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ARTICLE · 18 AUGUST 2025

Georgia DCA Sets Important Aug. 15 Deadline For Pipeline Projects

Nelson Mullins Riley & Scarborough LLP
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The Georgia Department of Community Affairs ("DCA") has provided guidance in a July 25, 2025 letter as to how it will handle the permanent bond test threshold reduction from 50% to 25%...

United StatesReal Estate and Construction
Jerome Shuman Jr.
Jerome Shuman Jr.
Andrew Hall
Andrew Hall
Turner Street
Turner Street

The Georgia Department of Community Affairs ("DCA") has provided guidance in a July 25, 2025 letter as to how it will handle the permanent bond test threshold reduction from 50% to 25%, as set forth in the One Big Beautiful Bill Act passed this year. As the lower bond test may result in excess private activity bond volume cap ("PAB VC") on deals that will close in 2026 ("Pipeline Projects"), DCA will reclaim all excess PAB VC without requiring Owners to replace the PAB VC with other fund sources, and DCA will not reclaim any PAB VC necessary for the deal to be financially feasible.

Owners of projects with an award from a prior year application cycle which has not yet closed have until August 15, 2025 to elect between Option A and Option B (set out below) and submit the required documentation through the Empahsys Developer Portal:

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