Private Activity Bonds (PABs) make it possible for organizations in the private sector to use Tax Exempt Bonds to finance projects that make a contribution to the public good. Private Activity Bonds can be issued for specific projects that benefit the community including for healthcare facilities; transportation projects; low-income housing complexes; facilities that provide water, gas or electrical energy; for plants to store hazardous materials; for heating and cooling facilities; and for plants that treat or dispose of solid waste.
There are myriad benefits of having Private Activity Bonds issued when an organization undertakes a qualified project. It is important to consult with an experienced Scottsdale Arizona real estate and development lawyer for assistance in understanding the advantages of PABs and determining if your project may be eligible. Lotzar Law Firm, P.C. has helped many clients to successfully obtain bond financing so call today to schedule a consultation and learn more about how we can assist with your project.
Benefits of Having Private Activity Bonds (PABs) Issued
Developers, investors, municipal governments and the public all reap the benefits of having Private Activity Bonds issued.
Organizations, investors and developers who can finance projects with Private Activity Bonds benefit from:
- A lower interest rate paid on borrowed money, providing substantial cost savings for project expenditures.
- Reduced project risk.
- Easier access to capital for certain projects that require alternative financing.
- The opportunity to complete projects with a tangible positive benefit for the community.
- Secure Tax Exempt financing to fund capital expenditures.
Private Activity Bonds can finance the acquisition of property, as well as new construction, reconstruction and property improvements. Developers and investors should consult with an experienced Scottsdale Private Activity Bonds attorney for help determining if they can qualify for this special tax-advantaged alternative financing method.
Benefits of Private Activity Bonds (PABs) for the Public
Private Activity Bonds also have many benefits for the public as a whole. Some of the many benefits of having Private Activity Bonds issued include the following:
- Private investments in infrastructure is incentivized. Because PABs can be more competitive than other privately available bonds, the bonds encourage investment in transportation projects and other projects that provide for the public good.
- Reduced need for new taxes or borrowing. When Private Activate Bonds make it possible for investors to finance projects that develop infrastructure, local and state governments do not need to increase taxes to provide the necessary services.
Finally, investors who make the decision to purchase Private Activity Bonds can benefit by earning a return on a relatively safe investment.
To take advantage of the many benefits of having Private Activity Bonds issued, it is essential to get help from an experienced Scottsdale real estate development lawyer in securing bond funding for your qualifying project. Lotzar Law Firm, P.C. can assist in determining if you qualify for PABs and can advise you throughout the process of applying for bond financing for your next development project. Call today or contact us online to speak with an experienced lawyer and learn more about how we can help.
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