Social Bonds

IHDA was created in 1967 by the State of Illinois (the “State”) to assist in the financing of decent, safe, and affordable rental housing for persons and families of low and moderate income in the State, and to assist in the financing of residential mortgages in the State for persons and families of low and moderate income. IHDA believes that affordable housing is a fundamental component of strong communities and serves as the foundation of personal and economic well-being.

To accomplish its mission, IHDA (1) finances homeownership loans through the acquisition of single family home loans from lending institutions throughout the State under IHDA’s Homeownership Program and (2) makes mortgage loans or other loans to developers of affordable housing for the acquisition, construction or rehabilitation of affordable rental housing developments in the State. IHDA financing for its Homeownership Program and its Multifamily Program includes the issuance of bonds pursuant to the Act. 

To highlight IHDA’s impact and attract capital to support its mission, IHDA introduced its Social Bonds designation in 2021 for bonds issued to finance homeownership loans.  In 2022, IHDA introduced its Sustainability Bonds designation for bonds issued to finance loans to developers of affordable multifamily rental developments. IHDA also periodically uses a Social Bonds designation for certain bonds issued under its Multifamily Program.  The following table provides a summary of IHDA’s issuance of Social Bonds and Sustainability Bonds (collectively, “Impact Bonds”) under both its Homeownership and Multifamily Programs.