May a local government that issues project development bonds capitalize the interest payments (that is, may a local government borrow additional funds, over and above the amount needed to finance the purpose(s) for which the bonds were issued, to meet de
Yes. A local unit may capitalize the interest on the project development bonds during construction, and for up to seven years after the estimated date of completion of construction, of the project that is funded with the bonds. Capitalizing interest payments in the early years of a project development financing often is necessary because the project development financing district will not generate enough increment revenue to meet debt service requirements.
Public Officials - Local and State Government Roles