1401764 Proposed Rulemaking to establish a schedule of fees for modification or conversion under the District's Revenue Bonds Program

OFFICE OF THE DEPUTY MAYOR FOR PLANNING

AND ECONOMIC DEVELOPMENT

 

NOTICE OF PROPOSED 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, gives notice of his intent to adopt the following rules 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 proposed amendments will 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 (2010 Supp.).

 

Final rulemaking action to adopt these amendments shall be taken in not less than thirty (30) days after the date of 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/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/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/conversion exceeds the amount of the modification/conversion fee, the imposition of the modification/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/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/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.

 

All persons desiring to comment on the subject matter of this proposed rulemaking should file comments in writing not later than thirty (30) days after the date of publication of this Notice in the D.C. Register.  Comments should be filed with William A. Liggins, Director of the Revenue Bond - Enterprise Zone Program, Suite E500, 1100 4^th Street, S.W., Washington, DC  20024 or by email to [e-mail].  Copies of the proposed rules may be obtained between the hours of 10:00 a.m. and 12:00 p.m. and 2:00 p.m. and 4:00 p.m. at the address listed above.