Skip to content
BOL Conferences
Thread Options
#2070740 - 03/24/16 03:40 PM CRA Investments - City/Hospital Revenue Bonds
FancyMe Offline
Junior Member
Joined: Dec 2012
Posts: 47
Florida
We have an opportunity to purchase CRA investments for: City of Tampa, Florida, Health System Revenue Bonds, BayCare Health System Issue. What eligibility criteria would need to be investigated to determine if this would be a qualified investment within out assessment area?

Return to Top
CRA
#2074731 - 04/19/16 08:34 PM Re: CRA Investments - City/Hospital Revenue Bonds FancyMe
Tennismom Offline
Platinum Poster
Tennismom
Joined: Jan 2004
Posts: 778
From the Federal Reserve Investment Handbook http://www.frbsf.org/community-development/files/CRAHandbook.pdf
As a general rule, mortgage backed securities and municipal bonds are not qualified investments because they do not have as their primary purpose community development, as defined in the CRA regulations.

Nonetheless, mortgage-backed securities or municipal bonds designed primarily to finance community development generally are qualified investments. Municipal bonds or other securities with a primary purpose of community development need not be housing related.

For example, a bond to fund a community facility or park or to provide sewage services as part of a plan to redevelop a low-income neighborhood is a qualified investment. Certain municipal bonds in underserved nonmetropolitan middle-income geographies may also be qualified investments.

Per the attached link - https://www.fitchratings.com/site/fitch-home/pressrelease?id=1001121 The purpose of the issuance is that Bond proceeds will be used to reimburse Baycare for prior expenditures related to the Morton Plant Hospital master facility plan, St. Joseph's Hospital master facility plan, and the construction of St. Joseph's Hospital - South, and will pay off a $66.3 million draw on a line of credit used to purchase Bartow Regional Medical Center (BRMC).

Look to see if any of these facilities are located in low or moderate income census tracts or if you can obtain financials, determine the percent of patients served that are covered by Medicaid.

Return to Top