Investment Authority of State Treasurer for Affordable Housing

The bill authorizes the state treasurer to invest up to $50 million of state money in bonds that may have below-market interest rates that are issued by a quasi-governmental entity if the proceeds of the bonds are used for the creation or financing of new affordable, income-restricted for-sale housing that otherwise would not be created made available at similar rates and terms without the state's investment. The housing must remain affordable long-term and be available to borrowers earning no more than 140% of the statewide area median income. The bonds may have a term of up to 45 years and must have at least two credit ratings at or above A- or A3 or its equivalent from a nationally recognized rating organization. Money from redemption principal proceeds of such bonds may must be reinvested by the state treasurer for the same purpose. The quasi-governmental authority issuing the bonds shall provide an annual report to the treasurer and the general assembly containing information about housing created with bond proceeds.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)