Private Activity Bond Lottery Returns to Texas – First Time Since 2008

Sources indicate that for the first time since 2008, the Private Activity Bond (PAB) Lottery will return to Texas this year. Remaining 2017 program year bond cap is currently oversubscribed, however, this status will change. There are a few factors to consider:

  1. Some current reservations will close and be allocated previous year’s carryforward;
  2. Several transactions have reservations that expire before the end of the year but after November 15. If those deals do not close (or have a previous year carryforward available to them), that volume cap will become available for traditional carryforward; and
  3. Some transactions may return their existing reservations.

For any projects requesting more than $20,000,000 that are not currently reserved, we strongly suggest a carryforward application be filed ASAP so applicants will be in line to receive cap as it becomes available. This happens every year in late December, with carryforward designations issued in January.
Otherwise, transactions requesting $20,000,000 or less may need to look to the PAB Lottery. The 2018 application period is from October 5th thru October 20th. To be eligible to participate in the lottery, the complete application must be filed by 5:00 PM, October 20, 2017. The lottery will be held on November 2nd at 10:00 AM at the Capitol Extension Room 02.026. Once the population data is provided to the BRB in late December, reservations will be issued in early January. Once the lottery is completed, remaining volume cap will be allocated to each region appropriately for the regular program year until the state ceiling collapse on August 15, 2018.
Additional information is available at:

For assistance with affordable housing matters, please contact an attorney in our Affordable Housing and Community Development Group.



9 Greenway Plaza, Ste. 1000
Houston, Texas 77046
Phone: 713.651.0111
Fax: 713.651.0220


16000 North Dallas Parkway
Suite 350
Dallas, Texas 75248
Phone: 972.788.1600
Fax: 972.702.0662


Terrace 2
2700 Via Fortuna, Suite 350
Austin, Texas 78746
Phone: 512.469.7987
Fax: 512.469.9408


PNC Center
201 E. 5th Street, Suite 1810
Cincinnati, OH 45202
Phone: 513.830.0261
Fax: 513.672.0381