Massachusetts Housing Finance Agency Issues $193.5 Million in Social Bonds for Affordable Housing Initiatives

Massachusetts Housing Finance Agency (MassHousing) is offering $193.5 million in single-family housing revenue bonds to support affordable housing initiatives in the state. The bonds will finance new mortgage loans and replace/refund certain previously issued bonds. The offering is divided into four tranches, with ratings ranging from "Aa1" to "AA+" from Moody's and S&P.

The Massachusetts Housing Finance Agency (MassHousing) has announced the issuance of $193.5 million in single-family housing revenue bonds to support affordable housing initiatives in the state. The bonds, which will finance new mortgage loans and replace/refund certain previously issued bonds, are part of MassHousing's ongoing efforts to enhance housing stability and affordability.

The offering is divided into four tranches, each with different financial characteristics and tax implications. The Series 245 tranche, consisting solely of serial bonds, totals $4.1 million and is exempt from federal tax. The Series 246 tranche, made up of both serial and term bonds, amounts to $60.7 million and is also federally tax-exempt. The Series 247 tranche, which includes serial and term bonds, totals $78.6 million and is federally taxable. The Series 248 tranche, consisting entirely of variable rate demand term bonds, amounts to $50 million and is federally taxable.

The bonds are secured by a pledge of revenues, loans, and funds and accounts, and they do not constitute an obligation of the Commonwealth of Massachusetts. Moody's has assigned a rating of "Aa1" to the fixed-rate bonds and a rating of "Aa1/VMIG1" to the Series 248 bonds. S&P has given a rating of "AA+" to the fixed-rate bonds.

The retail order period for the Series 245, Series 246, and Series 247 bonds is Aug. 11, with institutional pricing set for Aug. 12. The Series 248 bonds will price on Sept. 3 and are expected to be delivered on Sept. 4. Morgan Stanley and BofA Securities are listed as the offering's lead managers.

MassHousing provides a range of services, including affordable home-mortgage loans, down-payment assistance, and educational programs for homebuilders. The agency's mission is to improve housing stability and promote economic development through innovative financing solutions.

[1] https://www.masshousing.com/
[2] https://www.marketwatch.com/story/masshousing-to-offer-193-5m-in-social-bonds-to-support-affordable-housing-c3a1150b