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OFFICE OF THE DEPUTY MAYOR FOR PLANNING
AND ECONOMIC DEVELOPMENT
NOTICE OF FINAL RULEMAKING
The Deputy Mayor for Planning and Economic Development, pursuant to section 502(b) of the Industrial Revenue Bond Fees Act of 1997, effective March 20, 1998 (D.C. Law 12-60; D.C. Official Code § 47-340.20 (2005 Repl.)) and Mayor's Order 83-145, dated June 24, 1983, hereby gives notice of the adoption of final rulemaking to amend section 5015 in chapter 50 (Revenue Bonds) of subtitle B (Planning and Development) of title 10 (Planning and Development) of the District of Columbia Municipal Regulations (DCMR).
The purpose of the amendments is to establish a schedule of administrative fees to be paid with respect to modification or conversion of certain revenue bonds, notes and other obligations authorized to be issued by the District of Columbia under section 490 of the District of Columbia Home Rule Act, 87 Stat. 790, Pub. L. 93-198; D.C. Official Code
§ 1-204.90 (2006 Repl. & 2011 Supp.).
On August 5, 2011, proposed rules were published in the D.C. Register at 58 DCR 6654. No public comments were received and no substantive changes were made to the proposed rulemaking since the rules were published in the D.C. Register. Punctuation mark changes were made to replace the slash (/) between the terms “modification/conversion” with the word, “or,” to clarify that these are two separate terms as opposed to two terms with the same meaning. This change does not substantively change the nature of the rulemaking and is consistent with the agency’s initial intent.
These rules will become final upon publication of this notice in the D.C. Register.
Chapter 50, Revenue Bonds, of subtitle B, PLANNING AND DEVELOPMENT, of title 10, Planning and Development of the DCMR is amended as follows:
Renumber subsection 5015.8 to be subsection 5015.10.
Renumber subsection 5015.9 to be subsection 5015.11.
Renumber subsection 5015.10 to be subsection 5015.12.
Add new subsections 5015.8 through 5015.9 to read as follows:
5015.8 On or before the completion of a transaction in connection with outstanding bonds issued pursuant to section 490 of the Act that requires the filing of an information return with the United States Department of Treasury Internal Revenue Service (other than bonds issued by the Chief Financial Officer or an instrumentality of the District), the developer, owner, or applicant shall pay to the District, in addition to the costs specified in § 5015.1, and except as specified in § 5015.4, a modification or conversion fee according to the following schedule:
(a) Up to twenty-five million dollars ($25,000,000) in face amount of bonds outstanding at the time of the modification or conversion: ten hundredths of a percent (0.10%) of the face amount of the bonds outstanding at the time of the modification or conversion;
(b) More than twenty-five million dollars ($25,000,000) and up to and including one hundred million dollars ($100,000,000) in face amount of bonds outstanding at the time of the modification or conversion: fifteen hundredths of a percent (0.15%) of the face amount of the bonds outstanding at the time of the modification or conversion; and
(c) More than one hundred million dollars ($100,000,000) in face amount of bonds outstanding at the time of the modification or conversion: twenty hundredths of a percent (0.20%) of the face amount of the bonds outstanding at the time of the modification or conversion.
5015.9 With the written approval of the Deputy Mayor, the modification or conversion fee, but not the administrative charge, may be reduced after written request to the Deputy Mayor no later than thirty (30) days before the closing date of the transaction specified in § 5015.8 evidencing that the magnitude of cost savings realized by the developer, owner, or applicant in connection with the transaction will further the public interest because the benefits from the proceeds of the modification or conversion exceeds the amount of the modification or conversion fee, the imposition of the modification or conversion fee in whole is likely to adversely impact the financial feasibility of the project to be financed with the proceeds of the bonds, or the imposition of the modification or conversion fee will result in a detrimental financial impact on the developer, owner, or applicant or on the operations of the project to be financed by the proceeds of the bonds. The magnitude of the cost savings realized shall be calculated as a percentage of the costs of the original transaction by using the cost savings as the numerator and the costs of the original transaction as the denominator. Reductions in the modification or conversion fee shall not be in an amount exceeding five hundredths of a percent (0.05%) of the face amount of the bonds outstanding at the time of the modification or conversion. The request for reduction shall be made a part of the record of the transaction.
