Housing Authority Bonds

Municipal bonds are debt securities issued by local governments. Often they have specific purposes. Build a hospital. Fill in some potholes. Construct a sports stadium for a billionaire, so a bunch of millionaires can play a kids' game. That kind of thing.

Housing authority bonds target the construction of subsidized housing. The local or state governments issuing the bonds will sell the securities to investors, who get paid interest for their trouble.

Then the governments use the money raised to build rental properties, usually for low-income residents. It's a way to create subsidized housing without raising near-term taxes.