By Josh Beckerman

The New York City Housing Development Corp. plans to sell at least $398 million of sustainable development bonds, with proceeds slated for financing construction mortgage loans and permanent mortgage loans.

The corporation plans to sell $269.5 million of Series F-1 bonds and $128.2 million of Series F-2 bonds, according to documents posted Wednesday on MuniOS. Series H bonds for an unspecified amount will also be sold.

Retail investors can place purchase the securities on Dec. 4, and institutional pricing is scheduled for Dec. 5. The securities are expected to be delivered Dec. 17.

Bond counsel's opinion is that the bonds are tax-exempt.

The Series F-1 and F-2 bonds are categorized as sustainable. The Series F-1 securities include six term bonds with maturities ranging from 2039 through 2064, including a $151.45 million bond due in 2054. Series F-1 includes $20 million of serial bonds with maturities of 2028 through 2036.

Series F-2 consists of a $128.2 million term bond due in 2064.

The bonds are special revenue obligations of the corporation payable solely from revenue available under the Open Resolution, the corporation's primary financing program for affordable housing. This includes revenue from mortgage loan payments.

Created in 1971, the corporation's mission is to finance affordable rental multi-family housing for low-, moderate-, and middle-income residents of New York City, according to the roadshow document. The corporation has sold $1 billion of Open Resolution bonds and finance 5,635 units of affordable housing so far in 2024.

The Series F-1 and F-2 bonds have ratings of Aa2 from Moody's Ratings and AA+ from S&P Global Ratings, according to the roadshow document. The Series H bonds will have a rating of Aa2/VMIG 1 from Moody's and A-1+ from S&P.

Jefferies is the senior managing underwriter, and Morgan Stanley and Wells Fargo are the co-senior managing underwriters, on the Series F-1 and F-2 bonds. Jefferies is the sole underwriter on the Series H bonds.


Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

11-27-24 1911ET