Mass. executive order opens bond program

BOSTON – Gov. Deval L. Patrick this month signed an executive order that will open the state’s Recovery Zone Bond Program.
The Recovery Zone bonds, authorized through the American Recovery and Reinvestment Act of 2009, support both public and private development efforts by offering favorable borrowing rates for projects within areas designated as “recovery zones.”
The executive order identifies existing state Economic Target Areas (ETAs) as recovery zones, thereby rending projects within those 209 communities as eligible for consideration.
The Secretary of Housing & Economic Development may designate additional Recovery Zones at his discretion, according to a news release.
The state’s Recovery Zone Bond allocation is split between two programs: Economic Development and Private Facilities, totaling $222 million and $334 million, respectively.
Recovery Zone Economic Development Bonds are taxable bonds that provide 45 percent interest forgiveness for municipalities to bond for public infrastructure improvements, site remediation or site acquisition to support economic development. Recovery Zone Facilities Bonds are tax-exempt and available to private entities for the construction, renovation and reconstruction of privately held facilities that will create new jobs. &#8226