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UPLAND HOUSING AUTHORITY (CA) 1990 REVENUE 'BBB' BONDS AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, April 13 /PRNewswire/ -- The Upland Housing Authority (CA)'s $10 million outstanding revenue bonds Issue A of 1990 "BBB" rating is affirmed by Fitch. The credit trend is stable. The rating continues to reflect the adequacy of the combination of projected revenues, reserves, and pledged housing set-aside revenues to meet debt service requirements.
 The bonds were issued to provide funds for an acquisition program of certain rental units by the housing authority. However, out of 134 units originally targeted for acquisition, only 52 units were actually purchased. In addition to these 52 units, a substitute project was subsequently identified and the authority has entered into negotiation for its purchase. The project is a six-year-old, 108-unit multi-family complex comprised of eight two-story buildings on a single lot located within the city of Upland. At least 20 percent of the units will be designated as affordable housing for low- and very-low-income housing while the remaining units will be offered at market rates.
 Primary security for the bonds is the net rental revenue from all the acquired units and an annual pledge of tax increment housing set- aside funds by the Upland Community Redevelopment Agency. Pursuant to an amendment to the existing pledge agreement, the original pledge amount will nearly double to approximately $340,000 concurrently with the project acquisition. Additional security is provided by an agency- funded $480,000 contingency reserve.
 Credit concerns center on the program's weak financial performance to date and the authority's lack of experience with owning and operating market rate projects. While the authority has taken steps to centralize its management efforts, the acquisition will likely strain its limited resources.
 Mitigating these concerns somewhat is the agency's increased pledge of housing set-aside funds. The revised annual amounts pledged to the bonds currently appear attainable. However, due to the uncertainty regarding the potential diversion of specific tax increment revenues to meet state budgetary proposals, some questions remain regarding the future availability of the incremental portion of the agency's pledge.
 -0- 4/13/93
 /CONTACT: Vincent J. Barberio of Fitch, 212-908-0505/


CO: Upland Housing Authority ST: California IN: SU: RTG

GK -- NY063 -- 5284 04/13/93 14:17 EDT
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Publication:PR Newswire
Date:Apr 13, 1993
Words:361
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