According to a release, a total of $177.5 million of series Land M bonds are outstanding, including just under $63.8 million ofsub-series M-1 and $25 million of sub-series M-2. Fitch says thatin addition to the BofA LOC, other factors prompting its ratingactions include conversion of the interest rate on the bonds froman auction-rate mode to a weekly rate mode and HFA's reoffering ofthe bonds in a weekly rate mode.

The rating will expire upon Jan. 14, 2012, the stated expirationdate of the LOC, unless the date is extended; any prior terminationof the LOC; or defeasance of the bonds, whichever comes first. TheLOC provides full coverage of principal plus an amount equal to 56days' interest at a maximum rate of 12%, based on a 365-day yearand purchase price for tendered bonds, according to Fitch. Theremarketing agent for the series L and sub-series M-1 bonds isCitigroup Global Markets, while Ramirez & Co. is theremarketing agent for the sub-series M-2 bonds.

Earlier this month, HFA issued an RFP to enable localgovernments, nonprofits and other providers to apply for $64.5million in state and federal funds to buy, renovate and then resellor rent foreclosed and abandoned multifamily properties. The funds,provided under the federal Neighborhood Stabilization Program, areaimed at helping neighborhoods most affected by the foreclosure andsubprime crisis.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.