industrial development
bonds; rental property
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Committee on Counties & Municipalities |
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w/d |
Committee on Commerce & Economic Development |
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dp |
Caucus and COW |
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DP |
Third Read |
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DP |
As Passed the House |
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As Transmitted to the Governor |
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SB 1204 designates the current allocation schedule that became effective from and after 12/31/01 as permanent, and stipulates that the Arizona Housing Commission must establish a temporary committee composed of representatives of all stakeholders in industrial development authority financing for single family and multiple family housing allocations.
Currently, the private activity bond program in Arizona is administered through the Department of Commerce. Private activity bonds are issued by or on behalf of a municipality or county to provide financing for projects used in the trade or business of a private user.
Laws 2001, Ch.338, Sec.1 specifies the aggregate amount of private activity bonds allocated to projects, effective from and after 12/31/01, as follows:
Ø 10% to projects that are designated at the discretion of the Director of the Department of Commerce (changes to 15% on 1/1/04).
Ø 35% to qualified mortgage revenue bonds and qualified mortgage credit certificate programs.
Ø 10% to qualified residential rental projects, 30% of which shall be for rural residential rental projects for at least 180 days (eliminated on 1/1/04).
Ø 20% to qualified student loan projects.
Ø 15% to manufacturing projects.
Ø 10% to all other projects financable through issuance of private activity bonds that require an allocation, including, but not limited to, qualified mortgage revenue bonds and qualified mortgage credit certificate programs for home improvement and rehabilitation (changes to 15% on 1/1/04).
In addition, Laws 2001, Ch.338, Sec.7 established an 18-member study committee on industrial development bond allocations to review the utilization of private activity bonds for the past five years including applications for and issuance of bonds, assess the projected demand for utilization of private activity bonds in future years and review the process by which prospective users of private activity bonds are selected including the current lottery process, and evaluate and make recommendations for future allocations and methods for selecting private activity bond recipients.
· Designates the current allocation schedule that became effective from and after 12/31/01 as permanent.
· Stipulates that the Arizona Housing Commission must establish a temporary committee composed of representatives of all stakeholders in industrial development authority financing for single family and multiple family housing allocations.
· Requires the temporary committee to submit a written report of its recommendations on allocations and improvements to the Governor, the President of the Senate, the Speaker of the House of Representatives, and a copy of the report must be provided to the Secretary of State and the Director of the Arizona State Library, Archives and Public Records.
· Makes other technical and conforming changes.
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45th
Legislature
Second
Regular Session 2 June 4, 2002
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