Oregon State Treasury Completes total of $721 Million in Bond Sales for Oregon State Lottery, General Obligation and Housing Single-Family Mortgage Program
Affordable housing, drinking water improvements, schools, and earthquake readiness are just a few of the projects that will be funded thanks to Oregon State Treasury’s recent $418 million General Obligation (GO) bond sale on behalf of the state. The recovery of Lottery sales permitted a long-awaited sale of $218 million bonds for the state’s Lottery Program, which will fund a variety of projects including park improvements, building renovations and veteran housing programs. Lasty, an $85 million bond sale for the Oregon Housing Single-Family Mortgage Program will provide support for existing and newly originated Mortgage Loans.
“Bonds are an effective tool that we use to support critical capital projects and invest in Oregon,” said Treasurer Tobias Read. “Bond funded projects encourage economic development, enhance sustainability, address critical needs including better access to education, housing and services for wellness and preserve our environment. Our strong stewardship of financial resources permits us to invest in building stronger and healthier communities for Oregonians over the long-run, and that is good for everyone.”
Treasury’s Debt Management team wrapped up the spring general obligation bond sale in the middle of May after securing low-cost financing in a volatile market environment. The sale includes approximately $200 million in tax-exempt general obligation bond proceeds for approximately twenty-one projects from ten different state government entities. Projects include capital improvements at the Oregon School for the Deaf, improvements to Salem’s drinking water system, renovations and accessibility improvements to judicial buildings and the state capitol, and upgrades to various information systems. Additionally, $66 million will fund grant program bonds for implementing seismic upgrades for school districts and emergency services buildings.
Another $175 million of taxable Sustainability Bonds will fund affordable and permanent supportive housing throughout the state, including new home construction and housing for people experiencing chronic homelessness. This was the sixth issuance of sustainability bonds by Oregon Treasury with proceeds dedicated to affordable housing.
The Lottery Bond transaction was priced on April 12, 2022 and was officially closed on May 10, 2022. The sale included approximately $94 million in tax-exempt bonds and $124 million in taxable bonds. The projects funded included upgrades to the Eugene Family YMCA facility, Sherwood Pedestrian/Bike Bridge, Gradin Community Sports Park and various building renovations.
“The market continues to evolve as the pandemic wanes. With the rise in interest rates as the Federal Reserve seeks to curb inflation, Treasury staff must remain diligent to ensure that the state maintains its high credit profile and broaden its investor outreach to achieve favorable financing results,” said Jacqueline Knights, Director of Debt Management at Oregon State Treasury. “Despite record withdrawal of funds from the municipal market, the State’s bonds saw significant investor demand, which translates to better pricing – even under volatile market conditions.”
In advance of the spring bond sales, Oregon Treasury received updated General Obligation bond ratings from Standard and Poor’s, Fitch Ratings, and Moody’s Investors Services. In reports published by the three firms, Oregon maintained its respective AA+/AA+/Aa1 ratings along with a stable outlook – a welcome confirmation of the state’s fiscal management. Additionally, the State’s Lottery Program received a confirmation of stability from Moody’s Investors Services and Standard and Poor’s, with ratings of Aa2/AAA respectively. Lastly, Oregon Housing and Community Services Department received a rating of Aa2 for the Single-Family Mortgage Revenue Bonds. Moody’s also maintains the Aa2 ratings on all outstanding long-term parity debt issued under the Mortgage Revenue Bond Indenture with a stable rating outlook.
The Single-Family Mortgage Bonds transaction was priced on April 5, 2022 and was officially closed on April 27,2022. The sale included approximately $78 million in tax-exempt bonds and $7 million taxable bonds. The proceeds will be used to refund outstanding Oregon Housing and Community Services Department Mortgage Revenue bonds leading to a decrease in department costs. They will also be used to purchase mortgage loans that provide financing for existing, or newly constructed single-family residences.
Treasury has been active in issuing debt for developers who create affordable housing statewide as well as non-profits such as health care institutions. For the calendar year to date, Treasury has worked with our Oregon Housing partners and developers to close fifteen deals totaling $256 million for affordable housing projects across the State. New Projects Funded by Recently-Sold State Lottery Bonds Project Agency/Grantee Project Summary Estimated Bond Proceeds(1) Series 2022 A Dept of Admin. Services Center for Hope and Safety Hope Plaza $7,500,000 2022 A Dept of Admin. Services Gradin Community Sports Park 2,000,000 2022 A Dept of Admin. Services Oregon Coast Aquarium Indoor Gallery Improvements 5,000,000 2022 A Dept of Admin. Services Parrott Creek Child & Family Services Building Renovation 3,500,000 2022 A Dept of Admin. Services Phoenix Government and Public Safety Center 13,600,000 2022 A Dept of Admin. Services Port of Cascade Locks Business Park Expansion 2,400,000 2022 A Dept of Admin. Services Jefferson County Health and Wellness Center 5,400,000 2022 A Business Oregon County Fair Capital Improvements 5,000,000 2022 A Dept of Transportation Sherwood Pedestrian/Bike Bridge 4,000,000 2022 A Dept of Veteran Affairs YMCA Veterans’ Affordable Housing 6,000,000 2022 A Parks & Recreation Dept. Main Street Revitalization Grant Program 5,000,000 2022 A Water Resources Dept. Deschutes Basin Board of Control Piping 10,000,000 2022 A Water Resources Dept. Wallowa Lake Dam Rehabilitation 14,000,000 2022 A Water Resources Dept. Water Development Projects 15,000,000 2022 A Water Resources Dept. Big Creek Dams Replacement 4,000,000 2022A Total $102,400,000 2022 B Dept of Admin. Services Eugene Family YMCA Facility $15,000,000 2022 B Business Oregon Levee Grant Program 15,000,000 2022 B Business Oregon Brownfields Redevelopment Fund 10,000,000 2022 B Business Oregon Special Public Works Fund 50,000,000 2022 B Housing & Comm. Services Wildfire Affordable Housing Supply & Land Acquisition 25,000,000 2022B Total $115,000,000 TOTAL $217,400,000 New Projects Funded by Recently-Sold State GO Bonds Series Project Agency Project Name Amount of Bond Proceeds 2022 Series A Dept. of Administrative Services Executive Building Interior & Seismic Renovations $16,000,000 2022 Series A Dept. of Administrative Services North Valley Complex Infrastructure Upgrades/Tenant Improvement 30,000,000 2022 Series A Dept. of Administrative Services Portland State Office Building Improvements 3,500,000 2022 Series A Dept. of Revenue Electronic Valuation Information System (ELVIS) 2,000,000 2022 Series A Oregon Military Department Resiliency Grant Fund 5,000,000 2022 Series A Oregon State Police Central Point Office Expansion 23,772,889 2022 Series A Oregon Youth Authority Camp Riverbend Dorm Renovation 1,500,000 2022 Series A Oregon Youth Authority Control Room Renovations 895,000 2022 Series A Oregon Youth Authority JJIS IT System Modernization 4,756,531 2022 Series A Oregon Youth Authority MacLaren Infirmary and Pharmacy Renovation & Expansion 979,000 2022 Series A Oregon Youth Authority MacLaren West Cottages Renovations 4,937,800 2022 Series A Oregon Youth Authority Rogue Valley Facility Improvements 2,443,900 2022 Series A Oregon Youth Authority Tillamook Dorm Renovation 2,000,000 2022 Series A Oregon Health Authority OSH Salem Well Water Treatment Facility 2,395,650 2022 Series A Dept. of Education Oregon School for the Deaf ADA Restrooms 1,024,625 2022 Series A Dept. of Education Oregon School for the Deaf Fire Alarm System Replacement 3,091,923 2022 Series A Dept. of Education Oregon School for the Deaf Windows Upgrade 1,383,452 2022 Series A Oregon Parks & Recreation Department State Parks Capital Improvement and Renewal 25,000,000 2022 Series A Dept. of Fish and Wildlife Capital Improvement and Renewal 5,000,000 2022 Series A Oregon Liquor Control Commission Liquor Warehouse Land & Building 52,537,265 2022 Series A Oregon Liquor Control Commission Liquor Warehouse Management IT System 8,500,000 2022 Series B Oregon Housing and Community Services Department LIFT/Permanent Supportive Housing Programs 175,000,000 TOTAL $371,718,035 2022 Series C Oregon Business Development Department Seismic Rehabilitation Grants – Schools 55,000,000 2022 Series C Oregon Business Development Department Seismic Rehabilitation Grants – Emergency Services Buildings 20,825,000 TOTAL $75,825,000 TOTAL $447,543,035 New Projects Funded by Recently-Sold Conduit Revenue Bonds Series Project Agency Project Name Amount of Bond Proceeds 2022A Housing & Community Services Dept. Fremont Manor Apartments $5,400,000 2022B Housing & Community Services Dept. Kentonwood Dimensions Apartments 4,037,000 2022C Housing & Community Services Dept. Stillwater Crossing Apartments 3,900,000 2022D Housing & Community Services Dept. The Canopy Apartments at Powell 36,500,000 2022E Housing & Community Services Dept. Garden Grove Apartments 6,330,000 2022F Housing & Community Services Dept. Aloha Family Housing Project 16,680,000 2022G Housing & Community Services Dept. Nueva Esperanza Apartments 26,359,717 2022H Housing & Community Services Dept. Good Shepherd Village 31,425,000 2022I Housing & Community Services Dept. Oregon 4 Apartment Projects 23,895,104 2022J Housing & Community Services Dept. Minnesota Place Apartments Project 12,987,074 2022K Housing & Community Services Dept. Moorehouse Apartments Project 7,870,000 2022L Housing & Community Services Dept. Tigard Senior Housing 13,890,000 2022M Housing & Community Services Dept. 148th Apartments 15,500,000 2022O Housing & Community Services Dept. Shore Pines at Munsel Creek Apartments 14,302,000 2022Q Housing & Community Services Dept. Maple Apartments 37,000,000 TOTAL $256,075,895
“Bonds are an effective tool that we use to support critical capital projects and invest in Oregon,” said Treasurer Tobias Read. “Bond funded projects encourage economic development, enhance sustainability, address critical needs including better access to education, housing and services for wellness and preserve our environment. Our strong stewardship of financial resources permits us to invest in building stronger and healthier communities for Oregonians over the long-run, and that is good for everyone.”
Treasury’s Debt Management team wrapped up the spring general obligation bond sale in the middle of May after securing low-cost financing in a volatile market environment. The sale includes approximately $200 million in tax-exempt general obligation bond proceeds for approximately twenty-one projects from ten different state government entities. Projects include capital improvements at the Oregon School for the Deaf, improvements to Salem’s drinking water system, renovations and accessibility improvements to judicial buildings and the state capitol, and upgrades to various information systems. Additionally, $66 million will fund grant program bonds for implementing seismic upgrades for school districts and emergency services buildings.
Another $175 million of taxable Sustainability Bonds will fund affordable and permanent supportive housing throughout the state, including new home construction and housing for people experiencing chronic homelessness. This was the sixth issuance of sustainability bonds by Oregon Treasury with proceeds dedicated to affordable housing.
The Lottery Bond transaction was priced on April 12, 2022 and was officially closed on May 10, 2022. The sale included approximately $94 million in tax-exempt bonds and $124 million in taxable bonds. The projects funded included upgrades to the Eugene Family YMCA facility, Sherwood Pedestrian/Bike Bridge, Gradin Community Sports Park and various building renovations.
“The market continues to evolve as the pandemic wanes. With the rise in interest rates as the Federal Reserve seeks to curb inflation, Treasury staff must remain diligent to ensure that the state maintains its high credit profile and broaden its investor outreach to achieve favorable financing results,” said Jacqueline Knights, Director of Debt Management at Oregon State Treasury. “Despite record withdrawal of funds from the municipal market, the State’s bonds saw significant investor demand, which translates to better pricing – even under volatile market conditions.”
In advance of the spring bond sales, Oregon Treasury received updated General Obligation bond ratings from Standard and Poor’s, Fitch Ratings, and Moody’s Investors Services. In reports published by the three firms, Oregon maintained its respective AA+/AA+/Aa1 ratings along with a stable outlook – a welcome confirmation of the state’s fiscal management. Additionally, the State’s Lottery Program received a confirmation of stability from Moody’s Investors Services and Standard and Poor’s, with ratings of Aa2/AAA respectively. Lastly, Oregon Housing and Community Services Department received a rating of Aa2 for the Single-Family Mortgage Revenue Bonds. Moody’s also maintains the Aa2 ratings on all outstanding long-term parity debt issued under the Mortgage Revenue Bond Indenture with a stable rating outlook.
The Single-Family Mortgage Bonds transaction was priced on April 5, 2022 and was officially closed on April 27,2022. The sale included approximately $78 million in tax-exempt bonds and $7 million taxable bonds. The proceeds will be used to refund outstanding Oregon Housing and Community Services Department Mortgage Revenue bonds leading to a decrease in department costs. They will also be used to purchase mortgage loans that provide financing for existing, or newly constructed single-family residences.
Treasury has been active in issuing debt for developers who create affordable housing statewide as well as non-profits such as health care institutions. For the calendar year to date, Treasury has worked with our Oregon Housing partners and developers to close fifteen deals totaling $256 million for affordable housing projects across the State. New Projects Funded by Recently-Sold State Lottery Bonds Project Agency/Grantee Project Summary Estimated Bond Proceeds(1) Series 2022 A Dept of Admin. Services Center for Hope and Safety Hope Plaza $7,500,000 2022 A Dept of Admin. Services Gradin Community Sports Park 2,000,000 2022 A Dept of Admin. Services Oregon Coast Aquarium Indoor Gallery Improvements 5,000,000 2022 A Dept of Admin. Services Parrott Creek Child & Family Services Building Renovation 3,500,000 2022 A Dept of Admin. Services Phoenix Government and Public Safety Center 13,600,000 2022 A Dept of Admin. Services Port of Cascade Locks Business Park Expansion 2,400,000 2022 A Dept of Admin. Services Jefferson County Health and Wellness Center 5,400,000 2022 A Business Oregon County Fair Capital Improvements 5,000,000 2022 A Dept of Transportation Sherwood Pedestrian/Bike Bridge 4,000,000 2022 A Dept of Veteran Affairs YMCA Veterans’ Affordable Housing 6,000,000 2022 A Parks & Recreation Dept. Main Street Revitalization Grant Program 5,000,000 2022 A Water Resources Dept. Deschutes Basin Board of Control Piping 10,000,000 2022 A Water Resources Dept. Wallowa Lake Dam Rehabilitation 14,000,000 2022 A Water Resources Dept. Water Development Projects 15,000,000 2022 A Water Resources Dept. Big Creek Dams Replacement 4,000,000 2022A Total $102,400,000 2022 B Dept of Admin. Services Eugene Family YMCA Facility $15,000,000 2022 B Business Oregon Levee Grant Program 15,000,000 2022 B Business Oregon Brownfields Redevelopment Fund 10,000,000 2022 B Business Oregon Special Public Works Fund 50,000,000 2022 B Housing & Comm. Services Wildfire Affordable Housing Supply & Land Acquisition 25,000,000 2022B Total $115,000,000 TOTAL $217,400,000 New Projects Funded by Recently-Sold State GO Bonds Series Project Agency Project Name Amount of Bond Proceeds 2022 Series A Dept. of Administrative Services Executive Building Interior & Seismic Renovations $16,000,000 2022 Series A Dept. of Administrative Services North Valley Complex Infrastructure Upgrades/Tenant Improvement 30,000,000 2022 Series A Dept. of Administrative Services Portland State Office Building Improvements 3,500,000 2022 Series A Dept. of Revenue Electronic Valuation Information System (ELVIS) 2,000,000 2022 Series A Oregon Military Department Resiliency Grant Fund 5,000,000 2022 Series A Oregon State Police Central Point Office Expansion 23,772,889 2022 Series A Oregon Youth Authority Camp Riverbend Dorm Renovation 1,500,000 2022 Series A Oregon Youth Authority Control Room Renovations 895,000 2022 Series A Oregon Youth Authority JJIS IT System Modernization 4,756,531 2022 Series A Oregon Youth Authority MacLaren Infirmary and Pharmacy Renovation & Expansion 979,000 2022 Series A Oregon Youth Authority MacLaren West Cottages Renovations 4,937,800 2022 Series A Oregon Youth Authority Rogue Valley Facility Improvements 2,443,900 2022 Series A Oregon Youth Authority Tillamook Dorm Renovation 2,000,000 2022 Series A Oregon Health Authority OSH Salem Well Water Treatment Facility 2,395,650 2022 Series A Dept. of Education Oregon School for the Deaf ADA Restrooms 1,024,625 2022 Series A Dept. of Education Oregon School for the Deaf Fire Alarm System Replacement 3,091,923 2022 Series A Dept. of Education Oregon School for the Deaf Windows Upgrade 1,383,452 2022 Series A Oregon Parks & Recreation Department State Parks Capital Improvement and Renewal 25,000,000 2022 Series A Dept. of Fish and Wildlife Capital Improvement and Renewal 5,000,000 2022 Series A Oregon Liquor Control Commission Liquor Warehouse Land & Building 52,537,265 2022 Series A Oregon Liquor Control Commission Liquor Warehouse Management IT System 8,500,000 2022 Series B Oregon Housing and Community Services Department LIFT/Permanent Supportive Housing Programs 175,000,000 TOTAL $371,718,035 2022 Series C Oregon Business Development Department Seismic Rehabilitation Grants – Schools 55,000,000 2022 Series C Oregon Business Development Department Seismic Rehabilitation Grants – Emergency Services Buildings 20,825,000 TOTAL $75,825,000 TOTAL $447,543,035 New Projects Funded by Recently-Sold Conduit Revenue Bonds Series Project Agency Project Name Amount of Bond Proceeds 2022A Housing & Community Services Dept. Fremont Manor Apartments $5,400,000 2022B Housing & Community Services Dept. Kentonwood Dimensions Apartments 4,037,000 2022C Housing & Community Services Dept. Stillwater Crossing Apartments 3,900,000 2022D Housing & Community Services Dept. The Canopy Apartments at Powell 36,500,000 2022E Housing & Community Services Dept. Garden Grove Apartments 6,330,000 2022F Housing & Community Services Dept. Aloha Family Housing Project 16,680,000 2022G Housing & Community Services Dept. Nueva Esperanza Apartments 26,359,717 2022H Housing & Community Services Dept. Good Shepherd Village 31,425,000 2022I Housing & Community Services Dept. Oregon 4 Apartment Projects 23,895,104 2022J Housing & Community Services Dept. Minnesota Place Apartments Project 12,987,074 2022K Housing & Community Services Dept. Moorehouse Apartments Project 7,870,000 2022L Housing & Community Services Dept. Tigard Senior Housing 13,890,000 2022M Housing & Community Services Dept. 148th Apartments 15,500,000 2022O Housing & Community Services Dept. Shore Pines at Munsel Creek Apartments 14,302,000 2022Q Housing & Community Services Dept. Maple Apartments 37,000,000 TOTAL $256,075,895
Contacts
Amy Wojcicki
Treasurer Read’s office
Oregon State Treasury
503-373-7406
Treasurer Read’s office
Oregon State Treasury
503-373-7406
Kasey Krifka
Oregon Savings Network
Oregon State Treasury
503-431-7976
Oregon Savings Network
Oregon State Treasury
503-431-7976
Rachel Wray
Public Information Director
Oregon State Treasury
503-378-5474
Public Information Director
Oregon State Treasury
503-378-5474
