Infrastructure financing: Mello-Roos financing in California

Article Abstract:

Developers are increasingly tapping public infrastructure financing because of their long-term provision and low interest rates. They also allow costs to be passed on to end users through taxes. One example is California's Mello-Roos bonds. The California Mello-Roos Community Facilities Act resulted from the imposition of Proposition 13, which limited the issuance of long-term debt instruments by municipalities. Under this act, community facilities districts (CFDs) may be created to build infrastructure and school facilities. The tax on the CFD property pays for the Mello-Roos bonds. The cost and amount of financing will depend on the risks involved.

Author: Darragh, Alexander J., Reyes, Catherine, Williams, Mark A.
Subdividers and developers, not elsewhere classified, Evaluation, Real estate development, Long-term financing, Long term financing

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Credit corporations create value for today's real estate

Article Abstract:

Credit corporations are assuming the role of savings and loan associations, banks and insurance companies in providing funds for commercial real estate. The collapse of thrifts and the unwillingness of banks and insurance companies to provide capital for the industry have opened up new opportunities in the lending sector. Credit corporations, therefore, have more chances of picking out highly profitable transactions. They are also financing redevelopment, remodeling and expansions, thereby creating value, which will in turn attract traditional lenders. Some examples of how credit corporations help borrowers by enhancing property values are presented.

Author: DeBauche, David C.
Nonresidential building operators, Business Credit Institutions, Services, Commercial finance companies, Real estate industry

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Subjects list: Finance
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