Section 10-B5099. DEFINITIONS

 

5099.1When used in this chapter, the following terms and phrases shall have the meanings ascribed:

 

Acquisition -

 

(a)The acquisition, purchase, construction, reconstruction, improvement, renovation, rehabilitation, restoration, remodeling, repair, relocation, equipping, expansion, or extension of one (1) or more facilities;

 

(b)The acquisition of one hundred percent (100%) of the ownership interests of any corporation, partnership, trust, or other entity whose assets include one (1) or more eligible facilities, but only to the extent that the cost of acquisition is allocable to eligible facilities; or

 

(c)As to exempt purpose bonds only, the refinancing of one (1) or more facilities.

 

Act - the District of Columbia Self-Government and Governmental Reorganization Act of 1973, P.L. 93-198, D.C. Code § 1-201 et seq. (1981), presently in effect and as amended from time to time.

 

Allocation Application - an application received by OBED on or before the close of business on May 1, 1986, and which was complete on that date.

 

Application - the application described in §5011 of this chapter.

 

Bond or Bonds - District revenue bonds, notes, or other obligations (including refunding bonds, notes, or other obligations) issued and sold by the District in order to assist in the financing of one (1) or more eligible facilities or to refund outstanding bonds issued for the purpose of financing one (1) or more eligible facilities purpose bonds and qualified industrial development bonds. The terms "bonds" and "bonds" specifically exclude general obligation bonds and notes.

 

Bond act - a legislative act of the Council, pursuant to §490 of the Act, D.C. Code §47-334(a) (1981), authorizing the issuance of a bond or bonds.

 

Bond counsel - the law firm or law firms designated by the District to serve as bond counsel with respect to a bond issue.

 

Capital expenditures - shall have the meaning given to that term in §103 of the Internal Revenue Code, in §1.103-10(b)(2) of the Internal Revenue Regulations, and as interpreted in Internal Revenue Rulings; except that, as provided in §§5007.2 and 5007.3 of this chapter capital expenditures are taken into account in the District only to the extent made with respect to a facility site.

 

Council - the Council of the District of Columbia.

 

Day - any day other than a Saturday, Sunday, or legal holiday in the District.

 

District - the District of Columbia.

 

District's 1986 Volume Cap - the volume cap of the District for calendar year 1986.

 

Eligible facility or eligible facilities - any facility or facilities which meet(s) the criteria described in §5002.2 of this chapter.

 

Executive Branch - the executive branch of the District government.

 

Exempt facility - any eligible facility which meets one (1) or more of the criteria described in §5006.9 of this chapter.

 

Exempt person -

 

(a)A governmental unit; or

 

(b)An organization described in §501(c)(3) of the Internal Revenue Code and exempt from tax under §501(a) of the Internal Revenue Code (but only with respect to a trade or business carried on by the organization which is not an unrelated trade or business). Whether a particular trade or business carried on by a tax-exempt organization is an unrelated trade or business shall be determined by applying the rules of §513(a) of the Internal Revenue Code and the Internal Revenue Regulations issued under §513 of the Internal Revenue Code to that organization without regard to whether the organization is an organization subject to the tax imposed by §511 (relating to the imposition of tax on unrelated business income of charitable, etc., organizations) of the Internal Revenue Code.

 

Exempt purpose bond - any bond issued pursuant to §490 of the Act which is not an industrial development bond and seventy-five percent (75%) or more of the proceeds of which are to be used to finance an eligible facility to be used directly or indirectly in any trade or business or other activity (which is not an unrelated trade or business) carried on by an exempt person.

 

Exempt small issue facility - any eligible facility which meets the criteria described in §5006.13 of this chapter.

 

Existing bond application - an application received by OBED prior to April 2, 1986, the date of adoption of the emergency rules, and for which bonds were not issued prior to the adoption of the emergency rules.

 

Extraordinary facility - any eligible facility which meets the criteria described in §§5006.14 and 5006.15 of this chapter.

 

Facility - any real property (including, but not limited to, land and interests in land, buildings, structures, and other improvements) or any interest in real property; appurtenances, including, but not limited to, streets, sewers, utilities, parks, site preparation, and landscaping; any personal property (including, but not limited to, machinery, equipment, furnishings, and other personal property) or any interest in personal property; any property which may be financed from the proceeds of the issuance and sale of bonds the interest on which is exempt from federal income taxation under §103 of the Internal Revenue Code to the extent not precluded by the Act, or any combination of the foregoing, the acquisition of which shall accomplish one (1) or more of the objectives set forth in §5000 of this chapter.

 

Facility applicant or applicant - any individual or any public corporation, private corporation, association, partnership, firm or other entity, organized for the purpose of making a profit or as a non-profit organization, other than the District and any of its agencies and instrumentalities, which, pursuant to the filing of an application, requests the District to participate in the financing of one (1) or more facilities, in the manner provided in this chapter, for use by one (1) or more facility users.

 

Facility site - shall have the same meaning as the term "lot" as defined in §199 of DCMR Title 11 (the Zoning Regulations) and includes any contiguous facility and any functionally integrated facility located within one-half (1/2) mile of the facility site. A facility is considered contiguous if it is adjacent to the facility site or would be adjacent to the facility site but for the intervention of public or private thoroughfare (e.g., a street, avenue, road, or alley).

 

Facility user - any individual, or any public corporation, private corporation, association, partnership, firm, or other entity, organized for the purpose of making a profit or as a non-profit organization, which owns, leases, or otherwise uses all or part of a facility. A facility user and a facility applicant may be the same person or entity.

 

Government unit - the District or any District agency or instrumentality, a state or local governmental unit, a territory or possession of the United States, or any political subdivision of any of the foregoing.

 

Inducement resolution - a resolution adopted by the Council which expresses preliminary interest in providing bond financing for a facility. The resolution, if adopted, shall not constitute enactment of a bond act, shall not bind the Mayor or the Council, respectively, to recommend or enact a bond act, nor shall it establish the content of any proposed or subsequently enacted bond act.

 

Industrial development bond - any bond which is issued as part of an issue all or a major portion of the proceeds of which are to be used directly or indirectly in any trade or business carried on by any person who is a non-exempt person and the payment of the principal or interest on which (under the terms of the bond or any underlying arrangement) is, in whole or in major part:

 

(a)Secured by any interest in property used or to be used in a trade or business or in payments in respect of that property; or

 

(b)To be derived from payments in respect of property, or borrowed money, used or to be used in a trade or business. The trade or business test and the security interest test are to be applied in accordance with the provisions of §1.103-7 of the Internal Revenue Regulations.

 

Industrial park - any eligible facility which meets the criteria described in §§5006.11 and 5006.12 of this chapter.

 

Internal Revenue Code - the Internal Revenue Code of 1954, as amended, and in effect on September 23, 1983, and as subsequently amended from time to time.

 

Internal Revenue regulations - the federal income tax regulations, as amended, promulgated by the United States Department of the Treasury and in effect on September 23, 1983, and as subsequently amended from time to time.

 

Internal Revenue rulings - the published rulings and pronouncements of the Internal Revenue Service interpreting and applying the Internal Revenue Code and the Internal Revenue Regulations.

 

Major portion - more than twenty-five percent (25%).

 

Mayor - the Mayor of the District of Columbia.

 

Non-exempt person - any person or organization who is not an exempt person.

 

OBED - the Office of Business and Economic Development.

 

Official action - the earlier of the date, whether before or after September 23, 1983, of the following:

 

(a)Written direction by the Mayor or bond counsel to draft a proposed bond act as set forth in §5011.14 of this chapter;

 

(b)Date of adoption of an inducement resolution by the Council; or

 

(c)Date which is the effective date of a bond act enacted by the Council.

 

Principal user - shall have the meaning given to that term in §103 of the Internal Revenue Code, in §1.103-10 of the Internal Revenue Regulations, and as interpreted in Internal Revenue Rulings.

 

Qualified industrial development bond - an industrial development bond described in §5006.1 of this chapter.

 

Related person - shall have the meaning given to that term in §103(b)(6)(c) of the Internal Revenue Code, in §1.103-10 of the Internal Revenue Regulations and as interpreted in Internal Revenue Rulings.

 

Substantially all - ninety percent (90%) or more.

 

Substantial user - shall have the meaning given to that term in §§1.103-11(b) and (c) of the Internal Revenue Regulations and as interpreted in Internal Revenue Rulings.

 

Volume Cap - shall have meaning given to that term in §145 of the Internal Revenue Code (the "Code") as it would be added to the Code if H.R. 3838, the Tax Reform Act of 1985, is enacted into law, or, if H.R. 3838 is not enacted into law, volume cap shall mean the aggregate amount of bonds that may be issued by the District for the benefit of non-governmental persons under any other federal tax legislation that is enacted by the Congress of the United States in 1986 and is effective in 1986.

 

Zoning Regulations - title 11 of the D.C. Municipal Regulations (DCMR), the Zoning Regulations of the District of Columbia, as in effect on September 23, 1983, and as amended from time to time.

 

source

Final Rulemaking published at 30 DCR 4905, 4906 (September 23, 1983); as amended by Final Rulemaking published at 33 DCR 4438, 4446 (July 25, 1986).