Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 9 - TEXAS BOND REVIEW BOARD › Chapter 190 - ALLOCATION OF STATE'S LIMIT ON CERTAIN PRIVATE ACTIVITY BONDS › Subchapter A - PROGRAM RULES › Section 190.1 - General Provisions

Current through Reg. 49, No. 28; July 12, 2024
(a) Introduction.
				  Pursuant to the authority granted by the Administrative Procedure Act, Chapter
				  2001, Government Code, and Chapter 1372, Government Code, the Bond Review Board
				  prescribes the following sections regarding practice and procedure in the
				  allocation administration of the authority in the state to issue private
				  activity bonds.
(b) Objective. The
				  objective of this chapter is to establish the most equitable and efficient
				  means of allocating the state ceiling on private activity bonds in accordance
				  with the Act. The Board intends to formulate policies and guidelines that would
				  provide eligibility standards and procedures for applications submitted to
				  reserve a portion of the state ceiling for private activity bonds.
(c) Definition of terms. The following words
				  and terms, when used in this chapter, shall have the following meanings, unless
				  the context clearly indicates otherwise.
(1)
				  Act--Chapter 1372, Government Code.
(2) Amount--With respect to bonds,
				  reservation certificate, or a portion of the state ceiling, is a sum measured
				  in terms of United States dollars.
(3) Application fee--Application fees are to
				  be paid as required by Government Code §
											1372.006 and must be
				  submitted by either overnight delivery, messenger, or electronically as
				  described in §190.8(c), (d) and (e) of this title (relating to Notices,
				  Filings, and Submissions).
(4)
				  Application for carryforward--
(A) The
				  application required to be filed by an issuer with all attachments and
				  amendments to reserve a portion of the state ceiling for carryforward
				  purposes.
(B) In the instance where
				  an issuer is seeking to utilize the allowable number of days to close under the
				  Act and the closing deadline is after December 31, the application for
				  nontraditional carryforward is a letter sent from the issuer to the board,
				  received before December 24th of the program year, notifying the board of
				  intent to close on the applicable date. The letter should include estimated
				  closing date, docket number, and bond amount.
(5) Application for reservation--The
				  application required to be filed by an issuer with all attachments to reserve a
				  portion of the state ceiling.
(6)
				  Authorized representative--A person authorized by the issuer to execute certain
				  correspondence under §
											190.3(c)
				  of this title (relating to Bond authorization requirements) and §
											190.5(h)
				  and (i) of this title (relating to
				  Consideration of Qualified Applications by the Board).
(7) Authorized signature--An original,
				  scanned original, or an electronic signature that is authorized by state law
				  and compliant with any relevant codes, including, but not limited to, Title 1
				  Texas Administrative Code § 203.23 of this title (relating to Digital
				  Signatures) and Chapter 322 of the Texas Business and Commerce Code (relating
				  to Uniform Electronic Transactions Act), or any other governing rules or codes,
				  as applicable.
(8) Available--Any
				  amount of the state ceiling set aside for reservations by an issuer upon
				  compliance with the terms of the Act and this chapter.
(9) Board--The Bond Review Board created
				  under Chapter 1078, Acts of the 70th Legislature, Regular Session, 1987
				  codified as Chapter 1231, Government Code.
(10) Bond authorization
				  requirements--(Thirty-five day filing requirement)--Requirements to be filed by
				  the issuer no later than 35 days after the issuer's reservation date.
(11) Bonds--Includes all bonds, certificates,
				  notes, and other obligations authorized to be issued by any issuer by any
				  statute, city home-rule charter, or the Texas Constitution and which are
				  subject to the limitations of the Code, §146.
(12) Borrower--Any person or persons whose
				  private business use, within the meaning of the Code, would cause any bonds to
				  constitute private activity bonds within the meaning of the Code. If there is
				  more than one such person with respect to any issue of bonds, then the term
				  shall mean and include each and every such person known at the time that the
				  issuer files an application for reservation or an application for carryforward,
				  except that any one of such persons may execute any such application, letter,
				  or other writing which the Act and this chapter requires to be executed by the
				  borrower.
(13) Business day--A day
				  on which the board is open for business. The term shall not include any
				  Saturday, Sunday or holiday officially observed by the state. The board's
				  normal business hours are 8 a.m. to 5 p.m. each business day.
(14) Carryforward--
(A) Traditional Carryforward--The amount of
				  the state ceiling not reserved before November 16 and any amount previously
				  reserved that becomes available on or after that date because of a reservation
				  cancellation or any other reason.
(B) Non-Traditional Carryforward--The amount
				  of state ceiling reserved by an issuer and granted by the Board for a specific
				  purpose and the closing date extends beyond the year in which the reservation
				  was granted.
(15)
				  Certificate of allocation--The notice given by the board to an issuer
				  confirming the issuance of bonds receiving a portion of the state ceiling
				  pursuant to the Act and the Code.
(16) Certificate of delivery--The notice
				  given to the board by the issuer stating the closing date of the bonds and the
				  amount of bonds issued and delivered at closing.
(17) Certificate of reservation--The notice
				  given by the board to an issuer reserving a specific amount of the state
				  ceiling for a specific issue of bonds.
(18) Certification regarding fees--The notice
				  given to the board by the issuer or authorized representative of the issuer
				  stating that either a check for a required fee was sent by overnight delivery
				  or a required fee was sent electronically as described in §190.8(c), (d)
				  and (e) of this title (relating to Notices, Filings, and Submissions) in a
				  timely manner.
(19) Close or
				  closing--The issuance and delivery of bonds by an issuer in exchange for the
				  required payment therefore, or in the case of mortgage credit certificates, the
				  date when an issuer elects not to issue qualified mortgage bonds and
				  establishes a mortgage credit certificate program under the Code. The term does
				  not include a delivery of bonds if the expenditure of the proceeds of the bonds
				  is conditioned on obtaining credit enhancement in support of the
				  bonds.
(20) Closing date--The date
				  the bonds have been issued and delivered in exchange for the required payment
				  therefore.
(21) Closing
				  documents--Documents required to be filed by the issuer not later than the
				  fifth business day after the day on which the bonds are closed.
(22) Closing fee--The nonrefundable fee in
				  the amount of $1,000 or 0.025% of the principal amount of the bonds certified
				  as provided by Government Code §
											1372.039(a)(1),
				  whichever is greater paid by all issuers other than those described by
				  Government Code §
											1372.001(16).
				  In addition, an issuer exchanging a portion of the state ceiling for mortgage
				  credit certificates shall submit to the board a closing fee in the amount of
				  $1,000 or 0.0125% of the amount of the state ceiling exchanged, whichever is
				  greater. An issuer receiving a carryforward designation shall submit to the
				  board a closing fee of $1,000 or 0.025%, of the amount of carryforward
				  designation received, whichever is greater.
(23) Code--The Internal Revenue Code of 1986,
				  as amended.
(24) Election--An
				  election by an issuer of qualified mortgage bonds to convert its bond authority
				  to mortgage credit certificates under applicable sections of the
				  Code.
(25) Executive director--The
				  executive director of the board.
(26) Finance team members--Members associated
				  with the specific bond issue and project or mortgage credit certificate program
				  which may include the issuer, user, bond counsel, placement agent, underwriter,
				  trustee, or any other members.
(27)
				  Governing body--The board, council, commission, commissioners court, or
				  legislative body of the government unit.
(28) Government unit--A city, county or other
				  political subdivision which may create and utilize a corporation, to act for
				  and on its behalf.
(29) Housing
				  finance corporation--A corporation created under the Texas Housing Finance
				  Corporations Act, Chapter 394, Local Government Code.
(30) Issued--Bonds that have actually been
				  delivered and paid for in full. The date of issuance shall be the date on which
				  the bonds have been delivered and paid for in full.
(31) Issuer--Any department, board,
				  authority, agency, subdivision, municipal corporation, political subdivision,
				  body politic, or instrumentality of the State of Texas, or any non-profit
				  corporation acting for or on behalf of any of the foregoing.
(32) Joint housing finance corporation--A
				  housing finance corporation acting on behalf of more than one local government
				  unit as provided in the Texas Housing Finance Corporations Act, Chapter 394,
				  Local Government Code.
(33) Local
				  government unit--Any city or county.
(34) Local population--The population in the
				  local government unit or units on whose behalf a housing finance corporation is
				  created. If two local government units overlap, each having created housing
				  finance corporations with the power to issue bonds to provide home mortgage
				  financing, prior to the submission of either the application for reservation or
				  the application for carryforward by either housing finance corporation, there
				  shall be excluded from the population of the larger local government unit that
				  portion of the population of any smaller local government unit having a
				  population of 50,000 or more which is within the larger local government unit,
				  unless the smaller local government unit assigns its authority to issue
				  qualified mortgage bonds, based upon its population, to the larger local
				  government unit. A resolution assigning authority to issue qualified mortgage
				  bonds must have been adopted within the 18 months preceding the date of
				  submission of the application to the board.
(35) Locally voted issue--An issue of bonds
				  authorized pursuant to a referendum approved by the voters of a political
				  subdivision of the State of Texas.
(36) Mortgage credit certificate--A
				  certificate of the nature described in the Code, §25.
(37) Population--As defined by §
											311.005(3),
				  Government Code.
(38)
				  Prepayments--Reduction of the principal amount of a loan that was originated
				  from bond proceeds resulting in a corresponding reduction of the principal
				  amount of the bond proceeds.
(39)
				  Private activity bond--A private activity bond within the meaning given that
				  term under the Code.
(40) Program
				  year--A calendar year.
(41)
				  Project--A project as defined by Government Code §
											1372.002,
				  described in the application for reservation or carryforward, proposed to be
				  financed, in whole or in part, by an issue of bonds. With respect to qualified
				  mortgage bonds or qualified student loan bonds, the board shall consider the
				  project or purpose to be the provision of financial assistance to qualifying
				  mortgagors or students within all or any portion of the jurisdiction of the
				  issuer. For purposes of this definition, jurisdiction of the issuer is
				  determined on the date the application for reservation is delivered to the
				  board.
(42) Qualified application--A
				  completed application for reservation or an application for
				  carryforward.
(43) Qualified
				  bond--A qualified bond within the meaning given that term under the
				  Code.
(44) Qualified mortgage
				  bond--A qualified mortgage bond within the meaning given that term under the
				  Code, including mortgage credit certificates.
(45) Qualified residential rental project
				  issue--An issue of bonds for a qualified residential rental project, as that
				  term is defined under the Code, §142(d).
(46) Qualified small issue bond--A bond
				  within the meaning given that term under the Code.
(47) Qualified student loan bond--A bond
				  within the meaning given that term under the Code, §144(b).
(48) Related person--Related person within
				  the meaning given that term under the Code.
(49) Reservation--A reservation of a portion
				  of the state ceiling for a specific bond issue.
(50) Reservation date--The earliest date on
				  which a qualified application for reservation is accepted for filing with the
				  board pursuant to the Act and a portion of the state ceiling is or becomes
				  available to the issuer.
(51)
				  Rules--Any statement of general applicability that implements, interprets, or
				  prescribes law or policy, or describes the board's procedures and
				  practice.
(52) Significant
				  expenditures--Expenditures greater than the lesser of $1 million or 10% of the
				  reasonably anticipated cost of the project.
(53) Staff--The staff of the board.
(54) State--The State of Texas.
(55) State ceiling--The amount of the
				  authority in the state to issue tax exempt private activity bonds during the
				  calendar year, as determined under the Code.
(56) State-voted issue--An issue of bonds
				  authorized pursuant to a statewide referendum approved by the voters of the
				  state.
(57) Tax-exempt enterprise
				  zone facility bonds--An issue of bonds for an enterprise zone facility, as that
				  term is defined under the Code, §1394.
(58) Unencumbered State Ceiling--Any state
				  ceiling that is not reserved or designated as carryforward and for which no
				  application for carryforward is pending on the last business day of the year
				  which may be assigned by the board, in the order received, to a state issuer or
				  to an issuer that was created to act on behalf of this state at the request of
				  the issuer.
(59) Unexpended
				  proceeds--Proceeds remaining from a prior issue of bonds, including, in the
				  case of qualified mortgage bonds, any unused portion of mortgage credit
				  certificates.