Sustainable Development Bonds

HDC’s Sustainable Development Bonds (SDB) allow for direct investment in bonds that finance socially beneficial projects. HDC introduced this new category of bonds in 2019 to align with the goals and standards that have emerged from green and social bond markets as they have matured.

SDB outcomes are consistent with United Nations Sustainable Development Goals focused on ending poverty in all its forms everywhere and on making cities and human settlements inclusive, safe, resilient and sustainable.

HDC’s SDB designation is consistent with the Social Bond Principles and Sustainability Bond Guidelines promulgated by the International Capital Markets Association (ICMA).

Prior to the introduction of SDBs, HDC used the Sustainable Neighborhood Bonds (SNB) designation to highlight socially beneficial attributes and environmental benefits of financing affordable housing. The first bonds of their kind for affordable housing in the United States, HDC first introduced SNBs to the market in 2015 at a time when no universal green and social standards existed.

Both SDBs and SNBs allow investors to invest directly in bonds that finance the new construction and preservation of affordable housing projects that stimulate economic growth and contribute to the stability and revitalization of neighborhoods across New York City.

In addition to the affordability and holistic community development components, these designations address environmental benefits which build upon HDC’s work under Enterprise Green Communities Criteria (EGCC), the only comprehensive green building framework designed for affordable housing.