According to a release, a total of $177.5 million of series L and M bonds are outstanding, including just under $63.8 million of sub-series M-1 and $25 million of sub-series M-2. Fitch says that in addition to the BofA LOC, other factors prompting its rating actions include conversion of the interest rate on the bonds from an auction-rate mode to a weekly rate mode and HFA's reoffering of the bonds in a weekly rate mode.

The rating will expire upon Jan. 14, 2012, the stated expiration date of the LOC, unless the date is extended; any prior termination of the LOC; or defeasance of the bonds, whichever comes first. The LOC provides full coverage of principal plus an amount equal to 56 days' interest at a maximum rate of 12%, based on a 365-day year and purchase price for tendered bonds, according to Fitch. The remarketing agent for the series L and sub-series M-1 bonds is Citigroup Global Markets, while Ramirez & Co. is the remarketing agent for the sub-series M-2 bonds.

Earlier this month, HFA issued an RFP to enable local governments, nonprofits and other providers to apply for $64.5 million in state and federal funds to buy, renovate and then resell or rent foreclosed and abandoned multifamily properties. The funds, provided under the federal Neighborhood Stabilization Program, are aimed at helping neighborhoods most affected by the foreclosure and subprime crisis.