WASHINGTON — The Internal Revenue Service is auditing $100.89 million of state capital project bonds issued by the Alaska Housing Finance Corp. in October 2006.
The housing agency disclosed the audit in a notice it filed with the Municipal Securities Rulemaking Board’s EMMA system on Thursday.
The notice said that the IRS “routinely examines municipal debt issuances to determine compliance with federal tax requirements. The IRS confirmed the bonds were randomly selected for audit.
The AHFC believes “that it has complied with all federal tax requirements applicable to the bonds and is working with its counsel to provide the Service with all requested information,” the notice said.
The proceeds of the bonds were used to refund $82.265 million of previously issued bonds and to reimburse the AHFC for $17.735 million in governmental purpose expenditures, according to bond documents.
The AHFC was established in 1971 as a non-stock, public corporation and government instrument of Alaska. It functions as a major source of residential mortgage loan financings in the state, bond documents said.
The lead underwriter for the deal was A. G. Edwards, now Wells Fargo Advisors. The financial advisor for the deal was First Southwest Co.
Alaska-based Birch, Horton, Bittner and Cherot was bond counsel. Hawkins Delafield & Wood was underwriters’ counsel and Kutak Rock LLP was special tax counsel.
The bonds were insured by MBIA Insurance Corp.