As affordable housing transactions continue to evolve following the reduction of the federal tax-exempt financing threshold from 50% to 25%, preserving and maximizing the use of Private Activity Bond volume cap has become more important than ever.

Over the past year, Arizona IDA has collaborated with developers, lenders, bond counsel, underwriters, and industry partners from across the country to build a flexible program designed to meet the needs of Arizona’s affordable housing market. The Program incorporates multiple implementation tools, including a strategic preservation facility developed with the assistance of Tiber Hudson LLC and Kutak Rock to help facilitate the preservation and timely redeployment of recycled volume cap.

Bond recycling creates an opportunity to preserve and redeploy tax-exempt financing capacity, helping projects maximize supportable tax-exempt permanent debt while stretching Arizona’s constrained volume cap resources further.

By expanding access to tax-exempt financing and making more efficient use of these resources, Arizona IDA hopes to support the development and preservation of additional affordable housing across the state.

For additional information, please contact Arizona IDA’s Conduit Bond Business Development Officer, Carson Folk, at Carson.Folk@ArizonaIDA.com or 602-501-1979.