Conduit Bond Funding
Development Finance Authority (DFA)
DFA issues both taxable and tax-exempt conduit bonds underwritten by commercial lenders and other financing sources. These include private activity bonds (PABs), private capital lease bonds, and public community development bonds. For each of these, the borrower is responsible for service on the incurred debt. Capital lease financing enables a for-profit borrower to obtain a sales tax exemption on all construction materials.