The U.S. Treasury Department has announced that the Cities of Berkeley and Oakland and Alameda County will receive over $63 million in recovery zone bonds, which allow local government to finance job-creating economic development projects at reduced borrowing costs.
The City of Berkeley will receive $13,774,000 in Recovery Zone Development Bonds and $20,662,000 in Recovery Zone Facility Bonds.
The City of Oakland will receive $2,970,000 in Recovery Zone Development Bonds and $4,456,000 in Recovery Zone Facility Bonds.
Alameda County will receive $8,644,000 in Recovery Zone Development Bond and $12,966,000 in Recovery Zone Facility Bonds.
“With the state of California facing tremendous economic challenges and recent cutbacks in local services, the infusion of these recovery zone funds will provide the financing needed to revitalize our communities,” said Congresswoman Barbara Lee.
“The Obama Administration has once again demonstrated their commitment to provide much needed economic support for our state and local governments,” she said.
Recovery Zone Bonds are targeted to areas particularly affected by job loss and will help local governments obtain financing for much needed economic development projects, such as public infrastructure development, at lower borrowing costs.
The Recovery Act included two new types of Recovery Zone Bonds – Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds. Recovery Zone Economic Development Bonds are another type of taxable Build America Bond that allow state and local governments to obtain lower borrowing costs through a new direct federal payment subsidy, for 45 percent of the interest, to finance a broad range of qualified economic development projects, such as job training and educational programs.
Recovery Zone Facility Bonds are a type of traditional tax-exempt private activity bond that may be used by private businesses in designated recovery zones to finance a broad range of depreciable capital projects.
To learn more about the American Recovery and Reinvestment Act of 2009, go to www.recovery.gov.