NYC Bonds

Renderings of two of the projects being financed by the City’s first-ever social bonds. The 139 affordable units at 88 Throop Ave in Brooklyn (left) and the 107 affordable units at 1510 Broadway in Brooklyn (right) are some of the over 3,000 homes being financed through the upcoming bond offering. Thirty-one of the units between the two buildings are designated for residents formerly experiencing homelessness.

Social Bonds Will Be First for NYC

The City of New York is poised to issue its first ESG-labeled bonds next week, as it offers $400 million of taxable general obligation social bonds to fund affordable housing. Along with $950 million of tax-exempt debt, the social bonds will be offered to retail investors on Monday, October 3, with institutional pricing on Tuesday, October 4. As taxable debt, the social portion of the transaction is expected to appeal to pension funds, corporate bond buyers, and asset managers, which are not traditional purchasers of municipal bonds.

The social bond offering will finance projects currently in development under the New York City Department of Housing Preservation and Development’s Extremely Low- and Low-Income Affordability program, Supportive Housing Loan Program, and Senior Affordable Rental Apartments program. The financed projects will provide over 3,000 homes, with more than 70 percent of the units designated for households making 60 percent or less of Area Median Income. Read the full press release.

First Quarter of FY 2023 Sees Issuance Under Three Different Credits

The first quarter of Fiscal Year 2023, which runs from July-September, brought issuances of debt through the New York City Transitional Finance Authority’s (TFA) Building Aid Revenue Bonds, the City of New York’s General Obligation Bonds, and TFA’s Future Tax Secured Subordinate Bonds. The three transactions together totaled over $2.5 billion in par.

New York by the Numbers

The City Comptroller’s Office continues to track economic indicators in its monthly New York by the Numbers report.  The most recent report, released on September 12, highlights the positive impact of minimum wage increases on NYC employment, earnings, and poverty.

The Comptroller’s Office also released its quarterly cash report and cash balance projection in September.

Looking Ahead

In accordance with the City Charter, the Comptroller’s Office will release New York City’s Annual Comprehensive Financial Report for Fiscal Year 2022 at the end of October.

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Adults and children along the lake, Central Park, New York City, 1895 | Photo from the New York Public Library

NYC Bond History

New York City’s debt amounted to $60 per capita when Brooklyn consolidated into New York City in 1898. The bonds outstanding were equivalent to five times Boston’s debt, at the time the second-most indebted municipality. (The Finances of New York City (1898), by Edward Dana Durand, p. 295)