California Communities, a joint powers agency formed by the California State Association of Counties (CSAC) and the League of California Cities, announced its project to securitize the Proposition 1A loan receivables that will provide local counties and special districts with 100% of the funds loaned to the state.
With the approval of their Board, California Communities is soliciting proposals to put together the financing team for this project and is prepared to move expeditiously to structure this project.
As part of the latest California budget, local governments will have the opportunity to receive money borrowed by the state upfront through a securitization financing offered by California Communities, a joint powers authority sponsored by the League of Structuring. The program's timing and application details are still being determined,
California Cities and CSAC will issue bonds securitizing the future payments by the state and remit the proceeds of the bonds to the local governments who choose to participate in the securitization.
The state will then repay the bondholders, to pay off the outstanding bonds including interest costs.