On December 14, 2009, the Ohio Department of Development (ODOD) announced a Recovery Zone Bond waiver process applicable to large municipalities and counties which have been allocated recovery zone volume cap.
Earlier this year, the federal government allocated to Ohio a total of $422,637,000 for Recovery Zone Economic Development Bonds (RZEDBs) and $633,955,000 for Recovery Zone Facility Bonds (RZFBs) (collectively, RZ Bonds. RZ bonds are exempt facility bonds created by the American Recovery and Reinvestment Act of 2009. View the Calfee First Alert from June of this year or this presentation to find out more.) That allocation is divided among six large municipalities and 86 of 88 counties in the state. RZ bonds must be issued prior to January 1, 2011. In order to ensure that RZ Bonds are used to the fullest extent possible to foster the creation and retention of jobs, support regional collaboration and provide an opportunity for all communities to take advantage of the program, the state of Ohio has established a Waiver and Reallocation System.
- All recipients of an RZ Bond allocation must file a Plan of Issuance with ODOD by January 31, 2010.
- Amounts of the RZ Bond allocation not included in the Plan of Issuance are deemed waived.
- ODOD will take applications for reallocation and make reallocations in consultation with the Governor’s Office, the Office of Budget and Management and the State Treasurer.
- Communities must demonstrate progress toward issuance of RZ Bonds or risk losing allocations.
ODOD will begin accepting reallocation requests on March 1, and reallocation decisions will be announced by April 16. Reallocations will consider the following criteria:
- Requests by the waiving community for reallocation to a neighboring community
- Jobs and payroll created and retained
- Project readiness
- Reallocation to communities that did not previously use allocations
- Requests for the amount originally waived by a community
- General reallocation within a region
Projects included in the initial Plan of Issuance must show progress by April 1, and projects which get reallocations must show progress by June 15. Failure to provide progress verification may lead to allocations being waived.
An issuance deadline of July 31 has been set for the reallocations, with extensions possible through August 31.