CHAPTER 37
RECOVERY ZONE BOND ALLOCATION
265—37.1(16) General. The American Recovery and Reinvestment Act of 2009 created two types of recovery zone (“RZ”) bonds: recovery zone economic development (“RZED”) bonds and recovery zone facility (“RZ facility”) bonds. The applicable provisions are codified in Sections 1400U-1 – 1400U-3 of the Internal Revenue Code of 1986, as amended. The law provides that eligible issuers in Iowa may issue up to $90 million of RZED bonds and up to $135 million of RZ facility bonds. Through Notice 2009-50, the Internal Revenue Service published the applicable RZ bond allocations for Iowa, which amounts are included as Exhibit A to this chapter.
Pursuant to 2010 Iowa Acts, House File 2487 (the “Act”), the Iowa finance authority (“authority”) has been charged with tracking the issuance of RZ bonds and making certain allocations of RZ bonding authority to ensure maximum use of this resource in the state.
[ARC 8709B, IAB 5/5/10, effective 4/12/10]
265—37.2(16) Forms. Information and forms necessary for compliance with provisions of the law are available upon request from the Iowa Finance Authority, 2015 Grand Avenue, Des Moines, Iowa 50312. The telephone number of the authority is (515)725-4900. Information and forms are also available at www.iowafinanceauthority.gov.
[ARC 8709B, IAB 5/5/10, effective 4/12/10]
265—37.3(16) Notice from the authority to issuers. The authority will provide written notice to each county and to each large municipality (defined as a city with a population exceeding 100,000) of the amount of RZ bonding authority that has been allocated to it by the Internal Revenue Service. This written notice will include information about waiving such authority, pursuant to rule 265—37.5(16), as well as notification of the requirement that issuers provide written notice to the authority of any issuance of RZ bonds.
[ARC 8709B, IAB 5/5/10, effective 4/12/10]
265—37.4(16) Notice from issuers to the authority. Within five business days of the issuance thereof (or within five business days of its receipt of the authority letter issued under rule 265—37.3(16), for those issuers that have issued RZ bonds prior to April 12, 2010), each county or large municipality that issues RZED bonds or RZ facility bonds (or that allocates RZ bond authority to a local issuer) shall give the authority written notice, on a form provided by the authority, detailing the amount and type of RZ bonds that were issued.
[ARC 8709B, IAB 5/5/10, effective 4/12/10]
265—37.5(16) Waiver of RZ bonding authority.
	37.5(1) A county or large municipality that has received an allocation of RZ bonds may, prior to July 1, 2010, voluntarily waive all or part of such allocation to the authority by completing the applicable RZ bond waiver form provided by the authority.
	37.5(2) As provided in the Act, any portion of a county or large municipality’s RZ bond allocation that has not been used by July 1, 2010, is deemed waived, and such amount will be subject to reallocation by the authority pursuant to rule 265—37.7(16). The authority will consider an allocation (or a portion thereof) used if the issuer for such allocation has taken substantive action toward issuance of the applicable RZ bonds. “Substantive action” includes, but is not limited to, (a) the adoption of resolutions or ordinances authorizing the sale or issuance of bonds, or (b) the completion of procedures, such as public hearings, referenda or related petition periods, to vest authority for the issuance of bonds.
[ARC 8709B, IAB 5/5/10, effective 4/12/10]
265—37.6(16) Application for allocation of recaptured or waived RZ bond authority.
	37.6(1) An applicant or beneficiary, or the duly authorized agent of an applicant or beneficiary, requesting an allocation must make an application by filing the form entitled “Application for Recovery Zone Bonds” available from the authority. Such applicant must possess the ability to issue RZ bonds under state and federal law.
	37.6(2) As part of its application, the applicant must include a copy of the resolution or other official action designating the recovery zone for which the application is being made.
[ARC 8709B, IAB 5/5/10, effective 4/12/10]
265—37.7(16) Allocations.
	37.7(1) The authority will track the amount and type of RZ bonds issued and the amount of RZ bonding authority available to be allocated.
	37.7(2) Allocations will only be made for eligible projects in those counties that received an allocation of authority to issue RZ bonds pursuant to IRS Notice 2009-50. While the allocations will be limited to projects within those counties that originally received an allocation, the amount of the allocation from the authority will not be limited to the original allocated amounts under Notice 2009-50.
	37.7(3) Allocations shall be made to eligible applicants on the basis of the chronological order of receipt of applications. Chronological order of receipt shall be determined by the date, hour and minute indicated by the time stamp as affixed to the application at the offices of the authority.
	37.7(4) All applications that are received by the authority on or prior to April 12, 2010, pursuant to the provisions of rule 265—37.6(16) shall be considered simultaneously received at the opening of business on April 12, 2010, and the same date, hour and minute shall be stamped on each application so received. If the total amount of allocations requested in all of the applications received on such date exceeds the total amount determined by the authority as available to be allocated, the applications will be considered for allocation in the order determined pursuant to the procedures set forth in subrule 37.7(5).
	37.7(5) In order to determine the order of allocation to two or more applications that are simultaneously received pursuant to subrule 37.7(4) and for which there is insufficient capacity to allocate to each the full allotment requested, each such application shall be assigned a preference number determined by a random drawing to be conducted at the authority’s offices within one week following the receipt of the applications. The authority shall notify the affected applicants in writing and shall post a notice at its offices of the time and place of the drawing not less than three days prior to the scheduled drawing. Any person desiring to attend and witness the drawing and assigning of preference numbers may do so. Each application shall be assigned an identification code that shall be written on the outside of the sealed envelope containing the application. The identification codes shall also be written on strips of paper and placed in individual envelopes and sealed. The sealed envelopes containing identification codes shall be placed in a container, mixed, and drawn from the container at random by a member of the authority’s staff. The application corresponding with the identification code that is drawn first shall be placed first on the list of applicants to receive an allotment. The application corresponding with the identification code that is selected second shall be placed second on the list, and so forth. Drawings shall continue until all applications are assigned a place on the list of applications received.
	37.7(6) Applications received after April 12, 2010, shall be added to the appropriate list (whether for RZED bonds or RZ facility bonds) depending upon the subject of the application in the chronological order received.
[ARC 8709B, IAB 5/5/10, effective 4/12/10]
265—37.8(16) Certification of allocation. Upon receipt of a completed application and verification that sufficient RZ bonding authority exists for such application, the authority shall promptly certify to the applicant the amount of the RZED bond or RZ facility bond allocation, as applicable, awarded to the project for which the application was submitted. The authority shall continue to award allocations for eligible projects until the available recovery zone bonding authority is allocated. If the remaining capacity is not sufficient to fully fund an application which is next in order for allocation, the authority shall notify the applicant of the amount that is available and the applicant shall have the option to take what is available within five calendar days of receiving notice of availability. If the applicant does not notify the authority of its decision to take the available allocation within five calendar days of receiving notice of that option, an allotment shall be offered to the next application on the list under the same conditions.
[ARC 8709B, IAB 5/5/10, effective 4/12/10]
265—37.9(16) Expiration of allocations. An allocation of recovery zone bonding authority pursuant to this chapter shall remain valid for 120 days from the date of allocation. If the sale of bonds for which an allocation was made has not closed within such time, the allocation shall expire and the allotment shall revert to the authority to be reallocated, if possible; provided, however, that if the 120th day following the date of allocation is a Saturday, Sunday, or any day on which the offices of the state banking institutions or savings and loan associations in the state are authorized or required to close, the expiration date shall be extended to the first day thereafter which is not a Saturday, Sunday or previously described day.
[ARC 8709B, IAB 5/5/10, effective 4/12/10]
265—37.10(16) Resubmission of expired allocations. If an allocation expires, the applicant may resubmit its application for the same project or purpose. However, the resubmitted application shall be treated as a new application, and preference, priority or prejudice shall not be given to the application or the applicant as a result of the prior application.
[ARC 8709B, IAB 5/5/10, effective 4/12/10]
265—37.11(16) Application and allocation fees. The Iowa finance authority may set and charge reasonable fees for providing administrative assistance with regard to the filing of applications and the allocation of the recovery zone bond allotments in accordance with these rules.
[ARC 8709B, IAB 5/5/10, effective 4/12/10]
EXHIBIT A

 	 	Recovery Zone Economic Development Bonds	Recovery Zone Facility Bonds	 	
 	Iowa’s Total Allocation	$90,000,000	$135,000,000	 	
 	 	 	 	 	
 	Large Municipalities	 	 	 	
 	Cedar Rapids	1,972,000	2,958,000	 	
 	Des Moines	5,571,000	8,356,000	 	
 	 	 	 	 	
 	Counties	 	 	 	
 	Adair County	564,000	845,000	 	
 	Adams County	0	0	 	
 	Allamakee County	3,212,000	4,818,000	 	
 	Appanoose County	0	0	 	
 	Audubon County	382,000	574,000	 	
 	Benton County	390,000	586,000	 	
 	Black Hawk County	2,343,000	3,514,000	 	
 	Boone County	0	0	 	
 	Bremer County	447,000	670,000	 	
 	Buchanan County	72,000	109,000	 	
 	Buena Vista County	785,000	1,177,000	 	
 	Butler County	411,000	616,000	 	
 	Calhoun County	0	0	 	
 	Carroll County	350,000	525,000	 	
 	Cass County	0	0	 	
 	Cedar County	0	0	 	
 	Cerro Gordo County	0	0	 	
 	Cherokee County	1,795,000	2,693,000	 	
 	Chickasaw County	0	0	 	
 	Clarke County	648,000	972,000	 	
 	Clay County	0	0	 	
 	Clayton County	0	0	 	
 	Clinton County	0	0	 	
 	Crawford County	0	0	 	
 	Dallas County	1,731,000	2,596,000	 	
 	Davis County	612,000	918,000	 	
 	Decatur County	865,000	1,298,000	 	
 	Delaware County	463,000	694,000	 	
 	Des Moines County	3,550,000	5,325,000	 	
 	Dickinson County	0	0	 	
 	Dubuque County	4,363,000	6,545,000	 	
 	Emmet County	0	0	 	
 	Fayette County	1,115,000	1,672,000	 	
 	Floyd County	2,500,000	3,749,000	 	
 	Franklin County	1,220,000	1,829,000	 	
 	Fremont County	821,000	1,232,000	 	
 	Greene County	0	0	 	
 	Grundy County	221,000	332,000	 	
 	Guthrie County	306,000	459,000	 	
 	Hamilton County	1,578,000	2,367,000	 	
 	Hancock County	853,000	1,280,000	 	
 	Hardin County	0	0	 	
 	Harrison County	0	0	 	
 	Henry County	1,409,000	2,113,000	 	
 	Howard County	1,654,000	2,481,000	 	
 	Humboldt County	1,320,000	1,980,000	 	
 	Ida County	0	0	 	
 	Iowa County	0	0	 	
 	Jackson County	32,000	48,000	 	
 	Jasper County	692,000	1,038,000	 	
 	Jefferson County	1,163,000	1,745,000	 	
 	Johnson County	0	0	 	
 	Jones County	286,000	429,000	 	
 	Keokuk County	403,000	604,000	 	
 	Kossuth County	604,000	906,000	 	
 	Lee County	2,793,000	4,190,000	 	
 	Linn County	1,280,000	1,920,000	 	
 	Louisa County	837,000	1,256,000	 	
 	Lucas County	0	0	 	
 	Lyon County	370,000	555,000	 	
 	Madison County	435,000	652,000	 	
 	Mahaska County	841,000	1,262,000	 	
 	Marion County	857,000	1,286,000	 	
 	Marshall County	2,431,000	3,647,000	 	
 	Mills County	0	0	 	
 	Mitchell County	962,000	1,443,000	 	
 	Monona County	0	0	 	
 	Monroe County	0	0	 	
 	Montgomery County	588,000	882,000	 	
 	Muscatine County	3,136,000	4,703,000	 	
 	O’Brien County	149,000	223,000	 	
 	Osceola County	0	0	 	
 	Page County	2,274,000	3,411,000	 	
 	Palo Alto County	547,000	821,000	 	
 	Plymouth County	2,322,000	3,484,000	 	
 	Pocahontas County	0	0	 	
 	Polk County	6,992,000	10,487,000	 	
 	Pottawattamie County	0	0	 	
 	Poweshiek County	3,083,000	4,625,000	 	
 	Ringgold County	246,000	368,000	 	
 	Sac County	181,000	272,000	 	
 	Scott County	0	0	 	
 	Shelby County	0	0	 	
 	Sioux County	946,000	1,419,000	 	
 	Story County	0	0	 	
 	Tama County	2,004,000	3,007,000	 	
 	Taylor County	475,000	712,000	 	
 	Union County	0	0	 	
 	Van Buren County	125,000	187,000	 	
 	Wapello County	910,000	1,365,000	 	
 	Warren County	1,352,000	2,029,000	 	
 	Washington County	0	0	 	
 	Wayne County	0	0	 	
 	Webster County	0	0	 	
 	Winnebago County	1,304,000	1,956,000	 	
 	Winneshiek County	4,090,000	6,134,000	 	
 	Woodbury County	612,000	918,000	 	
 	Worth County	0	0	 	
 	Wright County	1,155,000	1,733,000	 	
 	
[ARC 8709B, IAB 5/5/10, effective 4/12/10]
These rules are intended to implement Iowa Code section 16.5(1)“r” and 2010 Iowa Acts, House File 2487.
[Filed Emergency ARC 8709B, IAB 5/5/10, effective 4/12/10]