...Shrinking Balance Sheet: In recent fiscal years, State Housing Finance Agencies (SHFAs) have seen the size of their balance sheets rapidly decline, offsetting strong growth patterns from the mid-1990s through fiscal 2010. Since fiscal 2010, total loans have declined 11.4%; total assets, 17.1%; and total debt, 21.2%. Reduced Leverage Position: SHFAs' leverage ratios have steadily declined since fiscal 1995, and in turn, the median debt-to-equity (DTE) ratio decreased to 3.8x in fiscal 2013 from 8.3x in fiscal 1995. This decline is a result of muted debt issuance in recent years and strong growth in equity throughout the years. Strong Growth in Equity Position: Despite shrinking balance sheets in recent fiscal years, SHFAs have still managed to increase their overall equity position, albeit at a reduced rate. Total SHFA equity rose to $26.9 billion in fiscal 2013 from $10.2 billion in fiscal 1995. These increases are a result of strong growth within SHFA housing programs, leading to sustained...
