Standard&Poor's Ratings Services affirmed its 'BBB' long-term rating on Minneapolis, Minn.'s (Olson Townhouses) Section 8 assisted multifamily housing revenue bonds series 1993. The outlook is stable. The affirmation reflects our view of the following strengths: Satisfactory debt service coverage (DSC) level of 1.13x maximum annual debt service (MADS), based on the audited financial statements for the fiscal 2010; Recent rental increase received by the project in 2010 as contract rents are below fair market rent (FMR); Debt service reserve fund (DSRF) funded at MADS; and Strong occupancy rates at the property with a waiting list of 328 families. However, the above-mentioned strengths are offset, in our opinion, by an increase in expenses leading to deterioration in the expense
