The Fairfax County Redevelopment and Housing Authority expects to competitively sell $93 million of revenue bonds Tuesday to take out short-term debt sold for an affordable housing project.
The bonds will pay a portion of outstanding bond anticipation notes issued in 2007, rolled over in 2008, and mature on Oct. 1. Proceeds were used to purchase a 125-unit multifamily rental property in Annandale.
The bonds, which mature between one and 30 years, are rated Aa2 by Moody’s Investors Service and AA-plus by Standard & Poor’s.
Fairfax has pledged its support for the authority’s bond principal and interest. It is expected to issue more than $275 million a year for the next four years, said Moody’s, which assigns a Aaa long-term general obligation rating and stable outlook to about $2 billion of Fairfax’s outstanding debt.
Despite the county’s diverse economy and wealthy population, revenues have fallen. Fairfax has increased property taxes and eliminated 300 county positions to balance its fiscal 2010 budget.
The Bans were used to purchase the 125-unit Wedgewood Manor Apartments. The property is required to have 20% of its units filled by low-income residents and the rest filled by moderate-income residents as determined by the authority. It agency has the option to sell the property in the future and redeem all or a portion of the 2009 bonds.
Sidley Austin LLP will serve as bond counsel and Public Financial Management Inc. will be the financial adviser.
