Bonds for Beginners. WELCOME!! Atlanta, April 3, National Association of Local Housing Finance Agencies. Gene Slater, CSG Advisors
|
|
- Asher Morgan
- 6 years ago
- Views:
Transcription
1 Bonds for Beginners National Association of Local Housing Finance Agencies WELCOME!! Atlanta, April 3, 2014 Gene Slater, CSG Advisors
2 2 What You Will Learn 1. Bonds are Debt Instruments 3 2. Bonds are Regulated Securities 7 3. What Makes Bonds Attractive to Investors 9 4. Credit Worthiness and Credit Enhancements Municipal Bonds and Requirements How Bonds Are Issued and Repaid Big Questions that often Come up for Issuers 30
3 3 1. Bonds Are Debt Instruments Key Components Principal or Face Value: amount to be repaid Interest Rate or Coupon Rate: to be paid semiannually (or in some cases monthly) until principal is paid Term or Maturity Date: when principal will be repaid Payment Schedule Prepayment or Redemption ( Call ) Provision Legal Obligation of the Issuer
4 4 What is a Bond? Bond Loan Bond Investor Issuer Project Borrower Bond principal and interest Loan principal and interest Public Agency must be issuer for bond to be tax-exempt
5 5 Bonds & Notes Both Bonds & Notes are negotiable (can be bought or sold) Pay interest until maturity (e.g. until the principal is repaid) A Bond issue can have multiple interest rates & maturity dates Maturity amount = principal due to be paid each year (like a home mortgage) e.g. a 2014 bond issue may have principal maturities (or payments) from 2015 to 2044
6 6 Bonds & Notes (cont.) A Note is the same as a bond but is the name generally used if 2 years or shorter and a single maturity e.g. a 2014 note comes due on a given date in 2015 (In this presentation we simply call all of these bonds ) Interest may be either tax-exempt or taxable
7 7 2. Bonds Are Regulated Securities 1929 Market Crash Congress regulates securities to insure the integrity & efficiency of commerce [Commerce Clause] The issuance, trade, evaluation and tax treatment of bonds are regulated by the: SEC (and in case of municipal bonds, the Municipal Securities Rulemaking Board) IRS
8 8 Municipal Bonds Are Regulated Differently Than Corporate Bonds Do not have to be registered securities with the SEC Do have to provide accurate disclosure of publicly sold securities - initially: offering statement, approved by the issuer - ongoing: continuing disclosure Certain requirements for bond underwriters (e.g. investment bankers) and, now, Municipal advisors
9 9 3. What Makes Bonds Safety Attractive to Investors? Risk of financial loss is low Predictable revenue stream Interest is paid semi-annually Tailored bond mix Different types of maturities & interest rates to meet bond purchasers needs Yield Interest earned on Municipal Bonds can be tax-exempt
10 10 Taxable vs. Tax-Exempt Yields Effect of Federal Income Taxes on After-Tax Yields of Tax-Exempt and Taxable Instruments (Illustrative Example) 5% Tax-Exempt Bond 6% Taxable Investment Cash Investment $100,000 $100,000 Annual Interest $5,000 $6,000 Federal Income Tax on this interest (39.6% Marginal Tax Bracket) 0 ($2,376) Net After-Tax Income $5,000 $3,624 After-Tax Yield on Investment 5.0% 3.624% If in 33% Marginal Tax Bracket 5.0% 4.02%
11 11 4. Credit Worthiness Comparison to a Loan Character Capacity to pay Credit Collateral Cash Loan Application Income Ratios Credit Reports Appraisal Downpayment/ Closing Costs
12 12 Evaluating Credit Worthiness for a Bond Character Capacity Reputation of Issuer Market history, management, contractor, issuer & bond counsel opinions Cash Flows Worst case assumptions for origination, prepayments, reinvestment of funds
13 13 Evaluating Credit Worthiness for a Bond (cont.) Credit Rating Moody s/standard & Poor/Fitch Collateral of Revenues Mortgages, Rents & MBS Cash needed to complete the transaction Underwriting & marketing fees Bond Rating Moody s / Standard & Poors / Fitch Pledge of Revenues Mortgages, Rents & MBS Cost of Issuance Underwriting & marketing fees Any non-bond $ for the project
14 14 Enhancement of Credit Worthiness Purpose is to get a lower interest cost, and make bonds more saleable to investors who: - don t want to evaluate the detailed underlying credit, - want a highly rated security - want to be able to resell in future
15 15 Enhancement of Credit Worthiness (cont.) Types of credit enhancement mortgage-backed security bond insurance bank letter of credit (multi-family) loan insurance
16 16 5. Municipal Bonds GO Bonds & Revenue Bonds General Obligation bond is paid back by the full faith & credit of the issuer Revenue bond is paid back from particular, pledged revenue stream For housing bonds, the primary revenue stream is the monthly note payments from the mortgage(s) Conduit revenue bond : issuer lends the bond proceeds to a particular borrower/ project, and bondholder is paid only from repayment of that loan
17 17 Who Can Issue Tax-Exempt Bonds? State and local government agencies, but only for a public purpose History: 1919 Income Tax Act exempted municipal securities Increasingly restricted by Congress Why: correct (over-correct?) abuses assure public purpose reduce cost to Federal government
18 18 What is Required for a Bond to be Tax-Exempt Public purpose bonds: publicly owned projects (e.g. schools, city hall) - including housing entirely owned by a public agency (no tax credits) Non-profit bonds: project owned by a 501(c)3 - including housing entirely owned by a 501(c)3 (no tax credits) (often used for student and some senior housing)
19 19 What is Required for a Bond to be Tax-Exempt (cont.) Private Activity volume cap bonds: finance loans for privately owned homes and projects if they meet specific requirements includes almost all housing bonds Private activity means more than 10% of bond issue finances privately owned or used facilities (e.g. individuals homes, apartment buildings with a for-profit owner or even simply tax credit investor)
20 20 What are the Requirements for Private Activity Housing Bonds Private Activity bond volume cap From each state s annual volume cap: greater of $95 per capita or $278 million Need allocation for the amount of the bonds (or Mortgage Credit Certificates) Effective impact: when demand is heavy (e.g ): very restrictive currently, plentiful in most states
21 21 Requirements for Single-Family Private Activity Housing Bonds Single-Family Bonds For 1 st time homebuyers (haven t owned a home in 3 years)* Below 100% of area median income (up to 2 persons) or 115% of median (3 or more persons) (easier rules in limited IRS target areas )* Rate on the loan can t be more than 1 1/8% above rate on the bonds * Special exemptions or rules for loans in limited IRS Target Areas
22 22 Requirements for Multi-Family Private Activity Housing Bonds Multi-Family Bonds Rental housing where either: - 20% or more of tenants are below 50% of area median income, or - 40% or more of tenants are below 60% of area median income New construction or acquisition-rehabilitation (rehab. cost must at least equal 15% of bond proceeds)
23 23 Multi-Family Bonds Also Provide 4% Low Income Housing Tax Credits Multi-Family Bonds 4% credits are often more important than lower interest rate (if any) on tax-exempt bonds (4% credit equity often pays for about 30% of the cost of the affordable units) To receive credits: tax-exempt bonds must: - pay for at least half of project cost, and - remain outstanding until project placed in service * Cannot be used with 9% tax credits
24 24 6. How Bonds Are Issued and Repaid Bond Sale Choices Public Sale Bond Investor Underwriter Issuer Bank or Other Investor Private Placement Bond Counsel Municipal Advisor
25 25 Basic Flow of Funds Single-Family (7) Pay Interest & Principal (6) Pass thru Loan (5) Pay Interest & Principal on Bonds thru DTC Payments on Mortgage Loans BONDOWNERS TRUSTEE SERVICER BORROWERS (3) Buy MBS (1) Pay for Indenture & Bonds Assignment (2) Bond Additional Security (4) Make Loans Funds Bond Purchase UNDERWRITER Agreement ISSUER CREDIT ENHANCER LENDER
26 26 Basic Flow of Funds Multi-Family LENDER/ BONDOWNERS TRUSTEE SERVICER DEVELOPER/OWNER (1) Pay for Bonds Indenture* & Assignment Bond Purchaser (2) Bond Funds to Trustee (3) Trustee Buys Loan (4) Lender Makes Loan Exchange MBS for Mortgage Agreement UNDERWRITER ISSUER CREDIT ENHANCER
27 27 Process to Issue & Sell Bonds Identify public purpose Hire quality bond counsel & financial advisor (Municipal Advisor) Hire quality underwriters Work with quality multi-family developer or singlefamily lenders & servicers Review & test bond structure Conduct TEFRA public hearing Acquire volume cap allocation from state Hire trustee bank to hold bond proceeds and pay bond holders
28 28 Process to Issue & Sell Bonds Acquire credit enhancement Authorize issuance & sale of bonds including offering statement Acquire bond rating Price and sell bonds and sign bond purchase agreement Close the bonds: (execute all documents, wire funds) After Bond Closing: Monitor the origination of loan and repayment of principal & interest to bondholders Perform continuing SEC disclosure, IRS rebate calculations (and if multiple loans, cash flow analysis)
29 29 Roles of Underwriter and Municipal Advisor Buy bonds from issuer and sell bonds to public SEC requirement Fiduciary responsibility to issuer Fair dealing (and disclosure) May provide advice to issuer Strict limitations on campaign contributions Yes Bond Underwriter Registered with SEC as dealerbroker No Yes Only (a) in responding to RFP, (b) after being selected to underwrite a specific transaction, or (c) issuer is represented by independent registered Municipal Advisor ( IRMA exception) Yes No Municipal Advisor Registered with SEC (and Municipal Securities RuleMaking Board) as Municipal Advisor Yes Yes Yes Yes
30 30 7. Some Big Questions That Come Up for the Public Agency Should we issue single-family bonds or sell Mortgage-backed Securities (and/or use Mortgage Credit Certificates) How will multi-family project be feasible, including 4% v. 9% tax credits (can t be used with tax-exempt bonds)
31 31 Some of the Big Questions That Come Up for the Public Agency Will multi-family bonds either be: Credit-enhanced and rated, or If not, only privately placed with a bank (or similar entity) and with controls on number and type of bondholders, defaults: To help avoid a bond default To make certain the project is: - one whose credit is strong enough to be privately financed - being financed through the public agency only to obtain a tax-exempt rate (and/or tax credits), - not to use the agency s name to make a questionable credit easier to sell (e.g. not have buyers with limited information take risks that an informed bank making a loan wouldn t)
32 32 Some of the Big Questions That Come Up for the Public Agency Will the bond issue fully carry out the issuer s objectives and policies, including: - policies on eligible projects & borrowers - indemnification of issuer - process - will fees be adequate, and - will the issuance strengthen what the agency s capacity to do more in several years (v. weaken it) Is the finance team one the agency can fully trust to carry out its objectives
33 33 What We Have Learned Bonds are Debt Instruments Bonds are Regulated Securities SEC, IRS (for tax-exempt bonds) Bonds Are Attractive to Investors Safety; Revenue; Tailored Mix & Yield It s All About Credit Worthiness Character, Capacity, Credit, Collateral, Cash
34 34 What We Have Learned Credit Enhancements Are Good MBS, Insurance, Bank Letter & Guarantee What s Needed to Issue Bonds Public Purpose; Volume Cap Process of Issuing Bonds Quality Professionals; Sound Financing Structures; Post-Closing Due Diligence Simple Flow of Funds Who gets the money for what service
35 35 National Association of Local Housing Finance Agencies THANK YOU VERY MUCH!! Gene Slater, CSG Advisors
Accrued Interest A currently unpaid amount of interest that has accumulated since the last payment on a bond or other fixed-income security.
Accrued Interest A currently unpaid amount of interest that has accumulated since the last payment on a bond or other fixed-income security. Ad Valorem Tax Translated as according to value, it is a levy
More informationPrivate Activity Bonds
Private Activity Bonds Private Activity Bonds Subject to U.S. Treasury Regulations Below market interest rates Issued in the name of a City, County, or State Authority (NIFA) Interest on the bonds is exempt
More informationHousing Bonds Susannah Lipsyte, Associate General Counsel
Housing Bonds Susannah Lipsyte, Associate General Counsel Overview of NYC Housing Development Corporation Established in 1971 under laws of the State of New York as a public benefit corporation for the
More informationCommercial Real. Estate. CMBS Conduit. Loan. Program. Retail Medical Office Industrial Warehouse Hotel Apartment Mixed-Use Self-Storage
Commercial Real Estate CMBS Conduit Loan Program Retail Medical Office Industrial Warehouse Hotel Apartment Mixed-Use Self-Storage City Capital Realty Shawn Rabban 310-714-5616 shawnrabban@yahoo.com CAL
More informationJacksonville Housing Finance Authority 2016 Multifamily Bond Allocation Policies and Procedures & PROGRAM GUIDELINES HANDBOOK
Jacksonville Housing Finance Authority 2016 Multifamily Bond Allocation Policies and Procedures & PROGRAM GUIDELINES HANDBOOK Revised June 10, 2015 Page 1 Jacksonville Housing Finance Authority 2016 Multifamily
More informationFOR THOSE PERMISSIONED. Marketing Tax Exempt Bonds Tax Exempt Multifamily Housing Bonds Overview
FOR THOSE PERMISSIONED Marketing Tax Exempt Bonds Tax Exempt Multifamily Housing Bonds Overview Current Tax-Exempt Multifamily Housing Financing Structures Short Term Fixed Rate Bonds with Taxable FHA/GSA
More informationDebt Management Policy
Debt Management Policy Policy Number: 01-07 Date: January 9, 2017 Purpose: The City of DeKalb developed this Debt Management Policy to help ensure the City s credit worthiness and to provide a functional
More informationKey Components of a State Sponsored, Bond Financed Student Loan Program HESAA Board Meeting January 24, 2018 Student Loan Revenue Bonds Internal/HESAA Use Only Security Information Obligation to pay interest
More informationTown of East Greenwich. Overview of Municipal Bonds
Town of East Greenwich Overview of Municipal Bonds Table of Contents East Greenwich s Bond Rating Section 1 Existing Debt Service Section 2 Ways in Which to Measure Debt Section 3 Basics of Issuing Bonds
More informationINTRODUCTION TO TAX-EXEMPT FINANCING
INTRODUCTION TO TAX-EXEMPT FINANCING I. INTRODUCTION Tax-exempt financing is a financing tool available to eligible borrowers as a means of raising funds for capital needs. II. THE BASICS A. What is a
More informationWhat is a Municipal Bond? General Session: Basic Structure & Documentation & Financial Aspects of Municipal Bonds. Why Are We Here?
General Session: Basic Structure & Documentation & Financial Aspects of Municipal Bonds Why Are We Here? To understand the basic elements, financial aspects and law relating to the issuance of municipal
More informationPrivate Activity Bonds for Local Officials Issuing Private Activity Bonds
Private Activity Bonds for Local Officials Issuing Private Activity Bonds July 2016 Presentation By: Kutak Rock LLP 4835-8295-2501 1 Tax Exempt Bond Market Annual Bond Sales 500 450 400 350 300 250 200
More informationTides of Change. Corpus Christi, Texas. Glossary of Terms
Tides of Change 2011 TALHFA Educational Conference Corpus Christi, Texas Glossary of Terms Special thanks to George K Baum & Company for allowing us to reproduce their glossary. And added: Addendum by
More informationDebt Management Standard Operating Procedure
Debt Management Standard Operating Procedure October 19, 2018 College written procedure that states the authority to issue debt, what types of debt may be issued, structure of the debt, the process, and
More informationMUNICIPAL BONDS IN TEXAS and THE BOND SALE PROCESS
MUNICIPAL BONDS IN TEXAS and THE BOND SALE PROCESS Government Treasurers Organization of Texas Winter Seminar December 5, 2017 9:30 AM 10:30 AM Robert W. Baird & Co. Incorporated ( Baird ) is providing
More informationBOARD POLICY NO. 036 SAN DIEGO COUNTY REGIONAL TRANSPORTATION COMMISSION DEBT POLICY
BOARD POLICY NO. 036 SAN DIEGO COUNTY REGIONAL TRANSPORTATION COMMISSION DEBT POLICY The purpose of the Debt Policy for the San Diego County Regional Transportation Commission (SANDAG) is to establish
More information11/8/2013. Bonds 101. Presentation Overview. What is a Municipal Bond?
Bonds 101 Gary Olsen, Senior Financial Advisor/Vice President Jodie Zesbaugh, Financial Advisor Ehlers 2013 MASBO Fall Conference November 15, 2013 1 Presentation Overview Introduction and Background Information
More information501(C)(3) TAX-EXEMPT BOND APPLICATION
M UU LL TT II I - FF AA M II I LL YY PP RR O G RR AA M Dear Developer: This application package is a follow up to your indication of interest in applying for tax-exempt 501(c)(3) bond financing for a multi-family
More informationImportant Information about Investing in
Robert W. Baird & Co. Incorporated Important Information about Investing in \ Bonds Baird has prepared this document to help you understand the characteristics and risks associated with bonds and other
More informationVGFOA/SPIA Debt Management Workshop
VGFOA/SPIA Debt Management Workshop Kyle A. Laux, Senior Vice President Davenport & Company Public Finance June 15, 2017 901 East Cary Street Richmond, VA 23219 Phone: 804-697-2913 1. Choosing Debt Versus
More informationDEBT 101: FUNDAMENTALS OF DEBT ISSUANCE
DEBT 101: FUNDAMENTALS OF DEBT ISSUANCE Debby Cherney Deputy General Manager Eastern Municipal Water District Tyler Old Director PFM Financial Advisors LLC Cyrus Torabi Shareholder Stradling Yocca Carlson
More informationImportant Information about Investing in Municipal Bonds
Robert W. Baird & Co. Incorporated Important Information about Investing in Municipal Bonds Baird has prepared this document to assist clients in their understanding of municipal bonds, so that they can
More informationPUBLIC FINANCING OF AIRPORT INFRASTRUCTURE
34 th Annual Basics of Airport Law Workshop and 2018 Legal Update Session #18 PUBLIC FINANCING OF AIRPORT INFRASTRUCTURE Brian J. Gallucci PFM Financial Advisors LLC David Y. Bannard Kaplan Kirsch & Rockwell
More informationNonprofit Organizations Committee Legal Quick Hit:
Nonprofit Organizations Committee Legal Quick Hit: TAX-EXEMPT FINANCING FOR TAX-EXEMPT ORGANIZATIONS Is Your Organization Eligible? Would the Benefits Outweigh the Costs? MODERATOR: JEFFREY S. TENENBAUM,
More informationPolicy No.: ADMINISTRATIVE POLICY Original Date: May 17, Page: 1 of 10 Owner: Financial and Administrative Services
Policy No.: 7.2.21 ADMINISTRATIVE POLICY Original Date: May 17, 2017 DEBT MANAGEMENT Revision Date: New Policy Page: 1 of 10 Owner: Financial and Administrative Services 1. PURPOSE; OBJECTIVES The Port
More informationFlorida Government Finance Officers Association
Florida Government Finance Officers Association Spring 2017 CGFO Exam Review Course - Debt Administration Webinar Part 1 Speaker Information Thomas P. Klinker, CPA, CGMA, CGFO, CPFO Senior Finance Director
More informationCOUNCIL POLICY NO. C-2
Exhibit 1 COUNCIL POLICY NO. C-2 TITLE: POLICY: DEBT MANAGEMENT POLICY See attachment. REFERENCE: Finance Committee Report dated 8/17/15, Agenda Item No. 3.a (Supplants Finance Committee Reports dated
More informationCOUNTY OF MONTEREY. Debt Management Policy
COUNTY OF MONTEREY Debt Management Policy July 25, 2017 Table of Contents SECTION 1 INTRODUCTION... 3 SECTION 2 DEBT ADVISORY COMMITTEE... 4 SECTION 3 ISSUANCE OF APPROVAL PROCESS... 5 SECTION 4 GENERAL
More informationDebt Administration Certified Government Finance Officer Review Session February 2018
Debt Administration Certified Government Finance Officer Review Session February 2018 Diane Reichard, CPA, CGMA, CGFO, CPFO Chief Financial Officer City of Plant City Exam Topics Policies and Regulations
More informationLOCAL REVENUE SOURCES
Statement of Purpose Scope Objective Type of Authorized Debt Unlimited Tax Bonds Maintenance Tax Notes and Tax Anticipation Notes The purpose of the District s debt management policy is to establish and
More informationAlaska Housing Finance Corporation Fiscal Policies. November 29, 2017
Alaska Housing Finance Corporation Fiscal Policies Contents Section 1. General Matters 1.01 Authority.... 1 1.02 Revision and Amendment.... 1 1.03 Waivers.... 1 1.04 Implementation.... 1 1.05 Standards
More informationHUD s Rental Assistance Demonstration Program
NALHFA 2014 Annual Educational Conference April 2-5, 2014 Omni Hotel at CNN Center HUD s Rental Assistance Demonstration Program Presented By: John B. Rucker, III Executive Vice President john.rucker@merchantcapital.com
More informationINLAND EMPIRE UTILITIES AGENCY DEBT MANAGEMENT POLICY May 2016
Table of Contents Policy Statement... 3 Purpose of Policy... 3 Purpose and Use of Debt... 4 Debt Management... 5 Debt... 6 Coverage Target... 6 Debt Instrument Rating... 6 Debt Structuring... 6 Types of
More informationFinancing Multi-Family Housing: Structuring the Low Income House Tax Credit and Tax-Exempt Bonds Documenting Transactions for Investors and Developers
Presenting a live 90-minute webinar with interactive Q&A Financing Multi-Family Housing: Structuring the Low Income House Tax Credit and Tax-Exempt Bonds Documenting Transactions for Investors and Developers
More informationDEBT MANAGEMENT POLICY
DEBT MANAGEMENT POLICY County Sanitation District No. 8 of Los Angeles County October 2017 DOC 4295703 TABLE OF CONTENTS 1. Policy Statement... 1 2. Treasurer; Administration... 1 3. Purpose of Debt...
More informationBEXAR COUNTY DEBT MANAGEMENT POLICY
BEXAR COUNTY DEBT MANAGEMENT POLICY Adopted by Commissioners Court on August 14, 2007 Revised October 7, 2008 Revised February 3, 2015 Revised March 21, 2017 Table of Contents Section Title Page 1 Purpose
More informationQuestions 1. What is a bond? What determines the price of this financial asset?
BOND VALUATION Bonds are debt instruments issued by corporations, as well as state, local, and foreign governments to raise funds for growth and financing of public projects. Since bonds are long-term
More informationJanuary Basics of Fannie Mae Single-Family MBS 2018 FANNIE MAE
January 2019 Basics of Fannie Mae Single-Family MBS 2018 FANNIE MAE 1 MBS Overview Creating a Single-Family MBS begins with a mortgage loan. The loan is made by a financial institution or other lender
More informationCity of Yuba City. Investment Policy
City of Yuba City Investment Policy January 1, 2017 TABLE OF CONTENTS Page I. PURPOSE... 1 II. SCOPE 1 III. OBJECTIVES... 1 IV. STANDARD OF CARE.... 1 Prudence V. INVESTMENT AUTHORITY AND RESPONSIBILITIES..
More informationHOUSING FINANCE AUTHORITY OF PINELLAS COUNTY APPLICATION PROCEDURES AND PROGRAM GUIDELINES FOR MULTI-FAMILY MORTGAGE REVENUE BONDS
HOUSING FINANCE AUTHORITY OF PINELLAS COUNTY APPLICATION PROCEDURES AND PROGRAM GUIDELINES FOR MULTI-FAMILY MORTGAGE REVENUE BONDS The Housing Finance Authority of Pinellas County, Florida ( Authority
More informationBonds 101. Michigan Association of School Boards. November 10, PFM Financial Advisors LLC. 555 Briarwood Circle Suite 333
Bonds 101 Michigan Association of School Boards November 10, 2017 PFM Financial Advisors LLC 555 Briarwood Circle Suite 333 P: 734-994-9700 F: 734-994-9710 Ann Arbor, MI 48108 www.pfm.com PFM 1 Overview
More informationHOUSING AUTHORITY OF WASHINGTON COUNTY, OREGON BOND ISSUANCE GUIDELINES
HOUSING AUTHORITY OF WASHINGTON COUNTY, OREGON BOND ISSUANCE GUIDELINES 2016 PAB GUIDE Page 1 TABLE OF CONTENTS I. INTRODUCTION.... 3 II. III. IV. POLICY STATEMENT...3 TENANT INCOME REQUIREMENTS.. 4 BOND
More informationDebt Management Best Practices
10:30 12:10 May 9, 2018 240 Complex 112 th Annual Conference May 6-9, 2018 St. Louis, Missouri Moderator/Speakers: Bryan Kidney Director of Finance, City of Lawrence, KS Lisa Marie Harris Director of Finance/Treasurer,
More informationhomeownership rental housing business finance colorado housing and finance authority annual financial report
homeownership rental housing business finance colorado housing and finance authority annual financial report December 31, 2017 and 2016 COLORADO HOUSING AND FINANCE AUTHORITY Annual Financial Report Table
More informationDirect Purchase Private Placement Bonds
Direct Purchase Private Placement Bonds (Manufacturing, n-profit (501c3) and Municipal) Texas Economic Development Council Council of Development Finance Agencies Introduction to Bond Financing Dallas,
More information2016 Strategic Financial Plan Debt Management Policy
Attachment G Page 1 of 15 Debt Management Policy Introduction The County of Orange Debt Management Policy provides guidance for the issuance of bonds and other forms of indebtedness to finance capital
More informationWASHINGTON STATE HOUSING FINANCE COMMISSION
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION FOR THE YEARS ENDED JUNE 30, 2004 AND 2003 (as restated), AND INDEPENDENT AUDITORS REPORT FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION FOR THE
More informationEmerging Debt Regulations and Best Practices
Emerging Debt Regulations and Best Practices Michael G. Sudsina (216) 215-7753 fax (216) 803-2280 mike@sudsina.com Stephen Szanto (440) 773-5090 fax (216) 803-2280 szanto@sudsina.com www.sudsina.com Page
More informationSIFMA Model Risk Disclosures Pursuant to MSRB Rule G-17. [Floating Rate Notes 1 ]
SIFMA Model Risk Disclosures Pursuant to MSRB Rule G-17 [Floating Rate Notes 1 ] The following is a general description of the financial characteristics of Floating Rate Notes (FRNs), as well as a general
More informationCOLORADO HOUSING AND FINANCE AUTHORITY ANNUAL FINANCIAL REPORT (With Independent Auditors Report Thereon) December 31, 2015 and 2014
COLORADO HOUSING AND FINANCE AUTHORITY ANNUAL FINANCIAL REPORT (With Independent Auditors Report Thereon) December 31, 2015 and 2014 Prepared by: Accounting Division COLORADO HOUSING AND FINANCE AUTHORITY
More informationConduit Financing With Tax-Exempt Bonds
Conduit Financing With Tax-Exempt Bonds Justin S. Cooper Contents Introduction... 1 Chapter 1: Background and History... 3 Chapter 2: Conduit Financing Basics... 5 Transaction Types... 5 Parties and Participants...
More informationBANK TAX-EXEMPT LOAN PROGRAMS AND FREDDIE MAC TAX-EXEMPT LOAN ( TEL ) STRUCTURE FOR AFFORDABLE MULTIFAMILY RENTAL HOUSING PROJECTS
BANK TAX-EXEMPT LOAN PROGRAMS AND FREDDIE MAC TAX-EXEMPT LOAN ( TEL ) STRUCTURE FOR AFFORDABLE MULTIFAMILY RENTAL HOUSING PROJECTS R. WADE NORRIS, ESQ. wnorris@ngomunis.com (202) 973-0103 February 1, 2018
More informationThe Essentials of Public Finance:
The Essentials of Public Finance: OVERVIEW OF MUNICIPAL BOND FINANCING IN COAL- FIRED POWER PLANT DEVELOPMENT JANUARY 11, 2012 Prepared by Lisa Anne Hamilton for the Institute for Energy Economics and
More informationDebt Management Policy
Debt Management Policy Adopted August 11, 2016 Policy Statement... 3 Purpose and Use of Debt... 3 Purpose of Policy... 3 Types of Debt... 4 General Provisions... 4 Conditions for Debt Issuance... 5 Standards
More information2017 INVESTMENT POLICY COUNTY OF SAN JOAQUIN
2017 INVESTMENT POLICY COUNTY OF SAN JOAQUIN PURPOSE The Investment Policy establishes the criteria for the prudent investment of the pool participant s temporary surplus treasury funds and outlines the
More informationCity of Tucson Finance
City of Tucson Finance Proudly Presented By: Silvia Amparano, CPA, CPFO Finance Director Association of Government Accountants Southern Arizona Chapter October 12, 2016 1 Agenda Governmental Accounting
More informationCHAPTER NON-COMPETITIVE AFFORDABLE MULTIFAMILY RENTAL HOUSING PROGRAMS (MMRB/HC)
CHAPTER 67-21 NON-COMPETITIVE AFFORDABLE MULTIFAMILY RENTAL HOUSING PROGRAMS (MMRB/HC) PART I ADMINISTRATION 67-21.001 Purpose and Intent 67-21.002 Definitions 67-21.0025 Miscellaneous Criteria 67-21.003
More informationTax-Exempt Bonds Issues for Nonprofit Borrowers. Stephen E. Weyl April 30, 2014
Tax-Exempt Bonds Issues for Nonprofit Borrowers Stephen E. Weyl April 30, 2014 Tax Exempt Bonds....Nothing (much) to fear 1 Tax Exempt Bonds WHAT ARE TAX EXEMPT BONDS? Specialized debt available to limited
More informationAbout CHFA. Mission. Vision. Everyone in Colorado will have the opportunity for housing stability and economic prosperity.
3/8/18 About CHFA Private Activity Bonds (PAB): A Low Cost Resource with High Community Impact CHFA was established in 1973 by the Colorado General Assembly. Not a state agency. No direct appropriations.
More informationDATE ISSUED: 9/16/ of 9 LDU CCA(LOCAL)-X
Purpose Scope Debt Management Objectives Policy Review Delegation of Responsibility Ethics Disclosures The purpose of this policy is to establish guidelines governing the issuance, management, and reporting
More informationDEBT MANAGEMENT EXAMINATION
1. Duration: a) is a measure of volatility of bond returns. b) is influenced by the coupon rate and yield to maturity. c) provides an approximation of the percentage price change in a bond due to a change
More information2017 Housing Credit Conference September 26, Tax-Exempt Bonds and 4% Credits
2017 Housing Credit Conference September 26, 2017 Tax-Exempt Bonds and 4% Credits Disclosures Important Disclosures Regarding Stifel, Nicolaus & Company, Incorporated as a Potential Underwriter for the
More informationGETTING A BOND DEAL DONE TODAY. Overview
GETTING A BOND DEAL DONE TODAY Overview New Construction or Substantial Rehabilitation Options Direct Placement Fannie M-TEB (least prevalent) Freddie TEL (more desired timing flexibility & ease of execution)
More informationPolicy Subject: Number Page. LAND SECURED INVESTMENT POLICY B-19 1 of 10
LAND SECURED INVESTMENT POLICY B-19 1 of 10 PURPOSE & OBJECTIVE This investment policy statement applies to funds held in trust with a fiscal agent, primarily proceeds of bonds issued by the County of
More informationCITY OF CHINO STATEMENT OF INVESTMENT POLICY ADOPTED APRIL 2, 2019
CITY OF CHINO STATEMENT OF INVESTMENT POLICY ADOPTED APRIL 2, 2019 1.0 POLICY: This statement is intended to provide guidelines for the prudent investment of the temporarily idle cash of the City of Chino
More informationCITY OF PITTSBURG, KANSAS DEBT MANAGEMENT POLICY
CITY OF PITTSBURG, KANSAS DEBT MANAGEMENT POLICY INTRODUCTION The management of governmental debt requires good legal advice and a good understanding of the principles of public finance. A formal debt
More informationREPORT OF INDEPENDENT AUDITORS AND FINANCIAL STATEMENTS WITH SUPPLEMENTAL INFORMATION FOR WASHINGTON STATE HOUSING FINANCE COMMISSION
REPORT OF INDEPENDENT AUDITORS AND FINANCIAL STATEMENTS WITH SUPPLEMENTAL INFORMATION FOR WASHINGTON STATE HOUSING FINANCE COMMISSION June 30, 2017 and 2016 Table of Contents Report of Independent Auditors
More informationDebt Administration 101. FGFOA Palm Beach Chapter. April 10, Presenters:
Presenters: Matthew Sansbury Alex Bugallo Managing Director Managing Director 450 S. Orange Avenue, Suite 460 450 S. Orange Avenue, Suite 460 Orlando, FL 32801 Orlando, FL 32801 (407) 428-5006 (407) 428-5004
More informationAssociation for Governmental Leasing & Finance
Association for Governmental Leasing & Finance In-House Lawyers Panel: The Final Lap Spring 2016 Conference Charlotte, North Carolina PANELISTS Curt Loub, KS State Bank Beth Gilbert, Dell Financial Services
More informationMassachusetts Municipal Auditors and Accountants Association Annual Meeting South Yarmouth, Massachusetts June 11, 2018 Peter Frazier, Managing
Massachusetts Municipal Auditors and Accountants Association Annual Meeting South Yarmouth, Massachusetts June 11, 2018 Peter Frazier, Managing Director Bonds and Notes An interest bearing promise to pay
More informationReagan Holliday Edward Jones. This Presentation will be Available May 3rd at
Reagan Holliday Edward Jones Shannon Creighton Gilmore & Bell, P.C. Joy Howard WM Financial Strategies This Presentation will be Available May 3rd at http://www.munibondadvisor.com/resources.htm Copyright
More informationCITY OF SAN CARLOS DEBT MANAGEMENT POLICY. Effective: January 22, 2018
CITY OF SAN CARLOS DEBT MANAGEMENT POLICY Effective: January 22, 2018 This Debt Management Policy (this Policy ) establishes the parameters within which debt may be issued and administered by the City
More informationILLINOIS HOUSING DEVELOPMENT AUTHORITY CONDUIT BOND PROGRAM GUIDELINES
ILLINOIS HOUSING DEVELOPMENT AUTHORITY CONDUIT BOND PROGRAM GUIDELINES Updated March 1, 2018 TABLE OF CONTENTS Page SECTION I. INTRODUCTION... 3 A. Defined Terms... 3 B. General... 5 C. Overview... 6 D.
More informationFederal National Mortgage Association
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December
More informationINFORMATION REGARDING PRIVATE ACTIVITY BONDS (Tax-exempt and Taxable)
INFORMATION REGARDING PRIVATE ACTIVITY BONDS (Tax-exempt and Taxable) GENERAL INFORMATION PLACEMENT OF BONDS TERMS Conditions of the bond market and the particular needs of the borrower will determine
More informationCONSIDERING A BOND DEAL?... HAVE YOU ASKED YOURSELF WHY?...
Bond Basics 101 CONSIDERING A BOND DEAL?... 9% LIHTCs TEBs 4% LIHTCs Eligible Basis - Rehab $10,000,000 $10,000,000 % Affordable 100.00% 100.00% % Syndicated 99.99% 99.99% LIHTC % 9.00% 3.31% LIHTC Allocation
More informationDATE ISSUED: 7/7/ of 11 LDU CA(LOCAL)-X
FISL MANAGEMENT GOALS AND OBJECTIVES Purpose Scope Objective Debt Financing Guidelines Definition of Debt Cash Flow Financing Short-Term Debt Long-Term Debt The purpose of the District s debt management
More informationBorrowing from a Bank 101
Borrowing from a Bank 101 WPTA Washington Public Treasurer s Association April 2017 Co-Presented by: Alice Ostdiek, Stradling Yocca Carlson & Rauth PC (Bond Counsel) Pete Sullivan, Washington Federal With
More informationThe Board of Regents for the Oklahoma Agricultural and Mechanical Colleges. Debt Issuance and Management Guidelines
The Board of Regents for the Oklahoma Agricultural and Mechanical Colleges Debt Issuance and Management Guidelines November 2011 TABLE OF CONTENTS Project Planning / Identification of Potential Funding
More informationDebt Management Policy
Debt Management Policy August 31, 2017 Table of Contents 1. Policy Objectives and Philosophy... 1 2. Scope and Authority... 1 3. Currently Authorized Financing Programs... 1 4. Allowable Purposes of Debt
More informationSTATE BOARD OF REGENTS OF THE STATE OF UTAH STUDENT LOAN PURCHASE PROGRAM An Enterprise Fund of the State of Utah
An Enterprise Fund of the State of Utah Financial Statements AN ENTERPRISE FUND OF THE STATE OF UTAH FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018 TABLE OF CONTENTS Page MANAGEMENT S REPORT 1 FINANCIAL
More informationRESOLUTION EXHIBIT A DEBT MANAGEMENT POLICY CITY OF COCOA BEACH, FLORIDA
RESOLUTION 2014-09 EXHIBIT A DEBT MANAGEMENT POLICY A. ADMINISTRATION OF DEBT POLICY: The Chief Financial Officer (CFO) of the City of Cocoa Beach, Florida (the City ) is charged with overseeing and implementing
More informationDEBT MANAGEMENT EXAMINATION (1/19)
1. Duration: a) is a measure of volatility of bond returns. b) is influenced by the coupon rate and yield to maturity. c) provides an approximation of the percentage price change in a bond due to a change
More informationALABAMA HOUSING FINANCE AUTHORITY
FINANCIAL STATEMENTS TABLE OF CONTENTS INDEPENDENT AUDITORS REPORT 1 MANAGEMENT S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Statements of Net Position 7 Statements of Revenues, Expenses, and
More informationSTATE BOARD OF REGENTS OF THE STATE OF UTAH STUDENT LOAN PURCHASE PROGRAM An Enterprise Fund of the State of Utah
An Enterprise Fund of the State of Utah Financial Statements AN ENTERPRISE FUND OF THE STATE OF UTAH FOR THE NINE MONTHS ENDED MARCH 31, 2018 TABLE OF CONTENTS Page MANAGEMENT S REPORT 1 FINANCIAL STATEMENTS:
More informationFGFOA Nature Coast Chapter Meeting Linda S. Howard, CPA, CTP, MBA Nick Rocca January 2017
The Municipal Financing Puzzle FGFOA Nature Coast Chapter Meeting Linda S. Howard, CPA, CTP, MBA Nick Rocca January 2017 Outline for Today Current Municipal Market Issuance Process Ratings and Other Credit
More informationCity of Montclair, California Debt Management Policy
City of Montclair, California Debt Management Policy POLICY This Debt Management Policy sets forth certain debt management objectives for the City of Montclair (City), and establishes overall parameters
More informationSTATE BOARD OF REGENTS OF THE STATE OF UTAH STUDENT LOAN PURCHASE PROGRAM An Enterprise Fund of the State of Utah
An Enterprise Fund of the State of Utah Financial Statements AN ENTERPRISE FUND OF THE STATE OF UTAH FOR THE NINE MONTHS ENDED MARCH 31, 2014 TABLE OF CONTENTS Page MANAGEMENT S REPORT 1 FINANCIAL STATEMENTS:
More information2016 Strategic Financial Plan Debt Management Policy
Attachment A Page 1 of 16 Debt Management Policy Introduction The County of Orange Debt Management Policy provides guidance for the issuance of bonds and other forms of indebtedness to finance capital
More informationDebt Policy of the City of Richmond Established by the Finance Department. Fiscal Year
Debt Policy of the City of Richmond Established by the Finance Department Fiscal Year 2016-17 Scope and Application This Debt Policy, established by and for the Finance Department, pertains to financings
More informationCombining FHA Insured Loans with LIHTC
Combining FHA Insured Loans with LIHTC Presented by: Scott Graber Vice President Multifamily & Senior Housing sgraber@gershman.com (720) 507-1422 Bryan C Keller, CPA Partner-in-Charge of Real Estate Service
More informationGreat Start January 11, 2017 Patty Heminover Springsted Incorporated
Financing Options for Minnesota Schools Great Start January 11, 2017 Patty Heminover Springsted Incorporated Purpose of our Presentation Discuss Financing Options Players in the Process Review and Comment
More informationMajor Tax-Exempt Bond and Loan Executions for Affordable Housing Projects
Major Tax-Exempt Bond and Loan Executions for Affordable Housing Projects May 15, 2017 Presented by: R. WADE NORRIS, ESQ. wnorris@ennbonds.com (202) 973-0100 (o) (202) 744-1888 (c) EICHNER NORRIS & NEUMANN
More information1. Securities Markets, Investment Securities, and Economic Factors
1. Securities Markets, Investment Securities, and Economic Factors What is a Security Investment of Money In pooled interest With expectation of Profit Managed by third party 2 primary types, and a third
More informationHOUSING FINANCE AUTHORITY OF PALM BEACH COUNTY GUIDELINES FOR ISSUANCE OF MULTI-FAMILY RENTAL HOUSING REVENUE BONDS I.
HOUSING FINANCE AUTHORITY OF PALM BEACH COUNTY GUIDELINES FOR ISSUANCE OF MULTI-FAMILY RENTAL HOUSING REVENUE BONDS I. INTRODUCTION The Housing Finance Authority of Palm Beach County (the Authority ) is
More informationSAN FRANCISCO COUNTY TRANSPORTATION AUTHORITY DEBT POLICY
I. INTRODUCTION The purpose of this Policy is to organize and formalize debt issuance-related policies and procedures for the San Francisco County Transportation Authority (Transportation Authority) and
More informationLearn the Basics: Tax Exempt Bonds
Building 13 th Annual an Affordable Conference New York Thursday, Wednesday, May May 12, 16, 2011 2012 Learn the Basics: Ta Eempt Bonds Moderator/Presenter: Charles A. Rhuda, III Novogradac & Company LLP
More informationEXHIBIT A. The purpose of this Debt Management Policy is to assist the County in pursuit of the following objectives:
EXHIBIT A 4.7.1 Debt Management Policy This Debt Management Policy sets forth certain debt management objectives for the County and establishes overall parameters for issuing and administering the County
More informationCOLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY. GUIDELINES FOR FINANCINGS OF EDUCATIONAL AND CULTURAL INSTITUTIONS (Last amended January 2017)
COLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY GUIDELINES FOR FINANCINGS OF EDUCATIONAL AND CULTURAL INSTITUTIONS (Last amended January 2017) The following guidelines provide a general overview
More informationGMHF Affordable Housing Loan Products
GMHF Affordable Housing Loan Products FOR RENTAL & SINGLE FAMILY AFFORDABLE HOUSING Predevelopment Loans Acquisition Loans Construction /Rehab Loans Tax Credit Bridge Loans Mini Perm & Permanent Loans
More information