The California Housing Finance Agency plans to sell $107.6 million of affordable housing revenue bonds, with most of the proceeds going to refinance already existing debt sold to provide mortgage loans for five multi-family rental housing developments.
The sale includes $67.6 million of Series A-1 non-AMT sustainability bonds, with maturities ranging from 2025 through 2036, according to a document posted Friday on MuniOS. The agency will also sell $40 million in 2024 Series A-2 non-AMT sustainability bonds, maturing in 2064. The A-1 bonds are subject to optional redemption on Feb. 1, 2033, and the A-2 have an optional call date of Aug. 1, 2027.
Retail orders can be placed on Oct. 22, and institutional pricing is scheduled for Oct. 23. The securities are scheduled for delivery on Nov. 14. Initial pricing on the debt was unavailable.
The bonds are limited obligations of the agency, and will be payable from and secured by revenue and assets from the five rental properties.
The California Housing Finance Agency was established in 1975 for the primary purpose of meeting the housing needs of persons or families of low- to moderate-income residents in the state, according to the roadshow document. The agency has helped build or preserve more than 78,000 affordable homes and houses, has provided loans to more than 222,000 first-time home buyers.
The bonds are expected to have ratings of Aa2 from Moody's and AA from S&P Global Ratings.
Morgan Stanley is lead manager for the issuance.
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