Fitch to Release Report on The Amsterdam at Harborside's (New York) 2007 Issue.

TAMPA, Fla. -- Fitch Ratings plans to release Friday, its report on Nassau County Industrial Development Agency's (Amsterdam at Harborside Project) approximately $292 million 2007 A-D bond issues. The bonds are expected to be priced the week of Dec. 3, 2007, by Herbert J Sims & Co, Inc.

Amsterdam House Continuing Care Retirement Community, Inc. (the 'corporation') will use the proceeds of the 2007 A-D bonds, together with $25.466 million in resident entrance fees, $3 million in subordinate debt and $2 million of deferred developer fees, for the purposes of constructing a start-up continuing care retirement community to be known as The Amsterdam at Harborside (the 'community'), in Port Washington, NY on Long Island approximately 20 miles northeast of Manhattan.

The primary strengths of the project include the project's excellent service area demographics as evidenced by very strong wealth indicators, limited competition, barriers to entry in New York State and a relatively stable housing market with sales prices off about 10% in the last year. Additionally, the forecasted financial profile of the project is solid with debt service coverage of 1.6 times (x), a level Fitch considers to be high compared to other start-up communities. Also, despite the paydown of approximately $135 million of debt, liquidity is forecasted to be strong at over 652 days cash on hand. In addition, Fitch views the management and development experience of Greystone Development Company II, LP (Greystone) favorably.

Main credit concerns stem from the high-end nature of the project that could result in pressure on turnover should the housing market continue to erode. Furthermore, Fitch believes that the higher entrance fees and monthly fees become, the more limited the potential market becomes. Despite favorable penetration rates and favorable service area demographics, the high price point is a long term concern. Also, the high amount of seed capital and payout is viewed negatively by Fitch due to the added leverage to the project.

Fitch believes that start-up retirement communities do not possess the credit profile to be rated in the investment grade category. The redemption of the $8.5 million series 2007B bonds, $102.11 million series 2007C bonds, and $24.39 million series 2007D bonds from initial entrance fees versus the total size of the bond offering is in line with what Fitch typically sees in start-up financings.

For a copy of the credit analysis, see the Fitch web site at www.fitchratings.com or contact Market Services at 800-853-4824.

Fitch's descriptive credit report on The Amsterdam at Harborside provides analysis of significant credit factors and includes Fitch's evaluation of the strengths and risks surrounding this credit. No request was made for a rating on this transaction, and Fitch did not review all information or complete all procedures necessary to reach a final credit rating. Generally, Fitch regards un-enhanced debt issued with financial characteristics similar to the described facility as being below investment-grade.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site. The issuer did not participate in the rating process other than through the medium of its public disclosure.