Using a Revenue Bond to Finance Low-Income Housing or Other Projects

Using a Revenue Bond As Project Financing

Revenue Bonds are typically available on a tax-exempt basis. That can offer significant tax savings and lower interest rates for the development of qualifying projects including, in some cases, low income housing.  Bonds can be obtained to finance the development of projects that benefit the public including:

• Healthcare or education facilities
• Low income or subsidized apartments
• Multifamily residential housing
• Other facilities used by qualifying Section 501(C)(3) charitable organizations
• Manufacturing, processing and assembling enterprises
• Docks, wharves, airports and facilities designed for mass commuting
• Hazardous waste disposal facilities
• Solid waste disposal facilities
• Sewage treatment centers
• Gas and water distributors
• Electric and energy facilities

Financing a project with a Revenue Bond requires compliance with all federal tax laws, Arizona state laws on open meetings, public records, securities, and federal securities laws. Investors and developers must also comply with the state Industrial Development Financing Act as well as all state and federal laws applicable to debtors, creditors, and within the commercial real estate industry.

Revenue Bonds can be issued by any government agency and are often used to help municipalities avoid reaching debt limits set by legislatures while investing in private projects. In Arizona, the various Industrial Development Authorities located throughout the state issue most of the Private Activity Bonds. Determining how to apply for a Revenue Bond can be complex so speak with an attorney for assistance with all projects that could qualify for financing using Revenue Bonds.

Lotzar Law Firm, P.C. has extensive experience with Revenue Bond financing. Our attorneys can handle bond financing transactions including transactions involving conduit revenue bond issues.  Talk to an attorney about whether Revenue Bonds may be an appropriate source of loan financing as well as about other options related to financing low-income housing.

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Charles Lotzar

With more than 25 years of legal experience, Chuck Lotzar knows how to solve problems and make deals happen. He earned his Bachelor of Arts in Business from Michigan State University in 1982, and his Juris Doctorate from the University of Detroit School of Law in 1985. Mr. Lotzar has extensive experience dealing with public contracts and issues related to public officials and has been involved in bond financings with an aggregate value in excess of $5 billion.

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