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Nevada Sells $80 Mln in Housing Bonds

By Munichain News Desk

The Nevada Housing Division issued $79.5 million in bonds to finance affordable housing initiatives in the state.

The division sold the bonds in two series. The tax-exempt Series 2024A bonds, consisting of $30 million, mature between 2034 and 2054, paying interest at rates between 3.7% and 4.75%. The taxable Series 2024B bonds, consisting of $49.5 million, mature between 2024 and 2054, bearing interest at rates between 4.875% and 6.25%. The securities received a rating of AA+ from S&P Global Ratings.

The bond proceeds will fund the division’s affordable housing programs, including mortgage origination and down payment assistance for low- and moderate-income homebuyers.

Nevada is contending with a surge in housing prices that mirror similar increases across the United States. Home prices in the state were up 6.1% year-over year in January, according to real estate brokerage Redfin. U.S. home prices were up 5.2% in the same period.

The Nevada state legislature created the Housing Division in 1975 to resolve a housing shortage. The bonds are special, limited obligations of the division, payable by its revenue.

J.P. Morgan Securities LLC served as underwriter on the issuance, purchasing the bonds for $80 million. PFM Financial Advisors LLC acted as municipal advisor.

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