The affirmation of the rating on Pennsylvania Housing Finance Agency's (PHFA) Residential Development Refunding bonds is based on the following: Section 8 project-based subsidies on all of the projects; Reserves funded at maximum annual debt service, invested in qualified investments; GO pledge of PHFA (rated 'AA'); and Strong portfolio performance. The bonds are secured by mortgage loans that, in turn, are supported by section 8 subsidy payments. There are currently 22 developments as part of this issue, in a mix of elderly, family, and handicapped housing. Overall occupancy of the portfolio is over 96%, and overall debt service coverage is 1.19%. The issue currently has assets of approximately $70 million, as compared to liabilities of $59.9 million, resulting in an
