Pomona Public Finance Authority

The Pomona Public Financing Authority (PPFA) is a conduit financing entity established by the City of Pomona, California. Its primary function is to assist non-profit organizations and other entities in accessing tax-exempt financing for projects that benefit the Pomona community. It accomplishes this by issuing bonds on behalf of these organizations, leveraging the City’s name and its established legal framework to facilitate financing at potentially lower interest rates.

PPFA doesn’t directly lend money or offer grants. Instead, it acts as a facilitator. When a non-profit, such as a hospital, school, or community center, needs funding for a capital project – like building a new facility, expanding an existing one, or purchasing equipment – they can apply to the PPFA. The Authority reviews the project’s alignment with the City’s goals and objectives, as well as the financial feasibility and creditworthiness of the applicant.

If approved, the PPFA issues bonds in the name of the Authority. These bonds are then sold to investors, and the proceeds are used to fund the applicant’s project. Crucially, the debt is the responsibility of the beneficiary organization, not the City of Pomona. The PPFA serves as a pass-through entity, and the City is typically not liable for the repayment of the bonds. This structure allows organizations to access the tax-exempt market without burdening the City’s own financial resources.

The benefits of using the PPFA are multifold. First, access to tax-exempt financing usually translates to lower interest rates for the borrower, reducing the overall cost of the project. Second, the PPFA provides a streamlined process for issuing bonds, saving the beneficiary organization time and resources compared to establishing their own financing entity. Third, the PPFA helps to attract investment to Pomona, supporting projects that improve the quality of life for its residents. These projects can include healthcare facilities, educational institutions, affordable housing developments, and cultural centers, all of which contribute to the economic and social well-being of the community.

The PPFA is governed by a board, typically composed of City officials. This ensures that the Authority’s activities are aligned with the City’s overall strategic plan. The board oversees the issuance of bonds, reviews project proposals, and ensures compliance with all applicable laws and regulations. Public finance authorities like the PPFA play a vital role in community development by providing a mechanism for non-profit organizations to access the capital they need to serve their missions effectively. By acting as a bridge between investors and community-serving organizations, the Pomona Public Financing Authority fosters growth and enhances the quality of life in Pomona.