- MORE PROGRAMS
• News and Highlights
• Refinance/Refunding Application *
• STEP (Streamlined)
• Bonds Plus Program
• Program Costs
• Eligible Underwriters
*ONLY for projects previously financed with tax-exempt debt by the Commission
Nonprofit Housing Bond Program Costs
BOND ISSUANCE COSTS
As in any financing the borrower pays all transaction costs such as bank fees, appraisals, feasibility studies, attorney fees; etc. As a self-funding state entity the Commission must charge fees to cover its costs of issuance and to monitor the bonds (debt outstanding). The Commission has also contracted with bond counsel and a trustee/fiscal agent who participate on all bond issuances.
For smaller transactions less than $4.5 million, the STEP (Streamlined
Tax-Exempt Placement) program is most cost effective. The fee is 1% of
the bond amount for the costs of issuance. This 1% includes the
Commission issuance fees, bond counsel fees, and the initial
trustee/fiscal agent acceptance fee.
For bond financings of more than $4.5 million, please feel free to contact our staff to discuss program costs.
In June 2015, the Commission waived the ongoing basis fee down to 10 basis points for nonprofit bond transactions until further notice. The fee is charged on the outstanding bond amount; the fee will never be less than $750 annually or exceed $75,000; i.e. bond transactions of $75 million or more. The fee is calculated on the outstanding bond balance as of each July 1 and paid in half-fee installments twice annually.
The Fiscal Agent/Trustee ongoing fee will range from a standard $500 to $3,000, depending on the level of service required on the transaction. It is also paid twice annually.
Please contact us if you would like to know more about the Nonprofit Housing Bond Program at 206-464-7139 or 800-767-4663 or:
David Clifton, Assistant Director, 206-287-4407, firstname.lastname@example.org
Sharonn Meeks, Finance Associate, 206-287-4404 , email@example.com