Prohibit the approval by issuers of bonds for the financing of multifamily housing or residential facilities from issuing bonds that would finance a facility in excess of 120% of market value (OR SEE FISC NOTE SG RV)
Impact
The enactment of HB739 has the potential to significantly reshape financial practices related to housing development in Louisiana. By restricting bond issuers from financing projects that greatly exceed market value, the bill could help stabilize the housing market and ensure that multifamily developments remain affordable. This regulatory measure is expected to enhance the fiscal responsibility of bond issuers and foster a more sustainable housing sector, which is crucial for overall economic health in the state.
Summary
House Bill 739 introduces a regulatory framework aimed at controlling the issuance of bonds used to finance multifamily housing or residential facilities. Specifically, the bill prohibits the approval of bond issuances for such facilities if the amount financed exceeds 120% of the market value. This mechanism seeks to create a more stable and predictable environment for housing finance by limiting excessive speculation and ensuring that funding aligns more closely with actual property values. The aim is to protect both investors and residents by mitigating risks associated with over-leveraging in residential real estate.
Sentiment
General sentiment around HB739 appears to be cautiously optimistic. Proponents of the bill, likely including those concerned about housing affordability and market stability, view it as a necessary step to prevent the potential pitfalls associated with overly inflated bond-financed projects. Conversely, some stakeholders in the housing and real estate sectors may express concerns regarding the potential limitations this bill places on financing, fearing that it could stifle growth and development in the multifamily housing market. Overall, the debate reflects a balance between promoting responsible financing practices and ensuring continued investment in housing.
Contention
Notable contention regarding HB739 revolves around the balance between regulation and market freedom. Critics argue that by imposing strict limits on bond issuances, the bill may inadvertently restrict access to necessary financial resources for housing projects, particularly in areas where development is crucial. Supporters counter this perspective by emphasizing that the safeguards are essential to prevent housing bubbles and ensure that the residential market remains aligned with actual economic conditions. The discussions highlight a broader concern regarding how best to regulate housing finance without stifling development.
Prohibits the State Bond Commission from approving bonds, notes, or other indebtedness of political subdivisions against whom there is an unpaid judgment issued by a court of competent jurisdiction for amounts owed for services performed under contract (OR INCREASE SG EX See Note)
Prohibits the State Bond Commission from approving bonds, notes, or other indebtedness issued by or on behalf of the state against whom there is an unpaid judgment issued by a court of competent jurisdiction for amounts owed for services performed under contract. (8/1/12) (OR INCREASE SG EX See Note)
Creates and provides for the Louisiana Centers of Excellence Financing Corporation and authorizes the issuance of bonds to finance the construction of centers of excellence. (2/3-CA7s9(F)) (8/15/10) (EN NO IMPACT See Note)
Prohibits the inclusion of the value of certain federal tax credits and special financing provisions when determining the fair market value of certain property for purposes of tax assessment (EN SEE FISC NOTE LF RV See Note)
Changes the definitions of "transit-oriented development" and "multifamily residential housing" for purposes of the La. Enterprise Zone Act (EN -$46,113 GF RV See Note)