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CDFA Bond Finance Update - April 16, 2024

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Bond Finance Update
April 16, 2024
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CDFA Bond Finance Update

Features

Join CDFA for the Return of the Revolving Loan Fund WebCourse Week!
Revolving Loan Fund WebCourse Week is returning with the intro level on May 13-14 followed by the advanced level on May 15-16. Register for one or both of these courses to learn from experts about developing, implementing, and managing efficient and impactful revolving loan fund programs.

McGuireWoods' Public Finance Team Earns Top Rankings for Bond Transactions
McGuireWoods' public finance team delivered another strong performance for clients in 2023, ranking among the top bond counsel in the Southeast United States and retaining its position as No. 1 bond counsel in Virginia, according to data published by The Bond Buyer, the daily newspaper of public finance.

South Dakota Issues $55M Bond for Dairy Operation
The South Dakota Governor's Office of Economic Development (GOED) Board of Economic Development and the Economic Development Finance Authority (EDFA) approved a $55 million Livestock Nutrient Management Bond to Riverview LLP of Kingsbury County. Proceeds will be used for acquisition, site preparation, and solid waste management for their 15,000-20,000 milking cows dairy operation.

New York City Announces Details of $450M Bond for Water and Sewer System
The New York City Municipal Water Finance Authority (NYW) announced the details of its upcoming sale of approximately $450 million of tax-exempt, fixed rate bonds. Proceeds from the bond sale will be used to fund improvements to the New York City Water and Sewer System, refund certain outstanding bonds, and pay for the costs of issuance.

Billions to Trillions: How Municipal Bonds Can Multiply the Reach of the US ‘Green Bank'
The Environmental Protection Agency announced the slate of entities that will take on the responsibility of shepherding the $27 billion Greenhouse Gas Reduction Fund programs into thousands of green projects across the country. This is a significant start, but it represents just a fraction of the investment needed. The municipal market, with its $4 trillion valuation, emerges not just as a potential solution, but as a critical leverage point for accelerating and scaling up climate initiatives across the country.

Housing-Bond Sales Hit 10-Year High as Mortgage Rates Stay High
State and local governments borrowed nearly $9 billion for affordable housing so far this year — the most for the period in at least a decade — as buying a home in the US remains expensive. The 57% year-over-year jump in issuance of housing bonds coincides with a period of lower borrowing costs in the muni market. The yield on the 10-year AAA benchmark is down 1.1 percentage points since Nov. 1, while mortgage rates continue to be twice as high as they were in 2021 before rate hikes began.

Kutak Rock Serves as Bond Counsel for Douglas County, CO Multifamily Housing Project
Kutak Rock served as bond counsel to the Douglas County, CO Housing Partnership in connection with the issuance of its $30 million Multifamily Housing Revenue Notes (The Sophia Project) Series 2024 which financed a portion of the costs of the acquisition, construction, improvement, and equipping of a senior 55 and older affordable housing facility, consisting of approximately 158 units, which will provide dwelling accommodations within the means of families of low or moderate income.

Novant Health Requests $750M Bond from Forsyth County, NC
Novant Health is requesting the Forsyth County Board of Commissioners to approve a resolution allowing the nonprofit healthcare system to issue tax-exempt bonds valued at $750 million. The bonds would be issued by the National Finance Authority, which was created for the sole purpose of issuing bonds on behalf of nonprofit organizations nationwide to facilitate the financing or refinancing of projects on a tax-exempt basis.

Americans' Growing Wealth Points to Boom in Tax-Exempt Bond Market
Americans' wealth is growing, and with it, so could their demand for investments that can protect some of that wealth from taxes. The market for municipal bonds should be a hot target for the growing ranks of the wealthy. Growing net worth makes muni bonds more attractive as a tax shield, especially as investors anticipate the first rate cut on the horizon from the Federal Reserve, which would push bond values up.

Chicago, IL City Council to Mull $1.25B of Bonds
The Chicago City Council's Finance Committee will discuss $1.25 billion of general obligation and Sales Tax Securitization Corporation bonds that Mayor Brandon Johnson has urged the City Council to approve. Chicago would not have to raise property taxes to issue the bonds because about 45 tax increment financing (TIF) districts are going to expire by Dec. 31, 2027. As the TIF districts expire and the overall tax base grows, the amount of property taxes flowing to the city will increase.

Market Reports

Weekly Market Outlook
Moody's Analytics | Apr. 11 | Bond Finance | Market Reports

Capital Market Outlook
Merrill | Apr. 8 | Bond Finance | Market Reports

Upcoming Events
Intro Revolving Loan Fund WebCourse

CDFA Tribal Finance Webinar Series: Empowering Native Entrepreneurs Through Access to Capital
April 23, 2024 - 2:00 PM - 3:30 PM Eastern
During this installment of the CDFA Tribal Financing Webinar Series, practitioners will present strategies and highlight finance programs that are helping to increase access to capital and aiding the creation of successful small businesses.

CDFA // BNY Mellon Development Finance Webcast Series: AI & Bonds
May 21, 2024 - 2:00 PM - 3:00 PM Eastern
During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, panelists will unravel the multifaceted dimensions of AI's role in the municipal market, potential advantages and challenges that arise from embracing AI, and its impact on development finance.

Bond Finance Headlines

Vermont Bond Bank Closes $15M in Disaster Recovery Loans
VermontBiz | Apr. 11 | Bond Finance | Disaster Recovery & Relief | Bond Banks

More Bond Issuance Likely for U.S. CDFIs
Fitch Ratings | Apr. 10 | Bond Finance | Community Development | Community Development Financial Institutions (CDFIs)

Public Funding for Sports Stadiums: A Primer and Research Roundup
The Journalist's Resource | Apr. 10 | Bond Finance

Richmond, VA Changing Bond Financing Structure for New Baseball Stadium
12 On Your Side | Apr. 8 | Bond Finance

Fitch Places Utility Systems Revenue Bond Ratings Under Observation
Fitch Ratings | Apr. 8 | Bond Finance | Bond Rating Agencies

Davenport, IA's Credit Rating Affirmed by Moody's and S&P Global
Yahoo! Finance | Apr. 6 | Bond Finance | Bond Rating Agencies

Boothbay, ME Authorizes $3.2M Bond for Storm-Caused Road Damage
Boothbay Register | Apr. 1 | Bond Finance

Quincy, MA May Issue $157M Bond for Parking Garages
The Patriot Ledger | Apr. 1 | Bond Finance | Tax Increment Finance (TIF)

MassDevelopment Provides $17M Bond for Affordable Housing in Bedford, MA
Rebusiness Online | Mar. 27 | Bond Finance | Development Finance Toolbox | Housing Finance

Fitch Rates North Carolina Turnpike Authority's $180M State Bonds 'AA+'; Outlook Stable
Fitch Ratings | Mar. 26 | Bond Finance | Infrastructure Finance | Build America Bonds (BABs) | Bond Rating Agencies

Evergreen Completes $30M Affordable Housing Project in Indiana
Connect CRE | Mar. 26 | Bond Finance | Housing Finance | Tax Credits | Low Income Housing Tax Credits (LIHTCs)

MassDevelopment Issues $25M for Boston-Area Montessori School
MassDevelopment | Mar. 25 | Access to Capital | Bond Finance | 501(c)(3) Bonds

Fitch Rates Trinity River Authority, TX Regional Wastewater Rev Bonds 'AAA'
Fitch Ratings | Mar. 22 | Bond Finance | Bond Rating Agencies

U.S. Tax Court Holds Bond Financing Costs Includible in LIHTC Basis
Lexology | Mar. 21 | Bond Finance | Housing Finance | Tax Credits | Bond Volume Cap | Low Income Housing Tax Credits (LIHTCs)


Highlights from the Online Resource Database

IRS Guidewire N-24-32: Qualified Student Loan and Qualified Mortgage Bonds
Bond Finance
This notice provides guidance for qualified student loan bonds to clarify certain requirements for tax-exempt bond financing for loan programs of general application approved by a State under § 144(b)(1)(B) (State Supplemental Loan programs).  Specifically, this notice addresses eligibility of borrowers of loans through State Supplemental Loan programs and the loan size limitation for State Supplemental Loans.  It also provides guidance on whether an issue of State or local bonds the proceeds of which are used to finance or refinance qualified student loans or to finance qualified mortgage loans is a refunding issue. 


The Council of Development Finance Agencies is a national association dedicated to the advancement of development finance concerns and interests. CDFA is comprised of the nation's leading and most knowledgeable members of the development finance community representing public, private, and non-profit entities alike. For more information visit CDFA.net or email info@cdfa.net

For more information about sponsoring one of CDFA's electronic newsletters, please contact CDFA or call 614-705-1300.


Council of Development Finance Agencies
100 E. Broad Street, Suite 1200
Columbus, OH 43215
(614) 705-1300
info@cdfa.net

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CDFA National Sponsors

  • Alliant Insurance Services, Inc.
  • BNY Mellon
  • Bricker Graydon LLP
  • Business Oregon
  • CohnReznick
  • Frost Brown Todd LLP
  • Grow America | Formerly NDC
  • Hawes Hill and Associates LLP
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • McGuireWoods
  • MuniCap, Inc.
  • NW Financial Group, LLC
  • PGAV Planners, LLC
  • Raza Development Fund
  • SB Friedman Development Advisors
  • Stifel Nicolaus
  • The Bond Buyer
  • U.S. Bank
  • Wells Fargo Securities
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