Development Finance Review Weekly - December 24, 2020

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Spotlight

Key Development Finance Priorities Passed in Congress in $2.3 Trillion Bill

Congress has passed a $2.3 trillion omnibus spending bill that includes approximately $1.4 trillion to fund the government through September 30, 2021, and approximately $900 billion in economic stimulus.

Many elements of the CDFA COVID-19 Comprehensive Recovery Strategy are in this bill, including increased funding for the CDFI Fund and the EDA, along with important extensions and corrections for several development finance tools.

Additional information and resources will be available in the coming weeks, including an all-new CDFA Federal Financing Webinar Series, updates to the CDFA Federal Financing Clearinghouse, and news and resources captured in the COVID-19 Resource Center.

Summaries of the development finance priorities included in H.R. 133 are listed below.

>>> Read a Section-by-Section Summary of Relief Provisions
>>> Read a Section-by-Section Summary of Appropriations
>>> Read a Section-by-Section Summary of Authorizing Matters
>>> Read the Full Text

Features

CDFA and Skeo Solutions Release Five Strategies for Engaging Opportunity Zone Investors

Announcing a new resource available from the EPA Office of Community Revitalization, created in collaboration with CDFA and Skeo Solutions. This quick guide outlines five key strategies for engaging Opportunity Zones investors including resources and tips that can help communities attract investment to their revitalization efforts. Discussion includes types of investors, evaluating community resources, and supporting community impact.

Breaking Down the $900B Stimulus Package and $1.4T Omnibus Bill

Congressional leaders unveiled the highlights of a $900 billion fiscal stimulus package and a $1.4 trillion government funding deal that will deliver critical pandemic aid to millions of Americans and pad federal agency budgets through next September.

Trump Demands $2K Stimulus Checks, Calls to Remove 'Unnecessary Items' in COVID Relief Bill

President Trump derided the recently passed coronavirus relief bill as a "disgrace," calling on Congress to increase stimulus payments from $600 to $2,000 and to get rid of "wasteful and unnecessary items." The move stunned Congress, which has been deadlocked for months over the long-awaited stimulus package to address people's increasingly desperate situations amid of a pandemic-fueled economic downturn.

Pennsylvania Initiates Transfer of $145M to Support Businesses Adversely Affected by COVID-19

Governor Tom Wolf announced that he has initiated a transfer of $145 million in funds from the Workers' Compensation Security Fund at the Pennsylvania Insurance Department to be appropriated by the state legislature into grants for businesses adversely affected by the COVID-19 pandemic. Governor Wolf urged the legislature to follow his lead and allocate this funding as quickly as possible to businesses affected by the pandemic, among them restaurants and bars, gyms and entertainment venues.

Ohio Market Access Program Enhances $1B in Notes for Ohio's Local Governments

Ohio Treasurer Robert Sprague announced that the Ohio Market Access Program (OMAP) has now enhanced and lowered interest costs for $1 billion in local government notes. OMAP is a credit enhancement program that leverages the state's excess liquidity and high short-term credit rating to help improve market access and lower borrowing rates for local governments. Since its 2014 launch, OMAP has supported more than 190 deals, ranging from $390,000 to over $100 million.

Treasury Yields Hold Steady After Congress Approves Coronavirus Relief Deal

Treasury yields were flat on Tuesday after Congress passed a $900 billion Covid-19 relief package. The yield on the benchmark 10-year Treasury note was little changed at 0.935%, while the yield on the 30-year Treasury bond dipped slightly to 1.671%. Bond yields move inversely to prices.

New Jersey to Pass $14B Plan Amid COVID-19 Crisis

Gov. Phil Murphy is set to sign a massive, $14 billion tax-break bill into law that's supposed to give New Jersey a big boost amid the COVID-19 crisis. Lawmakers say the legislation would establish economic development programs to incentivize: rehabilitation of historic properties; remediation and redevelopment of brownfield sites; location and improvement of certain grocery stores in food desert communities; partnerships with certain anchor institutions (New Jersey Community-Anchored Development Act); job creation and retention (Emerge Program Act); continued operations of small businesses; and more.

Making Kenosha, WI's Ambitious Plans a Reality

Construction of the downtown redevelopment initiative is planned to unfold in four phases over the next eight to 10 years. The first two phases call for high-rise luxury apartments and condominiums, a new City Hall, a park, a performing arts center and a high-end hotel. To facilitate the project, the city would provide a $47.4 million grant to the developers, New Kenosha LLC. The development grant is city-bonded, tax-increment finance funded and would be used to reimburse the developer for infrastructure and construction.

Upcoming Events

Fundamentals of Economic Development Finance WebCourse

Intro Bond Finance WebCourse
February 24-25, 2021 - Daily: 12:00 - 5:00 PM Eastern

The Intro Bond Finance WebCourse provides an in-depth look at governmental and qualified private activity bonds, with a focus on industrial development bonds (IDBs), 501(c)(3) non-profit bonds, exempt facility bonds, and other special bond programs authorized by the federal government.

Intro Tax Increment Finance WebCourse
March 24-25, 2021 - Daily: 12:00-5:00 PM Eastern

This course brings TIF deal-making and best practices into focus through a two-day program targeting the entire TIF community including economic developers, public agency representatives, bond issuers, legal professionals, developers, financial advisors, and other stakeholders.

News from

The latest municipal finance headlines from The Bond Buyer.

How State and Local Governments Fared in the Coronavirus Relief Bill

The biggest consolation prize for state and local governments in the $900 billion emergency coronavirus relief bill agreed by Congress is an additional year to spend leftover CARES Act funds. The deadline for spending the $150 billion Coronavirus Relief Fund is extended through the end of 2021 but without any new flexibility for how to use the money such as covering revenue shortfalls.

California Year-to-Date Revenues Beat Forecast by $13.8B

The California Department of Finance had some good news for lawmakers grappling with the impacts of the COVID-19 pandemic. The state is besting the revenue forecasts from the delayed August fiscal year 2020-21 budget forecast, the DOF reported.

Munis Ready for Quiet Two Weeks; Primary a Mere $57M

Municipal bonds ended the last full week of trading of 2020 flat ahead of a mere $57 million new-issue calendar, leaving the secondary market to handle the market's tone for the remainder of the year. Lipper reported $915 million of inflows into municipal bond mutual funds for the week ending Dec. 16.

New Mexico Looks to Tax Pot and Adjust Revenues to Buffer Oil Dependence

Wedged between two states that have legalized the sale of marijuana for recreational purposes, New Mexico is taking another look at the substance as a source of tax revenue. Legalization could produce $70 million in annual excise taxes even before including gross receipts tax, New Mexico's version of sales tax.

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.

This Week's Headlines

>>> SEARCH HEADLINES

New Additions to the Online Resource Database

New JobsOhio Grant Program Supports QED's New R&D Center
Access to Capital | Healthcare | Innovation Finance

Quality Electrodynamics (QED) turned to JobsOhio for support in creating a research and development (R&D) center for collaboration and innovation. This case study examines how the JobsOhio Research & Development Grant Program was able to assist QED.

To ensure that Virginia's coal country doesn't miss out on opportunities in large-scale solar, the Solar Foundation and the Solar Workgroup of Southwest Virginia have developed a step-by-step guide for how municipalities and counties can encourage utility-scale or commercial solar projects. The playbook includes guidance on engaging stakeholders, identifying and resolving barriers, reviewing development proposals, and adopting local planning and zoning regulations to facilitate solar energy in legacy coal country. The publication also discussing financing options for using PACE, Opportunity Zones, and other programs to support solar projects.

Local Data for Equitable Recovery
Disaster Recovery & Relief | Economic Development | Social Finance

Local Data for Equitable Recovery is a resource hub curated by the Urban Institute and the National Neighborhood Indicators Partnership (NNIP) that highlights how local communities can use data and information to respond equitably and effectively to long-standing disparities exacerbated by the COVID-19 health crisis.

>>> SEARCH ONLINE RESOURCE DATABASE

National Sponsor Spotlight

	FBT Project Finance Advisors LLC FBT Project Finance Advisors LLC, a consulting affiliate of the law firm of Frost Brown Todd, acts as an independent registered municipal advisor and assists government entities and borrowers in creating the best financing solutions for projects in...
	Fifth Third Bank Fifth Third Bancorp is a diversified financial services company that has $168 billion in assets and operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. With nearly 160 years of...
	Frost Brown Todd, LLC With over 500 lawyers across their eight-state footprint, Frost Brown Todd, LLC offers a deep, talented roster of legal professionals. Committed to their clients, the firm leverages technical, industry, and legal knowledge and hands-on experience to...

Partner Spotlight

informANALYTICS by Center for Governmental Research

The Center for Governmental Research (CGR) is a nonprofit organized under section 501(c)(3) of the Internal Revenue Code. CGR brings expertise to issues spanning economics and public finance, government management, health and human services and...

CDFA Bookstore

Revolving Loan Fund Reference Guide

The Revolving Loan Fund Reference Guide offers an in-depth look at RLF program development, implementation and management. This guide demonstrates how an RLF program can complement economic development strategies, encourage investment and assist traditionally underserved businesses.

New Members

MBP - Raleigh, NC

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 about CDFA, visit www.cdfa.net or e-mail info@cdfa.net.

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