The rating on Pennsylvania Housing Finance Agency's (PHFA) bonds is affirmed based on the following: Project-based section 8 HAP contracts for three projects, Strong asset-to-liability ratios, Sufficiency of reserves, Quality of investments, and GO pledge of PHFA (rated 'AA'). The bonds are secured by mortgage loans that, in turn, are supported by section 8 subsidy payments. There are currently three developments as part of this issue. As of July 1, 1999, overall occupancy for the entire portfolio was over 97%. The issue currently has assets of approximately $4.2 million, as compared to liabilities of $2.7 million, resulting in an asset-to-liability ratio of about 152%. These assets include approximately $900,000 in the surplus fund, which has built up over time, and
