CDFA Bond Finance Update - September 5, 2017

Bond Finance Update
September 5, 2017

Features

Reforms May Be Needed to Better Track Volume Cap

The difficulty of tracking how states are allocating private activity bonds under their volume caps begs the question of whether reforms are needed. "There is some question with regard to is it time for volume cap reform," said Pete Mathews, CDFA's manager of research & resources.

Governments Are Turning to Banks for Easy Money

In the years since the Great Recession, state and local governments have increasingly borrowed money directly from banks instead of issuing public bonds. They say direct loans aren't as much of a hassle as issuing bonds. That may be true, but they're also riskier.

NABL Urges Creation of New PABs for Infrastructure

The National Association of Bond Lawyers recommends the creation of new categories of private activity bonds and taxable, direct-pay bonds to help finance national infrastructure projects. NABL submitted their recommendations to the Trump administration and the Congressional tax writing committees.

Counting Munis as Liquid Even If Markets Are Dry

Congress is pushing to pass legislation that would qualify certain municipal bonds as High-Quality Liquid Assets. The question is whether that label might get slapped on bonds that are certainly high quality, but may not be really, truly liquid.

IRS Focuses on Tax Exempt Financings Involving Developers

For a number of years, the IRS Office of Tax-Exempt Bonds ("TEB") has expressed concerns about potential tax abuses that may exist in what it has characterized as "developer-driven deals" involving the use of tax-exempt bonds.

Statler Hotel Project Finances Under SEC Investigation

Federal regulators are investigating the TIF-backed, bond financing behind the massive Statler Hotel redevelopment in downtown Dallas.

Hoover, AL Reinstates Industrial Development Board, Will Hire Economic Developer

In an effort to diversify the city's economy, the Hoover City Council is reinstating the Industrial Development Board. Councilman Derrick Murphy said the board hasn't met in more than 10 years. Once reinstated, the board will meet on an as-needed basis, he said.

Market Reports

Upcoming Events

Brownfields In-Person Project Marketplace
November, 16, 2017 - Atlanta, GA

CDFA is bringing a unique technical assistance opportunity to Georgia in conjunction with this year's National Development Fianace Summit. During the Project Marketplace, communities will be presenting their current redevelopment projects to our audience and advisors in exchange for financing recommendations specific to their projects. Summit attendees are encouraged to listen to the community presentations and engage in constructive discussions and networking. Participating communities are eligible to receive free registration for the Summit.

News from

The latest municipal finance headlines from The Bond Buyer.

IRS Sets New Deadlines for Issuers to Recover Muni-Related Overpayments

The Internal Revenue Service has extended the deadline for issuers of tax-exempt and tax-advantaged bonds that file claims for the recovery of excess arbitrage they inadvertently rebated to the federal government.

Commentary: Duty of Care Enforcement for Municipal Advisors

The Securities and Exchange Commission this month announced a significant enforcement action against an Oklahoma municipal advisor, Municipal Finance Services, Inc., and two officers of the firm, including its founder and president.

FL CDDs Rebuke Residents Opposing Bond Deal

Two central Florida community development districts contend their residents used "sophistry" in trying to persuade a judge not to approve the district's bonds, attorneys said in final briefs.

IN Completes Takeover of P3 Road Project

Indiana completed a settlement agreement to take over a road project that's been cited as an example of the pitfalls of public private partnerships and will sell $180 million of state backed bonds next week to wrap up the financing piece of the agreement.

CDFA is proud to partner with The Bond Buyer as our Official Media Sponsor. Read more about this partnership and all of its benefits here.

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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

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