Tax-exempt bond financing is a proven low-cost method of funding capital projects. The NFA provides access to this market for qualified borrowers by acting as the conduit issuer. Eligible costs for a NFA financing may include the purchase of land, project design costs, construction, rehabilitation, improvement, equipment purchase, and installation and legal fees.

Up to 2% of the proceeds of a NFA bond offering may be used to pay the cost of issuing bonds, such as for underwriters and legal fees. In addition, the NFA can issue taxable bonds to cover any additional costs of issuance or for additional undertakings that are not tax-exempt.