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Strong Retail Response to CHFA Bond Sale -- $30.1 million in Tax Exempt Bonds will Finance Affordable Multifamily Rental Housing

Date Posted: Thursday, December 17, 2015
 
Rocky Hill, Conn., December 17, 2015 – The Connecticut Housing Finance Authority (CHFA) sold $30.1 million in Tax Exempt Bonds on December 1, 2015. The response from retail investors was robust, a recognition CHFA’s reputation and financial strength. “Due to heavy demand from retail investors and a rally in the treasury market, we were able to sell the bonds at a much lower interest rate. On CHFA’s 10-year bond alone, we saved about 0.16%,” said Hazim Taib, CHFA’s vice president-Finance. The $30.1 million bonds, together with $30.2 million directly placed with Bank of America, will be used to finance six affordable multifamily rental developments: Billings Forge, Hartford; Charles Street Apartments, in Meriden; Frost Homestead, Waterbury; Laurelwood Apartments, Bridgeport; Old Talcott Mill, Vernon; and Trinity Park in Stamford. These developments will add 488 units to the state’s inventory of affordable rental housing, while creating more than 450 new jobs. With Governor Malloy’s commitment to affordable housing, Connecticut is building affordable housing at an unprecedented pace in Connecticut. Since 2011, more than 7,000 units of affordable multifamily rental housing have been built or rehabbed, with another 3,000 units currently under construction, and 6,800 more approved for financing. In addition to affordable multifamily rental housing, CHFA has issued over $400 million in 2015 to finance mortgages at below-market interest rates for low to moderate-income first-time homebuyers. As of December 17, CHFA was offering interest rates as low as 3.125%. In comparison and according to Freddie Mac, the average conventional rate was 3.95%. Hawkins, Delafield & Wood LLP, Kutak Rock LLP and Lewis & Munday are acted as co-bond counsel. Underwriters are represented by Tobin, Carberry, O’Malley, Riley & Selinger PC. Lamont Financial Services Corporation is serving as Financial Advisor to CHFA. The lead underwriter was J.P. Morgan. 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.