Advisory Services









Bond Finance Resource Center

Bonds are the bedrock of public development finance. In its simplest form, a bond is a debt or a loan incurred by a governmental entity. The bonds are issued and sold to the investing public, and the proceeds are typically made available to finance the costs of a capital project. If the bonds are being issued for the benefit of a non-governmental borrower, the proceeds are often loaned to such borrower, and the borrower then makes loan payments corresponding to when principal and interest are due on the bonds. Bondholders receive interest over the term of the bonds, and such interest is often exempt from federal, state and local income taxes. The tax-exempt status of certain bonds makes them an attractive investment option for investors.

There are two types of bonds: Governmental 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. A bond issuer’s objective is to raise capital at the lowest cost. The tax-exempt treatment of GOs makes them the lowest cost option. However, various “private activity tests” serve to limit the amount of private sector involvement with facilities that are financed with GOs. PABs permit a larger degree of private sector involvement, but they do so at a higher interest rate. In the economic development industry, PABs are the development finance mechanisms that drive projects involving both the public and private sector.

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+Types of Bonds

+Industrial Development Bonds (IDBs)

Industrial Development Bonds (IDBs), which are often referred to as Small Issue Manufacturing Bonds, are issued for qualified manufacturing projects, with a total bond issuance limit of $10 million. These bonds can support expansion and investment in existing manufacturing facilities, as well as the development of new facilities and the purchase of new machinery and equipment.

CDFA Annual Volume Cap Report: An Analysis of 2015 Private Activity Bond & Volume Cap Trends
This annual CDFA report reviews the use of private activity bond volume cap and the issuance of cap-subject private activity bonds in every state.
IRS Publication 4078: Private Activity Bonds
This IRS Publication 4078, Tax-Exempt Private Activity Bonds, provides a revised overview of the general federal tax law rules that apply to qualified private activity bonds.
Built by Bonds
This unique publication from CDFA provides the definitive argument for tax-exempt bond finance, which is a critical tool for American economic development and job creation. Using both qualitative and quantitative analysis, Built by Bonds demonstrates the proven efficiency of tax-exempt bonds by addressing topics that include the potentially $53 billion in lost issuance and by providing 150 snapshots--including job support numbers--of projects financed with tax-exempt bonds.
Qualified Small Issue Manufacturing Rules
Stan Provus presents about the rules governing small issues bonds for manufacturing purposes.
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+Renewable Energy / Energy Efficiency Bonds

Arizona Bond Market Outlook
Nick Dodd, Managing Director from RBC Capital Markets discuss current trends in the Arizona bond market.
Moody's Assigns its First Green Bond Assessment to Dutch Mortgage Deal
Moody's Investors Service has released a report from their first assigned Green Bond Assessment (GBA) of GB1 to GREEN STORM 2016 B.V., a Dutch green residential mortgage-backed securitisation (RMBS).
Green Striping Bond Finance
Diversity in the environmental asset class is suffering from high minimum issuance sizes and monitoring costs. Green striping could be the solution.
Financing Resilient Infrastructure
The U.S. Dept. of Housing and Urban Development Office of Economic Resilience released this fact sheet on financing high-performance infrastructure, which are designed to help stretch public funding further. They are also useful for communities that want to incorporate resilience and social co-benefits into their infrastructure design and delivery.
Qualified Energy Conservation Bonds Known Issued by State - May 2016
Energy Consortium provides an update to reflect newly Qualified Energy Conservation Bond (QCEB) issuances known issued by states.
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+Post-Issuance Compliance

Primer On Monitoring Post-Issuance Compliance
This audio cast from the IRS covers the importance of implementing post-issuance compliance procedures and regularly monitoring those procedures to preserve the status of tax-advantaged bonds over the entire life of the bonds. Tax-advantaged bonds, includes tax-exempt bonds, tax credit bonds, and direct-pay bonds.
Compliance Guidelines for Tax-Exempt Bonds
This document explains the guidelines and practices that Stanford follows to remain in compliance with rules relating to tax-exempt bonds. Compliance is required both upon the issuance of the bonds and during the post-issuance phase which extends through and beyond the life of the bonds.
Post-Issuance Compliance Checklist
The National Association of Bond Lawyers (NABL) and the Government Finance Officers Association (GFOA) have jointly developed the following checklist to assist bond counsel in discussing with issuers and conduit borrowers, as applicable, post issuance compliance matters.
Timing of Annual Financial Disclosures
The MSRB’s report finds that the majority of issuers had a commitment date of 180 days or 270 days from the end of the issuer’s fiscal year. Over the last several years, the number of commitments of 180 days has generally decreased while there has been an upward trend in commitments of 270 days.
Conduit Issuer Responsibilities
This is part two, Conduit Issuer Responsibilities, of a three-part series for conduit issuers of tax-exempt financing This module focuses on some of the responsibilities conduit issuers have in ensuring, compliance necessary to retain the tax-advantage status of the bonds they issue.
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+Volume Cap

How the Cap Is Used

Scroll over state to see past year data. View the data search below for historical data.
All figures in millions of dollars. 2005 and 2006 data from The Bond Buyer.

Data Search CDFA Annual Volume Cap Report Additional Resources


+Training Courses

CDFA’s highly acclaimed 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 Intro Bond Finance WebCourse will address the basic requirements for issuing a bond, the rules and regulations that govern tax-exempt and taxable bonds, the major players involved in a bond transaction, and the roles and responsibilities of both public and private sector participants. Plus, learn about the tax-exempt bond market, the ratings process, how to buy and sell bonds, and ongoing continuing disclosure.

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.


Financing Brownfields with Private Activity Bonds (PABs)
In this webinar, our experts discuss Private Activity Bonds and how they can be used to compliment the redevelopment and cleanup of your brownfield project.
CDFA // BNY Mellon Webcast Series: Opportunities and Advancements in Water Finance
During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, learn from expert speakers Jordan Dorfman from the EPA, Tyler Old from PFM, John DeLuca from CoBank, and Jong Sook Nee from McManimon, Scotland & Baumann, LLC as they discuss developments in the water finance space and how different financing mechanisms like bonds, RLFs, P3s, and other tools are being used to address today’s water infrastructure projects.
CDFA // BNY Mellon Webcast Series: Forecasting the Bond Market in 2017
This month’s CDFA // BNY Mellon Development Finance Webcast Series featuring John Piemonte from Ehlers, Inc. and Nick Samuels from Moody's includes an outlook for credit ratings and takes a look at the bond market for the upcoming year.
Conduit Issuer Responsibilities
This is part two, Conduit Issuer Responsibilities, of a three-part series for conduit issuers of tax-exempt financing This module focuses on some of the responsibilities conduit issuers have in ensuring, compliance necessary to retain the tax-advantage status of the bonds they issue.
Conduit Issuers for Tax-Exempt Financings - Overview
This presentation is part of the IRS's education and outreach efforts. The presentation provides an overview of the responsibilities of conduit issuers of tax-exempt financings. It focuses on the conduit issuer's role with respect to tax-exempt financings, and is intended to summarize various provisions.


CDFA National Sponsors

  • Alaska Industrial Development and Export Authority
  • Baker Tilly Virchow Krause
  • Ballard Spahr LLP
  • BNY Mellon
  • Bricker & Eckler LLP
  • Bryan Cave LLP
  • Business Oregon
  • CohnReznick
  • FBT Project Finance Advisors LLC
  • Frost Brown Todd, LLC
  • Hawkins Delafield & Wood LLP
  • Ice Miller LLP
  • KeyBanc Capital Markets
  • Kutak Rock LLP
  • MB Financial Bank, NA
  • McCarter & English, LLP
  • McGuireWoods
  • Miles & Stockbridge P.C.
  • NW Financial Group, LLC
  • SB Friedman Development Advisors
  • Squire Patton Boggs
  • Stern Brothers & Co.
  • Stifel Nicolaus
  • U.S. Bank
  • Wells Fargo Securities
  • Wilmington Trust
  • Z. The Bond Buyer
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