California Allocates $814 Million in Bond Authority for REO Loans and Subprime Refinancing Loans or Mortgage Credit Certificates.

The California Debt Limit Allocation Committee last week allocated the special housing revenue bond authority provided by the federal housing legislation enacted this summer. (These allocations will carry over to next year).

A review of the staff recommendations indicates that several agencies requested bond allocations to use private activity bonds to purchase REO homes, and also to make refinance subprime loans [a new use that was made possible by this section of the summer federal housing legislation: Public Law 110-289, Section 3021(b)].

Agencies and the amount of bond allocation that was recommended by staff to fund REO loans and subprime refinance loans are shown below, with a hyperlink included to the staff recommendation made for each agency.

Bonds: $784.4 Million; 2,010 estimated units.

• California Housing Finance Agency ($759.8 Million, 1,911 estimated units) Note: CHFA also requested any unused authority be allocated to them.
• Independent Cities Finance Authority ($24.6 Million, 99 estimated units)

Mortgage Credit Certificates: $28 Million, 249 estimated units.

• City and County of San Francisco, ($9.8 Million; 41 estimated units)
• Community Development Commission of Medicino County ($1.1 Million, 96 estimated units). (Appears request is for refinancing only).
• Sacramento Housing and Redevelopment Agency ($17.1 million, 113 units). (Appears request is for MCC for use with REO properties only).
  

(The staff summaries also include a listing of the various provisions that the individual agencies plan to use to define the "financial hardship" provision required for subprime refinancing loans).

NOTE: The Oregon Private Activity Bond Allocation Committee will be making its carry forward allocation decisions at a meeting on January 15th. However public agencies must submit their requests for private activity bond allocation to the Committee by close of business MONDAY December 15.