How CMFA Financing Works
Tax-exempt bond financing is a proven low-cost method of raising capital. The CMFA can provide access to this market for qualified borrowers by acting as the conduit issuer. Eligible costs for a CMFA financing may include the purchase of land, project design costs, construction, rehabilitation, improvement, equipment purchase and installation and legal fees.
Up to 2% of the proceeds of a CMFA bond offering may be used to pay the cost of issuing bonds, such as for underwriter’s and legal fees. Also, the CMFA can issue taxable bonds to cover any additional costs of issuance or for additional undertakings that are not tax-exempt.
The following types of projects are eligible to be financed on a tax-exempt basis through the CMFA:
- Nonprofit Projects Including:
- Health Care
- Cultural Facilities
- Affordable Multi-Family and Senior Housing
- Manufacturing Facilities & Equipment
- Pollution Control: Solid Waste, Water, Wastewater Treatment projects
- Infra-Structure Projects
- Government Sponsored Financing
- Other Financings