COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4669-04
Bill No.: SCS for HCS for HB 1904
Subject: Housing: Bonds - General Obligation and Revenue
Type: Original
Date: April 30, 2008
Bill Summary: Exempts certain types of conduit revenue bonds or notes held by the Missouri Housing Development Commission from statutory indebtedness limitation.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
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Total Estimated Net Effect on General Revenue Fund |
$0 |
$0 |
$0 |
ESTIMATED NET EFFECT ON OTHER STATE FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
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Total Estimated Net Effect on Other State Funds |
$0 |
$0 |
$0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
ESTIMATED NET EFFECT ON FEDERAL FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
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Total Estimated Net Effect on All Federal Funds |
$0 |
$0 |
$0 |
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE) |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
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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 |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Local Government |
$0 |
$0 |
$0 |
FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of Administration - Administrative Hearing Commission and Division of Accounting assume the proposal would not fiscally impact their agency.
Officials from the Department of Economic Development - Missouri Housing Development Commission (MHDC) state the substitute would have no fiscal impact on their agency.
Officials from the Department of Higher Education and the University of Central Missouri assume this substitute would have no fiscal impact on their agency.
In response to a previous version of the proposal, the MHDC stated 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.
FISCAL IMPACT - State Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
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$0 |
$0 |
$0 |
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FISCAL IMPACT - Local Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
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$0 |
$0 |
$0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
The proposed legislation appears to have no fiscal impact.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Economic Development
Missouri Housing Development Commission
Office of Administration
Division of Accounting
Administrative Hearing Commission
Department of Higher Educatioin
University of Central Missouri
Mickey Wilson, CPA
Director
April 30, 2008