Alabama, Louisiana, and Mississippi have allocated about 87% of the private-activity bonds authorized under the Gulf Opportunity Zone program, but only 50% of those bonds have been issued thus far, according to a report released this week by the Government Accountability Office.

Turmoil in the credit and tax-exempt bond markets has made it challenging for interested parties to issue bonds, and reduced values in the housing market has also slowed developers that could use the tax benefits the program provides, the report found.

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