S&P - Public Finance Criteria (2007). - The Global Clearinghouse

Housing Finance AgenciesIn many instances, much of the initial funding forthe agencies may have been provided by the state orlocality, and key members of the agencies may beappointed by elected officials.The key to this analysis is to identify detractorsof the authority, if there are any, and find bipartisansupport for the authority’s programs. This canbe demonstrated by a history of legislativeapprovals of annual budgets, special programs,additional funding, housing legislation, and soforth. Also, the autonomy of the management team,should be unaffected by gubernatorial and legislativeelections. The agency also should anticipate thehousing needs of the legislatures’ constituents andcontinue to develop programs to address them.EconomyAnalysis of the state or local economic baseincludes evaluating the impact of changes indemand for housing, the impact of changing regulatoryand legislative environment for low-and moderate-incomehousing, and the dependence onspecific industries and how that may affect theagency’s mortgage portfolio.Housing in larger states with more diverseeconomies is less affected by economic trends thanhousing in smaller geographic regions. Therefore,the critical factors will vary based upon the regionin which the HFA operates. ■www.standardandpoors.com293