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U.S. Public Finance Housing Rating Actions, First-Quarter 2024

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U.S. Public Finance Housing Rating Actions, First-Quarter 2024

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S&P Global Ratings' U.S. Public Finance Housing rating actions (including outlook revisions) for first-quarter 2024 consisted of three positive rating actions, three negative rating actions, and 47 affirmations (see table 1).

First-Quarter Rating Actions

The upgrade on one military housing project reflected improved financial and operating performance from increasing net rent collections following Basic Allowance for Housing (BAH) revenue increases. The outlook revision for one federally enhanced housing credit was based on the recent outlook revision of Transamerica, the bonds' guaranteed investment contract (GIC) provider, to stable from negative. The other outlook revision was related to an age-restricted rental housing bond project, reflecting improved debt service coverage from annual increases in net operating income due to improvement in average occupancy that outpaced increases in expenses.

We took negative rating actions on one rental housing bond project with three liens in the age-restricted subsector (see table 2). All three liens were downgraded, with the two subordinate liens downgraded due to nonpayment of bond principal on their debt service payment due dates. The first lien was downgraded, reflecting our view that the bonds are highly vulnerable to nonpayment given depleted transaction reserves.

Affirmations constituted 47 out of 69 total rating actions, or about 68% of rating actions, during first-quarter 2024, which is lower than fourth-quarter 2023 (77%). As of April 2024, about 95% of ratings carry stable outlooks, higher than the previous quarter (87%), reflecting resiliency and strong metrics in our rated universe. (For more information, see recent commentaries in Related Research.) We typically review the parity rating on an issuer in conjunction with any new-money or refunding transactions. During the first quarter, we rated 34 new sales in conjunction with affirmations (see table 3). This pace has not changed when compared with the new sale activity in fourth-quarter 2023.

We also rated 16 new issuers in the first quarter 2024 (see table 4):

Table 1

Positive rating actions--first-quarter 2024
Issue State Sector Prior rating Current rating Prior outlook Current outlook Reason for rating
Fort Drum Mountain Comnty Homes LLC, NY Military Housing NY Rental Housing Bonds (RHB) - Military BBB+ A- Stable Stable Improved financial and operating performance due to increasing net rent collections from BAH revenue growth
New Mexico Mtg Fin Auth NM Multifamily Insured Section 542(c) 1st LIEN New Mexico 5 Apartment Projects NM Federally Enhanced Housing (FEH) - Multi-Family Stand Alone A+ A+ Negative Stable Recent outlook revision of GIC provider (Transamerica)
QSH/Sanders Glen LLC, GA Affordable Housing Sanders Glen Project GA Rental Housing Bonds (RHB) - Age Restricted B- B- Negative Stable Improved debt service coverage following increases in net operating income

Table 2

Negative rating actions--first-quarter 2024
Issue State Sector Prior rating Current rating Prior outlook Current outlook CreditWatch Reason for rating
Great Lakes Senior Living Communities IL, First Tier IL RHB - Age Restricted CCC- CC N.M. Negative Bonds are highly vulnerable to nonpayment given depleted transaction reserves after consecutive draws for subordinate bond interest payments
Great Lakes Senior Living Communities IL, Second Tier IL RHB - Age Restricted CCC- D N.M. N.M. Nonpayment of bond principal on the Jan. 1, 2024, debt service payment date
Great Lakes Senior Living Communities IL, Third Tier IL RHB - Age Restricted CCC- D N.M. N.M. Nonpayment of bond principal on the Jan. 1, 2024, debt service payment date
N.M.--Not meaningful.

Table 3

Affirmations and new sales--first-quarter 2024
Issue State Sector Rating Outlook Type of review
Alaska Hsg Fin Corp, AK General Mortgage Revenue Bond II (GMRB) AK MRBP AA+ Stable New sale
Arkansas Dev Fin Auth, AR Single Family Multi-Agency MBS 1995 Resolution AR MRBP AA+ Stable New sale
California Dept of Vet Affairs, CA Home Purchase Revenue Bonds CA MRBP AA Stable Full review
California Dept of Vet Affairs, CA Veterans General Obligation Bonds (CA St GO) CA MRBP AA+ Stable Full review
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 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 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
Columbus Metropolitan Housing Authority, OH OH Social Housing Provider (SHP) ICR A+ Stable New sale
Connecticut Hsg Fin Auth, CT General Bond Resolution CT MRBP AAA Stable New sale
Cuyahoga Metropolitan Hsg Auth (City of), OH General Obligation ICR OH SHP ICR A+ Stable Full review
DeKalb Cnty Hsg Auth, GA General Obligation ICR GA SHP ICR A+ Stable New sale
District of Columbia Hsg Auth, DC HUD Capital Fund Financing DC Capital Fund Financing Program (CFFP) A+ Stable Full review
GMAC Commercial Military Hsg Tr XXI, TX Military Housing Fort Bliss/White Sands Missile Range TX RHB - Military BBB+ Stable Full review
Howard Cnty Hsg Commission, MD General Obligation ICR MD SHP ICR A+ Stable New sale
Iowa Fin Auth, IA MBS 1991 SFMBS Resolution IA MRBP AAA Stable New sale
Jacksonville Hsg Auth, FL General Obligation ICR FL SHP ICR A+ Stable New sale
King Cnty, WA Limited Tax General Operating Pledge and King Cnty Hsg Auth, WA General Obligation WA SHP ICR AAA Stable New sale
Maine St Hsg Auth, ME Mortgage Purchase Program Resolution ME MRBP AA+ Stable New sale
Maine St Hsg Auth, ME Mortgage Purchase Program Resolution ME MRBP AA+ Stable New sale
Massachusetts Hsg Fin Agy MA Section 266 1st LIEN 2014B MA MRBP AA+ Stable Full review
Michigan St Hsg Dev Auth, MI General Resolution MI MRBP AA+ 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
Minnesota Senior Living, LLC, MN Affordable Housing Senior Living Proj MN RHB - Age Restricted BB- Stable Full review
Minnesota Senior Living, LLC, MN Affordable Housing Senior Living Proj 2nd Lien MN RHB - Age Restricted B Stable Full review
Minnesota Senior Living, LLC, MN Affordable Housing Senior Living Proj 3rd Lien MN RHB - Age Restricted B- Stable Full review
Missouri Hsg Dev Comm MO Insured Section 221(d)3, Section 221(d)4, Section 542(c) 1st LIEN 2014 Multi Family Indenture MO MRBP AA+ Stable Full review
Missouri Hsg Dev Comm MO Insured Section 221(d)3, Section 221(d)4, Section 542(c) 1st LIEN 2000 Multifamily Indenture MO MRBP AA+ Stable Full review
Missouri Hsg Dev Comm, MO First Place Homeownership Loan Program MO MRBP AA+ Stable New sale
Nebraska Invest Fin Auth, NE SFHRB Resolution NE MRBP AAA Stable New sale
Nevada Hsg Div, NV Single Family Multi-Agency MBS 2008 MBS Resolution NV MRBP AA+ Stable New sale
New York City Hsg Dev Corp, NY Multi-Family Whole Loans - Multifamily General Resolution NY Mortgage Revenue Bond Program (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
Rhode Island Housing & Mortgage Finance Corporation, RI Homeownership Opportunity Bond Resolution RI MRBP AA+ Stable New sale
Sacramento Cnty Hsg Auth, CA FNMA Standby Agreement Cottage Estates CA FEH Multi-Family Stand Alone B+ Stable Full review
South Dakota Hsg Dev Auth, SD Single Family Whole Loan - Homeownership Mortgage Bond Resolution (1977 Indenture) SD MRBP AAA Stable New sale
Tennessee Hsg Dev Agy, TN Single Family Whole Loan - 2013 General Residential Finance Program TN MRBP AA+ Stable New sale
Texas Department of Housing & Community Affairs Single Family Mortgage Rev Bnd Indenture TX MRBP AA+ Stable New sale
Virginia Housing Development Authority VA Rental Housing Bonds w GO VA MRBP AA+ Stable New sale
Virginia Hsg Dev Auth, VA Commonwealth Mortgage Bonds w GO VA 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 New sale
Wisconsin Hsg Pres Corp, WI General Obligation ICR WI Social Housing Provider (SHP) ICR AA- Stable Full review

Table 4

New issuers--first-quarter 2024
Issue State Sector Rating Outlook
Arc70 Capital LLC, CA, Arc70 Capital Series 2024-1 Class A Certificates CA RHB - Multifamily Static Pool BBB Stable
Arc70 Capital LLC, CA, Arc70 Capital Series 2024-1 Class B Certificates CA RHB - Multifamily Static Pool A+ Stable
CIC Calavera, L.P., CA Fannie Mae Mariposa Apartments CA FEH - Multifamily Stand Alone AA+ Stable
Escambia County Hsg Finance Auth, 5465 Curry Ford L.P., Hollow Brook Apartments FL FEH - Multifamily Stand Alone AA+ Stable
Florida Housing Finance Corp., Brownsville Village V Ltd. FL FEH - Multifamily Stand Alone AA+ Stable
Freddie Mac VA Housing MFFHLMC 1st Lien Multifamily Mortgage Participation Certs WE5052 VA FEH - Freddie Mac Multifamily Pool AA+ Stable
Freddie Mac VA Housing MFFHLMC 1st Lien Multifamily Mortgage Participation Certs WE6103 VA FEH - Freddie Mac Multifamily Pool AA+ Stable
Freddie Mac VA Housing MFFHLMC 1st Lien Multifamily Mortgage Participation Certs WE6104 VA FEH - Freddie Mac Multifamily Pool AA+ Stable
Freddie Mac VA Housing MFFHLMC 1st Lien Multifamily Mortgage Participation Certs WE6108 VA FEH - Freddie Mac Multifamily Pool AA+ Stable
Freddie Mac VA Housing MFFHLMC 1st Lien Multifamily Mortgage Participation Certs WE6111 VA FEH - Freddie Mac Multifamily Pool AA+ Stable
Freddie Mac VA Housing MFFHLMC 1st Lien Series ML21 VA FEH - Freddie Mac Multifamily Pool AA+ Stable
Jacksonville Hsg Auth, FL General Obligation FL SHP ICR A+ Stable
Michaels Military Housing NJ, Military Housing Revenues NJ RHB - Military BBB+ Stable
Monterey Bay Military Housing, LLC, CA Military Housing CA RHB - Military A+ Stable
NeighborWorks Capital, MD General Obligation ICR MD CDFI ICR A+ Stable
Santaluz Family Apartments, L.P., CA Fannie Mae Rancho Del Norte Apartments CA FEH - Multifamily Stand Alone AA+ Stable
Analyses associated with positive rating actions
Analyses associated with negative rating actions

Related Research

This report does not constitute a rating action.

Primary Credit Analyst:Shirley Flores, New York (646) 831-2467;
shirley.murillo@spglobal.com
Secondary Contacts:Nora G Wittstruck, New York + (212) 438-8589;
nora.wittstruck@spglobal.com
Olivia Fellbaum, New York + 1 (212) 438 7428;
olivia.fellbaum@spglobal.com
Anshul Sharma, Pune;
anshul.sharma@spglobal.com

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