Through the City of Portland's authority to issue municipal bonds, PDC offers the option of revenue bond financing for development projects with associated public benefits that are located within the Portland city limits. While these bonds are not backed or guaranteed by the city in any way, the availability of tax-exempt financing can significantly enhance the feasibility of eligible projects. The key advantage of development financing through revenue bonds is the lower interest costs generally realized as compared to those obtainable through private commercial financing. This is a result of the tax-exempt status of revenue bonds. Since bond purchasers receive tax-free interest income, they can, therefore, accept a lower rate of interest from the applicant when lending their capital.
Revenue bonds are a viable and attractive form of development financing.
Certain IRS requirements must be met and additionally the applicant must not have initiated the project or acquired property to be financed by bond proceeds prior to submitting an application and obtaining a resolution granting preliminary approval from the Portland City Council. From application to closing, the revenue bonding transaction takes approximately three to six months. The Development Commission invites you to consider the opportunities its Economic Development and Housing Revenue Bond Program offers for your development plans. Purpose The purpose of this program is to encourage the new construction of low, moderate, and middle-income rental housing. The program is available in the central city where the price of land is prohibitively expensive for new housing production and in designated urban renewal districts where, as a matter of city policy, the city is trying to encourage general redevelopment.