175-9-01 The Multifamily Bond Program.

(A) The agency shall issue bonds for the construction and financing of multifamily housing developments. It is the responsibility of the sponsor or private developer to obtain a credit enhancement which will serve to protect the investment of the bondholders in the event of a default. The agency requires when its bonds are publicly offered that the bonds be secured by a credit enhancement resulting in a rating of “A” or better from a nationally recognized rating agency acceptable to the agency. It is anticipated that the sponsor or private developer shall obtain one of the following credit enhancements:.

(1) Federal housing administration mortgage insurance;

(2) Federal housing administration coinsurance;

(3) Fannie Mae multifamily tax-exempt financing;

(4) An unconditional and irrevocable guaranty, surety bond letter of credit, or insurance policy issued by an insurance company or bank, or the parent company of either, with a rating of “A” or higher. If the institution is non-rated, the guaranty or letter of credit shall be sufficiently collateralized in accordance with rating agency guidelines to achieve an “A” rating. Other credit enhancements will be considered by the agency subsequent to their review and investigation by agency staff. The agency also considers the private placement of its bonds with an investor or investors arranged by the sponsor or private developer. Ins such a case, the bonds need not be rate; or

(5) Another form of a credit enhancement approved by the agency.

HISTORY: Eff 3-19-98; 3-23-03

Rule promulgated under: RC 119.03

Rule authorized by: RC 175.02

Rule amplifies: RC 175.06, 175.07, 175.08, 175.09, 175.11

RC 119.032 Review Dates: 3/19/03, 3/23/09