By Patrick Sheridan

The New York City Housing Development Corporation will sell approximately $248.4 million in Housing Impact Bonds to fund the rehabilitation of public housing in the Bronx borough of New York City.

The securities will be offered to investors in two separate series, according to a preliminary official statement posted Wednesday on MuniOS. The Corporation will sell $85 million of 2025 Series A Sustainable Development Fixed Rate Bonds that will mature in 2055. These bonds are not subject to the alternative minimum tax. It will also sell $10.2 million in federally taxable 2025 Series B Fixed Rate Bonds with maturities ranging from 2030 to 2037. The Corporation will also offer $153.2 million in federally taxable 2025 Series B Fixed Rate Term Bonds with maturities ranging from 2040 to 2055.

Retail orders can be placed on June 16, and institutional pricing is scheduled for June 17. The securities are expected to be available for delivery on June 24, per the roadshow document accompanying the preliminary official statement.

Interest on the 2025 Series A and B Bonds is payable on Feb. 1 and Aug. 1, commencing on Feb. 1, 2026.

The New York City Housing Development Corporation will use proceeds of the bonds to finance two mortgage loans to NW Bronx Housing Preservation Experience L.P. and NW Bronx OZ Housing Preservation Experience L.P. to pay for a portion of the cost of acquiring, rehabilitating and equipping 1,669 units in 14 tenant-occupied public housing buildings located in the Bronx. The move is part of the conversion of the buildings to multifamily residential facilities receiving housing assistance payments authorized by Section 8, also known as the Housing Choice Voucher program. The program provides assistance to eligible low- and moderate-income families to rent housing in the private market.

The bonds are special revenue obligations of the Corporation payable solely from, and secured by, the revenues and assets pledged including certain payments to be made under or with respect to the mortgages loans.

Moody's Ratings has issued an Aa2 rating on the bonds.

Wells Fargo, Morgan Stanley and Ramirez & Co. are leading the offering.

Write to Patrick Sheridan at patrick.sheridan@wsj.com

(END) Dow Jones Newswires

June 12, 2025 12:50 ET (16:50 GMT)

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