Airport Director Requests Extended Tax-Exempt Bond Relief

October 23, 2020

David J. Kautter
Assistant Secretary
Office of Tax Policy
U.S. Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220
Email: david.kautter@treasury.gov

Michael J. Desmond
Chief Counsel
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, DC 20224
Email: michael.desmond@irs.gov

Krishna Vallabhaneni
Tax Legislative Counsel
United States Department of the Treasury
1500 Pennsylvania Avenue, NW, Room 3044
Washington, DC 20220
Email: krishna.vallabhaneni@treasury.gov

Re: Extension of COVID-19 Relief for Issuers of Tax-Exempt Bonds

Dear Mr. Kautter, Mr. Vallabhaeni, and Mr. Desmond:

The widespread outbreak of the novel coronavirus pandemic (“COVID-19 Emergency”) is the subject of an ongoing emergency declaration made by the President of the United States pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act on March 13, 2020. As well, the COVID-19 Emergency has also been, and continues to be, the subject of numerous emergency declarations by Governor Newsom of the State of California (“State”) and Mayor Breed of the City and County of San Francisco (“City”). The COVID-19 Emergency continues to severely limit or, in some cases, prohibit in-person gatherings by members of the general public.

In response to the COVID-19 Emergency, Revenue Procedure 2020-21 (“Rev. Proc. 2020-21”), effective May 4, 2020, provides temporary guidance regarding the public approval requirement under §147(f) of the Internal Revenue Code for tax-exempt private activity bonds. Rev. Proc. 2020-21 provides that for the period ending on December 31, 2020, hearings held by teleconference that are accessible to the residents of the approving governmental unit by calling a toll-free telephone number will be treated as held in a location that, based on the facts and circumstances is convenient for residents of the approving governmental unit for the purpose of §1.147(f)-1(d)(2) of the Treasury Regulations.

The same factors that led to the temporary relief provided in Rev. Proc. 2020-21 continue to exist in the City and affect the operations of the San Francisco International Airport, which is owned by the City and governed by the San Francisco Airport Commission. Even though the San Francisco Bay Area county health officers have gradually relaxed restrictions, members of the public generally have been encouraged to continue to practice social distancing, and, while personal choices vary, certain members of the public continue to limit engagement with others. Still others are required to quarantine in their homes after potential exposure to those with confirmed cases of COVID-19. Meetings of the City's Board of Supervisors and the San Francisco Airport Commission continue to be conducted online, and only essential personal are allowed to work in City offices.

Accordingly, we respectfully request that the period for the temporary relief provided in Rev. Proc. 2020-21 be extended to at least December 31, 2021.

If you have any questions, please contact Mike Nakornkhet, Acting Managing Director, Finance at 650-821-2831 or mike.nakornkhet@flysfo.com.

Very truly yours,

Ivar C. Satero
Airport Director
San Francisco International Airport
San Francisco, CA

Attachment

cc:
Helen M. Hubbard (helen.m.hubbard@irscounsel.treas.gov)
Associate Chief Counsel, Financial Institutions & Products, Internal Revenue Service

Melissa Moye (ann.moye@treasury.gov)
Director, Office of State and Local Finance, U.S. Department of the Treasury

Johanna Som de Cerff (Johanna.SomdeCerff@irscounsel.treas.gov)
Acting Branch Chief, Internal Revenue Service

Zoran Stojanovic (zoran.stojanovic@irscounsel.treas.gov)
Assistant to the Branch Chief, Internal Revenue Service

Brett York (Brett.york@treasury.gov)
Acting Deputy Tax Legislative Counsel, U.S. Department of the Treasury