The Idaho Housing and Finance Association (IHFA) issued $206.8 million in federally taxable bonds to finance the purchase of mortgage-backed securities.
The bonds mature between 2033 and 2054, yielding between 5.385% and 6.16%. The securities received a rating of Aa1 from Moody’s Investors Service.
“The Aa1 rating on the Bonds is largely based on anticipated strong bondholders security, consisting of mortgage backed securities (MBS) and a limited portfolio of whole loans, and management’s active role and oversight,” Moody’s analysts wrote.
The issuance comes amid statewide efforts to increase Idaho’s supply of affordable housing. Earlier this year, the IHFA disbursed $28 million to build more than 1,000 affordable apartments.
The funding contained the requirement that some units be built in rural areas, though most affordable housing will be constructed in Boise, the state’s biggest city. The maximum income for an affordable IHFA-funded unit in Ada County, which contains Boise, will be $49,950 for one person and $57,050 for two people, according to the U.S. Department of Housing and Urban Development. Rents are capped around $1,600.
The IHFA is an Idaho instrumentality designed to provide affordable housing for low-income Idahoans. The bonds are special obligations of the association, payable by MBS revenue.
Barclays Capital Inc served as underwriter on the issuance.