The Division of Housing is in the process of issuing new fee guidelines on Private Activity Bonds and fees. The Division plans to formally announce the new fee structure at the PAB Committee hearing on November 17. In order to allow for comments before the new fees are finalized, a summary is below. Please contact Ann Watts with comments at email@example.com.
New Guidelines on Direct Allocation Fees are as follows:
•All bonds issued from a local government and/or from statewide authorities’ direct formula allocations will be subject to an issuance fee.
•This applies to all direct allocations that have not yet been issued, including allocations from 2009 & previous years.
•The fee starts at 0.0057%, and be adjusted annually. Since most PAB issuances are for at least $3 million, the smallest fee would be $171. At the other end of the spectrum, a $100 million issuance would cost $5,700.
•Typically, 3 statewide authorities & about 47 local governments receive direct, formula allocations at the start of each calendar year.
Statewide Balance (SWB) Fees are unchanged:
•These will remain unchanged from current practice, & include a $750 application fee and a 0.25% issuance fee.
Please send any comments to Ann Watts by Friday, 11/6.
We plan to formally announce the new fee structure at the PAB Committee hearing on November 17.