CDFA Reports Multifamily Housing Bond Issuance Grows to $6.6 Billion in 2015

Published by Michael Novogradac on Tuesday, August 9, 2016 - 12:00am

In 2015, the 50 states and the District of Columbia reported issuing $6.6 billion in multifamily housing bonds, representing at least a 1.5 percent increase over the $6.5 billion reported issued in 2014, according to the Council of Development Finance Agencies (CDFA). The combination of the reported 2015 multifamily bond issuance and $4.6 billion single family mortgage revenue bond issuance represents more than a 20 percent reported increase in the portion of the cap going towards housing from 2014, when states reported $6.5 billion for multifamily housing bonds issuance, $2.8 billion for single family mortgage revenue bond issuance.

It should be noted that the 2015 multifamily housing bond volume is under-reported, as several states who historically have issued a significant volume of multifamily housing bonds did not report their multifamily housing bond volume in 2015: Colorado, Washington D.C., Florida, Illinois, Maryland, New Jersey and Virginia.

States reported abandoning $10.5 billion in unused volume cap allocation at the end of 2015. And even though that is noticeably less than the $12.0 billion abandoned in 2014, CDFA notes that 2015 is the third year that abandoned cap has exceeded $10 billion.

In 2015, the 50 states and the District of Columbia received more than $34.9 billion in new volume cap allocation, according to the Council of Development Finance Agencies (CDFA) in its report “CDFA Annual Volume Cap Report: An Analysis of 2015 Private Activity Bond & Volume Cap Trends.”  CDFA reports that the $34.9 billion in 2015 cap is an increase of 1 percent from 2014. This was in addition to more than $58.5 billion in existing carryforward allocation, making the total accessible amount of national volume cap approximately $90.04 billion. States issued $13.1 billion in bonds in 2015, up from $11.6 billion in 2014.

Of this total available, the combination of multifamily housing bonds and single family mortgage revenue bonds issuances represent 32 percent of 2015 cap and 86 percent of 2015 issuance. These figures represent a significant increase from the portion of the cap going towards housing from 2014, when state issuances of multifamily housing bonds and single family mortgage revenue bonds represented 27 percent of 2014 cap and 80.2 percent of 2014 issuance.

The graphic below describes what CDFA found related to bonds issued for multifamily housing.

 

Blog Information: Multifamily Housing Highlights
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