How the Process Works
The Authority does not provide bond funds to an applicant. Bond funds are provided by the bond purchaser(s). It is the responsibility of the applicant to obtain a purchaser for the Authority's bonds. In many cases, the purchaser of the bonds will be a financial institution or, in the event the bonds are to be sold to the public, an investment banker. Revenue bonds are not a direct lending or government guarantee program. Applicants must secure a purchaser of the revenue bonds on the merits of the project and the financial standing of the applicant. The Authority merely acts as a "conduit" or "pass-through" for the issuance of revenue bonds.
An applicant receiving a commitment from a lender or underwriter to purchase the revenue bonds must negotiate the terms of the revenue bonds, including loan amount, maturity, and interest rate, with that lender or underwriter. Interest rates charged to finance the project will be lower than conventional commercial rates because of the tax-exempt status of the revenue bonds. In addition to state and federal guidelines, the Authority looks for public purposes such as:
The project will provide additional employment or preserve existing jobs.
The project is not inconsistent with development plans of the applicable municipality or Maricopa County.
The project is not a speculative investment of capital in real or personal property.
How to Apply
Interested parties should contact the Authority for application information. Applicants also should consult the Authority's Administrator regarding the eligibility of the proposed project for revenue bond financing. If eligible, a written application must then be submitted to the Authority for preliminary and final approval. The Maricopa County Board of Supervisors also must approve the proposed bond issue.
Fees: A $3,000 fee must be paid by the applicant at the time the application is filed.
Each applicant also is responsible for all of the Authority's review advisor and legal counsel fees incurred in connection with the issuance of bonds to finance the applicant's project (whether or not incurred before or subsequent to the closing of the bond issue). Additionally, applicants are obligated to pay an annual administration fee, based on the then outstanding principal amount of the bonds issued to finance the applicant's project.