Rhode Island Housing and Mortgage Finance Corporation

We are pleased to offer Fidelity investors the opportunity to participate in the Rhode Island Housing and Mortgage Finance Corporation Revenue Bond's upcoming $97 million offering.1

The Rhode Island Housing and Mortgage Finance Corporation ("RI Housing") is expected to come to market with $97 million1 Homeownership Opportunity Series 71 (Non-AMT) Bonds (the "Bonds").

The Bonds are being issued by RIHousing for the purpose of stimulating the construction and rehabilitation of residential housing for persons and families of low and moderate income. RIHousing expects that approximately $96.2 million of proceeds will be used to acquire approximately $93.2 million aggregate principal amount of Series 71 Program Loans that will be secured by first lien mortgages on single family owner-occupied dwelling units and will be pooled into Program Securities guaranteed by the Government National Mortgage Association (GNMA). RIHousing expects that approximately $3.8 million of proceeds of the Series 71 Bonds will be used to acquire approximately $3.8 million aggregate principal amount of Series 71 Program Loans that will be second or third lien Borrower Assistance Loans. See the Preliminary Official Statement for further details..

The Bonds will not constitute general obligations of RIHousing but will constitute special revenue obligations of RIHousing and will be secured by and payable solely from a pledge of certain Revenues and Accounts established under the Resolution. RIHousing has no taxing power. The Bonds are not a debt of liability of the State of Rhode Island or any political subdivision thereof. See the Preliminary Official Statement for more details.

Housing bonds are securities backed by mortgages and mortgage loan repayments. Although not reflected as part of a traditional "call schedule," these bonds can be called at any time from the prepayment of principal on the housing authority's underlying mortgages, and therefore display as continuously callable and subject to extraordinary redemption (ER) provisions.

The Series 71 Bonds are expected to be rated AA+ and Aa1 by S&P and Moody's respectively.2

The bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described in the Preliminary Official Statement.

Key benefits

The bond sale offers attractive benefits to individual investors, including prices and yields that match those available to institutional investors and the potential for stable income through the call dates. Rhode Island residents enjoy state tax-exemption on the Series 71 tax-exempt bond coupon payments.

How to place an order

The offering is expected to price the week of November 11, 20191 although market conditions and/or the discretion of the issuer may alter the anticipated timeline. Individual investors can place orders online or by calling a Fidelity representative at 800-544-5372. To stay up-to-date on pricing, credit rating changes, and more, please sign up for Fidelity Alerts and see our Municipal Bond New Issue Offerings.

Additional resources

Municipal Bonds
Review the risks and benefits of investing in municipal bonds.

Municipal Bonds: Understanding Credit Risk (PDF)
Learn more about assessing credit risks when purchasing municipal bonds in this SEC investor bulletin.

Investing in a volatile bond market
Get the latest insights on the bond market, outlook for future rates, and investment strategies from Fidelity Viewpoints®.

MSRB - Risks and opportunities of interest rate movements
Read about the impact of market interest rate movement on municipal bond prices and yields from the MSRB Education Center.