Tips for Developers Using Bond Financing
TSAHC accepts applications for tax-exempt bond financing from developers and their financial partners on an ongoing basis through an open Request for Proposals (RFP) process. Bond financing is a complex and time consuming process that requires developers to fund significant pre-development activities (market reports, appraisals, environmental studies, and more) before an application can be reviewed or approved. Developers should speak with TSAHC to determine if their projects meet our targeted housing goals and receive guidance on TSAHC’s review and approval process. Some additional tips:
Developers should be in contact with one or more financial partners (bond purchaser, underwriter and/or tax credit syndicator) before starting our RFP process.
Generally, tax-exempt bond properties are larger (100+ units) because of the high cost of issuance and due diligence requirements.
Tax-exempt bonds generally do not provide all of the financing for a given property. Additional funding sources, like housing tax credits, public grants or owner equity are needed to complete financings.
The use of tax-exempt bonds does not guarantee or imply property tax exemption for approved properties. Developers should consult with a property tax specialist regarding state laws and exemptions.
Bond Transaction Participants and Trustees
TSAHC does not approve or pre-screen underwriters, bond purchasers, market analysts or consultants that participate in our bond programs. TSAHC does require that Developers use one of the following Trustees, which have been approved by our Board to participate in our programs.
Amegy Bank of Texas
7700 Highway 71 West, Suite 130
Austin, Texas 78735
Phone: (512) 961-1981
The Bank of New York Mellon Trust Company, N.A.
Sheila S. Papelbon
10161 Centurion Parkway
Jacksonville, Florida 32256
Phone: (904) 645-1945
Bank of Texas
801 Cherry Street, Suite 3325 - Unit 27
Fort Worth, Texas 76102
Phone: (817) 348-5797
Regions Bank, N.A.
1111 W. Mockingbird Lane, Suite 1200
Dallas, Texas 75247
Wells Fargo Banks, N.A.
Judith A Parmenter
625 Marquette Ave
Minneapolis, MN 55479
Wilmington Trust N.A.
15950 North Dallas Parkway, Suite 550
Dallas, Texas 75248