DEPARTMENT OF LOCAL AFFAIRS Private Activity Bond Program PRIVATE ACTIVITY BOND PROGRAM RULES 8 CCR 1308-1 [Editor’s Notes follow the text of the rules at the end of this CCR Document.] _________________________________________________________________________ RULE #1 STATEMENT OF BASIS AND PURPOSE PURSUANT TO §24-32-1707 et seq. Colorado Revised Statutes (“C.R.S.”) as amended by Senate Bill 03-261, the Private Activity Bond Program is now a cash funded program. Senate Bill 03-261 was signed into law on May 1, 2003. This Act, sponsored by the Joint Budget Committee, necessitates adoption of Rule #1.

PURSUANT TO §24-32-1707 et seq. C.R.S. as amended, the Private Activity Bond Program incurs direct and indirect costs for ongoing administrative and monitoring requirements of the I.R.S. that application fee shall be paid and administrative fees may be collected from applicants for Private Activity Bonds. PURSUANT TO §24-32-1707 et seq. C.R.S. as amended, all application and administrative fees collected shall be deposited into the Private Activity Bond Allocations Fund. PURSUANT TO §24-32-1707 et seq. C.R.S. as amended, the State of Colorado Department of Local Affairs may charge application and administrative fees. The Department adopts the following Private Activity Bond fee schedule.

The change to cash funding is necessary in order to fund the private activity bond program. Without the fees set forth in this rule, the program cannot be implemented as envisioned and directed by Senate Bill 03-261.

State Issuing Authority Application Fees:

Any state issuing authority that applies for an allocation of private activity bond cap under §24-32-1705 C.R.S. must pay an annual $7,500 fee to the Department of Local Affairs for this allocation. Payment of this fee must accompany each request for bonds from the Department of Local Affairs. Statewide Balance Application Fees:

Pursuant to §24-32-1707(6)(a) C.R.S. a $750 application fee must accompany any application for an allocation from the statewide balance.

Statewide Balance Administrative Fee:

Pursuant to §24-32-1707(b)(I) C.R.S., upon bond issuance or at the time that a Mortgage Credit Certificate program commences, a .25% issuance fee on bonds issued is due to the Colorado Department of Local Affairs for the portion of the issuance that was allocated from the Statewide Balance, except for programs administered by local governments. This fee is due within five working days of the bond closing or the commencement of a Mortgage Credit Certificate program. Code of Colorado Regulations 1 _________________________________________________________________________ Editor’s Notes History Code of Colorado Regulations 2