The Housing Division encourages credit worthy projects of all sizes. However, in order to achieve the lower cost of capital benefits, that can be derived from bond financing, sizable developer paid upfront cash requirements are needed to get a bond issue completed. Bond financing for an affordable housing project begins at the local government level. Each local government has its own methods and time frames for allocation of private bond authority. You must check with the local city and county governments, where your planned projects will be, in order to obtain further details.
State law requires credit enhancement on bond financed projects.
See the List of Credit Enhancers who have done bond financings with the Housing Division. Upon completion of the application review and underwriting process, successful applicants will be required to provide both a binding letter of commitment, from an approved credit enhancer, as well as a deposit on costs of issuance for completing the bond financing. The costs of legal and tax counsel review, bond rating and Official Statement preparation consume the entirety of the deposit. In the event that the legal and tax review uncover insurmountable legal problems, which the developer is unable to resolve, any unexpended portion of the deposit is promptly returned. Following completion of the underwriting, legal and tax review, approved applications will be forwarded to the State Director of Business and Industry's Ad Hoc Private Activity Bond Authority Allocation Committee.