Rating Action: Moody’s assigns Aaa to IL Housing Dev. Auth.’s Multifamily Rev. Bds, 2022 Ser. A; outlook stableGlobal Credit Research – 08 Feb 2022New York, February 08, 2022 — Moody’s Investors Service has assigned a Aaa rating to the proposed $22 million Illinois Housing Development Authority’s (IHDA) Multifamily Revenue Bonds, 2022 Series A (Non-AMT) (2022 Bonds). Aaa ratings on all outstanding parity debt in the Multifamily Revenue Bonds (MFRB) program have been maintained. The outlook is stable.RATINGS RATIONALEThe Aaa rating reflects the FHA Risk-Sharing insurance on the pledged loans, sufficiently-sized debt service reserve, sound legal structure and cash flows projecting full and timely debt service payments.RATING OUTLOOKThe stable outlook is based on outlook of the US government rating.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING- N/AFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING- Downgrade of the US government rating- Substantial erosion of program asset-to-debt ratio, margins and investment quality during the rehabilitation periodLEGAL SECURITY2022 Bonds are special limited obligations of the Illinois Housing Development Authority (IHDA), secured by all revenues and assets pledged under the Indenture which consists primarily of bond proceeds, mortgage loans with FHA Risk-Sharing insurance and investment obligations, including amounts in the Debt Service Reserve (DSR) Fund. The Debt Service Reserve Fund provides liquidity in the event of a loan default, pending receipt of a claim payment from FHA and until redemption of the Bonds.USE OF PROCEEDSThe proceeds of the 2022 Bonds will be used to (1) fund a Risk-Sharing Loan for financing a portion of acquisition, rehabilitation and equipping of two multifamily rental housing developments located in Decatur, Illinois, known as Southern Hills Apartments and Orlando Apartments (providing 212 affordable housing units upon completion) and (2) make deposits into the DSR Fund established in the MFRB program.The Risk-Sharing Loans will be insured by FHA under the Risk-Sharing program, which provides for a full payment of unpaid principal of the insured loans as of the default date and interest from the date of default to the date of the initial claim payment.PROFILEThe MFRB program was established in 2016. Prior series issued 2016-17 were each issued as separately-secured bonds and do not constitute parity debt under the Indenture. Future bonds issued under the Indenture will be secured equally by all pledged assets. IHDA has no taxing power. As of 1/31/2022, there were $244.9 million of parity debt outstanding in the MFRB Program.METHODOLOGYThe principal methodology used in this rating was US Housing Finance Agency Multifamily Methodology published in November 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBM_1306040. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor further specification of Moody’s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. 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