840. EVALUATION OF EQUITY AND DEVELOPMENT PARTICIPATION

840 EVALUATION OF EQUITY AND DEVELOPMENT PARTICIPATION When evaluating the percentage of Equity Participation by an Equity Participant in a Covered Project, the Department will take the following into account: The financing plan for the Covered Project; The amount and nature of leverage in the form of debt or other sources incurred by the Sponsor Entity; The amount of institutional equity being provided for the benefit of the Sponsor Entity; The amount of mezzanine financing being provided for the benefit of the Sponsor Entity, including the roles and rights of the mezzanine financer; The total amount of equity required from the Sponsor Entity; The percentage of the Sponsor Entity's equity being provided by an Equity Participant and the terms thereof; The percentage of institutional equity being provided by an Equity Participant; 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; 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 The amount of sweat equity and the categories in which the Equity Participant(s) is (are) certified. 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 Municipal Regulations Contracts and Procurement 27 DCMR § 840