Ohio Housing Finance Agency (the "OHFA") is expected to come to market with $150 million1 Residential Mortgage Revenue Bonds, 2019 Series B (the "Bonds").
The Bonds are being issued by Ohio Housing Finance Agency to (i) finance the origination and purchase of mortgage loans that are used to finance the purchase of owner-occupied (one-to-four unit) residences located in the State of Ohio by qualified low- and moderate-income persons, and (ii) pay costs of issuance of, including underwriters' compensation for, the Bonds. See the Preliminary Official Statement for more details.
The Bonds are limited obligations of OHFA and are payable solely out of certain revenues and assets of OHFA pledged under the Trust Indenture. The Bonds are equally and ratably secured on a parity basis with any existing and future Residential Mortgage Revenue Bonds issued by OHFA. The Bonds do not constitute a debt, or the pledge of the faith and credit, of the State of Ohio or of any political subdivision thereof, and the holders or owners of the Bonds have no right to have taxes levied by the General Assembly of Ohio or by the taxing authority of any political subdivision for the payment of the principal of or interest on the Bonds. The Bonds are not a debt of the United States of America or of Government National Mortgage Association, Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, and are not guaranteed by the full faith and credit of the United States of America.
The bonds are expected to be rated AAA by Moody's.2
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 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. Ohio residents enjoy state tax-exemption on the bond coupon payments.
How to place an order
The offering is expected to price the week of June 24, 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.