Summary: Health Educational&Housing Facilities Board Of Memphis Global Ministries Fellowship; Section 8

S&P Global Ratings placed its 'BB' rating on Health Educational and Housing Facility Board of Memphis, Tenn.'s (Global Ministries Fellowship–Serenity Towers LLC) series 2013A and 2013A-T (taxable) multifamily housing revenue bonds, issued for the Serenity Towers Apartments project on CreditWatch negative. The lowered rating reflects our ongoing concern regarding the borrower's ability to effectively manage its Section 8 Housing Assistance Payment (HAP) backed properties. According to a notice from the trustee dated Feb. 10, 2017, the project is in default regarding its HAP contact with HUD, after scoring a 57 out of 100 on its most recent inspection on May 19, 2016. The borrower, Global Ministries Fellowship – Serenity Towers LLC (GMF), failed to report this default to the trustee

...S&P Global Ratings placed its '##' rating on Health Educational and Housing Facility Board of Memphis, Tenn.'s (Global Ministries Fellowship¡Serenity Towers LLC) series 2013A and 2013A-T (taxable) multifamily housing revenue bonds, issued for the Serenity Towers Apartments project on CreditWatch negative. The lowered rating reflects our ongoing concern regarding the borrower's ability to effectively manage its Section 8 Housing Assistance Payment (HAP) backed properties. According to a notice from the trustee dated Feb. 10, 2017, the project is in default regarding its HAP contact with HUD, after scoring a 57 out of 100 on its most recent inspection on May 19, 2016. The borrower, Global Ministries Fellowship ¡ Serenity Towers LLC (GMF), failed to report this default to the trustee on a timely basis, and reported the default to the trustee on January 26, 2017. The borrower's delay in reporting the failed inspection is an event of default under various bond documents, including the trust...

Summary