Value Delivered:

Affordable housing is central to the City of Oakland's revitalization goals. KNN Public Finance helped the Oakland Redevelopment Agency successfully sell its 2006 Housing Tax Allocation Bonds to provide new funds for affordable housing projects in the City and to refund a portion of the Agency's 2000 Housing TABs.
   
Strategic Implementation:

To maximize savings, KNN assisted the Agency in taking advantage of both the call feature on the 2000 Housing TABs and a new program from the California Debt Limit Allocation Committee (CDLAC) for private activity housing redevelopment bonds. The CDLAC process, which ultimately allowed the Agency to execute a portion of the refunding on a tax-exempt basis because bond proceeds had been spent on eligible projects, and lower interest rates combined to provide the Agency with considerable savings from its 2006 TABs. KNN led the rating effort for the bonds, which resulted in upgrades from all three rating agencies to A1/A/A, one of the highest redevelopment bond ratings in the state.
   
Results:

The City's successful sale of 2006 Housing Tax Allocation Bonds reinvigorated the Redevelopment Agency's efforts to provide new homes for low-income Oakland residents. Because the new money bonds were issued as taxable securities with a call feature, the Agency has greater flexibility in spending bond proceeds and the ability to refund the deal later.