Standard&Poor's Ratings Services affirmed its 'A' rating on Minneapolis, Minn.'s Section 8 multifamily housing revenue bonds (Olson Townhouses) series 1993. The rating reflects: Contract rent below fair market rent (FMR) increasing the probability of rental increases; Debt service reserve fund funded at 12 months' maximum annual debt service (MADS); High Real Estate Assessment Center (REAC) score of 98b; and Strong occupancy at the project. The above strengths are offset by the following weaknesses: Continued decline in debt service coverage (DSC) leading to a coverage of 1.24x MADS for fiscal 2007; and Increase in expenses resulting in weakening of expense ratio. The stable outlook reflects the ability of the property to upkeep its current operating level to timely service
