While Many Areas of California Falter, San Francisco’s Bond Rating May Go Up!
Moody’s Investors Services, a rating agency, is looking to downgrade many cities in California, but may look to upgrade San Francisco’s bond rating! This could decrease the cost of the city’s borrowing, which could make capital bond projects undertaken by the city of San Francisco less expensive to complete. Projects like:
2012 SAN FRANCISCO CLEAN & SAFE NEIGHBORHOOD PARKS BOND PROPOSAL
- $99 million for Neighborhood Parks, selected based on community feedback, their physical condition, the variety of amenities offered, seismic safety risk, and neighborhood density
- $34.5 million for Waterfront Open Spaces
- $15.5 million for Failing Playgrounds
- $12 million for the Community Opportunity Fund
- $21 million for Golden Gate Park, Lake Merced, and McLaren Park
- $13 million for forestry, trails, and water conservation
San Francisco General Hospital Rebuild Program
- $887.4 million. In November 2008, San Francisco voters overwhelmingly passed Proposition A; which allows for funding of this rebuild through general obligation bonds.
An upgrade to San Francisco’s bond rating would be great for the city, and is the culmination of the myriad choices made by local government and city residents as a whole that force careful consideration of how the landscape of the city changes over time. It is not easy to build in San Francisco, and the laws surrounding tenant’s rights are very strong. Many property owners have felt both these realities in very personal ways, including myself, but it seems to me it is the many voices present in the city that keeps our housing market stable. For many it already seems like home prices are through the roof, but if there weren’t barriers to growth the boom times would see an explosion in prices followed by the inevitable implosion that many California cities have experienced in the past few years: Stockton, San Bernardino and Mammoth Lakes have all declared bankruptcy this year. For most California cities feeling the pain it is because their housing markets grew at a rates that could not be maintained causing a radical reduction in the tax base during the Great Recession.
San Francisco is a great city in which to own property! When I see the number of cash buyers flooding into our real estate market I know they are feeling the same way; with no return coming from bank deposits and so much uncertainty in the equity markets, owning real estate in San Francisco has become very attractive.
What are your thoughts?