Puerto Rico Housing Finance Authority (PRHFA)

Website: www.afv.gobierno.pr

Credit Ratings

Security

The Capital Fund Program Bonds are secured limited obligations of the PRHFA. The proceeds of the Series 2008 Bonds will be used mainly to finance a loan under a Loan Agreement by and among the PRHFA, the Puerto Rico Public Housing Administration (PHA), the Trustee and Vivienda Modernization I, LLC, which in turn will utilize the moneys from the Loan for the primary purpose of financing a portion of the cost of the acquisition and modernization of various housing projects in the Commonwealth. The proceeds of the Series 2003 Bonds were loaned to the PHA, which will utilize such funds to make certain improvements to various public housing projects in the Commonwealth. The Bonds are payable from Capital Fund Allocations; the Series 2008 are subordinate to the Series 2003.

The Capital Fund Bonds do not constitute a debt, obligation or pledge of the credit of the Commonwealth of Puerto Rico or any of its municipalities or political subdivisions or of Government Development Bank for Puerto Rico or any other instrumentality of the Commonwealth of Puerto Rico (other than the PRHFA from the sources described above).

Functions

The PRHFA is a subsidiary of Government Development Bank and an independent governmental instrumentality of the Commonwealth. The PRHFA is authorized to issue its notes and bonds to achieve its corporate purposes and to lend money to any person, firm, corporation or other organization for the purpose of developing the economy of Puerto Rico.

Trustees Under the Trust Agreement:

U.S. Bank Trust National Association

Debt outstanding issued by the PRHFA under the programs of the "Act 124", which programs originated under the operation of the extinct Puerto Rico Housing Bank and Finance Agency

Credit Ratings

	Moody's	Standard & Poor's	Fitch
Mortgage-Backed Certificates   2006 Series A- $165,643,717	------	------	AAA
Affordable Housing Mortgage   Subsidy Program- Single Family   Mortgage Revenue Bonds/   Portfolio XI- $200,000,000	------	------	AAA
Fitch Ratings – July 21, 2014

Security

All of the mortgage loans financed by Single-Family Mortgage Revenue Bonds and Notes are required to be insured by the Federal Housing Administration, the Veterans Administration, or Rural Development.

Functions

The Authority inherited from the now extinct Housing Bank, among others, the power to grant direct loans, insure loans and purchase loans from private lenders for low and moderate income housing, and to subsidize mortgage loans.

Trustees Under the Trust Agreement:

Banco Popular de Puerto Rico, San Juan, PR

Outstanding debt issued by the now extinct Puerto Rico Housing Finance Corporation, a former subsidiary of GDB

Credit Ratings

	Moody's	Standard & Poor's
Collateralized Mortgage Obligations:   Mortgage Trust III	------	AA+
Standard & Poor's - August 26, 2011 Standard & Poor's - July 11, 2011 Standard & Poor's - February 27, 2009

Security

Bonds are secured limited obligations of the Authority, except for Mortgage Trust III, which are general obligations of the Authority, payable from revenues of outstanding mortgage loans and investments secured mainly by Federal government agencies.

Functions

PRHFA, as successor of the PRHFC, provides financing to private and public developers for the construction, reconstruction and improvement of adequate, safe and sanitary dwellings for people and families of limited income by issuing bonds and notes, the proceeds of which are invested mainly in federally insured mortgage loans.

Trustees Under the Trust Agreement:

Banco Popular de Puerto Rico, San Juan, PR

Financial Statements Audited by:

Financial Statements

	June 30, 2015
	June 30, 2014

Official Statements

	Puerto Rico Housing Finance Authority - $384,475,000 Capital Fund Modernization Program Subordinate Bonds (Puerto Rico Public Housing Projects), Series 2008 (Non-AMT) August 1, 2008
	Puerto Rico Housing Finance Authority - $663,060,000 Capital Fund Program Bonds, Series 2003 (Puerto Rico Public Housing Administration Projects) December 11, 2003