
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).