There's no shortage of gloom and doom regarding the economy. But MassHousing has received two bits of good news that reflect the Agency's sound financial footing. And in a climate such as this, we thought it was worth sharing.
- Bond Rating Upgrade
MassHousing's issuer credit rating was upgraded from A to A+ by Standard & Poor's. S&P notes MassHousing's management team, improved financial performance, stable equity levels, management of variable rate debt exposure, the improved performance of MassHousing's loan portfolios and state support in the explanation of the upgrade.
- Volume Cap Allocation
MassHousing received $342 million of the Commonwealth's $918.7 million private activity bond volume allocation cap. $192 million will target multifamily projects, and $150 million will be used to finance affordable mortgages for homebuyers. Federal law limits the total volume of tax-exempt, private activity bonds that can be issued each year by Massachusetts, and is based on the state's population. This year's volume cap includes leftover capacity from last year, as well as special monies from the Housing and Economic Recovery Act of 2008.
MassHousing funds its affordable housing programs through the sale of tax-exempt bonds to private investors; no taxpayer dollars are used in MassHousing programs. So while the announcements above may seem somewhat obscure, their meaning is pretty straightforward: the Agency has received several votes of confidence in its ability to conduct business, and MassHousing is poised to make more affordable rental and homeownership opportunities a reality.