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Private Activity Programs
Overview
California Statewide Communities Development Authority (CSCDA) has built a successful track record of financing high quality public benefit projects. CSCDA has issued more than $45 billion for the construction, equipping, rehabilitation, or modernization of 2,000 local, community approved projects since 1988.
CSCDA offers the following Private Activity Programs:
501(c)(3) NONPROFIT
Qualified nonprofit organizations can access low-cost, tax-exempt bonds to finance or refinance the acquisition, construction, installation, expansion or rehabilitation of land, buildings, and equipment. A 501(c)(3) nonprofit organization can finance projects at a lower interest rate than conventional financing because the interest paid to bondholders is exempt from federal (and in some instances state) income taxes.
HOUSING BONDS
For-profit and nonprofit developers can access tax-exempt bonds for the financing of low-income multifamily and senior housing projects. The Bonds may be used to finance or refinance the acquisition and rehabilitation of an existing project or for the construction of a new project, provided the developer agrees to set aside all, or a portion, of the units in a project for individuals and families of very low, low or moderate income.
EXEMPT FACILITIES / SOLID WASTE
This program offers companies seeking cost-effective, tax-exempt capital to finance the acquisition and rehabilitation, construction of, or the acquisition of new equipment for solid waste and exempt facilities.
TAXABLE BONDS
This program offers public and private entities taxable bonds for projects that provide public benefit and economic development. Longer term taxable bonds can often provide cost savings and other efficiencies.
501(c)(3) Nonprofit
Overview
CSCDA can assist 501(c)(3) nonprofit organizations by providing access to low-cost, tax-exempt bonds (“Bonds”) to finance or refinance the acquisition, construction, installation, expansion or rehabilitation of land, buildings, and equipment. A 501(c)(3) nonprofit organization can finance projects at a lower interest rate than conventional financing because the interest paid to bondholders is exempt from federal (and in some instances state) income taxes.
CSCDA has issued over $26 billion in qualified 501(c)(3) bonds for more than 250 nonprofit organizations throughout California, including hospitals and medical centers, private educational institutions, charter schools, student housing facilities, multifamily housing facilities, museums, cultural centers, and assisted living facilities to name a few.
Please note our policies on K-12 Private Education Institutions, Higher Education Institutions, and Healthcare Facilities.
For more information, please contact contact us.
Housing Bonds
Overview
The CSCDA Housing Bond Program is designed to assist both for profit and nonprofit developers in accessing tax-exempt bonds (“Bonds”) for the financing of low-income multifamily and senior housing projects. The Bonds may be used to finance or refinance the acquisition and rehabilitation of an existing project or for the construction of a new project, provided the developer agrees to set aside all, or a portion, of the units in a project for individuals and families of very low, low or moderate income. A developer can finance a project at a lower interest rate than available through conventional financing because the interest paid to bondholders is exempt from federal (and in some case state) income taxes.
To reserve the right to issue tax-exempt housing bonds, CSCDA and the developer must file an application with the State of California to secure an award of volume cap. CSCDA staff will guide each developer through the state application process.
Moreover, CSCDA will work with each developer post bond issuance to ensure each project remains in compliance with state and federal laws.
Since inception, CSCDA has issued over $25 billion in Bonds for more than 900 multifamily and senior housing projects throughout California.
For more information, please contact contact us.
Exempt Facilities / Solid Waste
Overview
CSCDA issues Bonds for companies to finance the acquisition and rehabilitation, construction of, or acquisition of new equipment for solid waste, airports and other exempt facilities. As the interest on the Bonds is exempt from federal income taxes, a borrower can finance a project at a lower interest rate than available through conventional financing. Since inception, CSCDA has issued in excess of $1.1 billion for solid waste facilities projects.
CSCDA requires each project to demonstrate a clear public benefit to the community in which the project is located. Additionally, each borrower is required to file an application, via CSCDA, with the State of California to reserve the right to issue tax-exempt bonds. The state application evaluation criteria are based on various public benefit categories such as job creation, participation in a Welfare to Work Plan, payment of employee medical, dental, and vision costs, comparison of the average hourly wage, and use of energy efficient facility designs and materials.
For more information, please contact contact us.
