California Public Finance Authority

Skip navigation and go to main content

General Policies


ECONOMIC DEVELOPMENT / PUBLIC BENEFIT

The project to be financed or applicant requesting financing must promote economic development and demonstrate tangible public benefits to the community in which it resides.

LOCAL APPROVAL REQUIREMENT

The proposed financing shall be subject to a public hearing and must receive approval by the political subdivision in the jurisdiction in which the project resides in accordance with the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”).

BOND COUNSEL

The California Public Finance Authority (“CalPFA”) has a preference to use Orrick, Herrington & Sutcliffe as bond counsel; however, CalPFA will consider an applicant’s recommendation of bond counsel for the financing. Note: CalPFA shall reserve the right to select bond counsel for any particular financing.

ISSUER COUNSEL

CalPFA will engage legal counsel to review each proposed financing transaction on its behalf. Please note the applicant shall be responsible for the Issuer Counsel’s fee which may vary depending on the complexity of the transaction.

PROGRAM ADMINISTRATOR REVIEW

CalPFA shall direct its Program Administrator to review the proposed bond financing in order to ensure that it meets all applicable Authority policies and procedures. The Program Administrator may also conduct a site visit and/or meet with the Borrower prior to CalPFA’s consideration of approval of the financing. No additional fee beyond CalPFA’s issuance fee is charged for this review.

FINANCE TEAM APPROVAL/INDEPENDENT STUDY

CalPFA shall approve each finance team member proposed by the Borrower and reserves the right to engage an outside consultant or require an independent study relative to each project request.

INDEMNITY

The Borrower shall be required to provide indemnification to CalPFA, its members, officers, agents, program administrators and employees for all costs, expenses and attorney fees, as well as any claim, judgment or settlement costs arising out of or involved in the financing, or in any documentation related thereto.

MINORITY AND WOMEN OWNED PARTICIPATION

CalPFA encourages minority and women-owned business participation in all aspects of a financing including legal, trustee and underwriting services. CalPFA encourages all senior underwriters to provide the opportunity for minority and women-owned underwriting firms to sell a portion of the bonds. Selection of minority and women-owned underwriting firms shall be left to the senior managing underwriter.

POST-ISSUANCE COMPLIANCE WRITTEN POLICIES

Please review CalPFA's Post-Issuance Compliance Written Policies for:
•    501(c)(3) Tax-Exempt Bonds
•    Affordable Multifamily Housing Bonds

ISSUANCE POLICIES

Please review CalPFA's Issuance Policies for further information.