The New York City Housing Development Corporation (HDC) sold $322.3 million in bonds to finance affordable housing initiatives.
The corporation issued the bonds in two series. The 2024 Series A-1 bonds, consisting of $131.5 million, mature between 2025 and 2063, paying interest at rates between 3.3% and 4.9%. The 2024 Series A-2 bonds, consisting of $190.8 million, mature in 2063 (with a mandatory tender in 2028) and yield 3.625%. The securities received a rating of AA+ from S&P Global Ratings and Aa2 from Moody’s Investors Service.
The bond proceeds will support the corporation’s mortgage-loan program, which funds affordable developments in New York City.
Moody’s analysts wrote that their rating is based on the “strong financial position of the program.”
The HDC seeks to increase the supply of affordable multifamily housing, stimulate economic growth, and revitalize neighborhoods, according to its website.
The corporation’s most recent development, a 22-story tower in the Brooklyn neighborhood of Greenpoint, opened last week. It will include 374 affordable apartments, targeted at low-income and extremely low-income New Yorkers. Households eligible for the units earn between 30% and 110% of area median income, equal to between $17,060 and $158,510 per year.
The bonds are special obligations of the corporation, payable by revenue from multifamily mortgages created under its program.
J.P. Morgan Securities LLC served as lead underwriter on the issuance.