The Bond Buyer | July.18.2012
This article, about the Internal Revenue Service’s overhaul of its tribal economic development bond allocation process, quotes public finance partner Townsend Hyatt.
"This looks to be a more rigorous application and allocation process than was used before," Hyatt said. "It should help winnow out overly ambitious projects that have little hope of getting financed. Indian country has a lot riding on the success of the TED program. If the program is successful, it strengthens Indian country's case for parity in tax-exempt borrowing generally as tribal governments and the Treasury have advocated."
Hyatt continued, stating that for the new application, the IRS will allocate an amount of available volume cap equal to the amount requested on a "first-come, first-served" basis by order of the application submission date. This will mean that tribes who are ready to move on eligible projects should do so quickly because they have a greater chance of getting a larger allocation to pay for their project.