2011 PHFA Annual Report - Pennsylvania Housing Finance Agency

the counterparty and the variable-rate interest received by the Agency. See Note 7 for
information on derivative instruments.
Fiscal Year Variable Rate Variable Rate Net Swap
Ending June 30 Bond Principal Bond Interest Payments Total
2012 $ 22,180 $ 9,175 $ 48,522 $ 79,877
2013 19,640 9,146 45,754 74,540
2014 18,830 9,120 43,422 71,372
2015 26,605 9,072 41,491 77,168
2016 38,340 9,007 39,818 87,165
2017-2021 244,135 42,654 173,074 459,863
2022-2026 285,575 33,664 130,118 449,357
2027-2031 349,210 21,280 80,842 451,332
2032-2036 337,965 13,316 28,197 379,478
2037-2041 56,545 1,361 821 58,727
$ 1,399,025 $ 157,795 $ 632,059 $ 2,188,879
Conduit Debt Obligations
During prior years, the Agency issued series 2003J, 2008M, 2008O and 2010Q Special Limited
Obligation Bonds to provide for the financing of new construction or preservation of affordable
housing stock in the Commonwealth of Pennsylvania. The bonds are secured solely by the
properties and revenues generated by the property.
Also in prior years, the Agency issued series 2005A Capital Fund Securitization Revenue
Bonds to provide for financial assistance to local public housing authorities. The bonds are
secured solely by the properties financed, revenues generated by the property or appropriations to
be paid by the United States Department of Housing and Urban Development.
55
(In thousands of dollars)
These bonds, which are considered conduit debt obligations under GASB rules, do not constitute
a debt or pledge of the faith and credit of the Agency and, accordingly, have not been reported
in the accompanying financial statements. At June 30, 2011 and 2010, conduit debt outstanding
aggregated $90,156 and $105,943, respectively.
Short Term Debt
During December 2010, the Agency issued $82,750 of Single Family Mortgage Revenue
Bonds, Series 2011-111. These bonds are obligations of the Agency that bear interest at fixed
rates payable on April 01, 2011 and on final maturity of September 22, 2011. The bonds will be
primarily secured by program obligations consisting of qualifying single-family mortgage loans
purchased with bond proceeds. The bonds had a balance of $82,750 at June 30, 2011.
Short Term debt activity for the year ended June 30, 2011, was as follows:
Beginning Balance Ending Balance
July 01, 2010 Issued Redeemed June 30, 2011
Series 2011-111 $ - $ 82,750 $ - $ 82,750
Bond Covenants
Minimum capital reserves have been established by the Agency to meet the requirements of
bond covenants. The capital reserve requirement of certain Multifamily Housing Program bonds
requires that a one-year debt service minimum balance be maintained at all times. The capital
reserve requirement for Single Family Mortgage Loan Program bonds must be equal to at least 3%
of the aggregate principal amount of all Single Family Mortgage Loan Program bonds outstanding
plus one million dollars. Bond covenant requirements regarding restricted cash and net assets
were met at year-end.