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 White Plains, NY - Congresswoman Nita Lowey (D-Westchester/Rockland) announced the City of Yonkers and Westchester and Rockland Counties will receive $83 million in Recovery Zone Bonds.
Created by the American Recovery and Reinvestment Act, Recovery Zone Bonds will help local governments obtain financing for economic development projects, such as public infrastructure development, at lower borrowing costs.
“State and local governments have been severely affected by the economic downturn, as have the individuals who rely on the benefits and services they provide,” said Lowey. “Recovery in our communities will require helping state and local governments finance economic development projects that create jobs and improve our neighborhoods. These innovative financing mechanisms will help lower the cost for undertaking projects that will help our economy and communities in the short and long term.”
The Recovery Act included $25 billion for Recovery Zone Bonds – $10 billion for Recovery Zone Economic Development Bonds and $15 billion for Recovery Zone Facility Bonds.
· Recovery Zone Economic Development Bonds allow state and local governments to lower borrowing costs through a direct federal payment subsidy (45 percent of interest) to finance economic development projects like job training and educational programs.
· Recovery Zone Facility Bonds may be used by private businesses in designated recovery zones to finance a broad range of depreciable capital projects.
The City of Yonkers will receive:
· $5,301,000 in Recovery Zone Economic Development Bonds; and
· $7,951,000 in Recovery Zone Facility Bonds.
Westchester County will receive:
· $22,334,000 in Recovery Zone Economic Development Bonds; and
· $33,501,000 in Recovery Zone Facility Bonds.
Rockland County will receive:
· $5,715,000 in Recovery Zone Economic Development Bonds; and
· $8,572,000 in Recovery Zone Facility Bonds.
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