S&P Global Ratings' U.S. public finance housing rating actions (including outlook revisions) for first-quarter 2025 consisted of 10 positive rating actions, five negative rating actions, and 64 affirmations.
First-Quarter Rating Actions
We took 10 positive rating actions on nine rental housing bond (RHB) credits and one positive rating action on a former federally enhanced housing (FEH) credit that was rated under our escrow criteria because of a planned defeasance (see table 1). The positive rating actions for the nine RHB credits were within the military housing, Section 8, and static pool subsectors. The military housing credits saw five upgrades in which the outlook stayed the same, and one upgrade that yielded a positive outlook (formerly stable). The five upgrades in which the outlook stayed the same were due to increases in net rent collections from higher occupancy and rising Basic Allowance for Housing rates as well as ongoing expenditure management. The upgrade that yielded a positive outlook was due to similar increases in occupancy and Basic Allowance for Housing rates leading to improved debt service coverage as well as the likelihood that debt service coverage will continue trending positively, which, all else being equal, could indicate higher overall credit quality. Two Section 8 credits were upgraded on account of improved net cash flow resulting from effective gross income outpacing operating expenses. One static pool transaction had an outlook change from negative to stable as a result of an improvement in coverage and liquidity resulting from improved loan performance. Last, a former FEH credit was upgraded as a result of our view of the planned bond defeasance through the deposit of cash in the redemption account and the application of our escrow criteria.
We took negative rating actions on three FEH credits, one social housing provider (SHP), and one age-restricted RHB credit, entailing two negative outlooks (formerly stable), the placement of two ratings on CreditWatch with negative implications, and one downgrade from 'CC' to 'D' resulting in a rating withdrawal (see table 2). Of the three negative rating actions on FEH credits, two yielded a new outlook and one entailed the placement of the rating on CreditWatch with negative implications. One new outlook was because projected assets were expected to be insufficient to cover the final bond maturity payment and the other was due to a negative rating action taken on a guaranteed investment contract provider that caps the rating. The third FEH rating was placed on CreditWatch with negative implications given the likelihood that the transaction would not have sufficient funds to fully cover the next debt service payment. One SHP rating was placed on CreditWatch with negative implications given a lack of timely and reliable information needed to maintain the rating; the SHP rating was withdrawn later in the first quarter. Finally, one age-restricted development defaulted as it did not make its debt service payment, resulting in a rating withdrawal.
During first-quarter 2025, affirmations constituted 64 of 93 total rating actions, or about 69%, more than in fourth-quarter 2024 (61%; see table 3). As of April 2025, about 93% of our ratings carried stable outlooks, which is about the same as in the previous quarter (94%). (For more information on our specific housing subsectors, see recent commentaries in the Related Research section.) During the first quarter, we rated 47 new sales, or 42% more than the 33 new sales we rated during the fourth quarter of 2024.
We also rated 14 new issuers in first-quarter 2025 (see table 4):
- Six under our "U.S. Federally Enhanced Housing Bonds Rating Methodology" criteria, published Nov. 12, 2019, on RatingsDirect
- Two under our "Methodology For Rating U.S. Public Finance Rental Housing Bonds" criteria, published April 15, 2020
- One under our "Methodology For Rating Public And Nonprofit Social Housing Providers" criteria, published June 1, 2021
- Four under our "Methodology And Assumptions: Assigning Ratings To Bonds In The U.S. Based On Escrowed Collateral" criteria, published Nov. 30, 2012
- One under our "Methodology For Rating U.S. Public Finance Mortgage Revenue Bond Programs" criteria, published Feb. 21, 2025
Table 1
Positive rating actions, first-quarter 2025 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Issue | State | Sector/Criteria | Prior rating | Current rating | Prior outlook | Current outlook | Reason for rating action | |||||||||
Fort Irwin Land LLC Military Housing Fort Irwin/Moffet/Parks 3rd Lien | CA | RHB - Military | A | A+ | Stable | Stable | Increases in the BAH rates leading to improved DSC | |||||||||
GMH Military Housing - Navy Northeast LLC Military Housing 2nd Lien | PA | RHB - Military | BBB+ | A- | Stable | Stable | A trend of improving DSC given improved financials and increases in BAH rates | |||||||||
Lackland Family Housing Phase II Military Housing | TX | RHB - Military | A | A+ | Stable | Positive | Increases in occupancy and BAH rates leading to improved DSC and likelihood that DSC will continue trending positively, which, all else being equal, could lead to higher overall credit quality | |||||||||
Leonard Wood Family Communities LLC Military Housing | MO | RHB - Military | AA- | AA | Stable | Stable | Increases in net rent collections from higher occupancy and rising BAH rates as well as ongoing expenditure management | |||||||||
Leonard Wood Family Communities LLC Military Housing 2nd Lien | MO | RHB - Military | A | A+ | Stable | Stable | Increases in net rent collections from higher occupancy and rising BAH rates as well as ongoing expenditure management | |||||||||
Leonard Wood Family Communities LLC Military Housing 3rd Lien | MO | RHB - Military | A- | A | Stable | Stable | Increases in net rent collections from higher occupancy and rising BAH rates as well as ongoing expenditure management | |||||||||
National Finance Authority Affordable Housing Securitization Pool Series 2020-1 Class A | NH | RHB - Multifamily Static Pool | BBB | BBB+ | Stable | Stable | Improved A/L paritiy ratio, which resulted in improved coverage and liquidity assessment | |||||||||
Los Angeles Housing Authority Union Portfolio Project (Section 8 Pool - Series 2020AB Mortgage Revenue Bonds) | CA | RHB - Section 8 Pool | A+ | A+ | Negative | Stable | Improved net cash flow, with effective gross income increasing at a higher rate than operating expenses | |||||||||
Los Angeles Housing Authority Union Portfolio Project (Section 8 Pool - Series 2021A Mortgage Revenue Bonds) | CA | RHB - Section 8 Pool | A+ | A+ | Negative | Stable | Improved net cash flow, with effective gross income increasing at a higher rate than operating expenses | |||||||||
KDF Communities LLC | CA | Escrow Collateral | AA+ | AAA | Stable | Stable | Planned bond defeasance through the deposit of cash in the redemption account | |||||||||
A/L--Asset-to-liability. BAH--Basic Allowance for Housing. DSC--Debt service coverage. RHB--Rental housing bond. |
Table 2
Negative rating actions, first-quarter 2025 | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Issue | State | Sector/Criteria | Prior rating | Current rating | Prior outlook | Current outlook | CreditWatch | Reason for rating action | ||||||||||
Sacramento County Housing Authority FNMA Standby Agreement Cottage Estates | CA | FEH - Multifamily Stand-Alone | B+ | B+ | Stable | Negative | Likelihood that assets will not be sufficient funds to fully cover the final bond maturity payment | |||||||||||
Sun Pointe Park L.P. Multifamily Insured | NM | FEH - Multifamily Stand-Alone | AA- | AA- | Stable | Negative | Negative rating action taken on GIC provider that caps rating on credit | |||||||||||
Laredo Housing Finance Corp. Single Family Multi-Agency MBS 1994 Indenture | TX | FEH - Multifamily Stand-Alone | CC | CC | Negative | N.M.* | Negative | One-in-two likelihood that transaction will not have sufficient funds to fully cover the next debt service payment | ||||||||||
Great Lakes Senior Communities Affordable Housing Great Lakes Senior Living Communities First Tier§ | IL | RHB - Age Restricted | CC | NR | N.M.* | Debt service nonpayment | ||||||||||||
Milwaukee Housing Authority General Obligation ICR† | WI | SHP ICR | A- | NR | Negative | N.M.* | Negative | Lack of timely and reliable information | ||||||||||
*Rating was placed on CreditWatch with negative implications. When a rating is placed on CreditWatch, the outlook is not meaningful. §Great Lakes Senior Communities defaulted and the rating was subsequently withdrawn. †Milwaukee Housing Authority rating was placed on CreditWatch with negative implications and then subsequently withdrawn. FEH--Federally enhanced housing. GIC--Guaranteed investment contract. ICR--Issuer credit rating. N.M.--Not meaningful. NR--Not rated. |
Table 3
Affirmations and new sales, first-quarter 2025 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Issue | State | Sector/Criteria | Rating | Outlook | Type of review | |||||||
AHF Windover Health Club, LLC Multi-Family FNMA MBS TEMS Series 2017 | TX | FEH - Multi-Family Stand Alone | AA+ | Stable | Full review | |||||||
Alaska Housing Finance Corp General Mortgage Revenue Bond II (GMRB) | AK | MRBP | AA+ | Stable | New sale | |||||||
Arkansas Dev Finance Auth Single Family Multi-Agency MBS 1995 Resolution | AR | MRBP | AA+ | Stable | New sale | |||||||
California Department of Veterans Affairs Home Purchase Revenue Bonds | CA | MRBP | AA | Stable | New sale | |||||||
California Department of Veterans Affairs Veterans General Obligation Bonds (CA St GO) | CA | MRBP | AA+ | Stable | New sale | |||||||
Colorado Housing and Finance Authority Multi-Family Whole Loans - Multifamily Master Indenture (various issuances) | CO | MRBP | AAA | Stable | New sale | |||||||
Colorado Housing and Finance Authority Multi-Family Whole Loans - Multifamily Master Indenture 2nd Lien (various issuances) | CO | MRBP | AA+ | Stable | New sale | |||||||
Colorado Housing and Finance Authority Single Family Mortgage Bonds Class II (various issuances) | CO | MRBP | AA+ | Stable | New sale | |||||||
Colorado Housing and Finance Authority Single Family Mortgage Bonds Class III (GO; various issuances) | CO | MRBP | AA | Stable | New sale | |||||||
Colorado Housing and Finance Authority Single Family Whole Loan - Single Family Mortgage Bonds Indenture (various issuances) | CO | MRBP | AAA | Stable | New sale | |||||||
Connecticut Housing Finance Authority General Bond Resolution (various issuances) | CT | MRBP | AAA | Stable | New sale | |||||||
Georgia Housing and Finance Authority Single Family Whole Loan - 1976 General Resolution | GA | MRBP | AAA | Stable | New sale | |||||||
Iowa Finance Authority MBS 1991 SFMBS Resolution (various issuances) | IA | MRBP | AAA | Stable | New sale | |||||||
Maine State Housing Authority Mortgage Purchase Program Resolution | ME | MRBP | AA+ | Stable | New sale | |||||||
Massachusetts Housing Finance Agency Single-Family Mortgage Bonds | MA | MRBP | AA+ | Stable | New sale | |||||||
Michigan State Housing Development Authority General Resolution | MI | MRBP | AA+ | Stable | New sale | |||||||
Minnesota Housing Finance Agency Single Family (various issuances) | MN | MRBP | AA+ | Stable | New sale | |||||||
Minnesota Housing Finance Agency Rental Housing Bond Resolution (various issuances) | MN | MRBP | AAA | Stable | New sale | |||||||
Missouri Housing Development Commission First Place Homeownership Loan Program (various issuances) | MO | MRBP | AA+ | Stable | New sale | |||||||
Montana Board of Housing SF I Indenture | MT | MRBP | AA+ | Stable | New sale | |||||||
Nebraska Investment Finance Authority SFHRB Resolution | NE | MRBP | AAA | Stable | New sale | |||||||
Nevada Housing Division Single Family Multi-Agency MBS 2008 MBS Resolution | NV | MRBP | AA+ | Stable | New sale | |||||||
New York City Housing Development Corp. Multi-Family Whole Loans - Multifamily General Resolution | NY | MRBP | AA+ | Stable | New sale | |||||||
North Carolina Housing Finance Agency Single Family MBS Whole Loan - 1998 Trust Agreement | NC | MRBP | AA+ | Stable | New sale | |||||||
Pennsylvania Housing Finance Agency Single Family Mortgage Revenue Bonds w GO | PA | MRBP | AA+ | Stable | New sale | |||||||
Rhode Island Housing and Mortgage Finance Corp. Homeownership Opportunity Bond Resolution | RI | MRBP | AA+ | Stable | New sale | |||||||
South Dakota Housing Development Authority Single Family Whole Loan - Homeownership Mortgage Bond Resolution (1977 Indenture) | SD | MRBP | AAA | Stable | New sale | |||||||
Virginia Housing Development Authority Rental Housing Bonds w GO | VA | MRBP | AA+ | Stable | New sale | |||||||
Virginia Housing Development Authority Commonwealth Mortgage Bonds w GO | VA | MRBP | AAA | Stable | New sale | |||||||
West Virginia Housing Development Fund Housing Finance Bond w GO | WV | MRBP | AAA | Stable | New sale | |||||||
Wyoming Community Development Authority Single Family Whole Loan - 1994 Indenture | WY | MRBP | AA+ | Stable | New sale | |||||||
Minnesota Senior Living LLC Affordable Housing Senior Living Proj | MN | RHB - Age Restricted | BB- | Stable | Full review | |||||||
Minnesota Senior Living LLC Affordable Housing Senior Living Proj 2nd Lien | MN | RHB - Age Restricted | B | Stable | Full review | |||||||
Minnesota Senior Living LLC Affordable Housing Senior Living Proj 3rd Lien | MN | RHB - Age Restricted | B- | Stable | Full review | |||||||
GMH Military Housing - Navy Northeast LLC Military Housing | PA | RHB - Military | A+ | Stable | Full review | |||||||
Fort Irwin Land LLC Military Housing Fort Irwin/Moffet/Parks | CA | RHB - Military | AA | Stable | Full review | |||||||
Fort Irwin Land LLC Military Housing Fort Irwin/Moffet/Parks 2nd Lien | CA | RHB - Military | AA- | Stable | Full review | |||||||
Pacific Northwest Communities LLC Military Housing | WA | RHB - Military | AA | Stable | Full review | |||||||
Pacific Northwest Communities LLC Military Housing 2nd Lien | WA | RHB - Military | AA | Stable | Full review | |||||||
University Plaza Associates Section 8 Affordable Housing University Square Apts | PA | RHB - Section 8 | A | Stable | Full review | |||||||
University Plaza Associates Section 8 Affordable Housing University Square Apts 2nd Lien | PA | RHB - Section 8 | A- | Stable | Full review | |||||||
Housing Authority of the City of El Paso General Obligation ICR | TX | SHP ICR | A+ | Stable | Full review | |||||||
Columbus Metropolitan Housing Authority | OH | SHP ICR | A+ | Stable | New sale | |||||||
Vancouver Housing Authority General Obligation ICR | WA | SHP ICR | AA- | Negative | New sale | |||||||
APP Harpeth Partners | TN | Escrow collateral* | AA+ | Stable | Full review | |||||||
Buen Vecino Apartments L.P. | FL | Escrow collateral* | AA+ | Stable | Full review | |||||||
Emerald Place Florida, L.P. | FL | Escrow collateral* | AA+ | Stable | Full review | |||||||
HACG Rad II L.P. | GA | Escrow collateral* | AA+ | Stable | Full review | |||||||
*These represent collateralized transactions typically without escrows that we rate under the escrowed collateral criteria. FEH--Federally enhanced housing. ICR--Issuer credit rating. MRBP--Mortgage revenue bond program. RHB--Rental housing bond. SHP--Social housing provider. |
Table 4
New issues/issuers, first-quarter 2025 | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
Issue | State | Sector/Criteria | Rating | Outlook | ||||||
California Housing Finance Agency CalHFA HMRB | CA | MRBP | AA+ | Stable | ||||||
Citi Community Capital Pool 1st Lien 2025-1 | CA | RHB - Multifamily Static Pool | AA- | Stable | ||||||
Citi Community Capital Pool 2nd Lien 2025-1 | CA | RHB - Multifamily Static Pool | BBB | Stable | ||||||
Fort Worth Housing Solutions General Obligation ICR | TX | SHP ICR | A+ | Stable | ||||||
Freddie Mac Multifamily FHLMC | VA | FEH - Freddie Mac Multifamily Pool | A+ | Stable | ||||||
Freddie Mac Multifamily Mortgage Participation Certificates WE6125 | VA | FEH - Freddie Mac Multifamily Pool | AA+ | Stable | ||||||
Freddie Mac Multifamily Mortgage Participation Certificates WE6126 | VA | FEH - Freddie Mac Multifamily Pool | AA+ | Stable | ||||||
Freddie Mac Multifamily Mortgage Participation Certificates WE6127 | VA | FEH - Freddie Mac Multifamily Pool | AA+ | Stable | ||||||
Freddie Mac Multifamily Mortgage Participation Certificates WE6128 | VA | FEH - Freddie Mac Multifamily Pool | AA+ | Stable | ||||||
Freddie Mac Multifamily Mortgage Participation Certificates WE6130 | VA | FEH - Freddie Mac Multifamily Pool | AA+ | Stable | ||||||
Buen Vecino Apartments L.P. | FL | Escrow collateral* | AA+ | Stable | ||||||
Emerald Place Florida L.P. | FL | Escrow collateral* | BBB | Stable | ||||||
HACG Rad II L.P. | GA | Escrow collateral* | AA+ | Stable | ||||||
The Cottages of BlueCreek LLC | TN | Escrow collateral* | AA+ | Stable | ||||||
*These represent collateralized transactions typically without escrows that we rate under the escrowed collateral criteria. FEH--Federally enhanced housing. ICR--Issuer credit rating. MRBP--Mortgage revenue bond program. RHB--Rental housing bond. SHP--Social housing provider. |
Analyses associated with positive rating actions
- California Statewide Communities Development Authority KDF Communities; Freddie Mac Direct Pay, March 27, 2025
- Fort Irwin Land LLC, California; Military Housing, March 12, 2025
- Northeast Housing LLC, Pennsylvania GMH Military Housing Navy Northeast LLC; Military Housing, Feb. 26, 2025
- Leonard Wood Family Communities LLC, Missouri, Military Housing, Feb. 11, 2025
- Lackland Family Housing Phase II, Texas, Military Housing, Feb. 6, 2025
- National Finance Authority, New Hampshire, Affordable Housing Securitization Pool Series 2020-1 Class A, Feb. 6, 2025
- Los Angeles Housing Authority Affordable Housing and Section 8 2021A and 2020AB Mortgage Revenue Bonds, Jan. 24, 2025
Analyses associated with negative rating actions
- Sun Pointe Park L.P., New Mexico, Multifamily Insured, March 14, 2025
- Sacramento County Housing Authority FNMA Standby Agreement Cottage Estates, Feb., 28, 2025
- Laredo Housing Finance Corp., Texas, Single Family Multi-Agency MBS 1994 Indenture, Feb. 18, 2025
- Milwaukee Housing Authority, Wisconsin, General Obligation ICR, Jan. 7, 2025
- Great Lakes Senior Living Communities, Illinois, Affordable Housing Great Lakes Senior Living Communities series 2019A, Jan. 6, 2025
Related Research
- The U.S. Public Finance Housing Sector Could Face Credit Pressure From Federal Policy Shifts, April 3, 2025
- U.S. Public Finance Housing 2025 Outlook: The Stable Era Endures, Underpinned By Strong Management, Jan. 16, 2025
- U.S. Housing Finance Agencies 2023 Medians: Fiscal Stability Reigns For Now With Some Uncertainty On The Horizon, Dec. 17, 2024
- U.S. CDFIs Take On More Debt To Grow Their Lending Capacity: Ratings Will Likely Remain Stable, Nov. 19, 2024
- U.S. Social Housing Providers: Laying The Groundwork To Address Affordable Housing Needs, Nov. 14, 2024
- U.S. Mortgage Revenue Bond Program Medians: Solid Foundations Underpin Strong Credit Quality, Sept. 19, 2024
- The U.S. Rental Housing Sector Remains Largely Stable While Expense Pressures Loom, July 9, 2024
- Cyber Risk Insights: Hackers Are Knocking On The Door Of U.S. Affordable Housing Issuers, May 14, 2024
- U.S. Public Housing Authorities Capital Fund Ratings Remain Resilient Amid Higher Appropriations And No Planned Borrowing, March 14, 2024
- Military Rental Housing 2024 Outlook: Bond Sector Stable Amid Slow Recruitment and Higher Expenses, March 7, 2024
This report does not constitute a rating action.
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Contributor: | Olivia Fellbaum, Contributor, New York + 1 (212) 438 7428; olivia.fellbaum@spglobal.com |
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