Volume Cap Carryforward

  1. Applicant Files a Notice of Intent with the AFA by December 16, 5:00.
  2. Notice of Intent includes:
    1. The Volume Cap Application form to the AFA noting the “Carryforward Allocation” as the type of volume cap and identifies a project or “carryforward purpose.” 
    2. Sending a copy of an “inducement resolution” or other official action of the intended bond issuer related to the identified project or carryforward purpose to [email protected] and,
    3. Pay a nonrefundable application fee to the AFA. 
  3. Processing of Notices of Intent Pursuant to A.R.S. Section 35-907.
    1. At 5:00 p.m. on December 16, AFA will determine the amount of the current-year state ceiling remaining unallocated and available for carryforward. 
    2. The Director of the AFA (or its designee) will consider each notice of intent individually to confirm its completeness and the general eligibility of the project. 
    3. On December 17, the Director will consider the aggregate amount of state ceiling requested in all notices of intent deemed complete relative to the current-year state ceiling determined to be available for carryforward purposes. 
    4. If the aggregate amount requested in all such notices of intent exceeds the amount of the current-year state ceiling then available for carryforward purposes, the Director of AFA will conduct a lottery to determine which projects receive carryforward. 
      1. The Director will number each request as received. 
      2. On the 17th of December, the Director shall randomly pick applicants who will receive Volume Cap carryforward. 
    5. If the aggregate amount requested in all such notices of intent does not exceed the amount of the current-year state ceiling then available for carryforward purposes, the Director will issue confirmations in the order each notice of intent was received using the identifying number assigned to each notice of intent upon its receipt. 
    6. Applicants shall:
      1. Within 72 hours of the confirmation receipt, each recipient of a carryforward allocation shall pay the required confirmation fee in the amount determined in accordance with A.R.S. Section 35-909 ($320 per million);
      2. Within 5 days, the applicant shall post a 1% security deposit pursuant to A.R.S. Section 35-907(B)(2), if applicable. and
      3. Take all other required steps under the Code and the related regulations for reporting carryforward allocations under applicable federal income tax laws (including the proper filing of IRS form 8328).

Reallocation of Carryforward

  1. Pursuant to A.R.S. Section 35-907(C), an Issuer, upon written notice to the Director, may 
    1. Reallocate all or a portion of any carryforward confirmation within the same carryforward purpose. 
    2. A reallocation made under this subsection does not increase the aggregate amount of the original carryforward confirmation to which the reallocation relates or extends the term of the original carryforward confirmation during which the bonds must be issued. 
    3. Reallocation of carryforward confirmation by an issuer will not result in a refund of any security deposit previously received by the authority on account of the original carryforward confirmation. 
    4. The certificate of closing shall indicate to the authority if the carryforward confirmation was reallocated.