New York Construction Report staff writer
New York City Mayor Eric Adams and Comptroller Brad Lander have announced plans to issue approximately $820 million in taxable, fixed-rate “General Obligation Social Bonds” in October 2024. The proceeds will fund the construction of over 4,300 affordable housing units, continuing the city’s commitment to address housing needs across all five boroughs.
“Social bonds are an essential mechanism to support affordable housing projects throughout the city. This third issuance is a testament to our focus on aligning investor demand with our social objectives, ensuring that we preserve and create genuinely affordable housing,” Lander said.
This upcoming issuance marks the city’s third series of social bonds since 2022, generating $1.9 billion to date, which has helped finance nearly 12,800 affordable housing units. Each transaction has received positive evaluations from S&P Global Ratings, confirming compliance with the International Capital Markets Association’s Social Bond Principles.
The city has recorded a record year for affordable housing production and next year’s budget allocates an additional $2 billion for the New York City Department of Housing Preservation and Development (HPD) and the New York City Housing Authority, raising the city’s total investment in affordable housing to $26 billion over the current 10-year plan with a goal of building 500,000 new homes by 2032.
Also, about $680 million will be issued in non-labeled taxable fixed-rate bonds to fund various capital projects.
Pricing for both the social and non-labeled bonds is set for Oct. 9, 2024, and will be conducted through an underwriting syndicate led by BofA Securities and Blaylock Van, with several co-senior managers participating.
