Pomona : City Benefits in Bond Sale

The sale of $82 million worth of bonds to provide low-interest mortgage money for first-time home buyers has failed to live up to expectations, but Pomona will make about $2.5 million on the transaction, city Treasurer Daniel Hempel told the City Council this week.

Hempel said the financing offer failed to attract many home buyers because low-interest mortgages were also available through conventional lenders. The bonds were sold in 1990, and by the time the program was set up, interest rates in the lending industry had begun a steep decline.

But from its profit on investment of the bond proceeds, Hempel said, the city will net an estimated $2.5 million after the costs of issuing and redeeming the bonds.