The Travis County Corporations are primarily conduit debt issuers of private activity bonds. Per the Texas Bond Review Board, the Tax Reform Act of 1986 (the "Tax Act") limits tax-exempt financing of private activities. Private activity bonds meet one or more of the following tests: 1) Private Business Use Test - more than 10% of the proceeds are to be used for any private business use; 2) Private Security or Payment Test - payment on principal or interest of more than 10% of the proceeds is to be directly or indirectly secured by, or payments are to be derived from a private business use; and 3) Private Loan Financing Test - proceeds are to be used to make or finance loans to persons other than governmental units. The allocation process for the state of Texas is set out in Chapter 1372 of the Texas Government Code. The Private Activity Bond Allocation Program regulates the volume ceiling and monitors the amount of demand and the use of private activity bonds each year.
To receive an allocation of Private Activity Bonds from any of the Travis County Corporations, including 501(c)3 bonds, an application must be submitted. Please see below for the application types and other relevant information.
