Policy & Legislation
PMIB Update: Bond Sale Could Cover HCD Through June 2010!
April 22, 2009State Treasurer Bill Lockyer announced yesterday morning the completed sale of $6.85 billion in taxable, general obligation bonds. Governor Arnold Schwarzenegger pronounced soon after that "California will now have the necessary funding to restart all general obligation bond funded projects that had been frozen."
Up to $1.7 billion of the taxable bond proceeds will be available for frozen home and shelter developments authorized by propositions 46 and 1C. Other potential uses of the $1.7 billion are high-speed rail and stem-cell research.
The remaining $5.2 billion from newly authorized Build American Bonds (BABs) can only be used for the same purposes as tax-exempt bonds, which the treasurer's office has determined excludes home and shelter developments. Due to a federal subsidy, these bonds are less expensive for the state than tax-exempt bonds.
Lockyer indicated in the past months that he supported allocating as much as $1 billion of the non-BABs to home and shelter developments.
Members of the ad hoc PMIB Coalition have requested a meeting with Department of Finance Director Mike Genest. We will urge him to allocate at least $1.2 billion from the taxable sale to fulfill Department of Housing and Community Development (HCD) contracts for home developments through June 2010. Additionally, we will request that he lift the prohibition on HCD's loan and grant committee making new awards.
Proceeds of the sale are likely to be available to HCD by late May.
Contact Julie Snyder, 916.447.0503 x102 or .
