,
				103.282,
				103.286,
				26
				U.S.C. 146,
				Pub.L.
				111-5
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				103.286(3) requires the
				Secretary of the Finance and Administration Cabinet to promulgate
				administrative regulations to provide for the allocation of the state ceiling
				for the issuance of private activity bonds. This administrative regulation
				establishes the formula for that allocation. This administrative regulation
				also establishes the Commonwealth's role in the allocation of volume cap
				received as a result of the American Recovery and Reinvestment Act of 2009,
				Pub.L.
				111-5.
Section
			 1. Definitions.
(1) "Affected
			 bonds" means "private activity bonds" as defined by
			 26
			 U.S.C. sec. 146, excluding any obligations
			 not subject to the state ceiling under the Code.
(2) "Allocation" means the amount of volume
			 cap that was approved by the Kentucky Private Activity Bond Allocation
			 Committee for a local issuer or state issuer.
(3) "ARRA" means the American Recovery and
			 Reinvestment Act of 2009,
			 Pub.L.
			 111-5.
(4) "Available volume cap" means the amount
			 of unallocated volume cap remaining at the close of business on June
			 30.
(5) "Bonds" is defined by
			 KRS
			 103.200(2).
(6) "Committee" means the Kentucky Private
			 Activity Bond Allocation Committee.
(7) "Eligible volume cap applicants" means
			 issuers and local issuers who file a notice of intent to issue bonds relating
			 to volume cap.
(8) "Energy
			 efficiency project" means a project meeting the requirements of
			 KRS
			 103.282.
(9) "Energy efficiency project reserve" means
			 the percentage of the state ceiling that shall be reserved for an energy
			 efficiency project through June 30.
(10) "Issued" means delivered and paid
			 for.
(11) "Issuer" means the public
			 or authorized governmental body which issues the bonds.
(12) "Local issuer" means a public or
			 authorized governmental body which issues bonds on behalf of a local
			 project.
(13) "Local issuer pool"
			 means the portion of the state ceiling from which allocations for local
			 projects are made to issuers of affected bonds issued on behalf or for the
			 benefit of an entity which is not a state agency.
(14) "Local project" means a project, other
			 than a project for creation or financing of residential single family or
			 multifamily affordable housing which are included under the "state projects",
			 for which bonds are issued on behalf or for the benefit of an entity which is
			 not a state agency.
(15) "Lottery"
			 means any process of random selection utilized to allocate available volume cap
			 and which is conducted:
(a) By staff at a
			 public meeting of the Committee; and
(b) In accordance with Section 4 of this
			 administrative regulation.
(16) "Staff" means the Office of Financial
			 Management of the Finance and Administration Cabinet.
(17) "State ceiling" means the cap imposed by
			 26
			 U.S.C. 146 on private activity bonds issued
			 within the Commonwealth of Kentucky.
(18) "State project" means a project,
			 including creation or financing of residential single family or multifamily
			 affordable housing projects and student loans, for which bonds are issued by,
			 on behalf, or for the benefit of a state agency.
(19) "Year" means calendar year.