The ratings on Colorado Housing and Finance Authority's (CHFA) multifamily housing project bonds were affirmed based on the recycling of $3.0 million in loan prepayments from series 2003A into new loans on or before June 30, 2006. Consolidated cash flows dated Oct. 1, 2005, reflecting the origination of the recycled loans and the full and timely payment of debt service on all bonds, have been reviewed. Class I and II bonds are supported by collateral consisting of multifamily loans, federally guaranteed loans, and cash and investments. The 'AAA' and 'AA' ratings on the class I and class II bonds reflect the following factors: High quality of credit, based on 294 first mortgage loans for affordable multifamily properties in Colorado; Sufficient
