Program Costs for STEP Deals
Bonds Issued for Public Sale Larger bonds generally in excess
of $3 million
- Application Fee
The application fee is used to cover the costs of processing the
application. The application is not a commitment by either the
nonprofit organization or the Commission to proceed with
financing.
If a project site changes, a new application and fee must be
submitted. The application fee ranges from $400 to $5,000
depending on the size of the bond issue.
- Deposit
Before the Commission can proceed with drafting the bond
documents, a good faith deposit of 0.5% of the proposed bond
issue is due. The deposit is due at the scoping meeting, which
takes place after the credit enhancer makes a firm commitment.
If the issue is not completed, the deposit will be returned less
the costs incurred in developing the transaction.
- Bond Issuance Fee
The initial Commission Issuance fee is 0.25% of the total bond
issue. Other bond-related issuance costs include bond counsel,
financial advisor, trustee fees and the cost of publishing the
public hearing notice. Commission staff will outline these costs
for you upon request. The costs of issuance will vary depending
on the type and structure of the bond. Up to 2% of the bond
proceeds may be used to pay for these costs.
- Annual Commission Fee
The annual Commission fee is 25 basis points (0.25%) of the
outstanding bond amount on July 1 of each year, paid in
semi-annual installments.
Bonds Issued Under the STEP Program Smaller bonds generally
less than $3 million
- Application Fee
The application fee is used to cover the costs of processing the
application. The application is not a commitment by either the
nonprofit organization or the Commission to proceed with
financing.
If a project site changes, a new application and fee must be
submitted. The application fee ranges from $400 to $5,000
depending on the size of the bond issue.
- Deposit
Before the Commission can proceed with drafting the bond
documents, a good faith deposit of 1% of the proposed bond issue
is due. The deposit is due at the scoping meeting, which takes
place after the credit enhancer makes a firm commitment. If the
issue is not completed, the deposit will be returned less the
costs incurred in developing the transaction.
- Bond Issuance Fee
The initial Commission Issuance fee is 1% of the total bond
issue. This covers the cost of the bond issuance and bond
counsel. It does not include other costs of issuance that may be
incurred, such as lender fees, the cost of the public hearing
notice, and the cost of the borrower’s counsel. Up to 2% of the
bond proceeds may be used to pay for these costs.
- Annual Commission Fee
The annual Commission fee is 25 basis points (0.25%) of the
outstanding bond amount on July 1 of each year, paid in
semi-annual installments.
This page was modified on 04/27/2007.
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