California on Wednesday reallocated $600 million of private activity bonds formerly awarded to Fortress Investment Group’s Las Vegas tourist train to affordable housing needs, a win for developers trying to ease the state’s severe shortage of homes.
The company’s Brightline West venture earlier this year had received its entire request of the limited resource, as well as bonds from Nevada, and offered as much as $3.2 billion of debt leveraged from the allocations. But it failed to get enough investors on board, letting California reclaim the bonds.
