The Phoenix IDA serves as a conduit issuer of private activity bonds ("PABs"), which attract private investment to finance projects that provide a public benefit. PAB financing is an alternative to commercial loans. PABs are more attractive because they may result in reduced financing costs given the potential for federal income tax exemption on interest paid on bonds. In most cases, bonds issued by the Phoenix IDA will be exempt from Arizona State income tax.
Revenue bond financing is used primarily by private sector borrowers who become responsible for all principal and interest payments associated with a Phoenix IDA bond.
Eligible applicants can be a private sector (e.g., for profit) entity, nonprofit 501(c), or public agency. The Phoenix IDA's professional team and counsel work closely with applicants to review the project and the financing structure to determine its eligibility.
With the exception of housing projects (only within the city of Phoenix), the Phoenix IDA can issue bonds for projects located anywhere in Arizona. The Phoenix IDA may also issue bonds to finance projects outside of Arizona if the out-of-state project benefits residents within the State of Arizona, as determined by the Phoenix IDA's Board of Directors.
See Application Process for Phoenix IDA bond application guidelines, standards, procedures, and forms.
For additional information, please see our Frequently Asked Questions page.