What is the opportunity?
The Massachusetts Housing Finance Agency ("MassHousing") is issuing $4,495,0001 in Series 213 Single Family Housing (AMT) Revenue Bonds and $56,490,0001 in Series 214 Single Family Housing (Non-AMT) Revenue Bonds (collectively, the "New Series Bonds"). The proceeds of the New Series Bonds will be used to (i) replace and refund certain outstanding bonds and (ii) finance new mortgage loans. See the Preliminary Official Statement for more details.
The New Series Bonds will constitute special obligations of MassHousing secured solely by a pledge of certain Revenues, Loans and funds and accounts established for their security and payment. MassHousing has no taxing power. Neither The Commonwealth of Massachusetts nor any political subdivision thereof is or shall be obligated to pay the principal of or the interest on the New Series Bonds, and neither the faith and credit nor the taxing power of the Commonwealth or any political subdivision thereof is pledged to such payment.
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 bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described in the Preliminary Official Statement.
The bonds are expected to be rated Aa1 by Moody's and AA+ by S&P.2
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. And, for Massachusetts residents, federal and state tax-exemption on the Series 213 (subject to AMT) and Series 214 bond coupon payments.
How to place an order
The offering is expected to price the week of December 9,1 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.