Developers must pay all costs of issuance at bond closing, including, but not limited to, bond counsel, county counsel, underwriter, trustee and financial advisor fees, as well as rating agency fees. Any deposits will be credited toward the cost of issuance at closing.
Only 2% of the proceeds of a tax-exempt bond issue may be used to pay costs of issuance. Costs over 2% must be paid from other sources secured by the developer including, potentially, the proceeds of taxable bonds.
The initial issuer fee of 25 basis points (0.25%) on the bond amount and the first year of the annual administrative fee the greater of either 12.5 basis points (0.125%) of the outstanding bond amount or $6,000) are both paid at bond closing. Developers will also pay an annual administrative fee of the greater of either 12.5 basis points (0.125%) of the outstanding bond amount or $6,000 to the LACDA, for the qualified project period to cover the LACDA's ongoing administration and monitoring costs for the project.
Each applicant must provide the following to the LACDA as a part of bond documentation an indemnity to the LACDA, its members, officers, agents, and employees for all costs, expenses and attorney fees, as well as any judgment or settlement costs arising out of or involved in the financing, or in any of the documentation related thereto.
The LACDA reserves the right to make exceptions, at its sole discretion when deemed necessary. The LACDA guidelines and policies are subject to change.