Housing Authority Bond

Posted in Finance, Accounting and Economics Terms, Total Reads: 250
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Definition: Housing Authority Bond

Housing Authority Bonds are issued by state or local governments to finance housing and construction projects such as affordable housing project for marginalized people.


Housing Authority Bond can be short term or long term. Generally, Housing Bonds are exempted from tax. They are also issued to help lower strata people to buy houses.


Housing Bonds are considered as safe investments but return is also low. So investors who do not want to take risk invest in Housing Bonds. They are issued by the local or state government for providing finance for constructing infrastructure for making houses which are affordable. These can be classified as short term or long term.

 

Despite the fact that these investments are quite a safe option, investor likeness for using this as a stable avenue for investment has declined. Decreasing ratings and municipal crisis' have changed the perception and they do not see this as a very safe investment option.



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