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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...

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About this Author

Charles Almond, tax attorney, Bracewell  law firm

Charles focuses his practice on federal taxation issues, including tax controversies and transactional planning, with an emphasis on the federal tax treatment of state and local government bonds of all types. He also has experience in federal income and excise tax matters in areas such as transactional planning, general federal tax advice and tax-controversy matters affecting business organizations, non-profit organizations, cooperative organizations, and state and local governments.

He regularly represents clients on federal income tax matters...

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.