Recent Changes to the Public Finance Market
The Recent Changes to the Public Finance Market Provide Alternative Financing Solutions for Public/Private Partnerships
January 2010
Written by Darrin Kennedy – Colliers Integrated Real Estate Solutions
OPPORTUNITY
Amidst the economic crisis and ongoing, severe budgetary challenges, state and local governments face significant requirements to modernize all manner of facilities and vital infrastructure. To facilitate and incentivize the funding of these requirements through the Public Finance market and stimulate the economy, a variety of bond programs are available under the American Recovery & Reinvestment Act (ARRA) of 2009 and other recent legislation. The availability and marketability of these new programs and instruments, together with current low interest rates has resulted in historically low cost financing for state and local governments during a challenging capital market environment.
Developers and/or state and local agencies who are active in public/private partnerships (PPP) should take note as these new programs and instruments, subject to specific requirements and restrictions, may potentially provide alternative financing solutions to allow state and local government PPP projects to move forward.
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Darrin Kennedy