DON’T FORGET THE BOARD RESOLUTION APPROVING A NEW CAPITAL PROJECTS

It should be standard practice at agency board meetings to present new capital projects for the Board’s approval and ideally utilizing a stand-alone resolution. This is extremely critical for projects that are ultimately financed through tax-exempt financings, such as the IAC Capital Finance Program. Tax Counsel for DASNY, or the county IDAs such as Build NYC, need to see that the board intended to use tax-exempt financing and to refinance any out of pocket expenditures with the financing.  IAC has been using a resolution template (click here) which is acceptable to all tax counsels.

We advise all our members to use this template for all projects where borrowing is contemplated, whether or not the borrowing is tax-exempt or not. Without the resolution, you are limited in what you can finance.

 

Finally, as our June financing participant list is now finalized, we are gathering projects for the next pool. As interest rates begin to climb, now is the time to lock in a FIXED interest rate for the full term of the loan. Variable rate loans, even with 10 or 15 years fixed, is not where you want to be.  IAC contact: This email address is being protected from spambots. You need JavaScript enabled to view it.