County Defaults on Health Facility Bonds.
Position | Washington County, Mississippi - Brief Article - Statistical Data Included |
A tax-exempt revenue bond issued by Washington County, Mississippi, has gone into default due to a developer's poor planning and possible misrepresentation of the project's risk. In 1997, the county issued $18.5 million in bonds to finance an assisted care facility for the elderly. A developer convinced the county to issue the bonds after he received a large investment by a major oil company that would receive $8 million in federal low-income housing tax credits in exchange for an investment of $7 million in the project. The project deteriorated when it was discovered that the facility did not qualify to receive tenants...
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