Three More Muni Groups Support Recovery Bonds

Three muni market groups have joined forces with the Council of Development Finance Agencies and sent Congress draft legislation that would create special Hurricane Sandy Recovery Bonds to help businesses and residents in the Mid-Atlantic region still reeling from storm-related destruction.  The National Association of Bond Lawyers, the Bond Dealers of America and the National Development Council in addition to the CDFA proposed that Congress allow federal bonding authority and other federal benefits to individuals, families and businesses in areas affected by Hurricane Sandy, or the “Reconstruction Zone.”  The group’s proposal model’s the Gulf Opportunity Zone Act of 2005, which was created by Congress after Hurricane Katrina in 2005.  Economic damages inflicted by Superstorm Sandy could reach $50 billion, according to estimates. The groups did not specify a specific amount of assistance required due to the large geographic scope of the devastation and high density of the affected populations.

Bond Buyer

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