APPROXIMATELY $78.4 MILLION IN DEBT AFFECTED
New York, October 15, 2009 -- The following 16 Aaa-rated local housing finance agency multifamily
transactions have been placed on Watchlist for Possible Downgrade,
following an analysis of information provided by the trustee concerning
the transactions' asset to debt ratios and projection of cash flows,
which indicate a possible default, assuming continuing reinvestment
of funds at 0%. This action affects approximately $78,380,000
in outstanding debt. None of these issues have a Guaranteed Investment
Contract (GICs) that assures a fixed rate of return on invested cash,
and therefore all are subject to interest rate risk on retained revenues.
As a result, in this environment of historically very low interest
rates, Moody's projects that revenue from the monthly mortgage
receipts and interest earned on those receipts from money market funds
or other short-term investments-assumed at 0%-will
not be high enough, in combination with mortgage payments,
to support debt service on the bonds. Over the next several weeks,
Moody's will review the affected issues and take appropriate rating action
as necessary. For further information on Moody's approach to the
significance of interest rate risk to ratings on housing transactions,
see Moody's Rating Methodology, "Investment Practices of Housing
Bond Issuers Impact Credit Ratings," dated May, 2001.
1. $2,595,000 of ABAG Finance Authority for
Nonprofit Corporations, Multifamily Housing Revenue Refunding Bonds
(Mission Terracina Apartments Project), 1999 Series A. Last
reviewed on 6/16/2006.
2. $6,755,000 of City of Chicago, Multi
- Family Housing Revenue Bonds (Roosevelt Towers Phase I Project),
Series 2004A. Last reviewed on 3/23/2004.
3. $10,370,000 of Bexar County Housing Finance
Corporation, TX Multifamily Housing Revenue Bonds (GNMA Collaterlized
- Sagewood Apartments), Series 2004. Last reviewed
4. $2,090,000 of Erie (County of) OH Multifamily
Housing Revenue Bonds (GNMA Collateralized - Harbourview Senior
Housing Project), Series 2007. Last reviewed on 12/20/2007.
5. $10,710,000 of Fontana Redevelopment Agency
Mortgage Revenue Refunding Bonds (GNMA Collateralized - Village
Drive Apartments Project), Series 2002A. Last reviewed on
6. $3,070,000 of City of Golden Valley,
MN Senior Living Multifamily Housing Revenue Bonds (GNMA Collateralized
Mortgage Loan - Calvary Center Apts. Proj), Series
2006A. Last reviewed on 11/7/2006.
7. $2,320,000 of The Housing Authority of The
City of Jackson, Mississippi, Multifamily Housing Mortgage
Revenue Bonds (GNMA Collateralized -- Forest Park Apartments),
Series 2002. Last reviewed on 7/1/2005.
8. $2,120,000 of Housing Authority of the County
of King, Multifamily Housing Revenue Bonds (Seaview Apartments Project),
Series 1998. Last reviewed on 8/2/2005.
9. $1,825,000 of City of Lebanon, Indiana
Multifamily Housing Mortgage Revenue Bonds GNMA Collateralized-Lebanon
Manor Village Apartments Series 2002A. Last reviewed on 2/3/2006.
10. $2,375,000 of Minneapolis (City of) MN Multifamily
Housing Revenue Bonds (GNMA Collateralized Mortgage Loan Vantage Flats
Project), Series 2007A. Last reviewed on 10/24/2007.
11. $5,075,000 of Montgomery (County of) OH,
Multifamily Housing Revenue Bonds (GNMA Coll. Canterbury Court
Project), Series 2007. Last reviewed on 9/12/2007.
12. $2,760,000 of Ohio Capital Corporation for
Housing Mortgage Revenue Refunding Bonds (GNMA Collateralized -
Chadwick Place Apartments and Plaza Apartments Projects), Series
2003A & B. Last reviewed on 3/3/2006.
13. $7,750,000 of Housing Authority of the County
of Sacramento, Multifamily Housing Revenue Refunding Bonds (Clover
Ridge, Antelope Ranch and Summerwood Apartments Projects),
Series1999 Issue F. Last reviewed on 7/1/2005.
14. $3,465,000 of San Bernardino County Housing
Authority, CA Multifamily Mortgage Revenue Bonds (GNMA Collateralized
- Santiago Orangewood Estate Mobilhome Park), Series 2003A.
Last reviewed on 3/3/2006.
15. $2,570,000 of City of Shelbyville Indiana
Multifamily Housing Mortgage Revenue (GNMA Collateralized Blueridge Terrace
Apartments Project dated 12/1/00). Last reviewed on 7/1/2005.
16. $12,530,000 of The Industrial Development
Authority of the City of Tolleson, Arizona Multifamily Housing Revenue
Bonds (GNMA Collateralized-Copper Cove Apartments Project),
Series 2001A. Last reviewed on 7/1/2005.
The principal methodology used in rating these issues was Moody's GNMA-Collateralized
Multifamily Housing Bonds, published in October 2002 and available
on www.moodys.com in the Rating Methodologies sub-directory
under the Research & Ratings tab. Other methodologies and factors
that may have been considered in the process of rating this issuer can
also be found in the Rating Methodologies sub-directory on Moody's
Gregory W. Lipitz
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service
MOODY'S PLACES 16 LOCAL HFA MULTIFAMILY TRANSACTIONS ON WATCHLIST FOR POSSIBLE DOWNGRADE
Senior Vice President
Public Finance Group
Moody's Investors Service