The University of Vermont is subject to post-issuance bond compliance requirements as a result of its outstanding tax-exempt bond issues. One such requirement is Private Business Use (PBU) compliance. Facilities financed with tax-exempt financing must be monitored on a consistent and regular basis throughout the life of the financing to ensure compliance with the limitations on tax-exempt private business use. For each tax-exempt debt issuance, the University is required to record, update and retain private business use activity documentation to substantiate compliance. 

In brief, private business use means:

  • Use (directly or indirectly)
  • Of the “facilities” (facilities financed by, or the proceeds of, a tax-exempt financing)
  • In a “trade or business” (any activity carried on by a person other than a natural person)
  • Carried on by a “nonqualified user.” (Qualified users are limited to state or local government units. Note: the federal government and its agencies are NOT considered qualified users.)

Responsibilities for Officials and Delegates - Year-round Monitoring and Yearly Reporting

  • Monitor all non-UVM space usage contracts, agreements, leases, and non-contract/informal space usage arrangements in bond-financed spaces for your area, as designated in the space survey.
  • Create methods to review, oversee, and collect space usage data for yearly PBU questionnaires, such as having all space usage arrangements flowing through your office.
  • Record, update, and retain all documentation of any private business use.
  • Forward all usage arrangements (new, amended, terminated) pertaining to bond-financed spaces to throughout the year.
  • Advise individuals responsible for the specific space usage arrangements not processed by SPA (non-SPA) to track buildings, room numbers, and days of usage.
  • Supply information regarding any Non-institutional Agency (not UVM paid) designations made in the space survey under your purview to Treasury Management.
  • Collect data and complete yearly questionnaire and biennial training.

Annual Questionnaire

To ensure compliance with University policy, all administrators of units that benefit from tax-exempt bond proceeds and bond-financed property are required to complete an annual questionnaire and biennial training.

PBU Biennial Training

Training information will be emailed to unit administrators and their delegates biennially by Treasury Management.