D.C. Mun. Regs. tit. 27, § 840
Evaluation of Equity and Development Participation
Effective Aug 11, 202370 DCR 010970Authority: Small and Certified Business Enterprise Development and Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-218.01 et seq. (“Act”), and Mayor’s Order 2009-58, dated April 15, 2009. Source: Final Rulemaking published at 39 DCR 9052 (December 4, 1992); as amended by Final Rulemaking published at 56 DCR 8439 (October 23, 2009), incorporating by reference text of Proposed Rulemaking published at 56 DCR 5622, 5650 (July 10, 2009); as amended by Final Rulemaking published at 70 DCR 010970 (August 11, 2023).District of Columbia, Office of the Secretary
840
840.1 When evaluating the percentage of Equity Participation by an Equity Participant in a Covered Project, the Department will take the following into account:
- (a) The financing plan for the Covered Project;
- (b) The amount and nature of leverage in the form of debt or other sources incurred by the Sponsor Entity;
- (c) The amount of institutional equity being provided for the benefit of the Sponsor Entity;
- (d) The amount of mezzanine financing being provided for the benefit of the Sponsor Entity, including the roles and rights of the mezzanine financier;
- (e) The total amount of equity required from the Sponsor Entity;
- (f) The percentage of the Sponsor Entity's equity being provided by an Equity Participant and the terms thereof;
- (g) The percentage of institutional equity being provided by an Equity Participant;
- (h) Provisions in funding documents related to the sale, dilution, or conversion of equity interests prior to project completion that may result in a change in the amount of the Equity Participant's Equity Participation and ownership;
- (i) Whether Equity Participants are treated similarly, with respect to the determination of returns, as compared to other entities with similar risk profiles on a Covered Project; and
- (j) The amount of sweat equity and the categories in which the Equity Participant(s) is (are) certified.
SOURCE: Final Rulemaking published at 39 DCR 9052 (December 4, 1992); as amended by Final Rulemaking published at 56 DCR 8439 (October 23, 2009), incorporating by reference text of Proposed Rulemaking published at 56 DCR 5622, 5650 (July 10, 2009); as amended by Final Rulemaking published at 70 DCR 010970 (August 11, 2023).