#United States
#Harrisburg
#Mortgage Bonds
#Pennsylvania Housing Finance Agency
#affordable homeownership
$478 Million Bond Sale Enhances Affordable Homeownership in Pennsylvania
The Pennsylvania Housing Finance Agency (PHFA) has made a significant stride towards improving affordable homeownership in the state with the successful sale of Single-Family Mortgage Revenue Bonds amounting to approximately $478 million. This transaction marks the second-largest single-family MRB deal in the agency's history, aimed at financing mortgages for low- to moderate-income homebuyers. Established in this proactive move, the funds will also back various PHFA mortgage programs, including their popular Keystone Home Loan initiative and critical downpayment assistance options like K-FLEX, K-FIT, and K-DATE.
Over the past few years, particularly since 2023, PHFA has generated around $5.6 billion in MRB proceeds to bolster its single-family mortgage programs, firmly positioning it as one of the largest initiatives in the US dedicated to affordable housing.
From January 1, 2023, through August 31, 2026, the PHFA has successfully disbursed over $4.7 billion in loans, benefiting more than 21,810 Pennsylvanians on their journey to homeownership. "Bond financing is essential for us to maintain the capacity to deliver affordable mortgage options," remarked PHFA Executive Director and CEO Robin Wiessmann. She noted that these bond proceeds enable the agency to provide competitive interest rates while also offering vital assistance for downpayments and closing costs, significantly lowering the barriers for first-time homebuyers.
Tax-exempt housing bonds, referred to as MRBs (Mortgage Revenue Bonds) and Multifamily Housing Bonds, are issued by state and local governments to enhance the accessibility of affordable housing. These private activity bonds are instrumental in funding initiatives under these government entities. When PHFA issues bonds to investors, the capital raised is utilized for financing housing-related endeavors while ensuring repayment to investors with an established rate of return.
This financing allows PHFA to offer competitive mortgage rates to qualifying residents of Pennsylvania. Moreover, it broadens access to downpayment assistance and increases the array of mortgage loan options available, catering to the diverse needs of potential borrowers. PHFA channels bond capital directly into affordable mortgage products, ensuring aspiring homeowners can access the financing they require.
The funds gathered from monthly mortgage payments, alongside investment earnings from PHFA's customers, are utilized to sustain the program and repay bondholders. It is noteworthy that these repayments are made strictly from program revenues rather than from taxpayer funds.
In a further demonstration of its commitment to enhancing housing accessibility, PHFA debuted its inaugural Multifamily Housing Bond series in the summer of 2026, which has so far yielded more than $109.6 million dedicated to financing the construction of quality, affordable rental housing.
About PHFA: The Pennsylvania Housing Finance Agency has been an influential force in providing affordable housing solutions since its establishment by the legislature in 1972. It works diligently to make homeownership and rental housing attainable for older adults, low- and moderate-income families, and individuals with special housing requirements. Through its effective mortgage programming and investments in multifamily housing developments, PHFA plays a crucial role in fostering economic growth throughout the state. To date, the agency has facilitated over $21.6 billion in funding, creating more than 213,110 single-family home mortgage loans, constructing over 113,200 rental units, contributing about $453 million to local housing initiatives, and saving over 51,000 families from foreclosure. Importantly, PHFA's operations are majorly funded through securities sales and user fees, thereby not relying on public funds.
Over the past few years, particularly since 2023, PHFA has generated around $5.6 billion in MRB proceeds to bolster its single-family mortgage programs, firmly positioning it as one of the largest initiatives in the US dedicated to affordable housing.
From January 1, 2023, through August 31, 2026, the PHFA has successfully disbursed over $4.7 billion in loans, benefiting more than 21,810 Pennsylvanians on their journey to homeownership. "Bond financing is essential for us to maintain the capacity to deliver affordable mortgage options," remarked PHFA Executive Director and CEO Robin Wiessmann. She noted that these bond proceeds enable the agency to provide competitive interest rates while also offering vital assistance for downpayments and closing costs, significantly lowering the barriers for first-time homebuyers.
Tax-exempt housing bonds, referred to as MRBs (Mortgage Revenue Bonds) and Multifamily Housing Bonds, are issued by state and local governments to enhance the accessibility of affordable housing. These private activity bonds are instrumental in funding initiatives under these government entities. When PHFA issues bonds to investors, the capital raised is utilized for financing housing-related endeavors while ensuring repayment to investors with an established rate of return.
This financing allows PHFA to offer competitive mortgage rates to qualifying residents of Pennsylvania. Moreover, it broadens access to downpayment assistance and increases the array of mortgage loan options available, catering to the diverse needs of potential borrowers. PHFA channels bond capital directly into affordable mortgage products, ensuring aspiring homeowners can access the financing they require.
The funds gathered from monthly mortgage payments, alongside investment earnings from PHFA's customers, are utilized to sustain the program and repay bondholders. It is noteworthy that these repayments are made strictly from program revenues rather than from taxpayer funds.
In a further demonstration of its commitment to enhancing housing accessibility, PHFA debuted its inaugural Multifamily Housing Bond series in the summer of 2026, which has so far yielded more than $109.6 million dedicated to financing the construction of quality, affordable rental housing.
About PHFA: The Pennsylvania Housing Finance Agency has been an influential force in providing affordable housing solutions since its establishment by the legislature in 1972. It works diligently to make homeownership and rental housing attainable for older adults, low- and moderate-income families, and individuals with special housing requirements. Through its effective mortgage programming and investments in multifamily housing developments, PHFA plays a crucial role in fostering economic growth throughout the state. To date, the agency has facilitated over $21.6 billion in funding, creating more than 213,110 single-family home mortgage loans, constructing over 113,200 rental units, contributing about $453 million to local housing initiatives, and saving over 51,000 families from foreclosure. Importantly, PHFA's operations are majorly funded through securities sales and user fees, thereby not relying on public funds.
Topics Financial Services & Investing）
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