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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.
04/27/2007