Investors eagerly gobbled up the $30.1 million tax-exempt bond issue the Connecticut Housing Finance Authority floated earlier this month to fund affordable multifamily housing in communities in the state’s central region, authorities say.
The quasi-public CHFA, responsible for financing affordable and senior housing and single-family mortgages to qualified state residents, said Thursday the “robust” response reflected its reputation and top-shelf credit ratings.
The tax-exempt issue was done in tandem with a separate, $30.2 million bond placement directly with Bank of America.
“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,” said Hazim Taib, CHFA’s vice president-finance. “On CHFA’s 10-year bond alone, we saved about 0.16 percent.”
Proceeds from the $60.3 million debt issue will be parceled out to fund six affordable-housing developments totaling 488 units: Billings Forge, Hartford; Charles Street Apartments, in Meriden; Frost Homestead, Waterbury; Laurelwood Apartments, Bridgeport; Old Talcott Mill, Vernon; and Trinity Park in Stamford.
Hawkins, Delafield & Wood LLP, Kutak Rock LLP and Lewis & Munday acted as co-bond counsel.
Underwriters were represented by Tobin, Carberry, O’Malley, Riley & Selinger PC. Lamont Financial Services Corp. served as CHFA’s financial advisor. The lead underwriter was J.P. Morgan.