D.C. Mun. Regs. r. 27-840

Current through Register Vol. 71, No. 24, June 14, 2024

Rule 27-840 - EVALUATION OF EQUITY AND DEVELOPMENT PARTICIPATION

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 financer;

(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.

D.C. Mun. Regs. r. 27-840

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); amended by Final Rulemaking published at 70 DCR 10970 (8/11/2023)

Authority: Section 2372 of the Small, Local, and Disadvantaged Business Enterprise Development and Assistance Act of 2005 (Act), effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-218.72 )(2009 Supp.) and Mayor's Order 2009-58, dated April 15, 2009.