Public Finance Advisory: New Proposed Regulations Regarding Partial Tax-Exempt Financing of Mixed-Use Facilities
9/21/2006
The Treasury and Internal Revenue Service have issued proposed regulations governing allocations of tax-exempt bond proceeds to facilities that combine governmental or 501(c)(3) use on the one hand and use by private for-profit entities on the other ("mixed-use" facilities). These regulations provide important guidance on how to include tax-exempt capital in public-private projects notwithstanding the presence of functions that are not eligible for tax-exempt financing and that exceed the allowable amount of such non-qualified use.
The principal provisions of the proposed regulations are included in this Mintz Levin publication.
