S&P Global released its 2019 Sector Outlook, which includes a brief section of interest to PHAs titled “PHAs Evolve in the Face of Federal Fiscal Changes.”
S&P observes that PHAs are increasingly diversifying their revenues and looking to non-HUD funded sources of income, with these sources accounting for 24% of total revenue in FY2017 compared with 18% in 2011. They add that the RAD program “could address immediate needs of deteriorating housing stocks, provide increased operational flexibilities and stabilize revenue for PHAs,” though they have not yet observed significant operational savings from the RAD program. S&P also states that MTW “could be a credit positive for any rated PHA which is designated, allowing for more efficient strategies and financial flexibility.”
