Transaction Includes New Construction Funding and Debt Refinancing for Cost Savings
Albany, NY – The Dormitory Authority of the State of New York (DASNY) has issued $150.3 million in Series 2025A bonds to fund construction and improvements at SUNY residence halls across the state and $221.3 million in Series 2025B bonds to achieve debt service savings through the refunding of prior bonds. The bond financing is part of SUNY’s regular funding cycle for student housing projects. SUNY primarily operates its dormitory facilities construction program on a cash flow borrowing basis.
Series 2025A proceeds are anticipated to fund capital projects for the construction and rehabilitation of dormitory facilities at campuses, including Albany, Binghamton, Buffalo, New Paltz, Oneonta, Purchase, and Stony Brook. The Series 2025A bonds were issued with a sustainability designation. Kestrel provided independent verification that the Series 2025A bonds conform with the International Capital Market Association Sustainability Bond Guidelines. SUNY designated these bonds as "Sustainability Bonds" to support projects aligned with environmental and social objectives, including renewable energy programs, climate science initiatives, and social programs such as the Excelsior Scholarship Program and Food Insecurity Task Force.
Series 2025B proceeds refunded existing debt at lower interest rates, generating savings for the residence hall program.
The bonds received credit ratings of Aa3 (stable) from Moody's and A+ (stable) from Fitch.
SUNY operates residence halls on 25 of its 29 campuses, housing approximately 60,000 students across more than 450 facilities. In Fall 2024, the program achieved 91.8% occupancy and generated $611 million in revenue during Fiscal Year 2024.
DASNY President and CEO Robert J. Rodriguez said, "This transaction reflects our partnership with SUNY in providing cost-effective financing for critical student housing infrastructure. Through strategic refinancing and new capital funding, we help SUNY maintain and improve facilities while managing debt service efficiently."
SUNY Chancellor John B. King said, “Quality housing is fundamental to the college experience, and these bonds allow us to modernize facilities and maintain the high standards our students deserve. This regular financing approach ensures we can respond to evolving student needs while maintaining financial sustainability.”
The residence hall program operates as a self-supporting enterprise with revenues covering operations, maintenance, and debt service. SUNY has operated dormitory facilities for over 70 years, maintaining strong occupancy rates that averaged approximately 90% over the past four years.