articles Ratings /ratings/en/research/articles/250128-u-s-public-finance-housing-rating-actions-fourth-quarter-2024-13395845 content esgSubNav
In This List
COMMENTS

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

COMMENTS

The U.S. Public Finance Housing Sector Could Face Credit Pressure From Federal Policy Shifts

COMMENTS

Rating Changes Of 25 Major U.S. Cities Since 2000

COMMENTS

Cryptocurrency Is Growing Within U.S. State Reserves And Statewide Pension Plans

COMMENTS

CreditWeek: How Could Deep Federal Spending Cuts Affect U.S. Local Governments And Schools?


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

image

S&P Global Ratings' U.S. Public Finance Housing rating actions (including outlook revisions) for fourth-quarter 2024 consisted of 11 positive rating actions, seven negative rating actions, and 58 affirmations.

Fourth-Quarter Rating Actions

We took positive rating actions on one community development finance institution (CDFI) and 10 rental housing bond (RHB) credits, which consisted of seven upgrades and four outlook changes (see table 1). The positive rating actions for the 10 RHB credits were within the military housing, static pool, mobile home, and age-restricted subsectors. The military housing credits saw three upgrades and one outlook revision from stable to positive due to improved financial and operating performance, driven primarily by higher Basic Allowance for Housing (BAH) allocations. Three static pool transactions were upgraded due to an improvement in their coverage and liquidity assessment, driven by improved loan performance. One mobile home development was upgraded, and we revised the outlook on another from stable to positive due to improving financials, resulting in a trend of rising debt service coverage (DSC). We revised the outlook on one age-restricted development from stable to positive, primarily due to a trend of improving DSC given higher occupancy rates and oversight on the properties. Lastly, we revised the outlook of one CDFI from stable to positive based on the likelihood that capital adequacy will remain above-average compared with peers over the next two years.

We took negative rating actions on one federally enhanced housing (FEH) credit, two social housing providers (SHPs), and four RHB credits, which consisted of three downgrades, four outlook revisions, and placement of one credit on CreditWatch with negative implications (see table 2). The negative rating actions for four RHB projects were within the section 8, age-restricted, and military subsectors. One age-restricted development was placed on CreditWatch with negative implications due to the strong likelihood that the project will default on its next debt service payment. One military housing credit and one section 8 credit were downgraded due to a deterioration in DSC in recent years as a result of operating expenses outpacing the slow growth in revenue. We revised the outlook on another section 8 project due to an expected decline in DSC due to rising expenses. One rating on an SHP was downgraded due to its inability to meet the Department of Housing and Urban Development's standards related to the authority's board oversight, financial reporting, and building maintenance at some of its properties. We revised the outlook on another SHP to negative from stable because of weaker financial and liquidity ratios stemming from increases in operating expenses without a clearly defined strategic direction. Lastly, we revised the outlook on one FEH credit from stable to negative because projected assets are expected to be insufficient to cover the final bond maturity.

During fourth-quarter 2024, affirmations constituted 58 out of 95 total rating actions, or about 61%, less than in third-quarter 2024 (67%; see table 3). As of December 2024, about 94% of ratings carry stable outlooks, more than in the previous quarter (90%). During the fourth quarter, we rated 33 new sales, which was 13% fewer than the 38 new sales we rated during the third quarter. (For more information on our specific housing subsectors, see recent commentaries in Related Research.)

We also rated 19 new issuers in fourth-quarter 2024 (see table 4):

Table 1

Positive rating actions, fourth-quarter 2024
Issue State Sector/criteria Prior rating Current rating Prior outlook Current outlook Reason for rating action
Fort Hamilton Housing, LLC NY Military Housing Fort Hamilton 2nd Lien NY RHB - Military BBB+ A Stable Stable Improved financials, which have resulted in a trend of rising DSC
Fort Hamilton Housing, LLC NY Military Housing Fort Hamilton NY RHB - Military A A+ Stable Stable Improved financials, which have resulted in a trend of rising DSC
Fort Huachuca-YPG Arizona comntys LLC, AZ Military Housing AZ RHB - Military A- A+ Stable Stable Increases in the BAH rates leading to improved DSC
Millennium Housing LLC, CA Mobile Home Park Vista de Santa Barbara Series 2021 CA RHB- Mobile Home A- A Stable Stable Improved financials, which have resulted in a trend of rising DSC
California Housing Finance Agency CA Affordable Housing Securitization Pool Series 2023-1 CA RHB - Multifamily Static Pool BBB BBB+ Stable Stable Improved coverage and a liquidity assessment driven by improved loan performance in 2023
California Housing Finance Agency CA, Series 2023-1 Series X Interest Only CA RHB - Multifamily Static Pool BBB BBB+ Stable Stable Improved coverage and a liquidity assessment driven by improved loan performance in 2023
Washington State Housing Finance Commission, WA Affordable Housing Securitization Pool Series 2023-1 WA RHB - Multifamily Static Pool BBB BBB+ Stable Stable Improved coverage and a liquidity assessment driven by improved loan performance in 2023
Housing Trust Silicon Valley CA HOUSING GO HFA GO ICR CA CDFI ICR AA- AA- Stable Positive Likelihood that capital adequacy will remain above-average compared with peers during the outlook period
Covenant Communities, Inc, WI Affordable Housing Covenant Communties Inc Proj WI RHB - Age Restricted BBB BBB Stable Positive A trend of improving DSC given higher occupancy rates and oversight on properties
Mid-Atlantic Fam Comntys LLC, VA Military Housing 3rd Lien VA RHB - Military A- A- Stable Positive Increase in BAH rates could lead to another year of increased revenues and DSC
Millennium Hsg of California, CA Affordable Housing Westlake & Millbrook Mobile Home Park CA RHB - Mobile Home A A Stable Positive Strong DSC in 2023, improved assessment of management and governance and positive trends in the project’s property specific characteristics

Table 2

Negative rating actions, fourth-quarter 2024
Issue State Sector/criteria Prior rating Current rating Prior outlook Current outlook CreditWatch Reason for rating action
South Texas Military Housing LP, TX Military Housing South Texas Navy Family Housing TX RHB - Military BBB- B+ N.M.** Stable A deterioration in coverage in recent years due to expenses outpacing revenues
Assisted Living Foundation of America, CA Section 8 Affordable Housing Central Alabama Portfolio Proj CA RHB - Section 8 BBB BBB- Negative Negative A deterioration in coverage in recent years due to expenses outpacing revenues
Milwaukee Hsg Auth, WI General Obligation ICR WI SHP ICR A+ A- Stable Negative Inability to meet HUD's standards related to the authority's board oversight, financial reporting and adequate property management
Great Lakes Senior Communities IL Affordable Housing Great Lakes Senior Living Communities First Tier IL RHB - Age Restricted CC CC Negative N.M. Negative Strong likelihood the project will default on its next debt service payment
Illinois Hsg Dev Auth, IL Multi-Family FNMA MBS Crestview Village Apts IL FEH - Multifamily Stand-Alone BB BB Stable Negative Projected assets will be insufficient to cover the final bond maturity
FFAH Carver Gardens, LLC, FL Section 8 Affordable Housing FL RHB - Section 8 B+ B+ Stable Negative Expected decline in DSC due to rising expenses
Stark Metropolitan Housing Authority OH General Obligation ICR OH SHP ICR A A Stable Negative Weaker financial and liquidity ratios due to increases in operating expenses
**Credit was previously placed on CreditWatch with negative implications. When a credit is placed on CreditWatch, the outlook is Not Meaningful (N.M.).

Table 3

Affirmations and new sales, fourth-quarter 2024
Issue State Sector/criteria Rating Outlook Type of review
Winter Garden Hsg Fin Corp, TX Single Family Multi-Agency MBS 1994 Indenture TX FEH - Single Family Stand Alone CC Negative Full review
BlueHub Loan Fund, MA General Obligation ICR MA CDFI ICR A+ Stable New sale
Clearinghouse CDFI, CA General Obligation ICR CA CDFI ICR A- 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
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
Connecticut Hsg Fin Auth, CT General Bond Resolution CT MRBP AAA Stable New sale
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
Maine St Hsg Auth, ME Mortgage Purchase Program Resolution ME MRBP AA+ Stable New sale
Massachusetts Hsg Fin Agy, MA Housing Bonds MA MRBP AA+ Stable New sale
Massachusetts Hsg Fin Agy, MA Single-Family Mortgage Bonds MA MRBP AA+ Stable New sale
Minnesota Housing Finance Agency, MN Single Family MN MRBP AA+ Stable New sale
Minnesota Hsg Fin Agy, MN Rental Housing Bond Resolution MN MRBP AAA Stable New sale
Nebraska Invest Fin Auth, NE SFHRB Resolution NE MRBP AAA Stable New sale
New Jersey Hsg & Mtg Fin Agy, NJ Multi-Family Whole Loans - 2004 Resolution NJ MRBP AA- Stable New sale
New York City Hsg Dev Corp, NY Multi-Family Whole Loans - Multifamily General Resolution NY MRBP AA+ Stable New sale
New York City Hsg Dev Corp, NY Multi-Family Whole Loans - Multifamily General Resolution NY 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 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
Virginia Housing Development Authority VA Rental Housing Bonds w GO VA MRBP AA+ Stable New sale
Wisconsin Hsg & Econ Dev Auth, WI 1974 HRB Indenture WI MRBP AA+ Stable New sale
Wisconsin Hsg & Econ Dev Auth, WI Home Ownership Revenue Bonds (1988 Resolution) w GO WI MRBP AA+ Stable New sale
Covenant Communities, Inc, WI Affordable Housing Covenant Communities Inc Proj 2nd Lien WI RHB-Age Restricted BB+ Stable Full review
Fort Carson Fam Hsg LLC, CO Military Housing CO RHB - Military AA Stable Full review
Mid-Atlantic Fam Comntys LLC, VA Military Housing VA RHB - Military AA- Stable Full review
Impact Funding LLC, CA Affordable Housing 2014-1 Pass Through Indenture CA RHB - Multifamily Static Pool AA+ Stable Full review
Impact Funding LLC, CA Affordable Housing 2014-1 Pass Through Indenture 2nd Lien CA RHB - Multifamily Static Pool AA- Stable Full review
Impact Funding LLC, CA Affordable Housing 2014-1 Pass Through Indenture 3rd Lien CA RHB - Multifamily Static Pool A+ Stable Full review
Impact Funding LLC, CA Affordable Housing 2014-1 Pass Through Indenture 4th Lien CA RHB - Multifamily Static Pool BBB+ Stable Full review
Impact Funding LLC, CA Affordable Housing 2014-1 Pass Through Indenture 5th Lien CA RHB - Multifamily Static Pool BBB Stable Full review
Impact Funding LLC, CA Affordable Housing 2014-1 Pass Through Indenture 6th Lien CA RHB - Multifamily Static Pool BB+ Stable Full review
Impact Funding LLC CA Pool 1st Lien Interest Only 2014 Pass Through Indenture CA RHB - Multifamily Static Pool AA+ Stable Full review
Impact Funding LLC CA 2014 RHB CA RHB - Multifamily Static Pool AA+ Stable Full review
Impact Funding LLC CA 2014 Pass Through CA RHB - Multifamily Static Pool AA+ Stable Full review
American Agape Foundn, Inc., TX Section 8 Affordable Housing 2nd Lien TX RHB - Section 8 CCC+ Negative Full review
American Agape Foundn, Inc., TX Section 8 Affordable Housing TX RHB - Section 8 CCC+ Negative Full review
FFAH East Winds LLC, FL and FFAH Citrus Grove LLC, FL Section 8 Affordable Housing FL RHB - Section 8 BB Stable Full review
Washington Place Partners LLLP, CA Section 8 Affordable Housing Washington Place Apts CA RHB - Section 8 BB+ Stable Full review
Atlantic Hsg Fndn Inc., TX Affordable Housing 2nd Lien TX RHB - Unenhanced B+ Stable Full review
Bridge Hsg, CA General Obligation CA SHP ICR AA- Stable New sale
Mid-Peninsula Hsg Coalition, CA General Obligation ICR CA SHP ICR AA- Stable Full review
Wisconsin Hsg Pres Corp, WI General Obligation ICR WI SHP ICR AA- Stable New sale
Columbus Metropolitan Housing Authority, OH ICR OH SHP ICR A+ Stable New sale
DeKalb Cnty Hsg Auth, GA General Obligation ICR GA SHP ICR A+ Stable New sale
Housing Authority of the City of El Paso, TX General Obligation ICR TX SHP ICR A+ Stable New sale
Housing Catalyst, CO General Obligation ICR CO SHP ICR AA- Stable Full review
King Cnty Hsg Auth, WA General Obligation ICR WA SHP ICR AA Stable Full review
Franklin Health & Ed Facilities Board, TN, APP Harpeth Partners, L.L.L.P., Harpeth Hills Apartments* TN Escrow Collateral AA+ Stable Full review
Homerville Hsg Authority, GA, DHM Homerville L.P.'s Brookwood Apartments* GA Escrow Collateral AA+ Stable Full review
Kansas Development Finance Authority, KS, Riverstone Sycamore Village Apartments* KS Escrow Collateral AA+ Stable Full review
Kentucky Housing Corp., KY, Winterwood Inc.'s Winterwood Rural Housing Portfolio* kY Escrow Collateral AA+ Stable Full review
*These represent collateralized transactions typically without escrows that we rate under the escrowed collateral criteria.

Table 4

New issuers, fourth-quarter 2024
Issue State Sector/criteria Rating Outlook
Freddie Mac, VA Multifamily Mortgage Participation Certificates, Series WE5063 Virginia FEH - Freddie Mac Multifamily Pool AA+ Stable
Freddie Mac, VA Multifamily FHLMC Series ML-25 VA FEH - Freddie Mac Multifamily Pool AA+ Stable
Freddie Mac, VA Multifamily FHLMC Series ML-26 VA FEH - Freddie Mac Multifamily Pool AA+ Stable
Freddie Mac, VA Multifamily Mortgage Participation Certificates, Series WE6123 VA FEH - Freddie Mac Multifamily Pool AA+ Stable
Freddie Mac, VA Multifamily Mortgage Participation Certificates, Series WE6124 VA FEH - Freddie Mac Multifamily Pool AA+ Stable
Freddie Mac, VA Multifamily FHLMC Series ML-27 VA FEH - Freddie Mac Multifamily Pool AA+ Stable
Public Finance Authority, WI Class A Certificates 2024 A-1 WI FEH - Multifamily Pass Through AA+ Stable
Citi Community Capital, CA Series 2024-4 CA Pool Class A CA RHB - Multifamily Static Pool AA- Stable
Citi Community Capital, CA Series 2024-4 US Pool Class B CA RHB - Multifamily Static Pool BBB Stable
Citi Community Capital, CA Series 2024-4 CA Pool Class B CA RHB - Multifamily Static Pool BBB Stable
Citi Community Capital, CA Series 2024-4 US Pool Class A CA RHB - Multifamily Static Pool AA- Stable
Franklin Health & Ed Facilities Board, TN, APP Harpeth Partners, L.L.L.P., Harpeth Hills Apartments* TN Escrow Collateral AA+ Stable
Homerville Hsg Authority, GA, DHM Homerville L.P.'s Brookwood Apartments* GA Escrow Collateral AA+ Stable
The Health, Edu and Hsg Facility Board of the City of Memphis, TN, Pershing Park Apts Project* TN Escrow Collateral AA+ Stable
Kentucky Housing Corp., KY, Winterwood Inc.'s Winterwood Rural Housing Portfolio* KY Escrow Collateral AA+ Stable
San Bernardino County Housing Authority, CA General Obligation ICR CA SHP ICR A+ Stable
Salt Lake City Housing Authority, UT General Obligation ICR UT SHP ICR A+ Stable
City of Charleston Housing Authority SC, General Obligation ICR SC SHP ICR A+ Stable
Maiker Housing Partners, CO General Obligation ICR CO SHP ICR A+ Stable
*These represent collateralized transactions, typically without escrows, that we rate under the escrowed collateral criteria.
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.Flores@spglobal.com
Secondary Contacts:Caroline E West, Chicago + 1 (312) 233 7047;
caroline.west@spglobal.com
Olivia Fellbaum, New York + 1 (212) 438 7428;
olivia.fellbaum@spglobal.com
Tribhuvan Chauhan, Pune;
tribhuvan.chauhan@spglobal.com

No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness, or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment, and experience of the user, its management, employees, advisors, and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.spglobal.com/ratings (free of charge), and www.ratingsdirect.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.spglobal.com/usratingsfees.

 

Create a free account to unlock the article.

Gain access to exclusive research, events and more.

Already have an account?    Sign in