The Georgia Housing and Finance Authority sold $130.1 million in bonds to finance affordable housing initiatives in the state.
The single-family mortgage bonds (SFMB) mature between 2024 and 2051, yielding between 3.8% and 5.25%. They received a rating of AAA from S&P Global Ratings.
“The rating reflects our view of the SFMB program’s legal framework, program management and operational risk assessment, overcollateralization and cash flows, liquid reserves, and market position characteristics,” S&P analyst Aulii Limtiaco said in a press release.
The issuance comes amid a shortage of available and affordable housing in Georgia, leading state authorities and officials to respond with efforts to bolster funding for it. The bond proceeds will finance mortgage loans for low- and moderate-income single-family homebuyers in Georgia.
Georgia lawmakers and advocates have agreed on the need to establish more affordable housing initiatives, but few bills have passed the state legislature. Earlier this month, Georgia officials announced that they would reopen an affordable housing voucher program for the first time since 2021.
The Georgia Housing and Finance Authority originates mortgage loans for low-income homebuyers. The bonds are general obligations of the authority, payable by its revenue.
Raymond James & Associates, Inc and Citigroup Global Markets Inc served as lead underwriters on the issuance.