Bond Cap Allocation and Community Renewal

2009 Infrastructure Assistance Coordinating Council Conference Presentation (PDF)

Presentations from the Recovery Act Bond Finance Opportunities Conference, July 31, 2009

Conference Program
Conference Attendee List
AM Keynote - Benefits of ARRA Bonds - Barry Fick, Springsted Incorporated
AM Session - New Washington Legislation - Kim Herman, Washington State Housing Finance Commission
AM Session - Build America Bonds and Recovery Zone Economic Development Bonds - Jane Towery and Matt Challis, Piper Jaffray
AM Session - Recovery Zone Facility Bonds and Other Private Activity Bonds - Cynthia Weed, K&L Gates
AM Session - Qualified School Construction Bonds and Qualified Zone Academy Bonds - Bill Tonkin and Jim McNeill, Foster Pepper
Proposed Allocation Procedures - Liz Green-Taylor, Department of Commerce
School Session - Qualified School Construction Bonds - Mark Prussing and Roan Blacker, PFM Inc.
School Session - Build America Bonds - Roan Blacker, PFM Inc.
School Session - QSCB and QZAB Allocations - Lorrell Noahr, Office of the Superintendent of Public Instruction
School Session - LOCAL Program - Noah Crocker and Wendy Kancianich, Office of the State Treasurer
Government Bonds Session - Build America Bonds and Recovery Zone Economic Development Bonds - Stacey Crashaw-Lewis, K&L Gates
Energy Finance Session - Energy Savings Performance Contracting - Donna Albert, Department of General Administration
PM Session - Building a Finance Team - Mark Prussing, PFM Inc.

What is the Bond Cap?

The Bond Cap is a ceiling ("Cap") on the amount of tax-exempt private activity bonds a state may issue each year.

What is a Tax-Exempt Private Activity Bond?

Tax-exempt private activity bonds provide lower cost financing for eligible projects. Tax-exempt means the bond investor does not have to pay federal taxes on interest earned on the bonds. Private activity bonds (PABs) are financing for projects that have a substantial benefit for private business or individuals, but also provide significant benefits to the public. Unless authorized under the Bond Cap, PABs do not qualify for tax-exempt status.

What does the Bond Cap Allocation Program do?

The Bond Cap Allocation Program (BCAP) authorizes the issuance of tax-exempt PABs. It reviews and approves projects to ensure compliance with federal and state law, and monitors that the state does not exceed its ceiling on the amount of tax-exempt PABs issued each year.

Who is eligible to apply to the program?

Projects are eligible if they fit into one of four categories:

Small Issue Manufacturing
Housing (both multifamily and single family)
Exempt (Capital) Facilities
Student Loans

Businesses or developers work with public authorities to develop projects and issue the bonds for financing.

How does the program work?

A private or government entity submits a request for bond financing to a bond issuing authority.

The issuing authority assesses the financing options. If the project qualifies for tax-exempt private activity bonds, they submit an application to BCAP to issue bonds against the State Cap. Generally the issuer will only submit the request after all other financing is in place, the project is at an advanced stage of readiness, and they are confident the bonds will be sold.

BCAP reviews the application and, if it approves the project, awards a Certificate of Allocation to the issuing authority. The Certificate allows the issuing authority to issue the tax-exempt bonds. The bonds must be issued by the deadline stated in the certificate, generally no later than December 15th of the same year.

For applications and other forms, visit BCAP Forms and Documents.

Contacts

Community Development Programs staff listing with telephone numbers and email addresses.
For more information on the Bond Cap Allocation Program contact:

Liz Green-Taylor
Bond Cap Allocation Program
906 Columbia Street SW
PO Box 42525
Olympia, WA 98504-2525
(360) 725-5021