Fitch Rates Florida Housing Finance Corp Rev Bds —Tax—, 2002 Series A 'AAA/F1+'

Business Wire, April 17, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--April 17, 2002

$100,000,000 Florida Housing Finance Corporation Affordable Housing Guarantee revenue bonds (taxable) 2002 series A are rated 'AAA/F1 ' by Fitch Ratings. The long-term 'AAA' rating assigned to the bonds is based on the support of a municipal bond insurance policy provided by Ambac Assurance Corp., which insures scheduled payments of principal and interest, effective as of the date of issuance of the bonds. The insurance policy will extend to the maturity date of the bonds, which is January 1, 2047, unless a substitute bond insurance policy is provided in accordance with the terms of the transaction.

The short-term 'F1 ' rating assigned to the bonds is based on the support of a standby bond purchase agreement (SBPA), provided by Dexia Credit Local, acting through its New York Agency. The SBPA provides for the payment of the purchase price of tendered bonds during the weekly or daily interest rate period. The initial rate mode will be a weekly rate. The standby bond purchase agreement is sized to cover the principal portion of the purchase price and 35 days of interest at the maximum rate of 12%, based upon a year of 365 days. The SBPA will expire on the stated expiration date of April 17, 2009, or upon the occurrence of other events of termination as specified in the agreement. The underwriter and remarketing agent is Salomon Smith Barney. The sale date of the bonds is expected to be on or about April 18, 2002.

While in the weekly interest rate determination mode, interest will be paid on the first business day of each month, commencing May 1, 2002. Bondholders have the right to tender their bonds on any business day, following seven days' notice to the tender agent, The Bank of New York Trust Company of Florida, N.A., and the remarketing agent. A mandatory tender of the bonds will occur upon any conversion of the interest rate. The bonds are also subject to mandatory tender upon substitution, expiration or termination of the standby bond purchase agreement, upon substitution of the bond insurer and following the tender agent's receipt of notice from the bank of an event of default under the standby bond purchase agreement stating that the agreement will terminate in 30 days. The short-term rating on the bonds will expire upon any expiration or termination of the standby bond purchase agreement. Mandatory and optional redemption provisions also apply to the bonds pursuant to the terms of the documents.

The proceeds of the sale of the bonds will be used by the Florida Housing Finance Corporation (successor to the Florida Housing Finance Agency) to provide funds for the guarantee of principal and interest on loans made to finance or refinance the purchase, construction or rehabilitation of eligible housing.