The Uptown Development Authority (UDA) has successfully completed the second half of its $112 million bond financing. The bonds consisted of a $48 million privately placed series 2021A bond at 2.0% and a $64 million public offering series 2021B bond at 3.52%, for an all-in combined cost of 3.18%. The proceeds will fund affordable homes throughout Houston, directed by the City’s Housing and Community Development Department.
The low interest rates achieved for the issuance of the series 2021B, led by UBS Financial Services Inc., show that bond investors view both Houston and UDA’s fiscal health positively.
Houston has been nationally recognized for establishing the model of an impactful affordable housing response system. Moving beyond supporting existing homeowners and renters, this funding will allow Houston to assist 1,000 new low-to-moderate income homebuyers throughout the City.
The proceeds will support the City of Houston’s “1000 Affordable Homes Program.” This program includes:
New Home Development: $47 million, 575 homes – The new home development program will support affordable home development for owner occupied homes, with a special focus on development within the Mayor’s Complete Communities.
Homebuyer Choice Community Land Trust: $53 million, 425 homes – The Homebuyer Choice Community Land Trust program supports new homebuyers willing to purchase a home in a land trust model. More information about the land trust model is available at www.houstonclt.org.