Affordable housing, drinking water improvements, schools, and earthquake readiness are just a few of the projects that will be funded thanks to Oregon State Treasury's recent $418 million General Obligation (GO) bond sale on behalf of the state. The recovery of Lottery sales permitted a long-awaited sale of $218 million bonds for the state's Lottery Program, which will fund a variety of projects including park improvements, building renovations and veteran housing programs. Lasty, an $85 million bond sale for the Oregon Housing Single-Family Mortgage Program will provide support for existing and newly originated Mortgage Loans.

"Bonds are an effective tool that we use to support critical capital projects and invest in Oregon," said Treasurer Tobias Read. "Bond funded projects encourage economic development, enhance sustainability, address critical needs including better access to education, housing and services for wellness and preserve our environment. Our strong stewardship of financial resources permits us to invest in building stronger and healthier communities for Oregonians over the long-run, and that is good for everyone."

Treasury's Debt Management team wrapped up the spring general obligation bond sale in the middle of May after securing low-cost financing in a volatile market environment. The sale includes approximately $200 million in tax-exempt general obligation bond proceeds for approximately twenty-one projects from ten different state government entities. Projects include capital improvements at the Oregon School for the Deaf, improvements to Salem's drinking water system, renovations and accessibility improvements to judicial buildings and the state capitol, and upgrades to various information systems. Additionally, $66 million will fund grant program bonds for implementing seismic upgrades for school districts and emergency services buildings.

Another $175 million of taxable Sustainability Bonds will fund affordable and permanent supportive housing throughout the state, including new home construction and housing for people experiencing chronic homelessness. This was the sixth issuance of sustainability bonds by Oregon Treasury with proceeds dedicated to affordable housing.

The Lottery Bond transaction was priced on April 12, 2022 and was officially closed on May 10, 2022. The sale included approximately $94 million in tax-exempt bonds and $124 million in taxable bonds. The projects funded included upgrades to the Eugene Family YMCA facility, Sherwood Pedestrian/Bike Bridge, Gradin Community Sports Park and various building renovations.

A D V E R T I S E M E N T

A D V E R T I S E M E N T

"The market continues to evolve as the pandemic wanes. With the rise in interest rates as the Federal Reserve seeks to curb inflation, Treasury staff must remain diligent to ensure that the state maintains its high credit profile and broaden its investor outreach to achieve favorable financing results," said Jacqueline Knights, Director of Debt Management at Oregon State Treasury. "Despite record withdrawal of funds from the municipal market, the State's bonds saw significant investor demand, which translates to better pricing – even under volatile market conditions."

In advance of the spring bond sales, Oregon Treasury received updated General Obligation bond ratings from Standard and Poor's, Fitch Ratings, and Moody's Investors Services. In reports published by the three firms, Oregon maintained its respective AA+/AA+/Aa1 ratings along with a stable outlook – a welcome confirmation of the state's fiscal management. Additionally, the State's Lottery Program received a confirmation of stability from Moody's Investors Services and Standard and Poor's, with ratings of Aa2/AAA respectively. Lastly, Oregon Housing and Community Services Department received a rating of Aa2 for the Single-Family Mortgage Revenue Bonds. Moody's also maintains the Aa2 ratings on all outstanding long-term parity debt issued under the Mortgage Revenue Bond Indenture with a stable rating outlook.

The Single-Family Mortgage Bonds transaction was priced on April 5, 2022 and was officially closed on April 27,2022. The sale included approximately $78 million in tax-exempt bonds and $7 million taxable bonds. The proceeds will be used to refund outstanding Oregon Housing and Community Services Department Mortgage Revenue bonds leading to a decrease in department costs. They will also be used to purchase mortgage loans that provide financing for existing, or newly constructed single-family residences.

Treasury has been active in issuing debt for developers who create affordable housing statewide as well as non-profits such as health care institutions. For the calendar year to date, Treasury has worked with our Oregon Housing partners and developers to close fifteen deals totaling $256 million for affordable housing projects across the State.

New Projects Funded by Recently-Sold State Lottery Bonds
Series	Project Agency/Grantee	Project Summary	Estimated Bond Proceeds
2022 A	Dept of Admin. Services	Center for Hope and Safety Hope Plaza	$7,500,000
2022 A	Dept of Admin. Services	Gradin Community Sports Park	2,000,000
2022 A	Dept of Admin. Services	Oregon Coast Aquarium Indoor Gallery Improvements	5,000,000
2022 A	Dept of Admin. Services	Parrott Creek Child & Family Services Building Renovation	3,500,000
2022 A	Dept of Admin. Services	Phoenix Government and Public Safety Center	13,600,000
2022 A	Dept of Admin. Services	Port of Cascade Locks Business Park Expansion	2,400,000
2022 A	Dept of Admin. Services	Jefferson County Health and Wellness Center	5,400,000
2022 A	Business Oregon	County Fair Capital Improvements	5,000,000
2022 A	Dept of Transportation	Sherwood Pedestrian/Bike Bridge	4,000,000
2022 A	Dept of Veteran Affairs	YMCA Veterans' Affordable Housing	6,000,000
2022 A	Parks & Recreation Dept.	Main Street Revitalization Grant Program	5,000,000
2022 A	Water Resources Dept.	Deschutes Basin Board of Control Piping	10,000,000
2022 A	Water Resources Dept.	Wallowa Lake Dam Rehabilitation	14,000,000
2022 A	Water Resources Dept.	Water Development Projects	15,000,000
2022 A	Water Resources Dept.	Big Creek Dams Replacement	4,000,000
2022A Total			$102,400,000
2022 B	Dept of Admin. Services	Eugene Family YMCA Facility	$15,000,000
2022 B	Business Oregon	Levee Grant Program	15,000,000
2022 B	Business Oregon	Brownfields Redevelopment Fund	10,000,000
2022 B	Business Oregon	Special Public Works Fund	50,000,000
2022 B	Housing & Comm. Services	Wildfire Affordable Housing Supply & Land Acquisition	25,000,000
2022B Total			$115,000,000
TOTAL			$217,400,000

New Projects Funded by Recently-Sold State GO Bonds
Series	Project Agency	Project Name	Amount of Bond Proceeds
2022 Series A	Dept. of Administrative Services	Executive Building Interior & Seismic Renovations	$16,000,000
2022 Series A	Dept. of Administrative Services	North Valley Complex Infrastructure Upgrades/Tenant Improvement	30,000,000
2022 Series A	Dept. of Administrative Services	Portland State Office Building Improvements	3,500,000
2022 Series A	Dept. of Revenue	Electronic Valuation Information System (ELVIS)	2,000,000
2022 Series A	Oregon Military Department	Resiliency Grant Fund	5,000,000
2022 Series A	Oregon State Police	Central Point Office Expansion	23,772,889
2022 Series A	Oregon Youth Authority	Camp Riverbend Dorm Renovation	1,500,000
2022 Series A	Oregon Youth Authority	Control Room Renovations	895,000
2022 Series A	Oregon Youth Authority	JJIS IT System Modernization	4,756,531
2022 Series A	Oregon Youth Authority	MacLaren Infirmary and Pharmacy Renovation & Expansion	979,000
2022 Series A	Oregon Youth Authority	MacLaren West Cottages Renovations	4,937,800
2022 Series A	Oregon Youth Authority	Rogue Valley Facility Improvements	2,443,900
2022 Series A	Oregon Youth Authority	Tillamook Dorm Renovation	2,000,000
2022 Series A	Oregon Health Authority	OSH Salem Well Water Treatment Facility	2,395,650
2022 Series A	Dept. of Education	Oregon School for the Deaf ADA Restrooms	1,024,625
2022 Series A	Dept. of Education	Oregon School for the Deaf Fire Alarm System Replacement	3,091,923
2022 Series A	Dept. of Education	Oregon School for the Deaf Windows Upgrade	1,383,452
2022 Series A	Oregon Parks & Recreation Department	State Parks Capital Improvement and Renewal	25,000,000
2022 Series A	Dept. of Fish and Wildlife	Capital Improvement and Renewal	5,000,000
2022 Series A	Oregon Liquor Control Commission	Liquor Warehouse Land & Building	52,537,265
2022 Series A	Oregon Liquor Control Commission	Liquor Warehouse Management IT System	8,500,000
2022 Series B	Oregon Housing and Community Services Department	LIFT/Permanent Supportive Housing Programs	175,000,000
TOTAL			$371,718,035
2022 Series C	Oregon Business Development Department	Seismic Rehabilitation Grants – Schools	55,000,000
2022 Series C	Oregon Business Development Department	Seismic Rehabilitation Grants – Emergency Services Buildings	20,825,000
TOTAL			$75,825,000
TOTAL			$447,543,035

New Projects Funded by Recently-Sold Conduit Revenue Bonds
Series	Project Agency	Project Name	Amount of Bond Proceeds
2022A	Housing & Community Services Dept.	Fremont Manor Apartments	$5,400,000
2022B	Housing & Community Services Dept.	Kentonwood Dimensions Apartments	4,037,000
2022C	Housing & Community Services Dept.	Stillwater Crossing Apartments	3,900,000
2022D	Housing & Community Services Dept.	The Canopy Apartments at Powell	36,500,000
2022E	Housing & Community Services Dept.	Garden Grove Apartments	6,330,000
2022F	Housing & Community Services Dept.	Aloha Family Housing Project	16,680,000
2022G	Housing & Community Services Dept.	Nueva Esperanza Apartments	26,359,717
2022H	Housing & Community Services Dept.	Good Shepherd Village	31,425,000
2022I	Housing & Community Services Dept.	Oregon 4 Apartment Projects	23,895,104
2022J	Housing & Community Services Dept.	Minnesota Place Apartments Project	12,987,074
2022K	Housing & Community Services Dept.	Moorehouse Apartments Project	7,870,000
2022L	Housing & Community Services Dept.	Tigard Senior Housing	13,890,000
2022M	Housing & Community Services Dept.	148th Apartments	15,500,000
2022O	Housing & Community Services Dept.	Shore Pines at Munsel Creek Apartments	14,302,000
2022Q	Housing & Community Services Dept.	Maple Apartments	37,000,000
TOTAL			$256,075,895

--Staff Reports

Post Date: 2022-06-11 09:08:15

Last Update: 2022-06-11 09:45:47