Oregon
Rule Rule 123-165-0030
Use of Original Allocation and Reallocation


(1)

For the purposes of recovery zone economic development bond and recovery zone facility bond allocations, a recipient of an original allocation may use its allocation or designate other issuing localities within the jurisdiction of the originally awarded locality to use all or a portion of its original allocation by any procedure mutually acceptable to both parties subject to federal requirements.

(2)

An originally awarded locality that intends to use its original allocation or intends to designate another issuer within the jurisdiction of the originally awarded locality to use the original allocation must file a Notice of Intent form by March 1, 2010 with supporting documentation.

(3)

An originally awarded locality that has used the Notice of Intent form to express its intent to use or designate another issuer within the jurisdiction to use its original allocation may amend the Notice of Intent at a later time if it is determined that the locality is unable to use its original allocation in the manner previously stated or has decided to waive all or part of the original allocation for reallocation by the state pursuant to subsection (6) below.

(4)

An originally awarded locality intending to use its original allocation and has filed a Notice of Intent pursuant to subsection (2) above must provide the department with project information and supporting documents by April 16, 2010 that shows substantial progress. Supporting documents include bond counsel and underwriter statement of intent documents and a certified copy of a resolution of the governing body of the recipient designating a recovery zone and stating its intent to use its original allocation. A recipient may request a time extension if filed by April 16, 2010.

(5)

If an originally awarded locality is not able to or chooses not to use all or a portion of its original allocation or does not offer all or a portion of the original allocation to another issuer within the jurisdiction of the originally awarded locality, the original allocation may be waived. In cases where original allocation is not used, federal code provisions and U.S. Department of Treasury guidance in IRS Notice 2009-50 allow original allocations to be waived by the recipient and then used by the state or reallocated by the state to other issuing localities. The department, as authorized in statute, has accepted the reallocation role on behalf of the state. Waived recovery zone economic development bond or recovery zone facility bond authority may be used by the state or reallocated by the department to other issuing localities.

(6)

Any recipient of original allocation or reallocation may affirmatively waive all or a portion of its allocation to the state pursuant to the following procedure:

(a)

Submitting an appropriately completed Notice of Intent form; and

(b)

The form must be signed by the official(s) of the recipient authorized to execute the form pursuant to a resolution waiving the allocation adopted by the recipients governing body.

(7)

If a recipient of original allocation or reallocation has not provided the department with the Notice of Intent to subsection (2) above or supporting documentation pursuant to subsection (4) above or subsection (12) below the department may issue a Notice of Intent to Reallocate, informing the recipient of the departments intent to deem the allocation to have been waived to the state and to make such allocation available to reallocate to another locality or use by the state.

(8)

A recipient will have fifteen calendar days from receipt of a Notice of Intent to Reallocate to respond to the department with the required documentation or to ask the department to reconsider its waiver determination.

(9)

The department will respond to the request to reconsider its waiver determination within ten business days with a decision by the department director or the directors designee to grant an extended time in which the issuing jurisdiction must demonstrate substantial progress toward a recovery zone economic development bond or recovery zone facility bond issuance, or a decision to go forward with the waiver of the allocation. The length of the time of the extension shall be determined at the discretion of the department.

(10)

Any local government issuer may request a reallocation of recovery zone facility bonds and/or recovery zone economic development bonds authority by submitting a department supplied Recovery Zone Bonds Request for Reallocation form to the department. The department will acknowledge the request within five business days and provide a determination on the reallocation of cap within fifteen business days of the acknowledgement.

(11)

The department will notify a recipient of its determination to award reallocation of volume cap in writing in a Reallocation Award Letter.

(12)

A recipient of reallocated cap must provide the department with project information and supporting documents within 45 days of the date of the Reallocation Award Letter, or sooner if required by the department, that shows substantial progress. Supporting documents include bond counsel and underwriter statement of intent documents and a certified copy of a resolution of the governing body of the recipient designating a recovery zone and stating its intent to use its allocation.

(13)

The department will carry out continual review of the use of recovery zone facility bonds and/or recovery zone economic development bonds authority to determine if original allocations as well as reallocations were used or are likely to be used before year end. To the extent recovery zone bond authority is identified to not be used, a final reallocation will occur late in 2010 for any bonding projects in the state meeting the code qualifications.

(14)

Following the issuance of any recovery zone bond, the issuer of such bond shall promptly deliver a copy of the report required to be filed with the Internal Revenue Service (e.g. the Form 8038 for recovery zone facility bonds and the Form 8038G for recovery zone economic development bonds) to the department. The department will maintain a list of all recovery zone bonds issued and all allocations used, waived, and available for full or partial reallocation.
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Dec. 11, 2019