WHO ARE WE?
The Industrial Development Authority (IDA) of the City of Los Angeles is authorized under the California Industrial Development Financing Act to serve as a conduit issuer for the City’s private activity tax-exempt bond program. The IDA is administered by the Economic and Workforce Development Department of the City of Los Angeles and an appointed Board of Directors. All IDA bond issuances require the approval of the IDA Board, the Mayor and City Council as well as the Office of the State Treasurer.
WHAT ARE TAX-EXEMPT BONDS?
They are municipal, private activity, non-housing bonds consisting of industrial development bonds (IDBs), and certificates of participation (COPs) issued by the City for qualified projects from 501c(3) non-profit organizations within the City.
HOW ARE BOND PROCEEDS USED?
Bond proceeds are used for the acquisition and development of real property and equipment. Tax-exempt IDBs are available to manufacturing operations only. The COPs can be used for acquisition, development, and refinancing.
WHAT ARE THE ELIGIBILITY CRITERIA?
Qualified projects must be backed by a 100% letter of credit or bond insurance from, or privately placed with, a publicly rated financial institution. Project should also create jobs and/or provide goods and services to low-to-moderate-income City residents.
WHAT ARE THE FUNDING LIMITS, TERMS AND COLLATERAL?
IDB issues range from $2 to $10 million; there is no limit for COPs. The maximum financing participation is 80% of total project costs, or the appraised value of the underlying property. The bond term usually ranges from 5 to 20 years and amortize over 30 years. The collateral typically consists of real estate assets and/or equipment.