The New York State Housing Finance Authority (HFA) issued $131.8 million in bonds to finance affordable multifamily rental housing developments.
The authority sold the bonds in two series, with maturities between 2024 and 2063 and yields between 3.35% and 5.05%. The securities received a rating of Aa2 from Moody’s Investors Service, which assigned a stable outlook.
The State of New York Mortgage Finance Agency Mortgage Insurance Fund Project Pool Insurance Account and other state agencies are providing credit support for the bonds. The securities were issued under the HFA’s 2007 General Resolution, which authorizes mortgage loans for affordable housing developments.
“The stable outlook is based on our expectation that the overall credit quality of the credit support providers will not vary significantly and that management will continue to pledge mortgage loans under the Resolution with credit support providers of similar or higher credit quality,” Moody’s analysts wrote.
The issuance comes amid rising homelessness in New York, and increasing legislative interest in affordable housing initiatives. Last year, Governor Kathy Hochul announced a five-year housing plan with the goal of creating more than 100,000 units of affordable housing. There are more than 90,000 homeless people living in New York, 50% more than in 2007, according to the National Alliance to End Homelessness, a nonprofit.
The bond proceeds will fund six mortgage loans for the construction or rehabilitation of six affordable multifamily housing developments, according to the official statement accompanying the sale of the bonds. The loans are expected to create or rehabilitate 941 affordable housing units in four counties: Broome, Erie, Kings, and Niagara. All of the projects financed by the loans will be required to meet energy efficiency standards in line with the state’s “green building” requirements.
The selected counties are some of New York’s most populous. Kings County includes all of Brooklyn, Erie County and Niagara County include Buffalo and many of its surrounding suburbs, and Broome County includes Binghamton.
The bonds are special revenue obligations of the HFA, payable by mortgage revenue from programs under the General Resolution.
Barclays Capital Inc served as lead underwriter on the issuance, purchasing the bonds for par. Caine Mitter & Associates Incorporated acted as financial advisor.