State Issues Social Bonds To Promote Affordable Housing – Conduit Street
Housing income bonds will support home purchase opportunities for low and middle income Marylanders.
Maryland Department of Housing and Community Development Secretary Kenneth C. Holt announced the issuance of the very first social bonds to be sold by the department. The department’s bond issuer, the Community Development Administration, raised over $ 251.7 million in residential revenue bonds, the first in the agency’s history to be known as social bonds.
The proceeds of the bond sale will be used to fund mortgage loans offered through the Maryland Mortgage Program to purchase single family homes for people or families with limited incomes.
“Under the leadership of Governor Hogan, the Community Development Administration’s innovative funding tools have supported over $ 1 billion in mortgage loans annually for the past few years,” said Secretary of State Holt. “This social bond label will help our division attract additional investment to make home ownership more affordable for Marylanders.”
According to a press release:
The term “social bonds” indicates that the bonds raise funds for programs and projects that aim to achieve positive social outcomes. Using the proceeds from the bond sales to fund mortgage loans for low- and middle-income families is in line with the International Capital Market Association’s sustainable development goals No poverty, Decent work and economic growth, Reduced inequalities, and Sustainable cities and communities.
The social bond issue follows the division’s first sustainability bond issue this summer, which supported green, energy efficient, affordable rental homes in Frederick, Maryland. Both institutional and retail investors are increasingly keen to use their investable dollars to buy bonds to fund projects that help build strong communities, improve social outcomes, and be good for the environment. By issuing sustainability bonds and social bonds, the department offers investors the opportunity to make effective investment decisions.
The Maryland Mortgage Program offers fixed-rate mortgages with down payment, graduation assistance, and student debt relief through the popular Maryland SmartBuy initiative. Led by Governor Larry Hogan, the program has hit the $ 1 billion mortgage milestone annually since 2019 and supports approximately 4,000 first-time home buyers annually. For more information, see mmp.maryland.gov.
Visit the DHCD website for more information.