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Idaho Sells $237 Mln in Housing Bonds

By Munichain News Desk

An Idaho state authority issued more than $237 million in bonds to finance affordable housing in the state.

The Idaho Housing and Finance Association sold the bonds in three series. The tax-exempt 2023 Series C bonds, consisting of $149 million, mature between 2024 and 2053, yielding between 3.31% and 4.8%. The taxable 2023 Series D-1 bonds, consisting of $76.5 million, mature between 2033 and 2053, yielding between 5.415% and 5.947%. The taxable 2023 Series D-2 bonds, consisting of $11.5 million, were sold at a variable rate and mature on January 1, 2049. Moody’s Investors Service rated the Series C and Series D-1 bonds Aa1 and rated the Series D-2 bonds VMIG1/Aa1.

“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,” according to Moody’s.

The issuance comes amid an increasing legislative focus on building affordable housing in Idaho. In February this year, the state legislature approved a $50 million federal relief program to build more than 1,000 affordable housing units across the state. One month later, the legislature approved an additional $32 million in emergency rental assistance. The bonds issued this week will finance single family mortgages for limited income homebuyers in the state. 

The bonds are special obligations of the association, payable by mortgage revenue.

Barclays Capital Inc served as lead underwriter on the issuance.

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