State Issues $27 Million in Bonds to Support Local Infrastructure Projects

Maryland Department of Housing and Community Development Secretary Kenneth C. Holt announced a $27 million bond issuance through the Local Government Infrastructure Financing program today. The funding will assist small governments with community improvements and refinancing existing public debt.

“All Marylanders, no matter the size or location of their home, require infrastructure and local amenities that protect their health and safety and enhance economic growth,” said Secretary Holt. “The Local Government Infrastructure Financing program helps Maryland’s smaller communities secure the funding to support important initiatives that improve the quality of life for residents.”

The Local Government Infrastructure Financing program (LGIF) provides an efficient and economical means for smaller county and municipal governments to access capital markets to refinance debt or fund infrastructure projects for eligible local governments. The loans offer attractive rates and flexible terms — and the program cuts borrowing costs by pooling the local demand from multiple jurisdictions and managing the bond issue.

Throughout the process, program participants receive technical expertise and resources from the Maryland Department of Housing and Community Development, including bond counsel and a financial advisor, to help local governments navigate successfully through the complexities of bond financing.

According to a DHCD press release:

LGIF’s latest bond issuance, 2021 Series A, generated more than $27 million for 8 projects and activities, including:

  • Construction of a police station and renovation of the town hall in Bel Air (Harford County)
  • Renovation of a volunteer fire hall and a community center in Brentwood (Prince George’s County)
  • Facilitating the restructuring  of existing public debt for the Town of Colmar Manor (Prince George’s County) and refinancing existing public debt for the Town of Denton (Caroline), providing the town with an estimated $165,000 in cumulative savings through the refinance.

For more information about DHCD and its programs, visit https://dhcd.maryland.gov.

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