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Committee backs raising GHFA outstanding bond cap from $3 billion to $6 billion
Summary
The committee gave a unanimous favorable report to HB 159, doubling the authorized aggregate outstanding mortgage revenue bonds for the Georgia Housing Finance Authority to expand low-cost mortgage lending.
The Senate Economic Development Committee voted unanimously to advance House Bill 159, which would raise the aggregate limit on outstanding mortgage revenue bonds available to the Georgia Housing Finance Authority (GHFA) from $3,000,000,000 to $6,000,000,000.
Representative Croke, presenting the bill, said the increase is a small technical change intended to allow the authority to continue issuing bonds and financing low-interest mortgage loans for first-time homebuyers and workforce borrowers as rising house prices have reduced the number of loans that can be supported under the existing cap.
Wesley Brooks, deputy commissioner with the Georgia Housing Finance Authority, told the committee the outstanding bond limit does “no relation to the full faith and credit of the state,” and that “the state and taxpayers are not responsible at all for any of the repayment of these bonds that are outstanding.” He added the program has supported roughly 53,000 homebuyers since 1978.
Committee members asked why a statutory limit exists if there is no state liability; the presenter said the cap historically provided legislative control and acknowledged the committee might revisit removing a cap altogether in the future. A motion to pass received unanimous support and the bill advanced.
