Security Deposit Refund

  1. If the Developer closes its project within three years of receiving its carryforward or before the expiration of its 90-day extension, it is eligible to receive its refundable deposit. 
  2. Provide the Volume Cap Certificate of Closing to the AFA.
  3. Complete the Arizona DOA Automated Clearing House Authorization Form. If the vendor is not set up for ACH, a paper warrant will be mailed, delaying the process. I have attached the ACH form. Please submit the completed form to [email protected]
  4. AFA to send a W-9 to the Developer.

 

Exceptions to the 1% Security Deposit

Under certain circumstances, such as applying for volume cap carryforward, an applicant must post a security deposit of 1% of the allocation. However, there are several exceptions where the deposit requirement is waived.

  1. Those exceptions for Carryforward, and where the principal amount of bonds issued is less than the confirmation amount are:
    1. The direct beneficiary of the bond proceeds is this state or a county, city, or town.
    2. The direct beneficiary of the bond proceeds is a nonprofit entity. Applicant must provide:
      1. The name of the nonprofit corporation, its status, its state of incorporation, and affiliation with the project.
    3. The issuer is a student loan corporation.
    4. The project includes urban development action grant or housing development grant financing.
    5. A qualified mortgage revenue bond project or is a qualified mortgage credit certificate program, or 
    6. The confirmation is issued by the Director on or after December 26. 
  2. Those exceptions for a 90-day extension are:
    1. The project is a qualified student loan project.
    2. A qualified mortgage revenue bond project or is a qualified mortgage credit certificate program, or 
    3. It is for home improvement and rehabilitation. 
      1. All security deposits received by the authority pursuant to this section are forfeited in favor of the authority if bonds are not issued before the expiration of the extension. (ARS Section 35-910(C).