4.7.2.2 TEFRA Public Requirements

Before the issuance of any qualified private activity bond, a public hearing must be held by or on behalf of an applicable elected public official or elected legislative body of the issuer and, if the project is outside the geographic jurisdiction of the issuer, a governmental body with geographic jurisdiction over the project. Reasonable public notice must be given in advance, containing certain basic information regarding the nongovernmental borrower, the projects to be financed (such as purpose and location), and the amount of bonds to be issued for each project. For TEFRA (Tax Equity and Fiscal Responsibility Act of 1982) approvals on or after April 1, 2019, the notice is presumed reasonable published in a newspaper of general circulation in the locality of the project or, upon satisfaction of certain requirements, posted on the issuer’s website, at least 7 days before the scheduled hearing. After the hearing, the “applicable elected representative” must formally approve the bond issue. For local agencies, the elected legislative body (city council or board or supervisors) typically gives the approval. A TEFRA hearing and governmental approval are not necessary for an issue of current refunding bonds unless the average maturity date of the refunding issue is later than the average maturity date of the bonds being refunded.