The New York City Housing Development Corp. has scheduled a $312 million sale of multifamily housing revenue bonds through negotiation Thursday, after a one-day retail period.
JPMorgan is lead manager for the Series 2012D bonds.
The bonds will consist of four series: a $147.7 million Series D-1, a $123.2 million Series D-3, a $14.6 million Series D-2 — all of which are fixed rate — and $26.6 million of term-rate Series H-2 bonds.
Proceeds will help finance new residential construction and the rehabilitation of multifamily housing. The HDC, which is financially self-supporting, also lends its own internally generated funds for these purposes.
Moody’s Investors Service on Tuesday affirmed its Aa2/VMIG 1 rating on the H-2 bonds, and its Aa2 on the others. Moody’s based its long-term rating on program strength and the composition and performance of the mortgage loans securing the bonds.
In its short-term rating, Moody’s cited the quality of investments available to pay off the bonds on their mandatory tender dates, should the HDC not remarket them.
Program strengths, according to Moody’s, include minimal delinquencies in its portfolio of 953 permanent and construction loans, and “sophisticated management and portfolio underwriting and oversight.”
Moody’s analysts said the challenges include roughly $1 billion, or 45% of the permanent loan portfolio, consisting of multifamily loans not further secured by mortgage loan insurance and about $241 million or 15% of the construction loans not further secured.
Standard & Poor’s assigns a AA rating.
According to its financial statement, the HDC had $11.7 billion in assets and $10.4 billion in liabilities as of Oct. 31, when its fiscal year ended. Bonds outstanding total nearly $8.5 billion. It owes $1.1 billion payable to mortgagors, deferred income, and accounts and other payables.
Additionally, it owes $818 million to New York City, including construction loan funds administered on behalf of the city’s Department of Housing Preservation and Development and other assets that will ultimately revert to the city through various loan participation and other agreements.
They include loan assets that the corporation now holds and are pledged to pay its bonds, but which will be transferred to the city when the related debt is retired.
