	RAINMAKER MARKETING CORPORATION 281.537.1200

Tax-Exempt Bond Financing- PABs...

One of the key funding programs supported by the federal government is in the form of tax-exempt bond financings based tax exempt, bond, financing, LIHTC, PAB, private, activity, take-out upon a change in the IRS Code to allow states to issue a defined amount of tax-exempt bond financing to real estate development projects and programs. These allocations are usually based on a per-capita formula that says each state gets "X dollars of tax-exempt bond financing" each fiscal year per resident in the state.

Most of this funding is utilized for financing the development of low-income housing (Section 42 of the IRS Code) for public housing, senior housing and/or tract housing for low-income/median-income households. This program has taken a lot of criticism from policy-makers as it seems to result in an alarming number of slums and/or "blighted communities" being created. On the other hand, did you know that tax-exempt bond fundings can be used for certain private enterprise activities? You didn't? Well consider the following and see if something could be a fit for your transaction:

	Transportation Development Projects. Yep, the federal government acts as a big-time market maker for transportation projects that connect a community or major city into the national transportation net. The focus is on rail projects and intermodal facility hub projects. The federal government has over $35 billion available for this sector.
	Retail Projects. It's almost too good to be true, but in many states (especially states with "GO Zones") you can access those cheap bond rates for your project as part of a Private Activity Bond (or "PAB").
	Manufacturing/Distribution Projects. The venerable Industrial Revenue Bond ("IRB") is the ticket for providing cost-effective development financing for manufacturing sector and distribution project development.
	Healthcare Projects. If you are seeking to develop a healthcare facility, the project may in fact qualify for financing pursuant to a host of PAB titles. Hospitals and MOBs may qualify.
	Hospitality Projects. If you are seeking to develop a hotel or motel, there may be an allocation of PAB financing available.

So, what should be in your plan? Get some answers that will work for your transaction by talking with RMC.

Do You Know The Secret?

When it comes to commercial real estate development finance, it doesn't matter whether you need to raise $5 million or $50 million, the out-of-pocket costs, advance fees and project due diligence costs will always require the same relative investment dollars the promoters have to fund. Do you know what that amount is? Do you know the Secret?

Rainmaker Marketing Corporation can trace its history back all the way to 1989. Incorporated in 1993, Rainmaker Marketing Corporation has evolved over time into a full-service business to business consulting firm. Rainmaker Marketing Corporation’s initial specialization was in issues and documentation needs corresponding to the capital funding cycle for commercial real estate development projects with a primary focus on senior housing and health care related properties. Today, Rainmaker Marketing Corporation serves all types of commercial income-producing property development program financing requests with a combination of feasibility studies, due diligence services, structured finance consulting and a focus on commercial real estate syndication services. Rainmaker Marketing Corporation’s service area includes all of the continental United States, Canada, Mexico and the Caribbean Basin.

281.537.1200

Email: consultants@rainmakermarketing.com

Commercial Real Estate Development Finance, Due Diligence Documentation, Syndication & Project Management Consulting

15519 Dawnbrook Drive, Houston, Texas 77068.