D.C. Mun. Regs. tit. 27, § 840
Evaluation of Equity and Development Participation
Effective Oct 23, 200956 DCR 8439Authority: 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
When evaluating the percentage of Equity Participation by an Equity Participant in a Covered Project, the Department shall take the following into account:
- (a) The financing plan for the 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.
When evaluating the percentage of Development Participation by a Development Participant in a Covered Project, the Department shall take the following into account:
- (a) The overall project scope and total development cost;
- (b) Whether development fees are shared and if so, what percentage is shared with the Development Participant and how that percentage is calculated; and
(c) Whether development services have been divided among members of the development team and, if so, what services are being provided by the Development Participant and what percentage of the development work is represented by that division.
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).