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 require that Developers use one of the following Trustees, which have been approved by our Board to participate in our programs. For trustees interested in joining this list, please contact MFBonds@tsahc.org for a copy of the current request for qualifications. TSAHC does not approve or pre-screen underwriters, bond purchasers, market analysts or consultants that participate in our bond programs..  

BOK Financial
Liz Peterson, CTMC
5956 Sherry Lane, Suite 900
Dallas, TX 75225
Phone : 214.525.5080
elizabeth.peterson@bokf.com

Bank of New York Mellon Trust Company, N.A.
Seth Crone CFA, CPA
601 Travis Street, Floor 16
Houston, TX 77002
Phone: 713 483 6568
sheila.papelbon@bnymellon.com

Bank OZK
Eric Mitzel
18000 Cantrell Road
Little Rock, Arkansas 72223
Phone: (501) 978-2232
eric.mitzel@ozk.com

Computershare Trust Company, N.A.
Mai Nguyen
600 South 4th Street, 7^th Floor
MAC: N9300-070
Minneapolis, MN 55415
Phone: 612 413 8860
Mai.Nguyen@computershare.com

Regions Bank, N.A.
Shawn Bednasek
1717 McKinney Avenue 11th Floor
Dallas Texas 75202
Phone: (214) 220-6158
shawn.bednasek@regions.com

UMB Trust
Stephen McPherson
5910 N Central Expressway, Suite 1900
Dallas, TX 75206
Phone: (945) 400-7071
Stephen.McPherson@umb.co

U.S. Bank Trust Company, NA
Seth Crone, CPA, CFA
8 Greenway Plaza, Suite 1100
Houston, TX 77046-0892
Ph: 713-410-8259
seth.crone@usbank.com
 

Informative Links

• National Association of Local Housing Finance Agencies (NALHFA)
• Texas Association of Local Housing Finance Agencies (TALHFA)
• Texas Department of Housing and Community Affairs (TDHCA)
• Texas Bond Review Board (TBRB)