Section 10-B5004. INDUSTRIAL DEVELOPMENT BONDS: REFINANCING LIMITATIONS

 

5004.1Notwithstanding the provisions of §5002, no portion of an otherwise eligible facility shall be considered eligible for financing through the issuance of an industrial development bond to the extent that the costs paid or incurred with respect to that facility (other than, as may be permitted by substantially all requirement, costs which do not exceed ten percent (10%) of the proceeds of an issue of bonds issued to provide the facility) are not costs paid or incurred with respect to the following:

 

(a)A facility described in §5004.2, and, if the original use of the facility commences prior to the date of an issue of bonds issued to provide the facility, it is described in §5004.4; or

 

(b)If the acquisition of the facility commences on or after September 23, 1983, the facility is described in §§5004.3 or 5004.4.

 

5004.2If the acquisition of a facility commenced (or occurred) prior to September 23, 1983, the facility is described in this subsection if official action providing for an issuance of bonds to finance the facility is taken prior to the date the entire facility is first placed in service. The determination whether a stage or portion of a single facility, or an entire facility, is placed in service shall be made according to the facts and circumstances of each case. The date on which an entire facility is first placed in service shall not be earlier, however, than the date on which the following occur:

 

(a)The facility has reached a degree of completion which would permit operation at substantially the level for which it is designed; and

 

(b)The facility is, in fact, in operation at that level. For example, a newly constructed air pollution control facility for a manufacturing plant is not first placed in service within the meaning of this section merely as a result of its initial operation at an air pollution abatement level substantially below that contemplated for the completed facility.

 

5004.3If the original use of a facility commences (or the acquisition of a facility occurs) on or after the date of issue of bonds issued to provide the facility, the facility is described in this subsection if official action providing for an issuance of bonds to finance the facility is taken prior to the commencement of the acquisition of the facility. Temporary construction or other financing of a facility prior to the issuance of bonds to provide the facility shall not cause the facility to be one which is not described in this subsection and, therefore, not eligible for consideration by the Executive Branch.

 

5004.4If the original use of a facility commences prior to the date of issue of bonds issued to provide the facility, the facility is described in this subsection if no non-exempt person or a related person who was a substantial user of the facility at any time during the five (5) year period preceding the date of issue of the bonds and who receives, directly or indirectly, proceeds of the issue in question in an amount equal to five percent (5%) or more of the face amount of the issue (in payment for his or her interest in the facility) shall be a substantial user of the facility at any time during the five (5) year period following the date of issue of the bonds.

 

5004.5A facility shall not be treated as one not described in §5004.4 by reason of the use of the facility by a substantial user prior to the date of issue of the bonds issued to provide the facility, if official action was taken by the District with respect to the bonds, as follows:

 

(a)Prior to the commencement of the acquisition of the facility and the bonds are issued within one (1) year after the entire facility was first placed in service or was acquired (whichever occurs later); or

 

(b)In the case of a facility described in §5004.2, prior to the date the entire facility is first placed in service.

 

5004.6The provisions of §5004.5 shall not apply with respect to an acquisition if any substantial user or a related person after the date of the acquisition was a substantial user before the date on which official action was taken by the District.

 

5004.7The provisions of §§5004.1 through 5004.6 shall not apply to the financing of extraordinary facilities.

 

source

Final Rulemaking published at 30 DCR 4905, 4913 (September 23, 1983).