The Code of Virginia Chapter 50 (15.2-5000 through 15.2-5005) of Title 15.2 sets aside specified amounts of the Commonwealth’s limited private activity bond issuing authority for different types of projects.
Private activity bonds are defined under IRC §141 are defined as a “Private business user” using more than 10% of proceeds and pays more than 10% of debt service; or a “Private loan: of more than 5% of proceeds or $5,000,000 if less.
Private business users include Corporations, partnerships, or any other entity engaged in business: exempt organization, but IRC §145 allows tax-exempt Private Activity Bonds for 501 C (3) organizations; Federal government and Federal government agencies; and Natural persons engaged in a trade or business.
The Virginia Department of Housing and Community Development is responsible for Virginia's private activity bonds set aside for local housing authorities and for that portion set aside for state allocation. For more information visit the DHCD site about Private Activity Bonds.