NEW CARROLLTON, Md. (September 27, 2016) – The latest round of bonds issued through the Maryland Department of Housing and Community Development’s Local Government Infrastructure Financing program had the lowest capital cost in its 28 year operating history. This indicates that interest rates are hitting historic lows, and demonstrates the current financial mechanism and approach the agency utilizes to raise capital for Maryland’s local governments works well and achieves excellent results.
Centreville, District Heights, Havre de Grace, Laurel, Manchester and Perryville were the beneficiaries of the latest financing. Fourteen distinct projects were funded totaling more than $25 million. By comparison, in 2015, 10 projects worth nearly $19 million were financed.
The LGIF program provides an efficient and economical means of access to capital markets in order to fund infrastructure projects for eligible local governments. The loans offer attractive rates and flexible terms. The program generates savings in the costs of borrowing by pooling the local demand and managing the bond issue. The department also offers expertise and resources, including bond counsel and a financial advisor, to help local governments navigate successfully through the complexities of bond financing.
Although the program is frequently used for projects like streetscape improvements, transportation enhancements, and water and sewer treatment facilities, it is not limited to work of this nature. In Harford County, $2,100,000 will be used to assist with renovations to the Havre de Grace Opera House, a staple of the county’s arts community since 1871. In Cecil County, Perryville received $2,500,000 for the construction of a new police station. The town of District Heights in Prince George’s County received $2,360,000 and $1,840,000 to fund the construction of a senior center and a youth counseling center, respectively.
“Infrastructure is the backbone that supports every community,” said Secretary Kenneth C. Holt. “The department is proud to provide cost-effective assistance for these projects in Maryland communities This is an impressive accomplishment — we’ve minimized costs while maximizing aid.”
For more information on the LGIF program, visit http://dhcd.maryland.gov/Communities/Pages/lgif/default.aspx.