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U.S. Public Finance Housing Rating Actions, First-Quarter 2025

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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):

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
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:Lauren B Carter, Boston 6175308005;
lauren.carter@spglobal.com
Hannah Blitzer, New York 2124380311;
hannah.blitzer@spglobal.com
Contributor:Olivia Fellbaum, Contributor, New York + 1 (212) 438 7428;
olivia.fellbaum@spglobal.com

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