Second-Party Opinion Download

Sustainalytics is of the opinion that the WSHFC Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2020. This assessment is based on the following: 

USE OF PROCEEDS 

The eligible category for the use of proceeds, Affordable Housing, is aligned with those recognized by the Social Bond Principles. Sustainalytics considers that the financing of affordable housing projects that seek to achieve positive socio-economic outcomes for target populations will lead to positive social impact and advance the UN Sustainable Development Goals, specifically SDG 11: Sustainable Cities and Communities.

PROJECT EVALUATION / SELECTION 

Eligible projects under the Framework will be assessed by Washington State Housing Finance Commission (“WSHFC” or the “Commission”) representatives including the Senior Director of the Finance Division and the Director of Multifamily Housing and Community Facilities. Sustainalytics considers the project selection and evaluation process to be in line with market practice.

MANAGEMENT OF PROCEEDS 

WSHFC’s Finance department will be responsible for the allocation of bond proceeds. Given that the Commission has communicated its intentions to purchase and finance Citibank, N.A. Affordable Housing Loans, proceeds under the Framework will be fully allocated at the time of issuance. WSHFC will not retain the flexibility to re-allocate proceeds. This is in line with market practice. 

REPORTING 

WSHFC commits to publishing an upfront report as part of the Official Statement for the issuance with information on specific assets such as the total number of units, rent limits as well as the regulatory agreements in place. In addition, WSHFC intends to disclose relevant social impact metrics. Sustainalytics views WSHFC’s allocation and impact reporting as aligned with market practice.