NEWS BRIEF: The Utah Housing Corporation Will Sell $200 Million in New Bonds to Support Low-Cost, Single-Family Home Sales in Utah

West Valley City, Utah-based Utah Housing Corporation plans to sell $200 million in new bonds next Wednesday, November 20, raising monies to help provide financial support for the sale of low-cost, single-family residences in the state.

According to online publisher MuniOS, Utah Housing will sell three bonds next week, in amounts of

• $80 million of 2024 Series I fixed-rate bonds that are due starting in 2026 through 2055: These are not subject to AMT (Alternative Minimum Tax), but the interest rates are as low as 3.05%;
• $80 million of 2024 Series J fixed-rate bonds that are due starting in 2025 through 2055: These are federally taxable bonds with rates as low as 4.246%; along with
• $40 million of 2024 Series K, variable-rate, federally taxable bonds due in 2055: The Series K bonds have an optional early termination clause available to Utah Housing "... upon (its) payment of a market based termination payment (the amount of which is not disclosed)."

{NOTE: The Series K bonds are federally taxable bonds with rates nominally tied to the weekly Secured Overnight Financing Rate (SOFR).}

Proceeds from the sale of the $200 million in bonds will be used by Utah Housing to help finance down payments, closing costs and interest rates, as well as other purposes common with the purchase of low-cost, single family homes in Utah.

RBC Capital Markets is the lead manager for the issuance of these bonds.

Other underwriters supporting the sale of these bonds include (in alphabetical order):

• BofA Securities,
• Jeffries,
• Morgan Stanley,
• Raymond James, and
• Wells Fargo Securities.

This $200 million in new UHC bonds will provide backing for financial institutions that participate in three separate residential mortgage lending offerings in Utah that target low-cost, single-family housing loans.

These include

• The FirstHome Loan program in the state, designed for first-time homebuyers, single parents, and veteran households buying a primary residence anywhere in Utah;
• An FHA/VA Mortgage, whether for previous homeowners and for first-time homebuyers, single parents, and veteran households buying a primary residence anywhere in Utah; or
• An HFA Advantage loan is available for residential homebuyers with a credit score of 700 or better, both for prior homeowners as well as for first-time homebuyers, single parents, and veteran households buying a primary residence anywhere in Utah.

According to its 2024 Annual Report (for the year ended 30 June 2024), Utah Housing "... produced $1.27 million of new single-family (home) loads during ... the fiscal year (ended 30 June 2024) as compared to $732 million of loans during the prior year."

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