Each year, the state of Iowa receives an allocation of volume cap (state ceiling) for allocation to certain private activity bonds as set forth in Section 146 of the Internal Revenue Code of 1986. Section 7C of the Iowa Code distributes the State Ceiling among these types of bonds.
IFA allocates the state ceiling for projects qualifying as:
Solid waste facilities
Private activity bonds issued by political subdivisions
Applications for an allocation are received on a continuous basis.
Applications may be submitted any time after the project has an inducement resolution from the Issuer.
Completed applications are submitted to Governor’s Designee, Iowa Finance Authority, 1963 Bell Avenue, Suite 200, Des Moines, Iowa 50315. Attn: Chief Bond Programs Director along with an application fee of two basis points.
The amount of cap requested cannot be more than the amount of the inducement resolution. The following parameters surrounding application apply:
After an allocation is made, the project has 120 days (with a possible 30-day extension) in which to close the bonds.
After the bonds are issued, the notice of issuance and delivery of bonds must be completed and submitted within 10 days of the delivery date for the bonds. If the actual principal amount of bonds is less than the amount of the allocation, the allocation is automatically reduced to the principal amount of the bonds.