County Sells Bonds for Low-Cost Mortgages

The county’s Community Development Commission has reported the sale of a $53.5-million tax-exempt revenue bond issue to underwriters to finance home mortgages for 609 newly constructed single-family homes.

The homes, priced from $57,000 to $126,000, and for the first time since the bond program’s inception in 1982, units are located in all five supervisorial districts.

Intended primarily for first-time buyers, the funds will be used to purchase mortgages for these units at below-market rates. The commission said the timely action took advantage of a favorable bond market that may permit mortgage rates of less than 10%.

The program has produced four other single-family issues totaling $213.1 million and 2,782 units, while bonds and notes totaling $111.3 million for the construction of 2,309 multifamily units have been issued.

Including the latest authorization, a total of $381.4 million in bonds and notes will have been issued for a total of 5,700 units, and the commission expects to issue seven bond issues for single-family units and five for multifamily projects in the next 18 months.