Like many housing agencies in mostly rural states, the West Virginia Housing Development Fund does not issue a lot of multifamily deals.
Deputy director Marty Gargano said multifamily developments in search of financing typically use the 9% low-income housing tax credit to attract equity capital and do not need bonds. The only multifamily action last year was a small refunding of 1984 bonds.
"There's no need for new money," he said.
On the other hand, demand for single-family mortgages is strong, Gargano said, prompting $80 million to $100 million of loan generation each year. In 1998, all the authority's new-money capacity was dedicated to single-family mortgage revenue bonds.
The authority usually sells bonds twice a year, he said, the first time in mid-January or early February, when the authority believes the best interest rates are available.
"It has served us very well over the past three or four years," Gargano said.
The agency was chosen last year as a participating administrative entity for the restructuring of the Department of Housing and Urban Development's Section 8 subsidies.
"We're looking at all the state's (Section 8) deals," Gargano said.
One underwriter, familiar with the authority's operations since the late 1970s, said it is "held in very high regard" in the municipal market.
"The agency obviously has been wildly successful," he said. "It's well administered with a good board of directors."
The authority does not retain a financial adviser, usually taking bids for that service on a case-by-case basis, Gargano said. The last few deals have gone to Minneapolis-based Evensen Dodge, he said.
