Subject: Housing; Boards, Commissions, Committees, Councils; Bonds - General Obligation and Revenue

Bill Summary: This proposal modifies the indebtedness limitations of the State Housing Development Commission.

ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED	FY 2009	FY 2010	FY 2011


Total Estimated Net Effect on General Revenue Fund	$0	$0	$0

ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011


Total Estimated Net Effect on Other State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011


Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)
FUND AFFECTED	FY 2009	FY 2010	FY 2011


Total Estimated Net Effect on FTE	0	0	0

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2009	FY 2010	FY 2011
Local Government	$0	$0	$0

Officials from the Office of Administration - Division of Accounting and Administrative Hearing Commission each assume the proposal would not fiscally impact their respective agencies.

Officials from the Department of Economic Development - Missouri Housing Development Commission (MHDC) state HB 1904 would have no fiscal impact on their agency. The bill would exempt conduit bonds from MHDC's statutory cap on unrated bonds found in Section 215.160, RSMo. The conduit bonds are those issued by MHDC on behalf of local communities for projects that have received an allocation of tax-exempt bonds from DED for housing projects. However, MHDC is not a lender on the projects and carries no risk. As with all bonds issued by MHDC, they are not debts of the state. All the responsibility for paying back the bonds lies with the project itself. MHDC does charge a small administrative fee (0.0025%). These fees would be paid to MHDC's own funds, which lay outside the state treasury, and therefore are not reported in fiscal notes. Because there is no risk to MHDC or the state and there would be no impact to state treasury as a result of this bill, there is no fiscal impact to report.

No direct fiscal impact to small businesses would be expected as a result of this proposal.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

FISCAL IMPACT - State Government	FY 2009 (10 Mo.)	FY 2010	FY 2011

	$0	$0	$0