Yes. These are required by the IRS and for conduit borrowers it is solely your responsibility unless you engage the Authority to manage it for you. For borrowers in the Moral Obligation program, the Authority engages a nationally recognized Arbitrage Compliance Specialists to perform rebate analysis on an annual basis.
An email to the MHHEFA program assistant is a good place to begin. Click here to see a sample of what can be provided to assist you when completing the Form 990.
Before beginning the application process contact the MHHEFA Program Officer to discuss your plan of finance and timetable.
Generally speaking, it takes approximately 12 weeks to produce a bond issue. The Authority maintains flexible pool scheduling, so it is best to let us know your plans as soon as possible even if it is a year away.
Compliance items are sent to the MHHEFA Program Assistant and to the Bank Trustee. Required items can be found in the loan agreements and can be emailed in a .pdf format.
If you are already in our program we have a number of the required documents on file. However, you will need to give us a new plan of finance summary along with updated operational and financial data and sign the declaration.
Audit information requests can be sent directly to the MHHEFA program assistant. Click here to see a sample of what MHHEFA can provide to the auditors.
As soon as you know that you will be out of compliance call and have a conversation with the MHHEFA program officer. He will talk you through the next steps and expectations.
The reserve fund is an integral component of the Moral Obligation Pooled Loan Program which ensures lower borrowing costs for all pool program participants, most of whom are unrated. It is only through the reserve fund that the program can access the State’s Moral Obligation pledge.
No. All borrowers have a loan agreement that nets out the debt service reserve balance. The reserve fund requirement increases the total issue size but not the note payment. The Authority credits all investment earnings from the reserve fund back to the borrower at the arbitrage rate for the issue. The impact of these earnings credits lowers the True Interest Cost (TIC) to the borrower despite the larger dollar amount of the issue.
Yes there are single issue moral obligation deals. It is generally more cost effective to pool the issuance costs across a number of borrowers but certain circumstances such as timing or structure may dictate a single issue approach.
Yes. It is strongly advised that all borrowers have their own counsel. Legal fees are typically included in cost of issuance and not paid out of pocket.
Construction accounts are established at closing with our bond trustee. Accessing those funds is simple and straightforward with a simple, fast requisition process.
Yes, there is an 18-month look back window for project related expenses on new money deals. Keep good records and documentation for reimbursement which can often be paid out on the day of closing.
The Authority Program Officer makes all underwriting assignments drawing from our approved bench of qualified bankers. If there is a strong existing banking relationship the Authority will accommodate the borrower whenever possible as long as deal execution excellence can be maintained.
