If you build it, they will come: NYC housing deal to fund new construction

The New York City Housing Development Corp. is coming to market this month with $891.75 million of bonds to help back construction of much-needed new housing projects in the city.

The NYC HDC plans to issue $641.75 million of Series 2023A-1, 2023A-2 and 2022G multi-family housing revenue bonds not subject to the alternative minimum tax this week with $250 million set to be issued next week.

Barclays Capital is expected to price the Series 2023A-1, Series 2023A-2 and Series 2022G sustainable development bonds on Thursday after a one-day retail order period starting on Wednesday.

Co-senior managers for the 2023 Series A-1 and A-2 bonds are J.P. Morgan Securities and Loop Capital; Jefferies is the co-senior manager for the 2022 Series G bonds. 

Co-managers for these bonds include Academy Securities, Bancroft Capital, BofA Securities, Citigroup, Morgan Stanley, Ramirez & Co., Raymond James, Roosevelt & Cross, Siebert Williams Shank, TD Securities, UBS and Wells Fargo Securities.

Bond counsel is Hawkins, Delafield & Wood.

TD Securities is expected to price the $75 million of Series 2023A variable-rate sustainable development bonds on June 16 while Loop Capital Markets is set to price $175 million of Series 2023B term-rate bonds on June 15.

“HDC is proud to continue our work in advancing the city’s affordable housing pipeline, while also bringing crucial investments to our city’s public housing stock,” HDC President Eric Enderlin told The Bond Buyer. “This latest bond issuance will deliver much-needed affordable housing and help to alleviate New York City’s housing shortage at a critical moment of need.”

The bonds are rated Aa2 by Moody’s Investors Service and AA-plus by S&P Global Ratings; the variable-rates are rated VMIG-1 by Moody’s and A1-plus by S&P.

The HDC is a public benefit corporation founded in 1971 to finance affordable multi-family rentals for low, moderate and middle income residents. Its mission is to increase affordable rental supply, preserve affordability, revitalize neighborhoods and stimulate economic growth.

Last year, the HDC sold about $2.11 billion of bonds that created 7,782 affordable housing units, the corporation said.

The $173.87 million of Series 2023A-1 bonds consist of $10.95 million of serials, due 2026 to 2035, and $8 million of 2038 term bonds, $15 million of 2043 terms, $18 million of 2048 terms, $33 million of 2053 terms and $33 million of 2058 terms and $55.92 million of 2063 terms.

The $414.235 million of Series 2023A-2 bonds consist of a $216.775 million term bond due in 2063 and a $197.46 million term due in 20563.

The $53.645 million of Series 2022G bonds consist of $7.575 million of serials, due 2027 to 2035, and $4.13 million of 2038 term bonds, $7.125 million of 2043 terms, $8.97 million of 2048 terms, $11.38 million of 2053 terms and $14.465 million of 2058 terms.

The sustainable development bond designation reflects the use of the proceeds consistent with the social bond principles and sustainability bond guidelines of the International Capital Market Association. The HDC didn’t appoint an external review provider to confirm the designation.

Projects and mortgage loans to be supported include the Peninsula Phase II in the Bronx; 1001 Whitlock Avenue in the Bronx; Edgemere Commons Building Bl in Queens; Glenmore Manor in Brooklyn; Astoria Towers I in Queens; Blondell Commons in the Bronx; Wakefield Yards in the Bronx; 2069 Buckner in the Bronx; 37 Hillside Avenue in Manhattan; and Bedford Union Armory in Brooklyn.