Far West

The U.S. Department of Housing and Urban Development has launched an investigation into the Los Angeles Housing Authority, according to published reports.

The San Diego Association of Governments approved the $345 million purchase of a bankrupt toll road from a private operator at its Dec. 16 board meeting.

The rating on $481.6 million of general obligation bonds issued by Palomar Pomerado Health was dropped one notch to A-plus on Dec. 23.

The California Supreme Court upheld a law that would allow the dissolution of the state's redevelopment agencies, but struck down a bill that would have allowed the agencies to remain in business if they were willing to pay a percentage of their income into a fund to help pay the state's education costs.

The coming year could herald the most significant regulatory changes in the municipal securities market in more than 35 years.

Federal legislation modeled after the Gulf Opportunity Zone Act of 2005 that would assist states devastated by tornadoes and floods in early 2011 is pending in Congress.

Transportation officials and lobbyists will be watching Capitol Hill early next year, hoping lawmakers pass long-term reauthorization legislation funding aviation and surface programs that would bring much-needed stability to the sectors.

State and local governments will be able to issue a total of $32.821 billion of private-activity bonds under a national volume cap next year — 1.2% or $379.96 million more than in 2011.

GE Funding Capital Market Services Inc. has agreed to pay more than $70 million to settle antitrust, securities fraud, tax and other charges with the Securities and Exchange Commission and other regulators and law enforcement authorities for rigging bids on at least 328 muni bond reinvestment contracts in 44 states and Puerto Rico over five years, officials said Friday.

The Southern California Logistics Airport Authority has defaulted on more bonds after discovering it can't use reserves to make principal payments for some of its debt.