Beyond the Closing Table: Post-Issuance Compliance for Tax-Exempt Bonds

About the Webinar:

This comprehensive session addressed the critical but often overlooked aspects of maintaining tax-exempt status for charter school bonds after the initial closing. Richard Moreno, Braxton Padgett, and Emily Rodriguez guided attendees through the complex landscape of post-issuance compliance requirements, emphasizing that securing tax-exempt financing is just the beginning of a long-term responsibility. The presenters explained key compliance obligations including annual arbitrage rebate calculations, continuing disclosure requirements, private use restrictions, and proper expenditure tracking. They stressed that failure to maintain compliance can result in severe consequences, including loss of tax-exempt status, retroactive tax liabilities, IRS penalties, and damage to the school’s reputation and future borrowing capacity.

The session provided practical guidance on establishing effective compliance systems and avoiding common pitfalls that charter schools encounter with tax-exempt bonds. Topics covered included the importance of maintaining detailed records, understanding the three-year spend-down requirement for bond proceeds, navigating private use limitations when leasing facilities or partnering with outside organizations, and ensuring timely filing of required IRS forms and continuing disclosure reports. The presenters emphasized the value of assembling a knowledgeable team including bond counsel, financial advisors, and compliance consultants to help schools navigate these complex requirements. Attendees left with actionable checklists and resources to help their organizations maintain compliance, protect their tax-exempt status, and preserve access to favorable financing options for future capital needs.