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| Bond Cap Allocation and Community Renewal | |
Re-Allocation of Recovery Zone Bonds: Application forms to request the reallocation of bond volume cap authority for Recovery Zone Bonds are available. Applications must be submitted to Commerce by October 15, 2010.
Rule changes to administer ARRA bond caps. A public hearing on the rule adoption was held on January 6, 2010 and the new rules are in effect.
2009 Infrastructure Assistance Coordinating Council Conference Presentation (PDF)
Presentations from the Recovery Act Bond Finance Opportunities Conference, July 31, 2009
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:
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Small Issue Manufacturing
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Housing (both multifamily and single family)
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Exempt (Capital) Facilities
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Student Loans
Businesses or developers work with public authorities to develop projects and issue the bonds for financing.
How does the program work?
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
Bill Mandeville
Bond Cap Allocation Program
1011 Plum Street SE
PO Box 42525
Olympia, WA 98504-2525
(360) 725-3051
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