Texas State Affordable Housing trustee misses Feb. 1 revenue bond payments amid funding shortfall

By Caroline Salls

Pittsburgh, Feb. 1 - Texas State Affordable Housing Corp.'s revenue bonds trustee was not able to make the principal and interest payments due Feb. 1 on three series of Texas State's 2001 Ashton Place and Woodstock Apartments revenue bonds, according to a notice from disclosure agent and trustee The Bank of New York Trust Co. NA.

The trustee said it could not make the payments on the senior series 2001A, junior series 2001C and subordinate series 2001D because of insufficient funds in the bond fund and reserve funds set up for each series of bonds.

According to the notice, borrower Agape Ashton/Woodstock, Inc. has not made sufficient payments on the bonds to fund the full principal and interest payments due each Aug. 1 and Feb. 1 since Aug. 1, 2004.

As a result, Bank of New York Trust was forced to use funds from the reserve funds to supplement some of the principal and interest payments on the bonds.

Because of deficiencies in the series C bond fund, the series C debt service reserve fund, the series D bond fund and the series D operating reserve fund, the trustee said it has not been able to make payments on the series C bonds since Feb. 1, 2005 and on the series D bonds since Aug. 1, 2004.

The trustee said there is now a $491,467 shortfall in the senior debt service reserve fund, a $69,370 shortfall in the series C debt service reserve fund and a $104,000 shortfall in the series D operating reserve fund.

In addition, the notice said Agape Ashton/Woodstock has repeatedly failed to submit loan agreement reports and documents when due, including no default certificates, an insurance consultant certificate, a rebate calculation report and a consultant's report based on its failure to meet its debt service coverage ratios.

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