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New York Sells $150 Million in Housing Bonds

By Munichain News Desk

The New York State Housing Finance Agency (HFA) issued $149.6 million in bonds to finance sustainable and affordable housing initiatives in the state.

The agency sold the bonds in two series. The 2023 Series D-1 bonds consist of $14.9 million and mature between 2024 and 2063. The 2023 Series D-2 bonds consist of $134.7 million in term bonds due on November 1, 2062; however, they have a mandatory tender date of November 1, 2028. The securities received a rating of Aa2 from Moody’s Investors Service.

The agency designated the bonds as sustainable for their role in financing “multi-family rental housing projects that are expected to provide affordable housing and are expected to include energy efficiency standards and features,” according to the official statement accompanying the sale of the bonds.

The bond proceeds will finance mortgage loans to developers for the construction, acquisition, and rehabilitation of multi-family rental housing. As of April 2023, the agency has financed almost $9 billion in such loans, according to the bond documents. 

The issuance comes as rents soar in New York City. The median New York household now spends almost 70% of the median American income on rent. That has left millions of New Yorkers rent-burdened. 

The New York State Housing Finance Agency is a public benefit corporation tasked with financing housing for low- and moderate-income New Yorkers. The bonds are special revenue obligations of the agency, payable by mortgage loans.

Ramirez and Co, Inc served as lead underwriter on the issuance.

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