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credit or a pledge of the full faith and credit or taxing powers of the Issuer, the Commonwealth, or any
political subdivision thereof.
Federal Funding and Policy Uncertainties
Federal policies on the federal debt ceiling, foreign trade and tariffs, immigration, climate change,
clean energy, taxation and funding, among other topics can shift dramatically between administrations.
Such shifts can result in dramatic swings in the level of funding and staffing and policy priorities, and affect
general economic conditions, leading to unpredictability. The Issuer currently expects a heightened level
of uncertainty in federal policy, funding, staffing, and support for affordable housing, including HUD
programs.
Federal funding is subject to federal legislative action, including through the federal budget process
and sequestration. Budgetary acts, including sequestration, spending cuts, and tax cuts, could affect the
availability of federal funds. Executive actions, including actions seeking to freeze, reduce, eliminate or
reallocate federal funding and reduce staffing at federal agencies could also affect the availability of federal
funds and the operation of federal programs.
Proposed and potential federal legislative and executive actions and initiatives, and uncertainty
created by proposed or attempted actions, could adversely impact the Issuer. Examples of possible actions
include, but are not limited to, regulatory changes to programs administered by federal agencies, including
HUD, elimination of existing tax credits, cuts to federal spending on housing, operational challenges at
federal agencies due to low-staffing levels, and changes to or elimination of tax-exempt bond financing.
Legislation and executive action may be subject to legal challenges, and the Issuer makes no representation
regarding the outcome of any such challenge.
Federal government shutdowns have occurred in the past and could occur in the future. A lengthy
federal government shutdown poses potential direct risks to the Issuer鈥檚 receipt of funds from federal
sources, including HUD-administered programs, and could have indirect impacts due to a shutdown鈥檚 effect
on general economic conditions. The Issuer has not experienced material adverse impacts from federal
government shutdowns that have occurred in recent years; however, the Issuer can make no assurances that
it would not be materially adversely affected by any future shutdown of the federal government. In addition,
federal funding received by the Issuer, including federal funding for HUD-administered programs, could
be at risk in the event that the federal government approaches its statutory debt limit. The Issuer cannot
predict whether, or to what extent, any specifically federally funded program could be affected in such
event.
The Issuer continues to monitor developments involving the federal government.
Summary
The foregoing is intended only as a summary of certain risk factors attendant to an investment in
the Bonds. In order for potential investors to identify risk factors and make an informed investment decision,
potential investors should be thoroughly familiar with this entire Official Statement and the Appendices
hereto.
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