Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Announcement:

Moodys affirms at MQ1 the rating on the Providence Housing Authority.

20 Jul 2007
Moodys affirms at MQ1 the rating on the Providence Housing Authority.

The outlook on the rating is stable.

New York, July 20, 2007 -- Moody's Investors Service has affirmed the MQ1 Management Quality rating of the Providence Housing Authority. The affirmation of the rating, which was originally assigned in May of 2002, reflects Providence Housing Authority's ("PHA" or the "Authority") strong management team and experienced Board of Commissioners which continues to cultivate an environment with solid operations, sound financial management and good housing stock.

The outlook on the rating is stable and is based on the solid housing management at the Authority despite the reduced subsidies from HUD.

OVERVIEW OF THE AUTHORITY

The Authority was established in 1939 to provide decent, safe and sanitary housing to low income residents of Providence, Rhode Island. As with most public housing authorities throughout the country, PHA administers two major programs -- public housing and Section 8.

PHA currently has 2,606 units in nine HUD mandated Asset Management Projects (AMP), which combines the existing 14 projects into AMP groupings and consists of approximately 1133 units of Elderly and Disabled housing, 1229 units of Family housing and 244 Scattered Site units. These AMPs will facilitate the new asset based/project based managing and accounting system that is scheduled to be implemented by all housing authorities in 2007.

STRENGTHS

* Management continues to foster an environment of solid housing and financial management including its attentiveness in responding to HUD changing requirements.

* Management has consistently maintained its commitment to updating policy and procedures guidelines for virtually every aspect of its operations thereby enabling high quality and consistent operations of its portfolio.

* PHA favorable operations are evidenced by strong rent collections and work order completions including the implementation of innovative management systems.

* PHA continues to provide a comprehensive array of resident services in spite of budgetary cuts.

* PHA solid financial position is evidenced by positive net cash flow.

* Strong entrepreneurial activities which enhances PHA's revenue stream.

CHALLENGES

* How well PHA implements the HUD mandated asset based accounting system and project based management and accounting system.

* Adaptability to budgetary constraints as a result of continued HUD cuts which have led to furloughs, staff reductions and departmental restructuring.

* Continued maintenance on PHAs aging housing stock.

MANAGEMENT ANALYSIS

Moody's believes that the Providence Housing Authority's strong and deep culture of performance management and accountability combined with its seasoned and experienced staff results in a very well managed public housing authority. As with other public housing authorities, PHA has targeted several entrepreneurial activities in an effort to provide additional revenues.

PHA is governed by an eleven member Board of Commissioners who serve five-year terms. Nine of the Commissioners are mayoral appointees; three must be PHA residents appointed by the Mayor from a list of nominees elected by the resident population; and two are Councilmen.

While half of the Board has been appointed in the last 12 months, the remaining six members have been on the Board for at least ten years.

The Executive Director, Stephen O'Rourke, is appointed by the Board on a renewable three year basis. Mr. O'Rourke has been the Director of PHA for the past 20 years.

STRATEGIC PLANNING

PHA is in the process of producing a new strategic plan and is still utilizing the July 2000 -- June 2005 Strategic Plan. Numerous stakeholder surveys have been completed and a ten year trend analysis has been reviewed.

The delay in release of the new 2006 -- 2010 Plan is due to HUD's planned move to an asset based accounting system. The accounting system is scheduled to be implemented in 2007. However, PHA continues to produce its successful HUD Annual Plan and Five-Year Plan.

PERFORMANCE MANAGEMENT AND ACCOUNTABILITY

PHA continues to foster a tradition of performance management and accountability that is now deeply ingrained in the culture of PHA. This is evidenced by PHA's annual report, which is organized by department and highlights accomplishments and performance indicators. It is an exceptional report that trends operational data over a ten-year period demonstrating PHA's ability to monitor and evaluate its performance. Any anomalies in the ten-year trend numbers are discussed and analyzed in the report. The scope and depth of the information provided in the annual report demonstrates PHA's ability and commitment to internally tracking and analyzing its performance.

Organizationally, PHA underwent numerous changes in FY2006. The Office of Planning, Policy and Resource Department was disbanded due to continued but serious reductions in HUD funding. In addition, all employees were required to take a one week furlough before the end of FY2006. By the end of FY2006, PHA employed 228 staff members of which 187 are permanent and 41 temporary employees. This represents a reduction of 22 employees or 8.8% over FY2005.

In FY2007, the PHA reduced the staff, once again, by an additional 18 persons to compensate for the reductions in operating subsidy and furloughed the entire staff for five days.

PHAS

The current system used by HUD for public housing authorities is the Public Housing Assessment System (PHAS). The PHAS is a composite score that relies on individual scores for a physical component, a financial component, a management component, and finally a resident satisfaction component. PHA scored 88 in 2004, 81 in 2005 and 81 in 2006. These scores fall into the standard designation. The 2006 score was below the 90 score that would have designated the PHA as one of HUD's "High Performers." In fiscal year 2006, PHA received 28 out of 30 in the management component, and 9 out of 10 on the resident component. However, in the physical component and also in the financial component, it received 22 out of a possible 30. It should be noted that the financial score is more indicative of HUD not funding the operating subsidy than any financial shortcoming on the part of PHA.

PRIVATE SECTOR AND NOT-FOR-PROFIT PARTNERSHIPS

In February of 2006, ground was finally broken on the 65 unit Williams-Woods affordable housing development at the Roger Williams Homes site. The original Roger Williams Homes was the second public housing development built in Providence. It suffered severe deferred maintenance in the 1970's and 1980's and all but 40 of the original 744 units were deprogrammed as public housing. The deprogrammed units were demolished in 1990 to enable the development of new affordable housing. After considerable delays with the project, PHA selected Winn Development Company (WDC) from Boston as their development partner. The development commenced lease-up in November of 2006.

In 2002, PHA partnered with WDC on the Lockwood Plaza development. Lockwood Plaza involved the preservation and rehabilitation of a 209 unit HUD-foreclosed property. HUD gave the PHA the right of first refusal to the property. As part of the partnership agreement with Winn, PHA had all their predevelopment fees reimbursed and received a flat fee at closing. In addition, PHA received a fee for issuing the bonds that was used to finance the rehabilitation. PHA currently receives a 1% annual asset management fee or no less than $20,000 each year. This project demonstrates management's skill in assessing risks and rewards and making decisions accordingly.

In addition, PHA issued bonds for Canonochet Cliffs in Hopkinton, RI in 2007. In return for being the conduit issuer, PHA receives an administrative fee for issuing the bonds. PHA is permitted under state law to issue bonds outside of its jurisdiction when a housing authority does not exist in a city or town and when a local governing body approves it. By issuing the bonds, PHA assists the housing developer with valuable financing and fulfills its mission of providing affordable housing.

PORTFOLIO AND OPERATIONS ANALYSIS

PHA's housing stock is currently in satisfactory condition. Although, most of PHA's public housing properties are located in low or moderate income neighborhoods, they are indistinguishable from the surrounding housing market. PHA properties are a mixture of low, medium and high rise structures as are most of the neighboring buildings. The PHA buildings do not contain any special signage that may distinguish its properties from market rate residential buildings. Many projects are well into their modernization cycles and are in need of some aesthetic improvements.

The Department of Facilities Management's Modernization Division which administers any modernization efforts, expended approximately $4.8 million in Capital Funds to modernize and improve PHA's properties. Included in the modernization work were exterior renovations to several Scattered Site duplex buildings. These renovations included vinyl siding, gutters, downspouts, replacement windows, exterior doors and porches.

PHA's overall operations have remained very strong. The Authority's percentage of rents collected on its public housing units was at 95% for 2006, as was the same percentage for FY 2004 and 2005. The occupancy rate for all developments has been consistently solid at 98% for the past three years.

Property Management

PHA's Department of Housing Management is responsible for marketing the projects, resident selection and processing, leasing units, rent collection, evictions and overall management of its public housing projects. The Department is comprised of four functional areas: administration, resident selection, elderly/disabled project management and family project management. The Department currently has thirty permanent employees including 10 property managers all of whom have received the NAHRO Certificate. Staff is responsible for resident selection and achieving occupancy goals.

The housing market in the City and state has remained stable with units available but rents have continued to increase. PHA continues to enjoy high occupancy rates and a large waiting list. Currently, the waiting list is 3,484 applicants.

PHA has achieved the HUD approved occupancy rate, currently 97%, nine of the past ten years and occupancy has not fluctuated more than 6% during that period.

RESIDENT SERVICES

PHA continues to be highly committed to resident services. The Department of Resident Services has three divisions: Education and Training, Supportive Services and Youth Programs. Each is headed by a manager and the Department's central administration is staffed by three full time staff members. In FY2006, 2001 individuals have been served by the Department. But as with other programs at PHA, budget cuts have had an adverse affect. As a result, medical clinics at three high rise buildings closed. The Department continues to provide an array of programs which include family self sufficiency, adult education and GED, English as a second language, office skills training and substance abuse prevention education.

SECURITY SERVICES

Security is provided to PHA's residents by the Providence Police Department's Public Housing Unit (PHU). In FY2006, there were eight officers assigned by the police department to PHA. The City of Providence (the City) and PHA share the cost of the PHU and its police officers. The City is responsible for the payment of the officer's salaries, benefits, pension plan contributions and any time spent in court. PHA compensates the officers for any hours spent beyond the hours paid for by the City. On average, each PHU officer works an additional 20 hours of PHA work per week.

In addition, security is provided by nine PHU reserve officers who work a total of 30 hours per month and a private PHA security force of thirteen that work a total of 425 hours per week. Since 2002, PHA provided 24 hour security system to monitor the elderly high rise projects. PHA plans to install the security system in all of the family developments as well.

LEASED HOUSING

PHA's Leased Housing Department assisted more than 2,700 participating families on the Section 8 Program and slightly over 2,000 on PHA's regular and pre-application waiting lists. New vouchers have not been issued in 2006 because of HUD reductions in the program. In FY2006, through attrition, the program served 300 fewer families. PHA, unlike most other public housing authorities, did not have to terminate any existing voucher holder's contract. The Department has consistently been a HUD "High Performer" four of the previous five years. In FY2005 PHA earned a Section 8 Management Assessment Program (SEMAP) score of 104%.

FINANCIAL ANALYSIS

PHA is a traditional housing authority which receives most of its funding from HUD. Over the last several years PHA has generally operated at a surplus. In FY2005, PHA had a sizable public housing operating deficit of $2.597 million. In FY2006, PHA experienced an operating surplus of $1.190 million. As was noted in the 2002 Report, there is considerable volatility in the amount of HUD operating subsidy received by PHA year over year. FY2006 allocation represented a 11.6% increase over FY2005. But this amount, $8,294 million was only funded at 77% of the eligible amount.

Operating income increased by 18.5% in FY2006, substantially more than anticipated. This is primarily due to 101% increase in "Other" income from the previous year and included a one time transfer of Section 8 administrative reserve fees, the sell-off of antenna leases and a greater than expected allocation of Capital Funds to the Operating Budget.

OUTLOOK

The outlook on the rating is stable and is based on the solid housing management at the Authority despite the reduced subsidies from HUD.

New York
David Parsons
Asst Vice President - Analyst
Public Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Florence Zeman
Senior Vice President
Public Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​​​
Moodys.com