The text of SB 67 can be viewed here. The bill will be chaptered as Chapter 634. [Note: The state website is not yet updated, so this is a link to the enrolled bill. It is, however, identical to the chaptered bill.]
The transaction will proceed as planned, based on the schedule as follows:
- Local agency approved and signed docs must be received by Orrick, Herrington & Sutcliffe by November 6, 2009
- Bond Pricing estimated: November 10, 2009
- Bond Closing estimated: November 19, 2009
- Distribution of Bond Proceeds to local agencies: January 15, 2010 and May 3, 2010
Important Information for Hardship Cases
All hardship applicants must first participate in the Proposition 1A Program. The Director of Finance may permit a reallocation of the property tax reduction amount only to the extent that the agency did not receive bond proceeds.
As of October 19, 2009, approximately 1224 agencies have enrolled in the California Communities Prop 1A Securitization Program. This number is comprised of 57 counties, 389 cities, and 778 special districts. Enrolled county and city volume amounts to an estimated $1.5 billion (we are not able to estimate special district dollar volume at this time).
Click here to Enroll in the Proposition 1A Securitization Program.
- Enrolled local agencies receive an automatic email reply after successfully submitting an enrollment form.
- One day after enrolling, you may click here to check the California Communities website to confirm that your agency’s enrollment has been received.
- Two days after enrolling, you will receive customized legal documents including a board/council resolution and purchase and sale agreement.
- Copies of the approved board resolution and signed documents must be received by transaction counsel (Orrick, Herrington & Sutcliffe) by November 6, 2009.
- Click here for more information about the Proposition 1A Securitization Program.
- The interest rate has been set at 2.00% by the State Department of Finance for agencies that do not securitize the Proposition 1A receivable.
- Repayment must be made by the State by June 30, 2013.
Please visit the California Communities website for information about the Proposition 1A Securitization Program and other California Communities financing programs.
Specific questions about the Proposition 1A Program may be directed to prop1A@cacommunities.org or by calling 1-800-635-3993 x260.