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U.S. Public Finance Housing Rating Actions, Second-Quarter 2023

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S&P Global Ratings' U.S. Public Finance Housing rating actions for second-quarter 2023 included eight positive rating actions and nine negative rating actions. There were also 69 affirmations.

Second-Quarter Rating Actions

We took positive rating actions on eight individual ratings, which included eight upgrades, two of which also assigned a positive outlook.

The upgrades reflected improved financial metrics and strong and stable management for one community development finance institution and three state housing finance agencies' ICRs, demonstration of the resolution's ability to withstand projected losses at the 'AAA' level and meet all other requirements to be rated above the sovereign and the implementation of the mortgage revenue bond program (MRBP) criteria for two MRBP entities, improved coverage and strong occupancy for two rental housing bond programs in the military and affordable housing subsectors, and improved financial performance and overall debt profile for one social housing provider. See table 1 for the list of positive rating actions in second-quarter 2023.

We took negative rating actions on nine individual ratings, which included seven downgrades and two negative outlook revisions.

The downgrades reflected much-weaker coverage after the issuance of the series 2023 bonds for a capital fund financing program bonds entity; rating dependency on a GIC provider - whose outlook was revised to stable from positive for a Federally Enhanced Housing organization; a borrower's projected shortfall in funds available for debt service on the next interest payment date, likely requiring a draw on debt service reserve funds for one age-restricted rental housing bonds credit with three tranches; weaker coverage for two Section 8 rental housing bond entities; and weakened view of management and governance for a public housing authority. See table 2 for the list of negative rating actions in second-quarter 2023.

There were 69 affirmations out of 87 total rating actions during second-quarter 2023, or about 80% of rating actions, slightly more than in first-quarter 2023 (78%). As of July 2023, about 93% of our ratings carry stable outlooks, slightly down from last quarter (95%), partially reflecting continued resiliency and strong metrics presented by our rated universe. (For more information, see "Outlook For U.S. Public Finance Housing: Economic Winds Won't Blow The House Down," published Jan. 19, 2023.) We typically review the parity rating of an issuer in conjunction with any new-money or refunding debt sale. During second-quarter 2023, we rated 39 new sales in conjunction with affirmations. This pace was slightly higher than the new sale activity we saw in the first-quarter 2023, which saw 34 new sales. See table 3 for the list of affirmations and new sales in second-quarter 2023.

We also rated five new issues in second-quarter 2023. Two were rated under our "U.S. Federally Enhanced Housing Bonds Rating Methodology" criteria, published Nov. 12, 2019, two were rated under our "Methodology For Rating U.S. Public Finance Rental Housing Bonds" criteria, published April 15, 2020, in conjunction with the "Global Methodology for Rating Interest-Only Securities," criteria, published on April 15, 2020, and the last was rated under our "Methodology For Rating U.S. Public Finance Mortgage Revenue Bond Programs" criteria, published Oct. 10, 2022. See table 4 for the list of new issues rated in second-quarter 2023.

Table 1

Positive rating actions--second-quarter 2023
ASID display name State Sector Prior rating Current rating Prior outlook Current outlook Reason for rating
Century Hsg Corp, CA General Obligation ICR CA CDFI ICR AA- AA Stable Stable Improved capital adequacy, profitability, financial ratios and strategic initiatives in recent years
District of Columbia Hsg Fin Agy, DC General Obligation ICR DC HFA ICR A+ AA- Positive Stable Improved financial metrics
Illinois Hsg Dev Auth, IL General Obligation ICR IL HFA ICR AA- AA Positive Stable Improved financial ratios and very strong and stable management
Nebraska Invest Fin Auth, NE SFHRB Resolution NE MRBP AA+ AAA Stable Stable Demonstration of ability to withstand projected losses at the 'AAA' level and meet all other requirements to be rated above the sovereign
Wisconsin Hsg & Econ Dev Auth, WI Home Ownership Revenue Bonds (1987 Resolution) w GO WI MRBP AA AA+ Stable Stable MRBP criteria implementation
Fort Huachuca-YPG Arizona comntys LLC, AZ Military Housing AZ RHB - Military BBB+ A- Stable Stable Improved coverage in recent years
Vacaville Redev Agy, CA Affordable Housing 2000A Vacaville Comnty Hsg CA RHB - Unenhanced A A+ Stable Stable Improved coverage coupled with strong occupancy
Bridge Hsg, CA General Obligation ICR CA Social Housing Provider ICR A+ AA- Stable Stable Improved financial performance and debt profile

Table 2

Negative rating actions--second quarter 2023
Issue State Sector Prior rating Current rating Prior outlook Outlook Reason for rating
Meridian Hsg Auth, MS HUD Capital Fund Financing MS HUD Capital Fund Financing Program (CFFP) AA- A+ NM Stable Much-weaker coverage after the issuance of the series 2023 bonds
New Jersey Housing & Mortgage Finance Agency NJ Multifamily Insured Section 221(d)3 1st LIEN Presidential Plaza at Newport NJ FEH Multi-Family Stand-Alone A+ A+ Positive Stable Rating dependency on the JP Morgan Chase Bank - GIC provider - whose outlook was revised to stable from positive
Greater Cincinnati Elderly Hsg Dev Corp OH Multifamily Section 221(d)4 1st LIEN Cambridge Arms II Apts OH FEH Multi-Family Stand-Alone A+ A+ Positive Stable Rating dependency on the JP Morgan Chase Bank - GIC provider - whose outlook was revised to stable from positive
Great Lakes Senior Communities IL Affordable Housing Great Lakes Senior Living Communities Third Tier IL RHB - Age Restricted CCC+ CCC- Negative Negative The borrower's projected shortfall in funds available for debt service on the next interest payment date, likely requiring a draw on debt service reserve funds to make full and timely payment
Great Lakes Senior Communities IL Affordable Housing Great Lakes Senior Living Communities SecondTier IL RHB - Age Restricted CCC+ CCC- Negative Negative The borrower's projected shortfall in funds available for debt service on the next interest payment date, likely requiring a draw on debt service reserve funds to make full and timely payment
Great Lakes Senior Communities IL Affordable Housing Great Lakes Senior Living Communities First Tier IL RHB - Age Restricted CCC+ CCC- Negative Negative The borrower's projected shortfall in funds available for debt service on the next interest payment date, likely requiring a draw on debt service reserve funds to make full and timely payment
Foundation for Affordable Housing, Inc, CA Section 8 Affordable Housing Citrus Grove and East Winds Apartments CA RHB - Section 8 BB+ BB Stable Stable Very weak coverage and liquidity reserves assessment
Tulsa Pythian Manor, Inc., GA Section 8 Affordable Housing Pythian Manor Apts GA RHB - Section 8 BBB BBB- Stable Stable Weaker coverage within the past two years and expectation that it will likely remain below rating threshold within the next year
Fall River Hsg Auth, MA General Obligation ICR MA Social Housing Provider ICR BBB+ BBB Stable Negative Weakened view of management and governance and the heightened risk to creditworthiness

Table 3

Affirmations and new sales--second quarter 2023
Issue State Sector Rating Outlook Type of review
Sunquest Properties, Inc., LA FNMA Standby Agreement Peppermill I & II Apts LA FEH Multi-Family Stand-Alone BB Stable Full review
Salem Heights II Preservation Associates LP, MA Salem Heights Apartments MA FEH Multi-Family Stand-Alone AA+ Stable Full review
EMLI Pecan TC I LP, TX Multifamily Tax-Exempt Mortgage-Backed Bonds Series 2020 TX FEH Multi-Family Stand-Alone AA+ Stable Full review
Laredo Hsg Fin Corp, TX Single Family Multi-Agency MBS 1994 Indenture TX FEH Single-Family Stand-Alone CC Stable Full review
Low Income Investment Fund, CA General Obligation CA CDFI ICR A Stable Full review
Kentucky Hsg Corp, KY General Obligation ICR KY HFA ICR AA Stable Full review
Rhode Island Hsg & Mtg Fin Corp, RI General Obligation ICR RI HFA ICR AA- Stable Full review
Alaska Hsg Fin Corp, AK 1999 Resolution: Veterans Mortgage Program AK MRBP AAA Stable New sale
Colorado Hsg & Fin Auth, CO Single Family Mortgage Bonds Class III (GO) CO MRBP AA Stable New sale
Colorado Hsg & Fin Auth, CO Single Family Mortgage Bonds Class III (GO) CO MRBP AA Stable New sale
Colorado Hsg & Fin Auth, CO Single Family Mortgage Bonds Class II CO MRBP AA+ Stable New sale
Colorado Hsg & Fin Auth, CO Single Family Mortgage Bonds Class II CO MRBP AA+ Stable New sale
Colorado Hsg & Fin Auth, CO Single Family Whole Loan - Single Family Mortgage Bonds Indenture CO MRBP AAA Stable New sale
Colorado Hsg & Fin Auth, CO Single Family Whole Loan - Single Family Mortgage Bonds Indenture CO MRBP AAA Stable New sale
Colorado Hsg & Fin Auth, CO Multi-Family Whole Loans - Multifamily Master Indenture CO MRBP AAA Stable New sale
Colorado Hsg & Fin Auth, CO Multi-Family Whole Loans - Multifamily Master Indenture CO MRBP AAA Stable New sale
Colorado Hsg & Fin Auth, CO Multi-Family Whole Loans - Multifamily Master Indenture 2nd Lien CO MRBP AA+ Stable New sale
Colorado Hsg & Fin Auth, CO Multi-Family Whole Loans - Multifamily Master Indenture 2nd Lien CO MRBP AA+ Stable New sale
Connecticut Hsg Fin Auth, CT Multi-Family FHA Insured - 2009 NIBP Indenture CT MRBP AA+ Stable Full review
District of Columbia Hsg Fin Agy, DC Single Family Multi-Agency MBS 1988 Resolution DC MRBP AA+ Stable Full review
Illinois Hsg Dev Auth, IL MF Housing Bond Resolution IL MRBP AA+ Stable Full review
Iowa Fin Auth, IA MBS 1991 SFMBS Resolution IA MRBP AAA Stable New sale
Maine St Hsg Auth, ME Mortgage Purchase Program Resolution ME MRBP AA+ Stable New sale
Michigan State Housing Development Authority, MI Rental Housing General Resolution MI MRBP AA+ Stable New sale
Minnesota Hsg Fin Agy, MN Rental Housing Bond Resolution MN MRBP AAA Stable New sale
Minnesota Hsg Fin Agy, MN Rental Housing Bond Resolution MN MRBP AAA Stable New sale
Minnesota Housing Finance Agency, MN Single Family MN MRBP AA+ Stable New sale
Minnesota Housing Finance Agency, MN Single Family MN MRBP AA+ Stable New sale
Missouri Hsg Dev Comm, MO First Place Homeownership Loan Program MO MRBP AA+ Stable New sale
Montana Brd of Hsg MT, SF I Indenture MT MRBP AA+ Stable New sale
Nevada Hsg Div, NV Single Family Multi-Agency MBS 2008 MBS Resolution NV MRBP AA+ Stable New sale
New Jersey Hsg & Mtg Fin Agy, NJ Single Family Whole Loan - Homeownsherip Mortgage Bond Resolution NJ MRBP AA Stable New sale
New Jersey Hsg & Mtg Fin Agy, NJ Multi-Family Whole Loans - 2004 Resolution NJ MRBP AA- Stable New sale
New Mexico Mtg Fin Auth, NM 2005 Single Family Program General Indenture NM MRBP AA+ Stable Full review
New Mexico Mtg Fin Auth, NM 2005 Single Family Program General Indenture NM MRBP AA+ Stable Full review
New York City Hsg Dev Corp, NY Multi-Family Whole Loans - Multifamily General Resolution NY MRBP AA+ Stable New sale
North Carolina Hsg Fin Agy, NC Single Family MBS Whole Loan - 1998 Trust Agreement NC MRBP AA+ Stable New sale
Pennsylvania Hsg Fin Agy, PA Single Family Mortgage Revenue Bonds w GO PA MRBP AA+ Stable New sale
Tennessee Hsg Dev Agy, TN Single Family Whole Loan - 2013 General Residential Finance Program TN MRBP AA+ Stable New sale
Texas Dept of Hsg & Comnty Affairs, TX Single Family Multi-Agency MBS and Whole Loans 1980 Indenture TX MRBP AA+ Stable New sale
Texas Dept of Hsg & Comnty Affairs, TX Single Family Multi-Agency MBS and Whole Loans 1980 Indenture 2nd Lien TX MRBP AA+ Stable New sale
Utah Hsg Corp., UT Single Family Multi-Agency MBS TEMS UT MRBP AA+ Stable New sale
Utah Hsg Corp., UT Single Family Multi-Agency MBS TEMS UT MRBP AA+ Stable New sale
Utah Hsg Corp., UT Single Family Multi-Agency MBS TEMS UT MRBP AA+ Stable New sale
Virginia Housing Development Authority VA Rental Housing Bonds w GO VA MRBP AA+ Stable New sale
Virginia Housing Development Authority VA Rental Housing Bonds w GO VA MRBP AA+ Stable New sale
West Virginia Hsg Dev Fd, WV Housing Finance Bond w GO WV MRBP AAA Stable New sale
West Virginia Hsg Dev Fd, WV Housing Finance Bond w GO WV MRBP AAA Stable New sale
Wisconsin Hsg & Econ Dev Auth, WI Home Ownership Revenue Bonds (1988 Resolution) w GO WI MRBP AA+ Stable Full review
Wisconsin Hsg & Econ Dev Auth, WI 1974 HRB Indenture WI MRBP AA+ Stable New sale
Wisconsin Hsg & Econ Dev Auth, WI Home Ownership Mortgage Revenue Bonds (NIBP) WI MRBP AA+ Stable Full review
BSLC II, CO Bethesda Senior Living Communities Affordable Housing Bethesda Portfolio Project 2nd Lien CO RHB - Aged Restricted BB+ Negative Full review
BSLC II, CO Bethesda Senior Living Communities Affordable Housing Bethesda Portfolio Project CO RHB - Aged Restricted BBB- Negative Full review
Army Hawaii Fam Hsg Tr, HI Military Housing HI RHB - Military AA Stable Event driven review
Island Palm Communities LLC, HI Military Housing Army Hawaii HI RHB - Military AA Stable Event driven review
Island Palm Communities LLC, HI Military Housing Army Hawaii 2nd Lien HI RHB - Military AA- Stable Event driven review
Island Palm Communities LLC, HI Military Housing Army Hawaii 3rd Lien HI RHB - Military A+ Stable Event driven review
Fort Hamilton Housing, LLC NY Military Housing Fort Hamilton 2nd Lien NY RHB - Military BBB+ Stable Full review
Fort Hamilton Housing, LLC NY Military Housing Fort Hamilton NY RHB - Military A Stable Full review
Atlantic Marine Corps Communities LLC, NC Military Housing NC RHB - Military A- Stable Full review
Atlantic Marine Corps Communities LLC, NC Military Housing 2nd Lien NC RHB - Military BBB Stable Full review
Atlantic Marine Corps Communities LLC, NC Military Housing 3rd Lien NC RHB - Military BBB Stable Full review
Tri Command Military Hsg LLC, SC Military Housing Beaufort/Parris Island Marine Corps SC RHB - Military B+ Stable Full review
Linc Hsg, CA Affordable Housing 2007 Franciscan MHP 2nd Lien CA RHB - Mobile Homes A- Stable Full review
Linc Hsg, CA Affordable Housing 2007 Franciscan MHP CA RHB - Mobile Homes A+ Stable Full review
RHA Affordable Hsg II, Inc., GA Section 8 Affordable Housing Winston Summit & Columbia Meadows Apts GA RHB - Section 8 BB- Stable Full review
Denver Housing Authority CO General Obligation ICR CO Social Housing Provider ICR aa- Stable New sale
Seattle Housing Authority, WA General Obligation WA Social Housing Provider ICR aa Stable New sale
Milwaukee Hsg Auth, WI General Obligation ICR WI Social Housing Provider ICR A+ Stable Full review

Table 4

New issuers--second-quarter 2023
Issue State Sector Rating Outlook Type of review
Freddie Mac, VA Multiple Family Multi-Agency Series ML-16 VA FEH multifamily pass-through transactions AA+ Stable New sale
Freddie Mac, VA Multiple Family Multi-Agency Series ML-15 VA FEH single-family pass-through transactions AA+ Stable New sale
California Housing Finance Agency CA Affordable Housing Securitization Pool Series 2023-1 CA RHB Multifamily Static Pool BBB Stable New sale
California Housing Finance Agency CA, Series 2023-1 Series X Interest Only CA Interest Only BBB Stable New sale
California Housing Finance Agency, CA Multi-Family Mortgage Revenue Bond Program CA MRBP AA Stable New sale
Analyses associated with positive rating actions
  • Century Housing Corp., California, June 16, 2023
  • District of Columbia Housing Finance Agency, April 22, 2023
  • Illinois Housing Development Authority, June 6, 2023
  • Nebraska Investment Finance Authority, April 27, 2023
  • Wisconsin Housing and Economic Development Authority, April 8, 2023
  • Fort Huachuca-Yuma Proving Ground Arizona Communities LLC; Military Housing, June 29, 2023
  • Vacaville Redevelopment Agency, California, June 2, 2023
  • BRIDGE Housing Corp., California, June 6, 2023
Analyses associated with negative rating actions
  • Meridian Housing Authority, Mississippi; Capital Fund Financing Program, May 16, 2023
  • Greater Cincinnati Elderly Housing Development Corp., Ohio/New Jersey Housing & Mortgage Finance Agency, April 22, 2023
  • Arizona Industrial Development Authority Great Lakes Senior Living Communities LLC, June 30, 2023
  • Citrus Grove & East Winds Apartments, FL 2014A Housing Revenue Bond Rating Cut One Notch To 'BB' On Weaker Finances, June 9, 2023
  • Tulsa County Industrial Authority, Oklahoma Tulsa Pythian Manor Inc., Georgia, April 18, 2023
  • Fall River Housing Authority, Massachusetts, April 27, 2023

Related Research

This report does not constitute a rating action.

Primary Credit Analyst:Shirley Murillo, New York (646) 831-2467;
shirley.murillo@spglobal.com
Secondary Contact:Marian Zucker, New York + 1 (212) 438 2150;
marian.zucker@spglobal.com
Research Assistant:Yogesh Dike, Pune

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