General Information

INTRODUCTION

The Community Development Administration Bonds - Investor Information Webpage provides information about the financing programs and outstanding bonds of the Community Development Administration. The ​Community Development Administration is a unit in the Division of Development Finance of the Maryland Department of Housing and Community Development, a principal department of the State of Maryland.

Questions concerning specific Bonds should be directed to Manufacturers and Traders Trust Company, as successor Trustee. Contact Larry Long at 410-545-2135.

General investor questions concerning the Community Development Administration may be directed to Investor Relations at 301-429-7898 or cdabonds_mailbox.dhcd@maryland.gov.

Information is also available through the Electronic Municipal Market Access system, formerly the Nationally Recognized Municipal Securities Information Repositories.

This General Information has been updated as of December 12, 2014.

INFORMATION ON COMMUNITY DEVELOPMENT ADMINISTRATION BOND PROGRAMS

Here is a brief description of several bond programs of the Community Development Administration:

Neighborhood Business Loan Program

The Department’s Community Development Administration obtained legislative authority to issue bonds to fund loans for business projects effective July 1, 2016. A business project is broadly defined and qualifies if it is located in a priority funding area as defined in section 5-7B-02 of the State Finance and Procurement Article, and is acquired, owned, developed, constructed, reconstructed, rehabilitated or improved for the purposes of carrying on a business, whether or not for profit. Some of the qualified business projects are also located in traditionally underserved areas defined as Sustainable Communities. The project types include, but are not limited to, acquisition and permanent financing of commercial and mixed use real estate; refinance of stabilized commercial and mixed use projects; non-profit facility loans for acquisition, rehabilitation and new construction of facilities for occupancy and/or use by qualified nonprofit organizations. Read​ more detailed program description.

Multi-Family

Housing Revenue Bonds (HRB), issued under a parity bond resolution created in 1996, finances primarily multi-family housing (the portfolio also includes some single family loans and group home loans). Multi-family loans financed in this resolution are credit enhanced by FHA (multi-family insurance and risk-sharing), FHLMC (re-insuring Maryland Housing Fund), GNMA, FNMA, and the Maryland Housing Fund, an insurance fund of the Department. Four loans are uninsured as of 6/30/2014.

Multi-Family Mortgage Revenue Bonds (MFMRB), issued under a parity bond resolution and created in December, 2009, finances primarily multi-family housing. This indenture was created as a result of the U.S. Treasury’s New Issue Bond Program. Multi-family loans financed in this resolution are credit enhanced by FHA (multi-family insurance and risk-sharing), FHMLC, GNMA, FNMA and the Maryland Housing Fund, an insurance fund of the department. The bonds were issued as taxable, variable rate until proceeds are drawn and converted to tax-exempt fixed rate when new projects are financed.

Single Family

Residential Revenue Bonds (RRB or the "1997 Resolution") finance the purchase of eligible single family mortgage loans from approved mortgage lenders. Currently loans are insured by FHA, VA, USDA/RD (RHS) and private mortgage insurers. These bonds are issued under a parity indenture created in 1997.

Single Family Housing Revenue Bonds, issued under a parity indenture and created in December 2009, will finance primarily single family housing. This indenture was created as a result of the U.S. Treasury’s New Issue Bond Program. Single family loans financed in this resolution will be credit enhanced by FHA, VA, and USDA/RD (RHS). The bonds were issued as taxable, variable rate until proceeds are drawn and converted to tax-exempt fixed rate when new single family homes are financed.

Infrastructure

Infrastructure Financing Bonds provide a way for local governments to finance physical elements that constitute the public service system. The bonds finance loans to local governments (the "Loans"). Primarily, the bonds are credit enhanced with bond insurance. In 2002, the Community Development Administration created the parity bond resolution, Local Government Infrastructure Bonds (Ambac Insured). In 2010 the Community Development Administration created the newest indenture for local government financing called the Local Government Infrastructure Bonds. Security for these bonds is a pledge of and lien on proceeds of the sale of bonds, all local obligations acquired by the Community Development Administration, Community Development Administration’s right, title and interest in all Infrastructure loans, all revenues and prepayments and pledged funds.

"Stand-alone" Financing

The Administration has bonds outstanding under separate "stand-alone" indentures. Financing multifamily projects and secured solely by the revenues of the projects and supported by credit enhancement, the Administration has issued Multifamily Development Revenue Bonds and Multifamily Development Revenue Refunding Bonds. The Administration has also issued Draw Down Mortgage Revenue Bonds to preserve bond authority and to reduce negative arbitrage. Additional information about "stand-alone" bonds is contained in the Community Development Administration, Revenue Obligation Funds Financial Statements​. These financial statements are filed with the Electronic Municipal Market Access System.

Capital Fund Securitization Revenue Bonds

In December, 2003, the Administration issued Capital Fund Securitization Revenue Bonds to provide funds to public housing authorities. These Public Housing Authorities in turn pledge part of monies from the U.S. Department of Housing and Urban Development's Capital Fund Program payable to the Public Housing Authorities to repay the bonds. These bonds are insured by Financial Security Assurance, Inc.

BOND AN​D ISSUER RATINGS:

Indenture: Moody's Fitch S & P
Housing Revenue Bonds (HRB) Aa2 AA+   
Residential Revenue Bonds (RRB or the "1997 Resolution")
Aa2 AA  
Single Family Housing Revenue Bonds (SFHRB) Aaa    
Infrastructure Financing Bonds (MBIA) A3    
Local Government Infrastructure Bonds (Ambac Insured) WR    
Local Government Infrastruct​ure Bonds Aa2/Aa3    
Multifamily Development Revenue Bonds Various    
Multifamily Development Revenue Refunding Bonds Aaa    
Multi-Family Mortgage Revenue Bonds (MFMRB) Aaa    
Capital Fund Securitization Revenue Bonds Baa2 A+ A+

INDEPENDENT REGISTERED MUNICIPAL ADVISOR

The Department of Housing and Community Development (the “Department”) has retained Caine Mitter & Associates Incorporated (“Caine Mitter”) as an independent registered municipal advisor (“IRMA”), as that term is used in Rule 15B of the Securities and Exchange Commission (“SEC”) rules. The Department will rely on Caine Mitter to provide advice with respect to the issuance of municipal securities and municipal financial products. The Department understands that Caine Mitter is registered as a municipal advisor with the SEC, and that Caine Mitter’s IRMA documentation can be obtained from the SEC’s website. By publicly posting this disclosure, the Department intends that market participants may use this information for purposes of possible exemptions to the SEC municipal advisor rule. This information is current as of October 9, 2014.

General investor questions concerning Community Development Administration may be directed to Investor Relations at 301-429-7898​ or cdabonds_mailbox.dhcd@maryland.gov.​​​​​​​​​​​​​​​​​​