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CHFA plans to sell $161 million in Tax Exempt Bonds to finance single family mortgages

AAA/Aaa ratings affirmed by S&P and Moody's

Date Posted: Thursday, July 16, 2015
 
Rocky Hill, Conn., July 16, 2015 – The Connecticut Housing Finance Authority (CHFA) plans to offer $161 million in Tax Exempt Bonds next Wednesday July 22, 2015.   Proceeds from the sale of these bonds will be used to finance the Authority’s single-family mortgage program.
“The proceeds from this bond sale will finance mortgages for about 900 first-time homebuyers in Connecticut,” said Norbert Deslauriers, CHFA’s interim executive vice president.  “CHFA’s mortgage programs are targeted to low- and moderate-income borrowers purchasing their first homes.  First-time buyers drive the housing market, so creating opportunities to bring them into the market is vital to strengthen the housing market,” he added.
The current below market interest rates on CHFA mortgages for first-time homebuyers ranges from 3.25 percent to 3.625 percent.  According to Freddie Mac survey on July 16, the average national interest rate is 4.09 percent. Through June of this year, CHFA has financed 1,150 mortgages totaling $194 million, an increase of 22 percent over the same period in 2014.  Since its founding in 1969, CHFA has financed more than 130,000 mortgages for first-time homebuyers.
As a quasi-public self-funded agency, CHFA’s bond program is an important tool for housing finance in the state. In addition to single-family mortgages, bond proceeds are used to finance affordable multifamily rental housing developments, which in turn generate jobs and tax revenue and economic activity in the state. 
CHFA maintains a  AAA rating with Standard & Poor’s and a Aaa rating with Moody’s Investor Services, which allows the Authority to achieve the lowest cost of funds.  Citi is the Lead Senior Manager for the fixed rate offering and RBC Capital Markets is the Senior Manager for the variable rate offering. 
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The Connecticut Housing Finance Authority (CHFA) was created in 1969 by the Connecticut Legislature as a self-supporting quasi-public housing agency charged with expanding affordable housing opportunities for the state’s low- and moderate-income families and individuals. CHFA has helped more than 130,000 Connecticut individuals and families become homeowners through its low-interest single-family mortgage programs. In addition, CHFA has financed the creation of nearly 40,000 affordable, rental units throughout the state. To date, the combined mortgage financing for CHFA’s single-and multifamily housing programs exceeds $11 billion. For more information: http://www.chfa.org