Business and government leaders from across South Carolina, North Carolina, and Georgia gathered recently in Columbia at Civint’s annual policy event to examine how changes in federal policy and economic conditions are influencing the municipal bond landscape.
The session led by Columbia’s former Mayor Steve Benjamin explored the increasing role of tax-exempt bond financing to support large-scale projects, particularly in the affordable housing sector.
With limited state allocations and increased competition, many communities are turning to four percent Low-Income Housing Tax Credit bonds as a more accessible alternative to traditional nine percent credits. These bonds, while less subsidized, are easier to pair with public-private partnerships and can support projects at scale.
However, local officials around the table noted several challenges. Bond caps at the state level restrict the number of projects that can move forward with only a handful of developments awarded per round. This has created a highly competitive environment where success often hinges on strategic planning, strong partnerships, and an understanding of evolving compliance requirements.
The conversation also addressed the importance of aligning bond projects with community priorities. City and county leaders discussed how they must frame discussions around infrastructure, housing and community revitalization efforts with economic return and resilience in mind especially as fiscal pressures grow and funding becomes more limited.
Additionally, there was a growing interest in workforce housing and how bond financing can fill critical gaps in housing for moderate-income earners, such as teachers, healthcare workers, and first responders. Still, defining eligibility, ensuring affordability, and securing long-term financing remain key concerns.
The discussion underscored this shared message – as bond availability tightens, local governments must be increasingly proactive, building strong coalitions and presenting projects that meet both immediate needs and long-term growth goals.
Civint continues to stay on top of these issues and their impact on local governments. Sign up here for our newsletter to get updates.
