Red-faced tax lawyers?

On Friday we summarized an IRS Private Letter Ruling that told a cautionary tale of refunded bond savings that tainted a loan to an affordable housing project, reducing its ability to qualify for tax credits. It drew this response from a knowledgable industry practitioner:

I haven't read the materials, so I know only what's in your summary, but it could be that some tax lawyers somewhere are *extremely* red-faced right now. The bond refunder sounds like a classic McKinney Act split-savings. Will be interesting to see if the owner has a claim against the lender -- this is the sort of thing that is probably the subject of a little-noticed bond rep/warranty.