New Hampshire’s National Finance Authority issued $270 million in bonds to finance affordable housing across the United States.
The authority sold the bonds in two series. The Series 2023-2 Class A Certificates yield 4.649%, and the Series 2023-2 Class X Certificates yield 7.171%. Both series mature on January 20, 2038. The securities received a rating of BBB from S&P Global Ratings.
The certificates will finance the authority’s purchase of affordable housing loans originated by Citibank. The loan portfolio includes 17 loans and one housing revenue bond. Together, the debt finances 24 multifamily affordable housing properties in nine states.
“The issuer is issuing its Class A Certificates and Class X Certificates which, combined, represent the entire beneficial ownership interest in the Portfolio Assets,” according to the official statement accompanying the sale of the bonds.
The authority issued the bonds amid a national crunch in the availability of affordable housing. There is a countrywide shortage of more than 7 million affordable homes for extremely low-income Americans, according to the National Low Income Housing Coalition, a nonprofit that advocates for affordable housing.
The bonds will finance multifamily affordable housing in Colorado, Florida, Nevada, New Jersey, North Carolina, Oregon, South Dakota, Texas, and Washington. The largest sum will go to Nevada, where $96 million will be directed toward three affordable housing projects.
The National Finance Authority is run by the state of New Hampshire, but it is encouraged by state law to operate outside the state’s borders. State legislation provides that “the policy of the state of New Hampshire is to provide for the establishment, support, preservation and redevelopment of business and industry, whether or not operated for profit, located outside the state of New Hampshire.”
Citigroup Global Markets Inc served as lead underwriter on the issuance, purchasing the bonds for $262 million.