The Authorities Division offers dynamic tax-exempt financing programs that enable borrowers to fund large-scale projects in a timely, cost-effective manner. The funding covers a broad variety of uses, typically with longer repayment terms and lower interest rates than generally are available. That makes ACED’s tax-exempt financing a unique resource. Four of the six Authorities offer tax-exempt financing.
Proceeds can be applied to such capital projects as land acquisition, construction of new facilities, additions or renovations to existing structures and equipment purchases. Other exempt facilities include: solid and hazardous waste disposal centers, sewage treatment centers, utility suppliers, heating and cooling facilities, airports, docks and transit depots. Funding also may be used to refinance certain outstanding debt, credit enhancement features and the costs of project financing. Among the programs available:
- The Allegheny County Industrial Development Authority (ACIDA) issues tax-exempt obligations on behalf of small manufacturing companies and 501c(3) nonprofit organizations including, but not limited to, libraries, museums and charter schools. Eligible small manufacturing projects range from $1 million to $10 million; for 501© (3) nonprofit organizations, initiatives of at least $1 million qualify. Financing generally is offered at below-market-rate interest, with repayment terms up to 30 years. The Pennsylvania Department of Community and Economic Development offers a Single Application for Assistance that allows applicants to apply for financial assistance from approved state funding sources.
- The Allegheny County Hospital Development Authority (ACHDA) finances projects for hospitals, health centers, personal care facilities, nursing homes and other entities dedicated to health care.
- The Allegheny County Higher Education Building Authority (ACHEBA) issues tax-exempt obligations on behalf of higher learning institutions, working with colleges, universities and other educational organizations.
- The Authority for Improvement in Municipalities (AIM) offers a Tax-Exempt Bank Qualified Program specifically for 501C(3) organizations that have smaller capital needs but still require access to tax-exempt financing. This program offers lower interest rates than typical conventional bank loans; reduced closing fees; refinancing of existing taxable debt and capital projects including land acquisition, construction of new facilities, equipment purchases and renovations of existing structures.