The outlook revision on Illinois Development Finance Authority's bonds, issued for Community Living Options/Frances House, reflects a decreasing revenue base from discontinued operations and loans to other not-for-profit corporations. The rating reflects: A strong financial performance, A dominant role in the provision of residential services to the developmentally disabled, and Strong management. Offsetting concerns include strong dependence on state funding, lack of revenue diversification, and transfer of profitable operations to other not for profit corporations. Community Living Options and Frances House are two separate nonprofit organizations that operate Illinois-based residential facilities for the developmentally disabled. Both providers are cross-guaranteeing their debt. The bonds are secured by revenues and mortgages on the facilities. Both organizations are in Galesburg, Ill., and provide
