The Pennsylvania Housing Finance Agency (PHFA) issued $409.6 million in bonds to help Pennsylvania homebuyers purchase affordable homes.
The agency sold the bonds in two series. The series of tax-exempt bonds, consisting of $389.4 million, mature between 2034 and 2053, yielding between 4.7% and 6.25%. The series of federally taxable bonds, consisting of $20.2 million, mature between 2038 and 2043, yielding between 6.381% and 6.458%. The securities received a rating of Aa1 from Moody’s Investors Service and AA+ from S&P Global Ratings.
The rating reflects the “sustained expansion and prudent management” of the agency’s bond program, Moody’s analysts wrote.
Housing costs have risen rapidly across Pennsylvania in recent years, driving state lawmakers and officials to develop plans to tackle an affordable housing shortage. More than a quarter or renter households in the state are extremely low-income, according to the National Low Income Housing Coalition, a nonprofit that advocates for affordable housing.
At a hearing focused on solutions for the “affordable housing crisis” in March, State Representative Ismail Smith-Wade El said “there is not a corner” of Pennsylvania that is not feeling the effects of a lack of affordable housing.
The bond proceeds will fund the agency’s purchase of mortgage loans for affordable single family residences.
The PHFA provides down payment assistance loans and mortgages to low- and moderate-income Pennsylvanians. The bonds are general obligations of the agency, payable by revenue from its mortgage loan portfolio.
Wells Fargo Securities served as lead underwriter on the issuance.