Oregon sold $147.7 million in bonds to finance affordable housing in the state.
The state sold the bonds in two series. The taxable 2023 Series C bonds, consisting of $127.7 million, mature between 2025 and 2053, yielding between 5.295% and 6.25%. The tax-exempt 2023 Series D bonds, consisting of $20 million, mature on September 28, 2024, and yield 3.55%. The securities received a rating of Aa2 from Moody’s Investors Service.
The rating reflects a “satisfactory loan portfolio characteristics, improved loan performance and the oversight of a capable and active management team,” according to Moody’s.
The issuance comes as homelessness soars in Oregon, especially in the city of Portland. The governor’s office has reported a 63% increase in the number of people experiencing homelessness over the past six years. At least 18,000 Oregonians do not have a home, 62% of which are unsheltered.
About a third of homeless people in Oregon live in Portland, where there are far too few shelter beds to accommodate the increasing homeless population. Tent encampments populate almost every neighborhood. Portland Mayor Ted Wheeler has called homelessness “the humanitarian crisis of our lifetime.”
The state will use the bond proceeds to purchase newly originated mortgage loans and provide assistance with closing costs and down payments for low- and moderate-income Oregonians. The bonds are aimed at increasing the states’ stock of affordable homes.
The bonds are special revenue obligations of the state, secured by mortgage revenue.
J.P. Morgan Securities LLC served as lead underwriter on the issuance, purchasing the Series C bonds for $128.5 million and the Series D bonds for par.