State Bond Commission grants preliminary approval for $215 million LSU housing bonds

The State Bond Commission on June 11 granted preliminary approval and a notice of intent for up to $215,000,000 in revenue bonds to finance the next phase of Louisiana State University’s South Quad housing project.

The project described to the commission would add two residence halls primarily for freshmen, totaling about 1,100 beds, plus parking. Bonds would be secured by a lease between the LSU Board and the borrower and repaid from auxiliary revenues and rental payments from residents. The commission’s staff said final approval is expected to be requested at the commission’s July meeting.

Staff members presenting the item told commissioners the bonds would be issued by the Louisiana Public Facilities Authority and would be repaid from lease revenues paid by LSU. The commission’s recommendation was for preliminary approval and issuance of a notice of intent; a request for final approval was not made at the June meeting.

Representative Reiser moved approval of item 17; Senator Amigo seconded the motion. Hearing no objections, the commission approved the notice of intent and preliminary approval.

Background detail provided to commissioners noted that repayment ultimately depends on auxiliary revenue and rental payments from residents rather than a dedicated tax or general obligation pledge. The staff presentation said the application met the commission’s technical requirements and recommended approval of the preliminary action. No members raised questions on the record during the June hearing.

The commission will consider final approval at its July meeting, where additional details on structure, security, and any required approvals will be presented.