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Tax-Exempt Financing Opportunity for Private Sector Borrowers (Hurricane Ike Bonds)

On October 3, 2008, in the wake of Hurricane Ike, President George W. Bush signed into law changes to federal tax law making tax-exempt “Hurricane Ike Bonds” available to qualified private sector borrowers. Patterned after similar federal legislation enacted in the aftermath of Hurricanes Katrina and Rita to help rebuild disaster areas in other Gulf Coast states, the Hurricane Ike bond program provides a unique opportunity for private sector borrowers to access the tax-exempt bond market.

Eligible Texas projects must be located within the 34-county federally declared Hurricane Ike disaster area, and involve the acquisition, construction, renovation, rehabilitation or reconstruction of nonresidential real property, public utility property, or certain qualified residential property.

In order to participate in the program, application must be made to the Office of the Governor and the Texas Bond Review Board. Bonds must be issued by December 31, 2012. Applicants are not required to have suffered actual damage from Hurricane Ike, but amounts available under this program are limited.

To facilitate the use of remaining amounts under this program, in February 2012, the Governor of the State of Texas made all amounts available to applicants in each of the 34 affected Texas counties.  More...


© 2020 Bracewell LLPNational Law Review, Volume II, Number 61


About this Author

Cristy C. Edwards, public and tax-exempt finance, attorney, Bracewell law firm

Cristy practices in the area of public and tax-exempt finance, with a primary focus on transactions involving hospitals and other health care facilities, colleges and universities, nonprofit organizations, industrial development, waste disposal facilities, airports, and state agencies. She serves as bond counsel, borrower’s counsel, disclosure counsel, trustee’s counsel, and underwriters counsel in such financings. Cristy is also experienced as trustee’s counsel in default and workout situations.

Before entering private practice, Cristy served...

Elizabeth Rippy Bowes, Public Finance, attorney, Bracewell, law firm

Elizabeth represents issuers and underwriters in public offerings of tax-exempt bonds. She has experience representing both state and local issuers in conduit financings with an emphasis in single and multi-family housing.