Industrial Development Authority, City of Los Angeles

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.

  • Type of Bonds
  • Industrial Development
  • Non-Profit 501c(3)
  • Funding Limits
  • $2 - $10 million
  • $2 million - Unlimited
  • Eligibility
  • Manufacturers Only
  • 501c(3) Organizations
Interested?
For more information, please call 213-744-7111 or dial 711 for TRS.

This page does not constitute a comprehensive prospectus nor is it illustrative of all aspects of the IDA bond program. The City of Los Angeles and IDA make no representation as to the accuracy and completeness of this page. The opinions and estimates represented on this page constitute an indicative perspective as of August 2014, and is subject to change at any time without prior notice. Users should consult their financial advisors for their qualification and eligibility under the program. This material may not be quoted, reproduced nor used as sales material without the prior written permission of the City and the IDA.