Recovery Zone Bonds
Program Description | Downloads & Related Links | Contact Information
Program Description
Recovery Zone Bonds
- A category of Build America Bonds (BABs) for public infrastructure and facilities in “recovery zones”
- Recovery zones are designated by the issuer as:
- Eligible issuers include the State and local governments and certain “on-behalf-of” issuers
- BABs may be issued as tax credit bond or a “Direct Payment” taxable bond
- Benefit to issuer of a Recovery Zone Economic Development Bond is a 45% interest subsidy
- 100% of proceeds (net of debt service reserve and 2% cost of issuance cap) must be used for qualified economic development purpose
- Qualified economic development purposes include promoting development or other economic activity in a recovery zone:
- Proceeds can NOT be used for private activity
- US allocation of $10 billion allocated among the States in proportion to their relative 2008 job losses
- Suballocations to counties and large municipalities within a State made on the basis of relative job losses
- Locality may waive its allocation for further allocation within the State
- Counties may allocate portion of their allocation to cities within the county or, in most cases, to development authorities within the county.
- Must be issued by 12/31/10
Any area with significant poverty, unemployment, or home foreclosure rates,
Any area currently designated as an Empowerment Zones or Renewal Community, and
Any area designated as economically distressed by reason of closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990
New money capital expenditures for property in a recovery zone
Public infrastructure or facilities that promote economic activity in a recovery zone
Expenditures for job training and education programs, total allocation to Georgia local governments: $355,785,000
Recovery Zone Facility Bonds
- A new category of tax-exempt private activity bonds for financing economic development in “recovery zones”
- Proceeds can be used to finance depreciable property used in a trade or business in a Recovery Zone that:
- Total allocation to Georgia local governments: $533,677,000
- Issuance not subject to State’s current Private Activity Bond cap
- Eligible issuers include those entities currently eligible under state law to issue private activity bonds
- US allocation of $15 billion allocated among the States in proportion to their relative 2008 job losses
- Suballocations to counties and large municipalities within a State made on the basis of relative job losses
- Locality may waive its allocation for further allocation within the State
- Must be issued by 12/31/10
Was acquired, constructed, or renovated after the date of designation of a recovery zone
The original use of which occurs in the recovery zone, and
Substantially all of the use of the property is in the active conduct of a qualified business (any trade or business except for residential rental facilities, golf courses, massage parlors, gambling facilities, etc.)
Downloads & Related Links
Application (Word doc)
Confirmation of Issuance RZB (Word doc)
Notice of Waiver (PDF)
Notice of Intent to Issue (PDF)
Local Government Resolution (PDF)
Re-allocation Process (r. 5/26/10) (PDF)
Recovery Zone Bonds Overview (PDF)
US Department of the Treasury RZB Allocations (PDF)
US Department of the Treasury Regulations (PDF)
Request for Extension Memo (PDF)
Request for Extension Application (Word doc)
Contact Information
For more information contact the Bond Allocation Manager.
Georgia Department of Community Affairs
60 Executive Park South, N.E.
Atlanta, Georgia 30329-2231
