Commonwealth SF 2015 Series-A Taxable
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Moody’s S&P Ratings Aaa AAA (See “Ratings” herein) Interest on the Offered Bonds is included in gross income for federal income tax purposes under the Code. Under the Virginia Housing Development Authority Act, income on the Offered Bonds, including any profit made on the sale thereof, is not included in taxable income for purposes of income taxation by the Commonwealth of Virginia and by the municipalities and all other political subdivisions of the Commonwealth of Virginia. $140,928,878 VIRGINIA HOUSING DEVELOPMENT AUTHORITY Commonwealth Mortgage Bonds 2015 Series A-Taxable (Pass-Through) Maturity Principal Interest Date Amount Rate Price CUSIP June 25, 2042 $140,928,878 3.25% 100% 92812UQ50 Dated Date: November 1, 2015 Interest is payable on the 25th day of each month, commencing December 25, 2015, as described herein, and at maturity or prior redemption. Interest on the Offered Bonds commences to accrue on the Dated Date and accrues on the principal amounts and for the periods described herein. The Offered Bonds are issuable in $1.00 denominations or any multiple (greater than 1.0) thereof upon original issuance, and, thereafter, $0.01 denominations or any multiple (greater than 1.0) thereof. Principal on the Offered Bonds is payable on the 25th day of each month, commencing December 25, 2015, as described herein. The Offered Bonds are subject to optional redemption, as described herein. The Offered Bonds will be initially available and may be purchased only in book-entry form through the facilities of DTC. U.S. Bank National Association, Minneapolis, Minnesota, is the Trustee. The Offered Bonds are secured, equally and ratably with the Currently Outstanding Bonds and any Commonwealth Mortgage Bonds hereafter issued (except as otherwise described herein), by Mortgage Loans, Investment Obligations, Revenues and other Assets of the Authority pledged thereto, and are general obligations of the Authority, subject to agreements heretofore or hereafter made with owners of Authority obligations other than Owners, all as more fully described herein. The Authority has no taxing power. The Commonwealth Mortgage Bonds do not constitute a debt or grant or loan of credit of the Commonwealth of Virginia, and the Commonwealth of Virginia shall not be liable thereon, nor shall the Commonwealth Mortgage Bonds be payable out of any funds other than those of the Authority. The Offered Bonds are offered when, as and if issued, subject to prior sale, or withdrawal or modification of the offer without notice. The Offered Bonds are offered subject to the receipt of the Approving Opinion of Hawkins Delafield & Wood LLP, New York, New York, Bond Counsel to the Authority, as more fully described in “Legal Matters.” Certain legal matters will be passed upon for the Underwriters by their counsel, Kutak Rock LLP, Atlanta, Georgia. It is expected that the Offered Bonds will be available for delivery through DTC in New York, New York on or about November 10, 2015. Wells Fargo Securities BofA Merrill Lynch RAYMOND JAMES October 29, 2015 No dealer, broker, salesman or other person has been authorized by the Authority or the Underwriters to give any information or to make any representations other than those contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized. There shall not be any offer, solicitation or sale of the Offered Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. Information set forth herein has been furnished by the Authority and other sources which are believed to be reliable, but is not guaranteed as to accuracy or completeness by the Underwriters. Unless specified otherwise, web sites referred to herein and the information or links contained in such websites are not incorporated into, and are not part of, this Official Statement. The information and expressions of opinion herein speak as of their date unless otherwise noted and are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Authority since the dates as of which information is given herein. The Underwriters have reviewed the information in this Official Statement in accordance with, and as part of, their responsibility to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. TABLE OF CONTENTS Page Page PART I – THE OFFERED BONDS ........................................................................ 1 Single Family Mortgage Loan Terms ..................................................... 28 INTRODUCTION ..................................................................................................... 1 Security for Single Family Mortgage Loans .......................................... 29 DESCRIPTION OF THE OFFERED BONDS ....................................................... 2 Single Family Mortgage Loan Insurance ............................................... 29 Interest Payments ............................................................................................. 2 Financing of Single Family Mortgage Loans ......................................... 30 Principal Payments ........................................................................................... 2 New Issuance Bond Program and Homeownership Distribution of Principal Payment Amount ................................................... 3 Mortgage Bonds ........................................................................................ 30 Record Dates ..................................................................................................... 3 Ginnie Mae Financing .............................................................................. 31 Class Factors ..................................................................................................... 3 Fannie Mae Financing .............................................................................. 31 Allocated Mortgage Loans ............................................................................... 4 FHA and VA Streamline Refinance Programs ...................................... 32 Average Life of Offered Bonds ........................................................................ 5 Data on Single Family Mortgage Loans ................................................. 33 Optional Redemption ....................................................................................... 6 Future Funding of Single Family Programs .......................................... 33 Notice to Owners .............................................................................................. 7 Single Family Mortgage Loan Origination Procedures and Defeasance ......................................................................................................... 7 Underwriting Criteria ............................................................................... 33 Purchase ............................................................................................................. 7 Servicing of Single Family Mortgage Loans .......................................... 35 SECURITY ................................................................................................................ 7 Loan Modifications ................................................................................... 36 Pledge of Assets ................................................................................................ 7 Declining Markets; Risk of Loss ............................................................. 36 Mortgage Loans ................................................................................................. 7 Other Single Family Programs Currently Offered ................................ 37 Exchange Agreements, Enhancement Agreements, and Other Financial THE MULTI-FAMILY PROGRAM ........................................................................ 38 Agreements ........................................................................................................ 7 General ....................................................................................................... 38 Investment Obligations .................................................................................... 8 Federal Programs and Requirements .................................................... 38 Sources of Payment .......................................................................................... 8 Requirements Applicable to Developments Financed by Amendments to Resolution; Commonwealth Mortgage Bonds Tax-Exempt AMT Bonds and Tax-Exempt Non-AMT Bonds ............. 40 Acquired by the Authority ................................................................................ 9 Requirements Applicable to Developments Financed by General Obligations of the Authority ........................................................... 10 Transitioned 1954 Code Tax-Exempt Non-AMT Bonds ...................... 40 Other Bond Resolutions ................................................................................. 10 Authority Income Limits .......................................................................... 41 WITHDRAWAL OF ASSETS; LIMITED OPERATING COVENANTS ............. 11 “Economically