By Zaeem Shoaib
The Massachusetts Housing Finance Agency plans to sell $147 million of social bonds, with the proceeds slated to provide financing for certain first-time homebuyers.
The agency will issue $62.7 million, $34.3 million and $50 million of Series 249, Series 250 and Series 251 social bonds, respectively, according to documents posted Friday on MuniOS. Series 249 bonds are due Dec. 1, 2040 to Dec. 1, 2055, Series 250 bonds are due Dec. 1, 2026 to June 1, 2038, and Series 251 bonds are due Dec. 1, 2055.
The Series 249 debt isn't subject to the federal alternative minimum tax, but the other two series are federally taxable.
Interest rates and pricing information wasn't available. The securities are scheduled to be delivered on Dec. 17, and interest is payable semiannually on June 1 and Dec. 1.
Proceeds from the issuance will be used to provide financing for affordable owner-occupied home mortgage loans to first-time homebuyers who are of low- to moderate-income, under the agency's Home Ownership Program.
The agency will use proceeds from the bonds to finance new mortgage loans through the purchase of mortgage-backed securities backed by such loans or through the direct purchase of whole mortgage loans.
It expects to use about $65.78 million from the Series 249 bonds and $84.43 million from the Series 250 and Series 251 bonds to finance the purchase of new mortgage loans.
The securities are payable by the agency's revenues, loans and funds established for their payment.
As of June 30 the agency, commonly referred to as MassHousing, had issued about $9.5 billion of bonds and notes under its Single-Family Housing Revenue Bond Resolution, with about $2 billion of that still outstanding. It had issued about $119 million of bonds under its Residential Mortgage Bond Indenture as of that date, of which roughly $13.4 million were outstanding.
The Massachusetts Housing Finance Agency was created in 1966 to help provide financing for affordable housing in the state.
The bonds were assigned ratings of Aa1 by Moody's and AA+ by S&P Global Ratings.
Jefferies, Blaylock Van, BofA Securities, Hilltop Securities and Siebert Williams Shank are acting as lead managers on the deal.
Write to Zaeem Shoaib at zaeem.shoaib@wsj.com
(END) Dow Jones Newswires
November 24, 2025 13:02 ET (18:02 GMT)
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