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Virginia Sells $177 Mln in Housing Bonds

By Munichain News Desk

The Virginia Housing Development Authority issued $177.1 million in bonds to finance affordable housing developments in three counties.

The bonds mature between 2026 and 2065, paying interest at rates between 3.15% and 4.9%. They received a rating of AA+ from S&P Global Ratings and Aa1 from Moody’s Investors Service.

The rating reflects the authority’s “very strong financial performance” as well as its “sizable unrestricted net assets available to cover general obligations, and successful operational and debt management track record,” Moody’s analysts wrote.

The bond proceeds will fund mortgage loans for six developments across Fairfax, Henrico, and Richmond counties. The six developments will contain around 1,000 housing units.

The issuance comes amid an overall slowdown in loan-making by the authority. Last year, the authority projected that it would make about half as many loans as the year prior, the Richmond Times-Dispatch reported. The authority projects making even fewer loans in fiscal year 2024 as still-high interest rates keep borrowing costs inflated.

Meanwhile, the need for affordable housing in Virginia continues to grow. The state’s housing costs are near all-time highs, and its housing shortage has reached more than 100,000 homes, according to a report by the advocacy group Up For Growth.

The bonds are general obligations of the authority, backed by its full faith and credit.

BofA Securities, Inc served as lead underwriter on the issuance. 

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