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Home My WebLink AboutMINUTES - 04251995 - 1.102 ° - Contra r Costa TO: BOARD OF SUPERVISORS Coin r c uh J FROM: Harvey E. Bragdon Director of Community Development DATE: April 25, 1995 SUBJECT: Federal Private Activity Bond Cap SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS AUTHORIZE the Chair to execute letters to the Secretary of the Treasury, the Chairman of the House Ways & Means Committee, the Chairman of the Senate Finance Committee, and the County's Congressional delegation urging restoration of the private-activity bond allocation to an annual amount of$75 per capita. FISCAL IMPACT None. BACKGROUND/REASONS FOR RECOMMENDATIONS The 1986 Tax Reform Act, among other things, set a per capita determined volume cap on the amount of private activity bonds that could be issued within each State. The original amount was $75 per capita. This per capita figure was adjusted down in 1993 on the expectation that the authority for issuing single family housing bonds and small issue bonds would expire. Congress, at the urging of states and localities, including Contra Costa County, permanently reauthorized these bonds, but did not readjust the per capita amount. CONTINUED ON ATTACHMENT: XX YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR E OMMEND ION OF BOA COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON April 25 , 1995 APPROVED AS RECOMMENDED x OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A x 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. Source: Community Development 646-4208 cc: County Administrator ATTESTED April 25 , 1995 County Counsel PHIL BATCHELOR, CLERK OF via Community Development THE BOARD OF SUPERVISORS CDLAC AND COUNTY ADMINISTRATOR Developers/Lenders Consultants B a , DEPUTY J K:Ih/sra18/bondcap.bos f u A recent 1995 survey by the State Treasurer indicates prospective demand for tax exempt private activity bond authority could be as high as $5.4 billion. The current cap is approximately$1.6 billion. Raising this cap would significantly enhance the ability of the State and the localities, including Contra Costa County, to address its affordable housing and economic development needs with tax exempt bonds. Phil The Board of Supervisors Contra Clerk ooff,tthe hBoard Costa and County Administration Building County Administrator 651 Pine Street, Room 106 (510)646-2371 Martinez, California 94553-1293 County Jim Rogers,1st District Jeff Smith,2nd District Gayle Bishop,3rd District i Mark DeSaulnier,4th District Tom Torlakson,5th District i ss April 25, 1995 The Honorable Robert Rubin The Honorable Bill Archer Secretary of the Treasury Chairman,House Ways&Means Committee 1500 Pennsylvania Avenue 1102 LHOB Washington D.C. 20220 Washington D.C. 20515 The Honorable Bob Packwood Chairman,Senate Finance Committee 205 SDOB Washington D.C. 20510 Dear Secretary Rubin,Senator Packwood,Congressman Archer: I am writing to urge you to restore the amount of private-activity bond allocation to an annual amount of$75 per capita. In California,there is tremendous demand for capital to build housing,begin small businesses,provide student loans and clean up the environment. The present amount of bond allocation authority,at$50 per capita, is woefully insufficient to help California help itself to full economic recovery. I am joining California's Treasurer in making this request. In a recent survey of demand for tax-exempt financing by the State Treasurer,respondents reported they could use up to$5.4 billion of tax-exempt bonds and mortgage credit certificates. This is nearly three-and-one-half times the amount of allocation currently available in our state. It is my understanding that the$75 per capita cap was revised down to$50 when single-family housing and small issue bonds were scheduled to expire. The original cap has not been restored even though single-family housing and small issue bonds were reauthorized permanently in 1993. My request for a 50%increase,from the current $50 per capita,would help us create an additional 12,000 jobs,assist over 7,000 first-time homebuyers,provide a college education to another 6,000 low-income students,and further our efforts to clean up our environment. I am not making this request alone. I have asked members of the public who are interested in raising the debt limit cap to join with me in support of the cap increase. We believe now is the time to act as the Congress reevaluates and reformulates its priorities. In California,we believe we know how to invest money in public benefit programs as well as anyone. We appreciate your consideration of our request,and look forward to your help. Sincerely, G Gayle ishop,Chair Board of Supervisors GB:JK:lh sral8/bondaloc.hr Phil Batchelor The .Board of Supervisors Contra Clerk of the Board and . ountyAdministrationBuildingCOSta CountyA Administrator 651 Pine Street, Room 106 Martinez, California 94553-1293 County Jim Rogers,1st District Jeff Smith,2nd District Gayle Bishop,3rd District Mark DeSaulnier,4th District Tom Torlakson,5th District April 25, 1995 The Honorable Robert Rubin The Honorable Bill Archer Secretary of the Treasury Chairman,House Ways&Means Committee 1500 Pennsylvania Avenue 1102 LHOB Washington D.C. 20220 Washington D.C. 20515 The Honorable Bob Packwood Chairman, Senate Finance Committee 205 SDOB Washington D.C. 20510 Dear Secretary Rubin,Senator Packwood,Congressman Archer: I am writing to urge you to restore the amount of private-activity bond allocation to an annual amount of$75 per capita. In California,there is tremendous demand for capital to build housing,begin small businesses,provide student loans and clean up the environment. The present amount of bond allocation authority,at$50 per capita, is woefully insufficient to help California help itself to full economic recovery. I am joining California's Treasurer in making this request. In a recent survey of demand for tax-exempt financing by the State Treasurer,respondents reported they could use up to$5.4 billion of tax-exempt bonds and mortgage credit certificates. This is nearly three-and-one-half times the amount of allocation currently available in our state. It is my understanding that the$75 per capita cap was revised down to$50 when single-family housing and small issue bonds were scheduled to expire. The original cap has not been restored even though single-family housing and small issue bonds were reauthorized permanently in 1993. My request for a 50%increase,from the current $50 per capita,would help us create an additional 12,000 jobs,assist over 7,000 first-time homebuyers,provide a college education to another 6,000 low-income students,and further our efforts to clean up our environment. I am not making this request alone. I have asked members of the public who are interested in raising the debt limit cap to join with me in support of the cap increase. We believe now is the time to act as the Congress reevaluates and reformulates its priorities. In California,we believe we know how to invest money in public benefit programs as well as anyone. We appreciate your consideration of our request,and look forward to your help. Sincerely, ;"412 l Gayle Aishop, Chair Board of Supervisors GB:JK:Ih sra18/bondaloc•hr i Phil Batchelor The .Board of Supervisors Contra Clerk of the Board C o S t a and -CoUntyAGministration Building CounryAdministrator 651 Pine Street, Room 106 (510)646-2371 Martinez,California 94553-1293 County Jim Rogers,1st District Jeff Smith,2nd District of s E `Gf Gayle Bishop,3rd District Mark DeSaulnier,4th District " _ i Tom Torlakson,5th District `I --a-- April 25, 1995 The Honorable Robert Rubin The Honorable Bill Archer Secretary of the Treasury Chairman,House Ways&Means Committee 1500 Pennsylvania Avenue 1102 LHOB Washington D.C. 20220 Washington D.C. 20515 The Honorable Bob Packwood Chairman,Senate Finance Committee 205 SDOB Washington D.C. 20510 Dear Secretary Rubin,Senator Packwood,Congressman Archer: I am writing to urge you to restore the amount of private-activity bond allocation to an annual amount of$75 per capita. In California,there is tremendous demand for capital to build housing,begin small businesses,provide student loans and clean up the environment. The present amount of bond allocation authority,at$50 per capita, is woefully insufficient to help California help itself to full economic recovery. I am joining California's Treasurer in making this request. In a recent survey of demand for tax-exempt financing by the State Treasurer,respondents reported they could use up to$5.4 billion of tax-exempt bonds and mortgage credit certificates. This is nearly three-and-one-half times the amount of allocation currently available in our state. It is my understanding that the$75 per capita cap was revised down to$50 when single-family housing and small issue bonds were scheduled to expire. The original cap has not been restored even though single-family housing and small issue bonds were reauthorized permanently in 1993. My request for a 50%increase,from the current $50 per capita,would help us create an additional 12,000 jobs,assist over 7,000 first-time homebuyers,provide a college education to another 6,000 low-income students,and further our efforts to clean up our environment. I am not making this request alone. I have asked members of the public who are interested in raising the debt limit cap to join with me in support of the cap increase. We believe now is the time to act as the Congress reevaluates and reformulates its priorities. In California,we believe we know how to invest money in public benefit programs as well as anyone. We appreciate your consideration of our request,and look forward to your help. Sincerely, Gayle/ishop,Chair Board of Supervisors GB:JK:lh sra18/bondaloc.ltr