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Officials explain GHFA bond issuance, state exposure and oversight
Summary
DCA and GHFA staff told the committee that Georgia Housing Finance Authority issues private activity bonds for homeownership programs; GHFA debt is not a state liability, GHFA is rated AAA, and annual GSFIC authorization governs issuance caps.
Committee members asked how Georgia Dream and other homeownership loans are financed and whether the state bears liability for bond debt.
DCA staff explained that the Georgia Housing Finance Authority (GHFA) issues the private activity bonds used to fund the program. "They are the debts of the Georgia Housing and Finance Authority. They are not, debts of the state," an agency official said, and noted GHFA is rated at the highest level by Standard & Poor's (AAA). Staff described the annual process of seeking authorization from the Georgia State Finance and Investment Commission (GSFIC) to issue bonds up to a stated cap and said the GHFA sells the bonds in the market to private investors; interest on those bonds is tax-exempt, which supports the program.
Committee members sought clarity about whether bond issuance appears in the state budget; DCA staff said bond authorization is not a line item in the state budget because the debt is GHFA's, not the state's, though the authority coordinates with GSFIC and legislative leadership.
