Obama Administration Provides Billions in Nationwide Treasury Bonds, Westchester and Yonkers Each Receive Millions

Washington, D.C--Congressman Eliot Engel announced that Westchester County will be receiving $69,087,000 in Recovery Zone Bonds issued by the U.S. Treasury Department. Specifically, the City of Yonkers will get $13,252,000 million and Westchester County itself receiving an additional $55,835,000. The funds are made available as part of President Barack Obama’s American Recovery and Reinvestment Act (ARRA). Recovery Zone Bonds are targeted to areas particularly affected by job loss.

“These badly-needed funds will help both the City of Yonkers and Westchester County obtain financing for economic development projects, such as public infrastructure development, at lower borrowing costs. At a time where New York State is in dire financial straits, county and local governments are having a difficult time financing projects. That’s where these bonds come in, as they will give Yonkers and all of Westchester a boost at a time when communities need revitalization and people need to find work,” said Rep. Engel.

There are two different types of bonds being received by Yonkers and Westchester. The first is the Recovery Zone Economic Development Bond, which is a taxable Build America Bond which allows state and local governments to obtain lower borrowing costs through a new direct federal payment subsidy (at 45% of the interest) to finance a wide array of qualified economic development projects such as job training and educational programs. Yonkers will receive $5,301,000 and Westchester will receive $22,334,000 of this type of bond.

The other bond is the Recovery Zone Facility Bond. This is a traditional tax-exempt private activity bond, which may be used by private businesses in designated recovery zones to finance many depreciable capital projects. $7,951,000 is designated for Yonkers, while Westchester is earmarked for $33,501,000.

“I want to thank President Obama for having the foresight to include in ARRA such funding which addresses the growing need to strengthen our local economies. Our neighborhood businesses and local governments are the backbone to our nation’s structure. As they go, we all go. We have to start rebuilding our economy and the best way to do that is to ensure that cities such as Yonkers and counties such as Westchester are in sound financial shape,” added Rep. Engel.