The rating on Illinois Development Finance Authority, Ill.'s bonds reflects: * Section 8 project-based subsidy provided by a Housing Assistance Payments (HAP), * Debt service coverage of 1.08 times, and * A fully funded reserve. Standard&Poor's views Section 8 as a solid program, with a strong and flexible subsidy, and adequate protection against cost inflation and extraordinary expenses. The program nonetheless is subject to termination of the subsidy if a project owner fails to maintain the project in accordance with the U.S. Department of Housing and Urban Development (HUD) regulations. Therefore, ratings typically range from 'BBB' to 'A'. Higher ratings are possible for pooled financing. The bonds are secured by a pledge of revenue, including tenant rentals, Section
