CDFA is continuing to work strategically with Congressional leaders to ensure the infrastructure bill contains a tax-exempt bonds section. As part of our ongoing efforts, we're re-issuing our coalition letter to Congress asking that several key bond financing provisions be included in the infrastructure package. Please sign our coalition letter to show your organization's support for tax-exempt bonds.

U.S. Senators Rob Portman (R-OH) and Michael Bennet (D-CO) announced that their bipartisan Carbon Capture Improvement Act has passed the Senate as part of the Infrastructure Investment & Jobs Act. The Carbon Capture Improvement Act makes it easier for power plants and industrial facilities to finance the purchase and installation of carbon capture, utilization, and storage equipment, as well as direct air capture (DAC) projects through the use of private activity bonds (PABs).

Florida officials announced the largest pandemic-era municipal-bond sale backed by port revenue, hoping to tap into investor demand for local-government debt tied to recovering sectors of the U.S. economy. Miami-Dade County said Monday it is selling around $1.4 billion of bonds due 2050 and backed by revenue from the Port of Miami, the county's largest municipal bond sale ever.

CDFA reports that in 2019 housing finance agencies issued a record $16.4 billion in multifamily private activity bonds (PABs), a $1.69 billion or 11.5% increase from 2018. Furthermore, $9.48 in single-family mortgage revenue bonds were issued, a $2.12 billion or 22.4% gain from 2018.

The Oklahoma Development Finance Authority approved contracting with bond counsel, special counsel, disclosure counsel, and 18 banks to underwrite the state's new, mammoth utility ratepayer debt securitization programs. ODFA could end up issuing about $4 billion in bonds in an effort to limit the interest rate payments that utility companies will pass along to Oklahomans who sustained inflated electricity and gas bills when natural gas prices spiked during February's historic winter storm.

In stark contrast to a year ago when states and local governments hit by the pandemic had to woo skittish investors, more issuers are selling municipal bonds through competitive auctions that put the risk on underwriters. The amount of long-term bonds sold through competitive deals has risen to $64.6 billion so far this year, a 32% increase from the same period of 2020 and the highest for the year-to-date period since 2016.

The multifamily housing industry is moving closer to phasing out its long-standing index for adjustable-rate loans and other financial transactions. The London Interbank Offered Rate (LIBOR), which covers five currencies and seven tenors, is on its way out after years of being a globally accepted benchmark. The Alternative Reference Rates Committee (ARRC) has identified the Secured Overnight Financing Rate (SOFR) as LIBOR's replacement.

Interest on many municipal bonds issued by local and state governments and some non-profits is exempt from federal income taxes. As a result, investors, mainly high-income individuals, are willing to lend money to issuers at a lower interest rate than they would demand if the bonds were taxable. The BABs program ended in 2010, but the concept has been part of the 2021 debate over financing increased federal infrastructure spending.

CDFA Rural Development Finance Webinar Series: Best Practices for Rural Development Finance Agencies
Tuesday, August 31, 2021 - 2:00 PM - 3:00 PM Eastern

CDFA // BNY Mellon Development Finance Webcast Series: Layering the Capital Stack
Tuesday, September 21, 2021 - 2:00 PM - 3:00 PM Eastern

>>> VIEW THE BOND RESOURCE CENTER   

This FHWA webinar discusses how municipal bonds and debt can be used as a value capture strategy for highway-related projects. The webinar is intended for professionals from States, cities, counties, Tribes, and metropolitan and rural transportation agencies looking for innovative funding and financial strategies to pay for transportation projects.

Using a novel data set on municipal private debt disclosures, the authors of this academic research study the effectiveness and market impact of disclosure regulation in the municipal debt market. By comparing reportable private debt events to the universe of realized disclosures, we find evidence that issuers significantly underreport private debt.

>>> EXPLORE BOND FINANCE RESOURCE CENTER