The rating on District of Columbia's bonds, issued on behalf of The Washington Home Inc., is based on an irrevocable direct-pay LOC provided by First Union National Bank. The LOC, which expires on Aug. 1, 2004, unless extended or earlier terminated pursuant to its terms, will provide coverage for purchase price, principal of, and 44 days' interest on the bonds calculated at a maximum rate of 12%. The bonds will initially be offered at a weekly interest rate, but might be converted to bear interest at a fixed rate. The bonds are subject to mandatory and optional tenders as well as mandatory and optional redemptions. Bond principal and interest will immediately be due and payable upon declaration of an acceleration
