Exempt Facilities Bonds

Exempt Facilities Bonds may be issued under certain circumstances for:

  • Airports
  • Docks and wharves
  • Mass commuting facilities
  • Sewage facilities
  • Solid waste disposal facilities
  • Qualified residential rental projects
  • Facilities for the local furnishing of electric energy or gas
  • Local district heating or cooling facilities
  • Environmental enhancements of hydroelectric generating facilities

Generally the requirements with respect to qualified small issue bonds are applicable to exempt facilities bonds except the following:

  • $40,000,000 per user limit
  • Airports, docks and wharves, and mass commuting facilities must be owned by a governmental unit.
  • Exempt Facilities Bonds generally must be used to provide facilities that serve the general public or are available on a regular basis for general public use (sewage and solid waste disposal facilities are treated as qualifying automatically).

Program Details:

  • 120% average maturity limit
  • public hearing requirement
  • 2% issuance cost limit
  • Prohibition of direct or indirect federal guarantee