March 1, 2013 / 10:06 PM / in 5 years

TEXT-Fitch affirms 2 Fla. Housing Finance project bonds at 'A-'

March 1 - Fitch Ratings has affirmed the following two multifamily project
bonds supported by Florida Housing Finance Corporation's affordable housing
guarantee fund (the fund; GF) at 'A-' and removed the rating from Rating Watch

-Lee County Housing Finance Authority (FL) (Andros Isle Apartments Project)
multifamily housing revenue bonds series 2001 A & B;
-Florida Housing Finance Corp. (FL) (The Villas at Lake Smart) multifamily
mortgage revenue bonds series 2002 P-1.

A Stable Rating Outlook has been assigned.


GUARANTEE FUND RATING: The bonds' ratings are primarily tied to the rating of
the Guarantee Fund (currently rated 'A-'; Stable Outlook by Fitch) given that
the GF insures the project mortgage amounts. The bonds' ratings will reflect all
changes to the GF rating.

The two above-mentioned bond series were placed on Rating Watch Negative in July
2012 because the developments were approved to receive the second round of
funding under the State Apartment Incentive Loan Funding for Extremely
Low-Income (SAIL ELI) program. The intent of the program is to provide funds to
allow recipients to redeem a portion of the bonds and restructure the respective
mortgage note.

The rating has been removed from Rating Watch Negative and the bond rating is
affirmed for the Andros Isle development based on the current asset parity
ratio. As mentioned, the development was awaiting approval from the Florida
Housing board for an extension of the SAIL ELI loan closing date. The board
decided not to grant the extension, and Fitch therefore reviewed the trust
assets and is affirming the rating based on the fact that the current asset
parity level is commensurate with its rating level.

The rating has been removed from Rating Watch Negative and the bond rating is
affirmed for The Villas at Lake Smart development following Fitch's review of
the revised cash flows from the SAIL ELI loan modification and corresponding
bond redemption. The revised cash flows maintain an asset parity ratio above
101% for the remaining term of the bonds.

Part of Fitch's surveillance review for single-asset multifamily bond issuances
with a mortgage guarantee involves an asset parity test to confirm that
available assets would exceed bond liabilities in the case of a mortgage
default. The asset parity is calculated by dividing the dollar amount of total
program pledged assets (which includes the guaranteed mortgage and amounts on
deposit in reserves) by the total amount of bonds outstanding. A typical
single-asset multifamily transaction with a mortgage guarantee maintains an
asset parity ratio of no less than 101% throughout the term of the bonds.

For more information regarding Fitch's rating analysis for single-asset
multifamily transactions backed by a mortgage guarantee, please see the press
release 'Fitch Affirms 51 MF Project Bonds Supported by FL Hsg Guarantee Fund at
'A-'; Outlook Stable' dated July 11, 2012, and available at

Additional information is available at ''. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Revenue-Supported Rating Criteria' (June 12, 2012)
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