Like other tax-exempt bonds, 501c3 bonds benefit borrowers because interest on 501c3 bonds is tax-exempt, resulting in a lower cost of funds and the borrower paying less interest on these bonds, comparable to taxable bonds or bank loans. This lower cost of funds typically enables the borrower to leverage more project debt.
Eligible applicants are limited to qualified non-profit (501c3) organizations, based on the charitable purpose of the organization. Under Oregon law, a proposed project must primarily serve individuals earning at or below 120% AMI; federal tax law imposes additional limits based on the charitable or exempt purpose of the 501c3 bond borrower.
Potential uses for 501c3 bonds*
- Projects that are eligible for LIFT or PSH
- Preservation, acquisition, and market-to-affordable conversion projects
- Mixed-income projects, workforce or middle-housing projects
*For additional examples of potential uses see the 501(3) Bond Factsheet
Additional Resources
501c3 Bond Factsheet – more information on eligibility and program requirements
OHCS, in partnership with Orrick, hosted an engagement session in November 2024
View the session recording
View the presentation slides
Contact
Tai Dunson-Strane, Assistant Director of Production,
tai.dunson-strane@hcs.oregon.gov
Kelso Brasunas, Financial Strategy Analyst, kelso.brasunas@hcs.oregon.gov