HomeMy WebLinkAboutMINUTES - 06241986 - 1.4 (2) Tom` BOARD OF SUPERVISORS 1_0`'•®
FROM: Harvey E. Bragdon, Acting Coo 1tra
Director of Community Development C sta
DATE: June 18, 1986 Com" "1
l�WlCi
SUBJECT: SB 2088 (Greene) - Taxable Bonds for Rental Housing
SPECIFIC REQUEST(S) OR RECOMMENDATION(S)_& BACKGROUND AND JUSTIFICATION
RECOMMENDATION
Support SB 2088 (Greene) and authorize the Chairman to sign letters to the State
legislative delegation.
BACKGROUND
SB 2088 would enable cities and counties to sell mortgage revenue bonds to finance
rental housing where said bonds would be taxable pursuant to Federal law, and tax
exempt under State law. The legislation recognizes that the financial advantages in
terms of a lower interest rate would be significantly less than tax exempt bonds, and
prescribes less onerous public purpose requirements for such federally taxable bonds.
My staff was involved in a working group of people that designed the legislation.
Representative of cities and counties met with representatives of various low income
advocacy groups and legislative staff to design the bill . Initially the
conversations occurred in a hostile environment as it related to the future of tax
exempt bonds for rental housing. The U. S. House of Representatives Bill for tax
reform would have significantly reduced the viability of tax exempt bonds. The
treatment of tax exempt bonds in the Senate Finance Committee version of tax reform
is more accommodating, therefore, obtaining the enabling legislation to issue
federally taxable but State tax-exempt may be less essential if one can assume tax
reform will occur along the lines of the Senate Finance. This assumption is
presumptive at this time.
SB 2088 would provide an additional financing tool for rental housing that can be
used in addition to tax exempt financing, or in the worse case, as a replacement
should tax reform eliminate or effectively preclude tax exempt financing.
CONTINUED ON ATTACHMENT: _ YES SIGNATURE
_ 4#d
RECOMMENDATION OFCOUNTY ADMINISTRATOR RECOM ATIO OF OARO COMMITTEE
APPROVE OTHER
SIGNATURE S : p
ACTION OF BOARD ON .Tune 24, 1°86 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
T I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES'. AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
cc: County Administrator ATTESTED June 2.4 , 1986
Community Development PHIL BATCHELOR, CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
BY
M382/7-83 �, DEPUTY