Private Activity Bonds

Several organizations wish to implement projects within their community to support its citizens; however, locating the proper funding can often be a challenge. In that case, Qualified Private Activity Bonds (PABs) can be a useful resource.

Examples of qualified projects these bonds have been used for include, but are not limited to:

• Mass commuting facilities
• Water furnishing
• Sewage facilities
• Solid waste disposal facilities
• Qualified residential rental projects
• Facilities for the local furnishing of electric energy or gas
• Local district heating or cooling facilities
• Hazardous waste facilities

These are projects we all benefit from, but investment is often a unique challenge. If your organization is pursuing a project for the benefit of your community, these bonds may be for you. 

Who Qualifies

• Bond issuers, such as local governmental units or community organizations
• Certain businesses (for qualified industrial or other authorized purposes)
• Certain individuals or households (see qualified projects)

Eligibility Requirements

The types of bonds qualified for tax-exempt status are:

• Exempt facility bonds
• Qualified mortgage bonds
• Qualified veterans’ mortgage bonds
• Qualified small issue bonds
• Qualified student loan bonds
• Qualified redevelopment bonds
• Qualified 501(c)(3) bonds