← Back to Latest News

Illinois Issues $345 Miln in Housing Bonds

By Munichain News Desk

The Illinois Housing Development Authority (IHDA) sold $344.6 million in bonds to finance affordable housing initiatives.

The authority issued the bonds in two series. The tax-exempt 2024 Series C bonds, consisting of $116.1 million, mature between 2025 and 2054, yielding between 3.45% and 6.25%. The taxable 2024 Series D bonds, consisting of $228.5 million, also mature between 2025 and 2054, and pay interest at rates between 5.044% and 6.25%. The securities received a rating of Aaa from Moody’s Investors Service.

Moody’s analysts wrote that their rating is based on “high-quality collateral,” as well as “a robust legal structure, cash flow projections that demonstrate sufficient revenues for timely debt service payments, and a strong oversight from IHDA’s experienced management team.”

IHDA will use the bond proceeds to finance several programs aimed at boosting housing in Illinois. These include the purchase of mortgage-backed securities—the collateral referred to by Moody’s—as well the issuance of down payment assistance loans for low- and moderate-income residents of the state.

Illinois has one of the largest housing shortages in the United States, according to the Illinois Housing Council (IHC), a nonprofit that advocates for affordable housing. IIHC estimates that the state needs more than 300,000 affordable rental homes. 

The bonds are special limited obligations of the authority, secured by its revenue. The authority generates revenue in part from its portfolio of mortgage-backed securities purchased from national lenders Ginnie Mae, Fannie Mae and Freddie Mac.

J.P. Morgan Securities LLC served as lead underwriter on the issuance, purchasing the bonds for $349.2 million. The price reflected a premium of $4.6 million. Caine Mitter & Associates Inc acted as financial advisor.

Subscribe to the Munichain Newsletter

The latest municipal bond market news and insights delivered to your inbox.