New York City is set to issue $700 million in General Obligation Social Bonds in October 2023, as announced by Comptroller Brad Lander and Mayor Eric Adams. The proceeds from these bonds will fund the construction of approximately 4,500 affordable housing units in alignment with Mayor Adams’ Housing Our “Neighbors” plan, which allocates $24 billion in capital funds over the next decade to ensure safe, high-quality, and affordable housing for the city’s residents.

Social bonds are being used to broaden the city’s investor base by appealing to those interested in socially conscious investments. This marks the city’s second issuance of social bonds, with the first, issued in October 2022, supporting over 3,000 units of affordable housing. The bond offering follows a record year for affordable housing in New York City, during which nearly 27,000 affordable homes were built or preserved. These bonds will specifically target projects aligned with positive social outcomes, in accordance with the International Capital Market Association’s Social Bond Principles.

Proceeds from social bonds will reimburse the city’s past spending in affordable housing, supporting 2,684 ELLA units, 1,187 SHLP units, and 627 SARA units, with 80% aimed at households earning ≤ 60% of the area median income, including housing for 1,443 formerly homeless individuals. Additionally, the city plans to issue $235 million in non-labeled bonds for capital projects. Pricing for both bonds will be released on October 4th through a negotiated sale managed by Barclays, Citigroup, Morgan Stanley, and various co-managers on MuniOS.com.