Fitch Affirms Dallas Housing -TX- Bonds 1995 & 1995A at 'BBB+/BBB'.Business Editors NEW YORK--(BUSINESS WIRE)--April 15, 2003 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. affirms Dallas Housing Corp., TX's (the corporation) capital program revenue bonds, $1.3 million outstanding series 1995 (Cedar cedar, common name for a number of trees, mostly coniferous evergreens. The true cedars belong to the small genus Cedrus of the family Pinaceae (pine family). Glen Apartments -- Section 8 Assisted Project) and $3.1 million outstanding Series 1995A (Estell Village Apartments-Section 8 assisted Project) at 'BBB+' and 'BBB', respectively. The corporation, which owns the projects, is an instrumentality Instrumentality Notes issued by a federal agency whose obligations are guaranteed by the full-faith-and-credit of the government, even though the agency's responsibilities are not necessarily those of the US government. of the Dallas Housing Authority (the authority), which operates and manages the projects. The net bond proceeds provided funds for the completed capital facilities improvement program to renovate and rehabilitate re·ha·bil·i·tate v. 1. To restore to good health or useful life, as through therapy and education. 2. To restore to good condition, operation, or capacity. each project. The ratings reflect the separate security interest in each project and the availability of the Department of Housing & Urban Development's (HUD Hud (h  d), a pre-Qur'anic prophet of Islam. Hud unsuccessfully exhorted his South Arabian people, the Ad, to worship the One God. ) Section 8 project-based rent subsidies under a Housing Assistance Payment (HAP HAP. An old word which signifies to catch; as, "to hap the rent," to hap the deed poll." Techn. Dict. h.t. ) contract for all units in each project. The 15-year HAP contracts were executed Nov. 30, 1994 and run coterminously with the life of the bonds. The current federal rental housing subsidy program lends a degree of stability and predictability to the current and projected revenue flow and debt service coverage. Occupancy levels at Cedar Glen (250 units) through April 2003 have averaged 95% since January and have historically averaged over 93% since completion of the renovation in 1999. Debt service coverage has remained over 2.0 times(x) from December 2000. The debt service coverage at Estelle Village for 2000 was 1.6x and 2001 covers debt service by over 1.5x. During 2002 occupancy levels continue to increase from February through April 2003, currently at 97%, thereby maintaining occupancy levels in the mid 90% range. Credit concerns focus on the corporation's ability to maintain occupancy at the mid 90% level at the Estell Village project and maintaining similar occupancy levels at the Cedar Glen apartments. These concerns are mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by the authority's successful history of managing similar projects. Also, reserve funds for both projects are fully funded and both projects have rapid debt amortization. |
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