California's Vallejo starts to recover from the housing crash
Sells about $19 million in water-revenue bonds
Vallejo, Calif., is set to sell about $19 million in water-revenue bonds next week in its first municipal-debt sale since it filed for Chapter 9 bankruptcy in 2008. The city will use the money to refinance outstanding debt after facing severe implications from the housing market crash. Per Bloomberg:
The city “continues to have problems with mortgage defaults, foreclosures and underwater mortgages, which will continue to destabilize the local housing market into the foreseeable future,” offering documents said. Such declines “have put a strain on nearly all of the city’s revenue sources,” according to Vallejo’s 2012 financial report.