The outlook revision on Illinois Development Finance Authority's bonds is the result of increased debt service coverage (DSC). Subsequent to hiring a new project manager, expenses have begun to decline. The bonds are secured by a section 8 subsidized mortgage loan. Other rating factors are: Unaudited debt service coverage of 1.27 times (x), Sufficiency of reserves, and Quality of investments. For the year-ended June 30, 1998, audited financial statements demonstrated that DSC on the project was 0.91x. Based on unaudited 1999 numbers, DSC is expected to increase to 1.27x. The new project manager, HAPI Management, in conjunction with the new project owner, Casden Properties GP II L.P., has been able to lower overall operating expenses by about 24%. The housing
