Frequently Asked Questions (FAQs)
What is the California Public Finance Authority?
California Public Finance Authority (“CalPFA”) is a political subdivision of the State of California established under the Joint Exercise of Powers Act. CalPFA is empowered to promote economic, cultural and community development opportunities through the issuance of tax-exempt and taxable bonds throughout California. CalPFA was created by Kings County and The Kings County Housing Authority.
Why was CalPFA established?
CalPFA was established by local governments, for local governments, to provide a means to efficiently and reliably finance projects on behalf of local governments in California. CalPFA’s mission is to provide local governments and eligible private entities access to low-cost, tax-exempt and other financing for projects that contribute to social and economic growth and improve the overall quality of life in communities throughout the state.
What CalPFA finance programs are available to qualifying nonprofit and private sector projects?
What benefits does CalPFA offer to local governments?
- Direct availability of Municipal Bond programs
- Reduces costs, staff time and liability to cities and counties seeking to engage in private activity bond issuance and post-issuance compliance activities for projects that create jobs and improve community life, such as health care facilities, affordable housing, solid waste/pollution control facilities, manufacturing facilities, and recreational and cultural centers.
- Provides a voice for communities by requiring the elected body of a local government in which jurisdiction the project resides to hold a public hearing and approve the financing prior to issuance of bonds by CalPFA.
- Serves as a turn-key resource to assist cities and counties in accelerating local economic development by utilizing cost-effective financing programs, including a programmatic approach to a range of federally authorized finance programs.
- Seeks to act in the best interest of local governments and their communities through its governing body consisting of the elected Board of Supervisors of Kings County.
What benefits does CalPFA offer to the nonprofit and private sectors?
- Streamlined, cost-effective bond financing for a wide range of projects in California.
- Program management staff with more than 30 years of experience in tax-exempt private activity and municipal finance, including necessary post-issuance compliance requirements of different offerings.
- Ability to work effectively and efficiently with each borrower and its finance and legal teams to satisfy the governmental approval process, including local TEFRA approval, securing volume cap (when necessary), and securing CalPFA approval.
- Increases opportunity for institutional borrowers and private businesses to access the municipal bond market by providing technical assistance to local governments that may otherwise be unable to issue conduit bonds due to limited resources or a lack of familiarity with the process.
- CalPFA engages in marketing and awareness activities to generate deal-flow and create new opportunities for finance professionals throughout the country.
- Flexibility for borrowers to choose their own finance team.
Does the local government agency incur any liability in connection with a project financed through CalPFA?
No. All bonds issued by CalPFA are considered conduit debt obligations solely of CalPFA. No liability for debt repayment is attributed to the local government agency.
Is CalPFA funded through taxpayer dollars?
CalPFA uses no public subsidies or tax dollars to facilitate its operations.
Who are CalPFA’s Board of Directors?
CalPFA’s governing board (the “Board”) is comprised of elected Board of Supervisors of Kings County. The Board determines all of CalPFA’s financing policies and procedures which includes a review and approval process for each proposed financing.