MSHDA Board approves issuance of more than $332 million in single family revenue bonds
May 20, 2022
May 20, 2022
MSHDA Board approves issuance of more than $332 million in single-family revenue bonds
Loans will provide low- and moderate-income persons direct access to homeownership
Lansing, Mich. – The Michigan State Housing Development Authority (MSHDA) Board today approved the issuance of $332,305,000 in Single-Family Mortgage Revenue Bonds at its May meeting.
The 2022 Series A, B and C bonds will be used to fund single-family mortgages at lower-than-current market rates and provide down payment assistance loans, making homeownership more attainable for approximately 1,660 families across Michigan.
“The revenue generated from these bonds provides the foundation for the work MSHDA does to serve the people of Michigan and ensure all residents have equitable pathways to quality, attainable housing,” said Jeff Sykes, chief financial officer of MSHDA.
The 2022 Series A Bonds, in the expected amount of $204,135,000, will fund approximately $193 million in single-family mortgages and $12 million in down payment assistance.
The 2022 Series B Bonds, in the expected amount of $78,170,000, will fund approximately $31.4 million in single-family mortgages, while $45 million will go toward refunding outstanding Single-Family Mortgage Revenue Bonds. The remaining proceeds of approximately $592,000 will be used to pay the cost of issuance.
The 2022 Series C Bonds, in the expected amount of $50 million, will be used to fund the purchase of modified single-family mortgages from various bond series within the Single-Family Mortgage Revenue Bond Indenture.
The board also approved a second amendment to MSHDA’s Qualified Allocation Plan. The amendment will allow the Authority to issue $3 million to $5 million in additional Low-Income Housing Tax Credits to developers to help fill funding gaps for projects experiencing construction cost increases, supply chain disruptions and other issues related to the COVID-19 pandemic. There is a $180,000 cap on what each developer can receive[SC(1] .
“At a time when we are aggressively working to increase affordable housing supply, this is a critical step to help our partners find solutions to development challenges and see these projects through to completion,” said Chad Benson, MSHDA’s Rental Development Director.