Private Activity Bonds

The Private Activity Bond program funds privately developed projects. The bonds are tax-exempt and the amount of the bonds issued are limited by the IRS. Underwriters use investor money called “bond proceeds,” to make a loan to a project. The project then pays back the loan and the investors are repaid, plus interest.

Eligibility

Municipalities or housing authorities issue the bonds, but have no obligation to repay the investors. Investors purchase the bonds.

Eligible activities include:

• New construction or acquisition/rehabilitation of housing for low- to moderate-income people
• Single-family mortgage revenue bonds (SFMRB) sold by local and state agencies for mortgages low- and moderate-income people
• Mortgage Credit Certificates (MCC) which is a bond allocation for qualified homebuyers
• Manufacturing "small issue" industrial development bonds (not to exceed $10,000,000) for construction of manufacturing facilities that produce goods.
• Qualified redevelopment bonds for acquiring property in blighted areas, prepare land for redevelopment, and relocate occupants of structures on the acquired property.
• Exempt facility bonds for hazardous waste facilities, solid waste disposal facilities, water and sewer facilities, mass commuting facilities, local district heating and cooling facilities, local electric energy or gas facilities and multifamily housing bonds.
• Qualified 501(c) (3) bonds for use by non-profit hospitals and private universities.
   

Applying for the Statewide Balance

The Department of Local Affairs (DOLA) will accept applications for allocations from the Statewide Balance in three rounds:
 Round 1:
●     Application due date: March 1, 2022
●     PAB Allocations Committee presentation and award decisions: April 2022
Round 2, if cap remains after the first round:
●         Application due date: June 1, 2022
●         PAB Allocations Committee presentation and award decisions: July 2022
Round 3, open to any issuing authority and to pipeline requests:
●         Application due date: November 1, 2022
●          PAB Allocations Committee presentation and award decisions: December 13, 2022 

Application and Instructions Word Format
Application and Instructions PDF Format

Reports and Webinars

See PAB Balances by Issuer

Allocations

• 2023 PAB Allocations
• 2022 PAB Allocations
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Reports

• DEC 2022 PAB Meeting Agenda and Application Review
• DEC 2021 PAB Application Review and Recommendations
• DEC 2021 PAB Meeting Agenda and Review Items
• 2021 PAB Fee Notice

Webinars

• CHFA PAB Webinar Combined Slides
• 2021 PAB Financing Webinar

Contact