ABA Comments on Proposed Private Activity Bond Regulations (May 26, 1995)

ABA comments are available online at https://www.taxnotes.com/research/federal/other-documents/public-comments-on-regulations/aba-tax-section-comments-on-proposed-regulations-on-private-activity/13b4m. Primary drafters were Tim Wolfe, William Loafman.

Part III includes a useful discussion of private business use issues affecting development districts. Topics covered in this section:

• Discharge of primary legal obligation: Is it private business use when bond project satisfies conditions imposed on developer regarding remainder of development?
• Intended for use by the general public: Discussion of considerations affecting gated communities, and whether the general public can include those who live within the gated communities.
• Functionally and integrally related facilities: Use of a financed facility is not on the same basis as use by the general public if the financed facility is functionally related and integrally related to another facility used by a nongovernmental person and significant economic benefits arise from use of financed facility with respect to the primary facility that are not available to the general public.
• System improvements
• Temporary use by developers
• Equal basis requirement: Tax assessment loan exception

The comments address proposed regulations released December 29, 1994, available online at https://www.taxnotes.com/research/federal/proposed-regulations/new-rules-proposed-on-definition-of-private-activity-bonds/13s5r.