The Louisiana Housing Corporation issued $111 million in bonds to finance affordable housing initiatives.
The corporation sold the bonds in two series. The tax-exempt Series 2024A bonds, consisting of $100 million, mature between 2034 and 2055, paying interest at rates between 3.75% and 5.875%. The taxable Series 2024B bonds, consisting of $11 million, mature between 2025 and 2055, carrying interest at rates between 4.77% and 5.9%. The securities received a rating of Aaa from Moody’s Investors Service.
The bonds will back the corporation’s home ownership program for low- and moderate-income Louisianans. Moody’s analysts wrote that their rating is “based on the program’s sound financial performance.”
The issuance comes amid a shortage of more than 100,000 affordable and available rental homes for extremely low-income renters, according to the National Low Income Housing Coalition, an advocacy group. Meanwhile, affordable housing development has been stifled by high property insurance premiums, which have risen in the aftermath of two severe hurricane seasons in 2020 and 2021. In vulnerable areas such as New Orleans, some insurance rates have tripled in the past four years, NOLA.com reports.
The corporation will use the bond proceeds to buy mortgage-backed securities collateralized by mortgages that it originates.
The Louisiana Housing Corporation offers mortgages “to ensure that every Louisiana resident is granted an opportunity to obtain safe, affordable, energy-efficient housing,” according to the corporation’s website. The bonds are limited obligations of the corporation, secured by mortgage-backed securities.
Raymond James & Associates, Inc served as lead underwriter on the issuance. Government Consultants, Inc acted as municipal advisor.