Atlanta Closes Housing Sale

The Atlanta Development Authority’s housing finance division last week closed on the sale of $9.35 million of multifamily housing revenue bonds to finance the Amal Heights Townhomes project.

The project entails acquiring an existing property and rehabilitation of 192 three-bedroom units, 85% of which are designed as affordable units. The deal is the first tax-exempt bond financing that ADA has funded since 2007 when the credit markets began to weaken.

“Bond investors and syndicators are regaining their confidence in the Atlanta market,” said Dawn Luke, the ADA’s interim director for housing finance. “Because the project is preservation of existing residential units versus new construction, it’s more attractive to investors right now.”

The deal was rated Aaa by Moody’s Investors Service. The bonds were sold by the Atlanta Urban Residential Finance Authority and priced with yields ranging from 3.65% in 2020 to 5.15% in 2050. RBC Capital Markets was the underwriter, Kutak Rock LLP was bond counsel, and Eichner & Norris PLLC represented the underwriter.

Proceeds are being used to purchase mortgage-backed securities on which the full and timely payment of principal and interest is guaranteed by the Government National Mortgage Association.

The project also received $880,000 of Atlanta’s Housing Opportunity Bond proceeds and $1 million from the HOME Investment Partnership Act Funds.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER