Development Finance Review Weekly - August 27, 2020

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Feature

CDFA Releases Stillman College Roadmap to Redevelopment Report

The Roadmap to Redevelopment Report was developed through a 2-day process that included interviews with numerous stakeholders from the government, college, business, and non-profit sectors. The plan provides a framework for the financing of a redevelopment on Stillman College's Campus.

Coronavirus Pandemic Refugees and the Future of American Cities

History informs us that some people, especially the wealthy, flee cities in response to pandemics and other major catastrophes. In past pandemics and crises, refugees have typically returned, remaining attracted to the social and cultural dynamism cities offer. However, the circumstances surrounding the COVID-19 pandemic raise questions about the future attractiveness of large cities as places to live and do business.

Deserted College Dorms Sow Trouble for $14B in Muni Bonds

Colleges for years have been turning to private companies for student housing to shed costs and lure students with state-of-the-art facilities. The companies borrowed the money for construction from municipal bond investors, with a promise to repay with rent and lease revenue. But with schools switching to virtual learning or limiting the number of students who can live on campus, the bonds that are often already risky are facing a major threat.

Rural Hospitals Are Sinking Under COVID-19 Financial Pressures

As COVID-19 continues to spread, an increasing number of rural communities in the U.S. find themselves without their hospital or on the brink of losing already cash-strapped facilities. Eighteen rural hospitals closed last year and the first three months of 2020 were "really big months," says Mark Holmes, director of the Cecil G. Sheps Center for Health Services Research at UNC-Chapel Hill.

White House Releases Initial Assessment of Opportunity Zones Report

This report from the White House' Council of Economic Advisers compares the advantages of OZs with those of other Federal antipoverty programs and documents the characteristics of the nearly 8,800 low-income communities designated as OZs. It also quantifies the effect of OZs investment and finds that a large increase is already benefiting OZ residents while potentially having only a small effect on the Federal budget.

Financial Institution Regulators Address Financial Inclusion, Expansion of Access to Credit, Protection from Discrimination

Since early June 2020 when cries for racial justice resulted in a period of social unrest in the U.S., federal and state financial institution regulators have taken meaningful, proactive steps to acknowledge financial inequality issues, reach out to traditionally underserved populations to expand access to credit, and further protect consumers from discrimination. This blog post contains a summary of those efforts.

State of Ohio Supports 28 Historic Rehabilitation Projects with Tax Credits

The Ohio Development Services Agency this month awarded $31,204,165 in Ohio Historic Preservation Tax Credits for the rehabilitation of 40 historic buildings. Together, the projects are expected to leverage approximately $347 million in private investments in nine communities.

When Will Tax Revenues Rebound? It Depends on the Tax

It doesn't take a crystal ball to see that even if the economy grows by 6 percent in 2021 from this winter's bottom-out point, as the most optimistic Wall Street economists forecast, many states and localities will remain underwater, struggling or unable to maintain full-scale public services in the face of continuing revenue shortfalls.

Upcoming Events

News from

The latest municipal finance headlines from The Bond Buyer.

Michigan's COVID-19 Fiscal Wounds Less Severe Than Previously Forecast

Michigan trimmed about $3 billion off its projected COVID-19-driven deficits between fiscal 2020 and 2022 after federal relief helped soften the economic blow. The state's revised revenue projections are down by $5.106 billion for fiscal 2020, 2021, and 2022 from its formal January estimates. The good news is that's down from a collective $8.37 billion revenue loss projected in May.

Southeast Bond Volume Down Despite Surge in Refundings, Taxable Debt

Southeast municipal bond issuers sold $27.8 billion of debt in the first half of 2020, a decline of 7% from the same period a year earlier, despite a surge in the use of taxable debt and refundings. The region saw a 255% spike in taxable sales, for a total of $6.43 billion, and a 76.2% increase in refunding deals to $9.26 billion.

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.

Upcoming Webcasts

CDFA Federal Financing Webinar Series: Resources for Resilient Infrastructure from the DOT
Friday, August 28, 2020 - 1:00 - 3:00 PM Eastern

This webinar will focus on how the Department of Transportation's programs can finance surface, seaport, transit, and rail projects to make infrastructure more resilient.

CDFA // BNY Mellon Development Finance Webcast Series: Understanding The Municipal Liquidity Facility
Tuesday, September 15, 2020 - 1:00 PM Eastern

During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, finance experts will discuss the Municipal Liquidity Facility's requirements, market trends since the MLF's launch, and what can be done to make the MLF an attractive option for issuers.

CDFA-Bricker PACE Webinar Series: PACE Program Capitalization
Tuesday, September 22, 2020 - 11:00 AM - 1:00 PM Eastern

PACE program financing can be provided through private third parties, public bonds, or a combination of both, and within those options, there are many creative approaches being implemented across the nation. In 2017, The Kresge Foundation made a $3 million program-related investment into the St. Paul Port Authority's "Trillion BTU" and "MinnPACE" loan programs. This was a first of its kind PRI to help the community on-board PACE. This webinar will explore this and other creative methods that communities can utilize to capitalize their PACE program.

Job & RFP Postings

FDFC Seeking Bonds Specialist

The Florida Development Finance Corporation is seeking applications for a Bonds Specialist. The primary responsibility of the Bond Specialist is to serve as the point person for applicants and manage all applications through the processes required by federal and state rules for the issuance of private activity bonds (PAB's).

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New Additions to the Online Resource Database

Guidance on Adjusting Discretionary Incentive Programs to Support Small Business Recovery
Access to Capital | Disaster Recovery & Relief | Economic Development | Incentives | Local Finance Program

How can economic development organizations modify their incentive programs to help struggling small businesses? To assist in sorting through the options, Smart Incentives has published Guidance on Adjusting Discretionary Incentive Programs to Support Small Business Recovery, prepared for the State Economic Development Executives Network with their partners at the Center for Regional Economic Competitiveness (CREC).

Transportation Infrastructure Investment as Economic Stimulus: Lessons from the American Recovery and Reinvestment Act of 2009
Bond Finance | Disaster Recovery & Relief | Economic Development | Infrastructure Finance | Legislative

Congress is considering federal funding for infrastructure to revive an economy damaged by COVID-19. Congress previously provided infrastructure funding for economic stimulus in the American Recovery and Reinvestment Act of 2009. This Congressional Research Service report examines approximately a decade or more of program data and observations that can be made with regard to the economic effects of ARRA funding for transportation infrastructure.

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CDFA Bookstore

Innovation Finance Reference Guide

The Innovation Finance Reference Guide explores the growing seed, venture capital, and angel investment industry, and gives development finance agencies a roadmap for building an innovation finance initiative that supports entrepreneurship, business investment, and job creation.

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