|
Bonds for Beginners
The Austin Housing Finance Corporation (AHFC) is the only local housing finance corporation authorized to issue single-family bonds within the Austin city limits. The AHFC is also one of three entities who can issue multi-family bonds in the Austin city limits.
Here is a brief overview of Bonds and the AHFC's Bond-Financed Programs:
Bonds are debt instruments that are sold to investors who are not required to pay income tax on the interest they earn on bonds. Because bonds are tax-exempt, they carry lower interest rates than other forms of financing.
Bonds can be in the form of single-family Mortgage Revenue Bonds which are used to assist first-time homebuyers. Bonds can also be multi-family bonds which finance apartment complexes. In both forms, bonds are only repayable from the projects they finance. For additional information, see single-family bonds.
Multi-family bonds may be 501 (C)3 bonds which are bonds that finance projects for non-profit corporations. Multi-family bonds may also be in the form of Private Activity Volume Cap. Whereas 501 (C)3 bonds can be issued at any time, Private Activity Volume Cap (PAVC) cannot.
PAVC bond authority is granted through an anuual lottery process administered by the Texas Bond Review Board.
| 
