2011 PHFA Annual Report - Pennsylvania Housing Finance Agency

increased 18% to $65 million at June 30, 2011 from $55 million at June 30, 2010, after adjustments for
the provision for loan loss, prepayments, and scheduled principal payments. This is compared to an
increase of 10% to $55 million at June 30, 2010 from $50 million at June 30, 2009.
HEMAP loans are reported net of allowances for potential loan loss. The total allowance for loan
loss equaled 41% of the total loan portfolio at June 30, 2011. This can be compared to 45% of the total
loan portfolio at June 30, 2010 and 2009, respectively. Management believes the provision properly
represents potential loan losses based on historical trends and the quality of the properties collateralized
by the mortgage loan agreements. At June 30, 2011, the expense for the provision for loan loss
increased 22% to $11 million from $9 million at June 30, 2010.
Bonds and Notes Payable, Net
Bonds and notes payable equaled 87% of the total liabilities at June 30, 2011, 87% and 90% of
the total liabilities at June 30, 2010 and June 30, 2009, respectively. The Multifamily Housing
Program finances various housing developments throughout the Commonwealth of Pennsylvania
with multifamily development bonds proceeds relating to the construction or rehabilitation of
multifamily rental housing developments generally designed for persons or families of low and
moderate income or the elderly. The Single Family Mortgage Loan Program provides residential
mortgage financing programs that serve low- to middle-income qualified homebuyers with mortgage
revenue bond proceeds.
Long-Term Debt Activity of the Multifamily Housing Program
During the year, the Multifamily Housing Program did not issue any bonds. As a result, the total
outstanding bonds balance at June 30, 2011 decreased by 23% to $169 million because of scheduled
debt payments and redemptions. The Multifamily Housing Program did not issue any bonds during
the years ended June 30, 2010 and 2009.
31
(Amounts rounded to facilitate easy reading)
Long-Term Debt Activity of the Single Family Mortgage Loan Program
During the year, the Agency issued approximately $596 million of Single Family Mortgage
Revenue Bonds Series 2010-109 through Series 2011-112. Total debt outstanding of the Single
Family Mortgage Loan Program decreased by 4% to $4.4 billion because of the issuance of the
aforementioned debt adjusted by scheduled debt payments and redemptions. During the years
ended June 30, 2010 and 2009, the Agency issued Mortgage Revenue Bonds totaling $1.2 billion
and $350 million, respectively.
Fund Net Assets
Net assets invested in capital assets, net of related debt decreased to $12.5 million or 7% at June 30,
2011 from $13.4 million at June 30, 2010. This is compared to a decrease of $800 thousand or 6%
to $13.4 million at June 30, 2010 from $14.2 million at June 30, 2009. The Agency issued Variable
Rate Building Development Bonds, Series 2004 to fund the construction of its headquarters in
Harrisburg. This net asset changes with additions of equipment or improvements to the headquarters,
less depreciation expenses and retirement of the related bond issue debt. Restricted net assets decreased
to $180 million or 25% at June 30, 2011 from $239 million at June 30, 2010. Compared to a decrease
to $239 million or 5% at June 30, 2010 from $252 million at June 30, 2009. Restricted net assets
represent assets with constraints placed on their use by external groups, such as creditors and by law
through enabling legislation.
Unrestricted net assets increased to $616 million or 19% at June 30, 2011 from $519 million at
June 30, 2010. Compared to an increase to $519 million or 8% at June 30, 2010 from $480 million at
June 30, 2009. Unrestricted net assets do not meet the definition of invested in capital assets, net of
related debt or restricted net assets. This component includes net assets designated for specific purposes
by the Members of the Board.