New Orleans Mayor-elect Mitch Landrieu said he would seek an extension of the Gulf Opportunity Zone bond program when he meets with Obama administration officials and congressional leaders this week in Washington.
GO Zone bonds must be issued by Dec. 31, which is when the federally authorized program is set to expire. Landrieu said an extension of the program is important to the ongoing recovery efforts in New Orleans.
Congress allocated $7.84 billion of the tax-exempt private-activity bonds to Louisiana, which were available to be used in 31 parishes.
The State Bond Commission set aside $3.54 billion of the authorization for projects in 11 parishes that suffered the most damage from the 2005 hurricanes, including Orleans Parish.
However, that allocation expired on Jan. 1 with $1.1 billion remaining in the dedicated pool, which means projects in New Orleans must compete with requests for GO Zone bonds from sponsors in all 31 parishes.
Landrieu will remain as Louisiana’s lieutenant governor until he is sworn in as New Orleans’ mayor on May 6.
