|(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
(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
(3) Application fee--Application fees are to be paid
as required by Government Code §1372.006 and must be submitted
by overnight delivery or messenger as described in §190.8(c)
and (d) 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 24, the application for nontraditional
carryforward is a letter sent from the issuer to the board, received
not later than 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.
(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
(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 a check for a required fee was sent by overnight delivery
as described in §190.8(c) and (d) 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
(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
(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 twelve 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
(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.