Bonds are the bedrock of public development finance. They have been used to help build roads, bridges, sewers, dams, and thousand of other public and private projects. Bonds are issued and sold to the investing public by governmental entities to finance both governmental activities and the development of physical infrastructure and local economies.
There are two types of bonds: Government Bonds (GOs) and Private Activity Bonds (PABs). GOs may be used for many public purposes (e.g., highways, schools, bridges, sewers, jails, parks, government equipment and buildings, etc.). Private entities may not significantly use, operate, control, or own the facilities that are being financed. GOs benefit the general public, while PABs benefit private entities. PABs are the development finance mechanisms that drive projects involving both the public and private sector.
The CDFA Bond Finance Resource Center contains development finance tools that can be used to better understand the essentials of bond finance. Over 50,000 individual governments and authorities around the country issue bonds and the Bond Finance Resource Center is a comprehensive clearinghouse of information, case studies, and educational materials on the uses and function of bonds.
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Bonds are the bedrock of public development finance and serve as the primary source for financing many types of projects, including infrastructure, industrial development, and urban development. This section contains resources on understanding the basics of bond financing.
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Bonds as a Bedrock of Development FinanceMembers only Login
Bond financing remains the bedrock development finance tool for economic development. Seth Crone with The Bank of New York Mellon and Lee McCormick with Community Development Associates discuss how this long-standing tool can be used today to provide a significant portion of a project’s capital stack with a special focus on bond financing programs in Texas. Presenters from bond agencies and capital market firms will walk through bond deals and explore strategies for maximizing the tool throughout the state.
Project Finance: Leveraging the Capital Stack
Financing economic development projects through bonds and a combination of other development finance tools is discussed by Jason Rittenberg in this cover story from Development Finance Perspectives, Issue 1 | 2012. The article features project photos submitted by CDFA members.
California Rural Infrastructure Finance Guidebook
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CALED knows from its work supporting economic development throughout California that infrastructure financing is a challenge for many rural communities. CALED collaborated with CDFA to develop this guidebook to meet the need for a resource to help build capacity in those areas, as well as move economic development projects forward.
Development Bond Finance Reference Guide
The Development Bond Finance Reference Guide provides practitioners with a solid foundation for understanding the use of tax-exempt bonds, with an emphasis on small issue industrial development bonds and 501(C)(3) bonds. With numerous examples of sample bond transactions and a glossary of municipal finance terms, this guide covers the essential elements of private activity bonds and the issuance process.
Advanced Bond Finance Reference Guide
The Advanced Bond Finance Reference Guide is written for professionals who already have an understanding of tax-exempt financing and seek detailed instruction on complex financing techniques, including the application of financial derivatives, advance refundings, how to spot arbitrage issues, and investing bond proceeds. Also included are seven case studies of proven state and city bond guaranty programs.
Practitioner's Guide to Economic Development Finance
The Practitioner's Guide to Economic Development Finance 2nd Edition is the only comprehensive resource dedicated to building and utilizing the development finance toolbox. The Practitioner's Guide provides the insight and practical information needed to critically understand how economic development is financed and the tools, strategies and techniques used to build strong communities. From bonds, tax increment finance and special districts to tax credits, seed & venture capital, revolving loan funds and much more, this Guide outlines the financing tools required for succeeding in today's competitive economic development climate.
Unlocking Capital: A Handbook for Becoming a High Performing Development Finance Agency
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Unlocking Capital: A Handbook for Becoming a High Performing Development Finance Agency (Handbook) serves as a companion to the Practitioner’s Guide to help illuminate the structures of development finance agencies (DFAs), essential conduits to access development finance tools. The Handbook provides an overview of DFAs and their myriad roles in various development efforts. Included in this discussion is a comprehensive look at over a dozen high-performing DFAs throughout the country. The Handbook is designed to be a starting point for local leaders to engage in the creation or acceleration of a DFA to build and utilize the development finance toolbox.
The Fundamentals of Economic Development Finance Course
is the foundation for all of CDFA’s educational offerings. This course will help you understand the variety of development finance tools available, from bonds, tax credits and TIF, to federal financing programs, RLFs, and access to capital lending resources.
The Intro Bond Finance Course
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.
The Advanced Bond Finance Course
is designed for professionals who already have an understanding of tax-exempt financing and seek detailed instruction on complex financing techniques, including the application of financial derivatives, advance refundings, investing bond proceeds and how to spot arbitrage issues. This course is an ideal opportunity to enhance your knowledge and maximize your community's ability to finance economic development using tax-exempt bonds.
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Weekly Development Finance COVID-19 Briefing
Every Friday through May 29, 2020
1:00 PM Eastern
CDFA will be hosting a weekly briefing about development finance COVID-19 news and resources. These one-hour phone calls will feature legislative updates, news from our members, state and local financing strategies, and lessons learned from previous development finance responses to disasters.
CDFA Federal Policy Conference (cancelled)
April 14-15, 2020
The federal government plays a critical role in driving private and public investment in innovation, job creation, infrastructure, and community development. With the 2020 presidential election quickly approaching, development finance will be a key policy issue across the nation. The 116th Congress will also play a major role in shaping our country’s economic development policy going forward. It's up to the development finance community to focus the national discussion on smart federal policy, and CDFA is the voice of the economic development finance community on Capitol Hill. For these reasons, CDFA will host its CDFA Federal Policy Conference on April 14-15 in Washington DC.
Intro Infrastructure Finance WebCourse
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September 23-24, 2020
Daily: 12:00 - 5:00 PM Eastern
The Intro Infrastructure Finance WebCourse will help communities understand the fundamental concepts behind infrastructure projects with a focus on raising capital to achieve local and regional needs.
CDFA // BNY Mellon Webcast Series: Conduit Bond Fees - A Look Behind the NumbersMembers only Login
As the bond market changes, bond issuers must work diligently to keep their fee structures up to date. During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, we looked beyond the fee structures and broke down the philosophies behind them, with the goal of sharing innovative thinking throughout the bond industry and provide a qualitative look behind CDFA’s Conduit Bond Fee Study.
2019 Q2 CDFA Quarterly Legislative Update
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In the second Quarterly Legislative Update of 2019, CDFA's Legislative Team discussed progress on pending CDFA legislation, other pending development finance legislation such as extenders, as well as what to expect from Congress in the coming months.