Since Tom Cary took his post in 1984 as treasurer with the Maine State Housing Authority, the agency's borrowing volume has nudged up to roughly $200 million a year. In 1999, unusually high refunding volume accounted for $210 million issuance in municipal debt. But 2000 should be more moderate at about $175 million, Cary said.
But in coping with the private-activity bond cap, the MSHA has mixed taxable with tax-exempt bonds.
"So in the last three years we've sold a fair amount of taxable issues," Cary said.
Typically, the authority sells bonds in the $30 million to $40 million range every two months, although that amount can fluctuate up to $70 million to take advantage of good market conditions, Cary said.
The agency also mixes single- and multifamily bonds, with weightings in single-family bonds amounting to about $150 million a year.
This year there are no major changes to the Housing Authority's program, though Cary continues to hope for legislative improvements.
"We would really benefit from an increase in the bond cap and low-income housing tax credits," he said.
With the recent completion of a request for proposal process, Cary will not reselect underwriters this year. PaineWebber Inc. and Bear, Stearns & Co. rotate as senior managers. However, the selection process is on a two-year rotating schedule, during which Cary seeks firms with strong housing experience and coordination skills.
"We're looking for a firm that has people who can really help us to manage our parity bond resolutions," Cary said. "It's gotten much more complicated, not just selling stand-alone deals."
