The Connecticut Housing Finance Authority intends to offer up to $63 million in fixed-rate bonds on Tuesday and $23 million as variable rate on July 13. Both offerings are tax-exempt.
Proceeds will finance four affordable multifamily rental developments: Kensington Square I in New Haven, Pine Tree Apartments in Fairfield, The Lofts at Ponemah Mills in Norwich and Zbikowski Park in Bristol.
They total 376 units with 325 units available for renters earning 60% of area median income or below.
According to an authority official, the bonds will provide construction and permanent financing for these developments and refund prior high-interest rate bonds.
"The proceeds from this bond sale will allow us to finance the rehabilitation and renovations of existing housing across the state, as well as the preservation and conversion of an abandoned, historic mill into affordable housing," said Hazim Taib, CHFA vice president for finance.
S&P Global Ratings and Moody's Investors Service rate the bonds AAA and Aaa, respectively.
Bond proceeds also finance affordable mortgages for low- to moderate-income first-time homebuyers. Rocky Hill-based CHFA has already issued $374 million in bonds in 2016 to finance single family residential mortgages and continues to offer below market interest rate to qualified Connecticut residents.
RBC Capital Markets is the lead underwriter. Kutak Rock LLP, Hawkins Delafield & Wood LLP and Hardwick Law Firm LLC are co-bond counsel.
Lamont Financial Services Corp. is CHFA's financial advisor.