Moody's upgrades Detroit, MI's issuer rating to Ba3; outlook stable
New York, May 22, 2018 -- Moody's Investors Service has upgraded the City of Detroit, MI's issuer rating to Ba3 from B1. Concurrently, Moody's has revised the outlook to stable from positive in light of the upgrade. This issuer rating is equivalent to the general obligation unlimited tax (GOULT) rating we would assign to GOULT debt of the issuer, but does not apply to any of the city's $1.9 billion of debt outstanding.
Michigan Finance Authority Revenue Sharing, Local Project Bond Ratings Revised To 'A+'; Outlook Positive
CHICAGO (S&P Global Ratings) April 25, 2018--S&P Global Ratings has resolved its CreditWatch on various Michigan Finance Authority revenue sharing bonds, and on one series of Authority local project bonds (issued for Dearborn Heights), by raising the ratings to 'A+' from 'A'. The outlook is positive. The bonds were all issued on behalf of one or multiple local governments (LGs).
The 'A+' ratings are based on our State Credit Enhancement (SCE) criteria, and reflect the benefit each LG receives from strong Authority (and state of Michigan) oversight as well as the strength and availability of distributable state aid (DSA), which would be diverted to the Authority if a LG cannot make its full and timely debt service payment.
City-Supported Projects Win Competitive Process to Preserve 271 Affordable Housing Units, Build 114 More
- MSHDA approves Low Income Housing Tax Credits to support nearly 400 families and individuals with income ranging from less than 30% of AMI up to 60% AMI
- Combined investment to be more than $100M
- Four projects selected are spread across several neighborhoods, including Core City Neighborhoods, Oakman Boulevard Community, Brush Park and Midtown
Four major housing projects in the City of Detroit have been selected by the Michigan State Housing Development Authority (MSHDA) to receive a limited number of 9% low income housing tax credits (LIHTC) that will help create or preserve 385 units of affordable housing across the city, Mayor Mike Duggan announced today.
The four developments, which represent a combined investment of $110 million, are receiving $4.4 million in tax credits from MSHDA.
In total, 271 units of existing affordable housing that were set to expire soon will be renovated and will keep their affordable status for another 30 years. Another 114 new affordable units, nearly half of which will be for families earning less than 30% of the area’s average Median Income (AMI), will be built.
Today Bedrock and the City of Detroit announced an agreement which will result in an estimated 700 affordable housing units. The residential housing will consist of both new construction and the preservation of existing affordable housing that would have likely converted to market rate. The agreement reflects the City of Detroit's and Bedrock’s commitment to the redevelopment of the greater downtown as an inclusive, mixed-income community that provides quality housing opportunities for all.
“It is important that a wide range of housing options, including affordable ones, are available in Detroit’s growing marketplace. Jobs and economic opportunity for Detroiters has been part of our mission since we started investing in Detroit seven years ago,” said Dan Mullen, President, Bedrock. “We are excited to further ramp up our commitment to invest in quality, affordable housing options to Detroiters representing a broad economic spectrum.”
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