EPISODE · Feb 17, 2026 · 3 MIN
Episode 36: States Implement New 25% Bond Test for 4% LIHTC
from The Spring Street Brief · host Spring Street Management Group
The lowered private activity bond threshold took effect January 1st, and state HFAs are now rolling out implementation policies that vary significantly by state.Threshold Change:Minimum bond financing dropped from 50% to 25% of aggregate basisLess tax-exempt debt required per projectFrees up bond volume cap for additional dealsState Implementation:California CDLAC: Emergency rulemaking initiatedHousing New Mexico: Updated 4% LIHTC planColorado: Phased approach with 45% upper limit for 2026Developer Impact:Acquisition-rehab deals: $5M bond requirement now $2.5M on $10M projectLower debt service and transaction costsImproved project economicsWork with bond counsel on state-specific requirementsSubscribe to The Spring Street Brief for daily coverage of private activity bonds, 4% LIHTC, bond volume cap, and state HFA policy updates.
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What this episode covers
State housing finance agencies roll out implementation policies for the new 25% private activity bond threshold, with California, New Mexico, and Colorado taking varied approaches.
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Episode 36: States Implement New 25% Bond Test for 4% LIHTC
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