NEW YORK (Standard&Poor's) June 15, 2007--Standard&Poor's Ratings Services raised its rating on Minneapolis (Olson Townhouses), Minn.'s Section 8 assisted multifamily housing revenue bonds series 1993 to 'A' from 'BBB'. The outlook is stable. The upgrade reflects strong debt service coverage of 1.31x maximum annual debt service (MADS). The project's strengths include a history of annual rental increases; contract rent below fair market rents, enabling the property to continue to receive rental increases; high occupancy at the project, with 176 families on the waiting list; and a debt service reserve fund funded at 12 months' MADS. The latest audited financial statements for fiscal 2006 indicate a decrease in the debt service coverage to 1.31x MADS from 1.55x
