NYS Homes and Community Renewal Approves $150 Million in Recovery Act Bonds for Five Local Governments

ALBANY, NY (10/07/2010)(readMedia)-- New York State Homes and Community Renewal (HCR), representing the newly-integrated housing and community development agencies of the state, today announced the approval of up to $150 million in Recovery Act Bonds to help five local governments finance public improvements and stimulate their economies.

The bond issue was approved by the board of the State of New York Municipal Bond Bank Agency (MBBA) an affiliate agency of HCR. The five localities expected to participate in the bond issue are Cattaraugus County, Oswego County, Putnam County, Tioga County and Wyoming County.

The bond issue will consist primarily of Build America Bonds (BABs) and Recovery Zone Economic Development Bonds (RZEDBs), which were created by Congress in the American Recovery and Reinvestment Act (ARRA) of 2009.

Under the program, MBBA sells a mix of tax-exempt bonds and taxable BAB and RZEDBs on behalf of local governments. Sale of the bonds helps local governments save money on their borrowing costs. BABs and RZEDBs receive Federal government subsidies for the life of the bonds. The subsidies consist of 35% of the interest payments for BABs and 45% for RZEDBs.

"Our Recovery Act Bond program helps local governments reduce their borrowing costs, ensuring that their capital dollars will go further," said Brian E. Lawlor, Commissioner/CEO of New York State Homes and Community Renewal. "These bond issues will finance a wide range of needed capital projects, from bridge and hospital improvements to upgrading emergency radio communication systems. Our partnership with localities is an example of how our newly integrated agency is making state government more efficient and productive."

The board's action will mark the third issuance of Recovery Act Bonds since the program began last year. MBBA sold $184.6 million in Recovery Act Bonds in November 2009 and $116.3 million in May 2010.

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MBBA was created in 1972 to provide municipalities with access to the capital markets for special programs.

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