The Wisconsin Housing and Economic Development Authority (WHEDA) issued $190 million in bonds to finance a program designed to bolster access to affordable housing.
The bonds mature between 2027 and 2054, paying interest at rates between 3.25% and 6%. They received a rating of Aa2 from Moody’s Investors Service and AA+ from S&P Global Ratings.
The rating reflects the authority’s “favorable portfolio performance, shift to mortgage-backed securities and relatively low delinquencies on mortgage loans,” Moody’s analysts wrote.
The bond proceeds will fund the purchase of mortgage-backed securities backed by pools of mortgage loans for low- and moderate-income Wisconsin residents.
Wisconsin has a growing dearth of affordable and available rental homes. To close the gap between housing need and availability, the state needs to build 120,000 more rental units, WHEDA CEO Elmer Moore said at a hearing last year.
Some efforts to build affordable housing have become bogged down in political disputes over issues such as zoning. However, some proposals, including increasing WHEDA’s ability to offer loans, have been met with bipartisan approval.
WHEDA offers home-buying loans to low- and moderate-income Wisconsin residents. The bonds are general obligations of the authority, secured by revenue from mortgage loans.
RBC Capital Markets LLC served as lead underwriter on the issuance.