Volume Cap Program

Ohio Development Services Agency

Program Type:

Loan

Eligible Geography:

Ohio

Summary:

The Volume Cap Program is a federally authorized program which allows the state to allocate tax-exempt bond authority to various projects throughout the state. With this authority, bond issuers are able to finance projects at interest rates below that of the conventional market. Its objective is to encourage job creation. It provides authority to issue tax-exempt bonds for select private activities. The term volume cap refers to the restrictions placed on the amount of tax-free bonds that may be issued by state and local governments for such assets. Private Activity Bonds are used to attract private investment for projects that have public benefits. The tax-exemption enables projects to access capital at lower interest rates, facilitating a larger more secure project. Private Activity Bonds have historically provided financing for energy facilities, housing, manufacturing facilities, airports, and many other private and public projects. Authorizes bond issuers with ability to finance projects at interest rates below that of the conventional market. Local governmental entities such as municipalities, counties, and port authorities constitute the most common issuers of tax-exempt bonds in Ohio. The State may serve as the issuer in circumstances wherein the project spans multiple counties or the local government is unable or not interested in issuing such debt obligations. Bonds are made available to institutional investors by the local government and its underwriter on behalf of the borrower seeking financial assistance in the project.

Eligible Recipients:

For-Profit Business

Eligible Recipients Detail:

Development Projects.

Eligible Purpose:

General Infrastructure; Last Mile Connectivity; Middle Mile Connectivity; Building Connectivity

Eligible Purpose Detail:

The intent of the program is to provide assistance to industrial development projects, redevelopment projects, agricultural projects, homeownership financing projects, multi-family housing development and various other special project uses, such as solid waste disposal, mass commuting and environmental enhancement projects, commonly referred to as exempt facilities. Any project must involve mortgage loans to low-income home buyers; student loans; construction or improvement of certain types of manufacturing facilities, solid waste treatment equipment or pollution abatement facilities; or multifamily rental housing development or renovation. Project must not have been placed in service for at least two years prior to the bond's date of issue.

Funding Match/Terms:

In accordance with the Ohio Administrative Code Rules 122-4-05 (A)(3) and 122-4-06 (D), project owners and bond counsel will need to comply with the following filing fees during each stage of acquiring Volume Cap state-ceiling: A filing of a Notice of Intent for an allocation will not be deemed to be filed until and unless a refundable fee in an amount equal to the lesser of ¾ of 1% of the amount requested in the Notice of Intent or $150,000 plus $1,000 non-refundable filing fee is received by the Director of Ohio Development Services Agency. A confirmation request for a 60-day extension will not be deemed to be filed until accompanied by a $1,000 non-refundable extension application fee and an additional refundable fee in an amount equal to the lesser of ¾ of 1% of the amount requested in the original confirmation or $150,000. A filing of a Notice of Intent for carryforward must be accompanied by a refundable fee in an amount equal to the lesser of ¾ of 1% of the amount requested in the Notice of Intent or $500,000 plus $1,000 non-refundable fee.