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HomeMy WebLinkAboutMINUTES - 04101990 - 1.48 TO: BOARD OF SUPERVISORS o FROM: Harvey E. Bragdon ""' '` ra Director of Community Development `S �JlJ.7la DATE: April 10, 1990 Coulty . OgTA C-UK-{'i: SUBJECT: AB 4236 SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Adopt position in opposition to Assembly bill 4236 (Nolan) ; and authorize the Chair to sign letters to County legislative delegation. FISCAL IMPACT None. BACKGROUND/REASONS FOR RECOMMENDATIONS The 1986 Tax Reform Act limited the amount of private activity bond authority available on an annual basis. Private activity bonds include single family housing, multi-family housing, industrial development bonds, pollution control bonds, student loan bonds and certain types of redevelopment bonds. The total amount of private activity bond authority available in the State of California in 1990 is approximately $1. 5 billion. In prior years, there has been substantially more demand than supply of authority. The State legislature established the California Debt Limit Allocation Committee as the mechanism for allocating out private activity bond authority. California Debt Limit Allocation Committee has established procedures to accomplish their charge. Local issuers, as well as state agency issuers of private activity bonds must submit applications to the California Debt Limit Allocation Committee and undergo a review action by the Committee and its staff. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY, ADMINISTRATOR RECOMMENDATI F B07 COMMI E APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON O D APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. cc: Community Development ATTESTED ��Jgl> CAO PHI BATCHELOR, CLERK OF Auditor-Controller THE BOARD OF SUPERVISORS County Counsel AND COUNTY ADMINISTRATOR BY (� 1611Q&,Ilt ,9 DEPUTY SRA4/jb/ab4236 .bos AB 4236 would require the California Debt Limit Allocation Committee to reserve $400 million of the State Private Activity Bond Authority for the California Housing Finance Agency for its single family housing programs. Currently the California Housing Finance Agency must compete with all other issuers of private activity bonds, including issuers of housing bonds. Presumably this set-aside for the Housing Finance Agency would result in little or no scrutiny of their applications by the California Debt Limit Allocation Committee. No determination could be made with respect to whether state or local housing goals were being met. Further, the set-aside would result in alternative mechanisms for gaining authority (for example, refunding prior bond issues which have unutilized proceeds) not being evaluated nor would there be an incentive to do so on the part of the agency. The California Housing Finance Agency does provide some single family financing in this county, however, the predominate amount of its financing activities are undertaken in the Central Valley and the desert counties of Southern California. The agency programs do not work well in the urban counties of the state.