TEFRA Hearings

Tax Equity and Fiscal Responsibility Act (TEFRA)

A TEFRA hearing is mandated by the Internal Revenue Service to provide a reasonable opportunity for interested individuals to express their views, either orally or in writing, on the issuance of bonds and the nature of the improvements and projects for which the bond funds will be allocated.  TEFRA hearings are conducted via Microsoft Teams by the Authority and toll-free telephone numbers are provided as well.

IHDA publishes TEFRA notices at least seven (7) days prior to the hearing date. It is your responsibility to view this page for such notices. IHDA is not responsible for any failure to view this TEFRA Hearings page.

TEFRA Notice and Hearing

IHDA is an issuer of taxable and tax-exempt bonds and uses the proceeds to finance the creation and preservation of affordable housing in Illinois.

The policies and procedures applicable to the Authority’s Multifamily Bond Program may be found in the IHDA Multifamily Bond Program Guidelines Manual (effective 3/1/24).

Prior to the Board considering a Bond Resolution for a tax-exempt financing, each Borrower must facilitate and provide information required for compliance with the public notice and hearing  requirements of Section 147(f) of the Code and applicable regulations:

  • Section 147(f) of the Code requires that a public hearing be held prior to the Authority’s issuance of tax-exempt bonds. In addition to the requirements of the Code, the Authority requires the following:
    • The public hearing must be held before the adoption of the Bond Resolution.
    • Responsibility for compliance with requirements of Section 147(f), including, without limitation, timely publication of notices, rests solely with Bond Counsel, who are additionally required to coordinate hearing logistics with the Authority’s General Counsel, the Executive Assistant to the General Counsel, the Deputy General Counsel, and/or the Assistant General Counsel. Borrowers have no obligation to attend the public hearing unless requested by the Authority.
  • The Governor acts as the “applicable elected representative” for purposes of the public approval requirement of Section 147(f)(2)(E) of the Code. The Governor’s office requires a transcript of the public hearing and adoption of the Bond Resolution prior to the
    Governor’s execution of an approval letter.

Accordingly, the Authority only submits approval requests to the Governor that consist of (a) affidavits of publication, (b) a public hearing transcript, which the Authority prepares, and (c) an approved Bond Resolution.

The Borrower should expect a minimum turnaround time of 14 business days for the Governor’s approval letter.

TEFRA Hearings – Notice of Public Hearing Regarding Bond Issuance & Housing Project