Response to RFP Questions

Description

• Please provide a description of the bond program The bonds are exempt facility bonds issued for qualified residential rental projects (Section 142(a)7 (Multifamily Volume Cap Bonds). Multifamily Volume Cap Bonds are subject to the state’s volume cap ceiling. The Agency’s allocation of volume cap for qualified residential rental projects was approximately $230 million in calendar year 2026. • Who will be bond counsel? Can you provide a sample/draft loan agreement? Is there an opinion supporting the structure? It is not expected that bond counsel will provide a bond opinion when the Agency utilizes the line of credit. Bond counsel will be engaged to review/draft any documents necessary to effectuate draws/borrowings under the line of credit, but the form of those documents is not available at this time. Bond counsel will provide an opinion when the recycled bonds are used as part of a new tax-exempt bond issuance. The Agency utilizes Bowditch & Dewey and McCarter & English as bond counsel on its Multifamily Volume Cap Bonds. • How much bond principal is expected to recycle annually? What is the historical volume over the past 5 years? What drives repayment timing? The Agency intends to recycle not less than $25M annually. Short-term tax-exempt bonds issued for construction financing are expected to be the primary source of recycled bonds. These bonds are repaid with equity sources (e.g. state and federal LIHTC equity and state and federal historic tax credit equity) during the construction period. Over the 24-month duration of the line of credit (approximately October 1, 2026 – September 30, 2028, the Agency expects approximately $188M in short-term construction period bonds to be redeemed, which could potentially be recycled. In calendar years 2022 – 2025, the Agency issued approximately $863M in Multifamily Housing Bonds. Of these bonds, $463M were construction period bonds. Typical construction period bond maturities are 24 – 36-months. • How are recycled bond proceeds tracked? Is there a detailed schedule of loans expected to repay? What is the weighted average life of the portfolio? The Agency tracks total construction period bonds outstanding, maturity dates, and mandatory purchase dates. Most construction period bonds are structured to allow optional redemption, with no prepayment penalties, subject to notice being provided to the issuer. The loan and security agreement includes recycling provisions to allow the issuer to recycle the bonds.