Private Activity Financing
Tax-exempt financing for public benefit projects.
Community Approved
Public Benefit Projects
Cost-effective tax-exempt financing is available to community-approved public benefit projects undertaken by non-profit and private entities. CalMuni PFA acts as a conduit issuer for 501(c)(3) non-profit organizations and affordable housing projects, as well as manufacturing, environmental, and transportation facilities.
The main advantage of tax-exempt financing is the interest rate that is lower than conventional financing because the interest income received by lenders or bondholders is exempt from federal and – in some cases – state income taxes.
Up to 2% of the tax-exempt financing proceeds can be used to cover the costs of issuance, including legal, underwriter, and consultant fees. Additional fees can be financed through taxable borrowing.
501(c)(3) Non-Profits
The CalMuni PFA Non-Profit Finance Program offers streamlined access to tax-exempt financing for qualified non-profit organizations for the acquisition, design, construction, renovation, and rehabilitation of facilities and equipment. Financing is available for educational organizations, healthcare, cultural, community centers, recreational centers, and professional associations.
Affordable Multifamily & Senior Housing
The CalMuni PFA Affordable Housing Finance Program offers streamlined access to tax-exempt financing for qualified for-profit and non-profit developers for low-income multi-family and senior housing projects. In addition to the lower interest rates, the issuance of tax-exempt debt helps qualify projects for the federal Low Income Housing Tax Credit Program. Note that affordable housing financing requests are subject to state-imposed allocation volume caps and availability of funding.
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Industrial Development/Manufacturing
The CalMuni PFA Industrial Development Finance Program offers streamlined access to tax-exempt financing for qualified manufacturing, production, and processing facilities for the acquisition, design, construction, renovation, and rehabilitation of facilities and equipment. At least 75% of the bond proceeds have to be used for core manufacturing purposes and no more than 25% of the proceeds can be used for ancillary office, warehouse, or other space (including loading docks).
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Transportation
CalMuni PFA serves as the conduit lender for all state al federal transportation financing programs, including the Transportation Infrastructure Finance and Innovation Act (TIFIA) Program. CalMuni PFA provides long-term, low-interest loans and other types of credit assistance for the construction of surface transportation projects. We finance the construction of large-scale surface transportation projects by providing financing to complement state, local, and private investment.
CalMuni PFA Advantage
Expert Consultants
Benefit from the availability of expert consultants at no extra cost to you. From the time of an inquiry, you will be paired with localized bond counsel and a municipal advisor for specialized consulting on financing your project needs.
Finance 100% of project
CalMuni PFA can finance a variety of public benefit projects with a range from $500,000 to $100,000,000 or higher depending on the project needs.
Low Cost of Borrowing
CalMuni PFA provides diversity to investors and economies of scale to its participants which will, in turn, translate into competitive interest rates and lower costs of borrowing.
Public Agencies Benefit
Local agencies benefit because the program utilizes experts deeply experienced in Private Activity financing complexities to ensure their community is well taken care of.
Developers Benefit
Developers can benefit from the Private Activity Program through development of public-private partnerships (P3s) and other specialized arrangements. Financing projects instead of relying on pay-as-you go funding from taxes and other existing revenues can mean such projects can be constructed years earlier.
