Financial statements and report of independent certified ...

Financial Statements and Accountants’ Review Report

Nevada Housing Division

December 31, 2008

Contents

Page

Accountants’ Review Report 3

Management’s Discussion and Analysis 5

Combined Financial Statements

Combined Balance Sheet 10

Combined Statement of Revenues, Expenses and Changes in Net Assets 11

Combined Statement of Cash Flows 12

Notes to Combined Financial Statements 14

Required Supplemental Information

Statement of Revenues, Expenses and Changes in Net Assets – Budget and Actual– General Fund 34

Supplemental Information

Combining Balance Sheet – Single-Family Program Funds 36

Combining Balance Sheet – Multi-Unit Program Funds 40

Combining Statement of Revenues, Expenses and Changes in Net Assets- Single-Family Program Funds 49

Combining Statement of Revenues, Expenses and Changes in Net Assets-Multi-Unit Program Funds 53

Schedule of Investments 61

Schedule of Restricted Assets – Single-Family Program Funds 76

Grant Thornton LLPU.S. member firm of Grant Thornton International Ltd

Audit Tax Advisory

Grant Thornton LLP100 W Liberty Street, Suite 770Reno, NV 89501-1965

T 775.786.1520F 775.786.7091www.GrantThornton.com

Accountants’ Review Report

AdministratorNevada Housing Division

We have reviewed the accompanying combined balance sheet of Nevada Housing Division (a public agency) as of December 31, 2008, and the related combined statements of revenues, expenses and changes in net assets and cash flows for the six months then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of Nevada Housing Division.

A review consists principally of inquiries of Division personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the December 31, 2008 financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America.

Our review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. The Management’s Discussion and Analysis on pages 5 through 8 and the statement of revenues, expenses and changes in net assets – budget and actual – general fund on page 34 are not a required part of thebasic financial statements, but is supplemental information required by the Governmental Accounting Standards Board. The other data accompanying the financial statements are presented only for supplemental analysis purposes. This supplemental information has been subjected to the inquiry and analytical procedures applied in the review of the basic financial statements. We are not aware of any material modifications that should be made to that information.

Reno, NevadaApril 7, 2009

MANAGEMENT’S DISCUSSION AND ANALYSIS


MANAGEMENT’S DISCUSSION AND ANALYSIS

For the six months ended December 31, 2008

5

Financial Statement Highlights

The change in Net Assets [bottom line] for the Housing Division was $3,290,333.

Results of operations [revenue less operating expenses] were down $1,710,074 or 34.2% versus last year’s $5,000,407. There was an increase in the change in General Funds Net Assets of $1,408,012; a decrease in the change in Net Assets for the Single-Family bond program of $242,955; a decrease in the change in Net Assets for the Multi-family bond program of $59,107. Total revenues decreased $1,500,236 and total operating income decreased $1,729,071.

The five-year trend in declining single-family whole loan first mortgage numbers and dollar balances continued through the December 31, 2008 period. However, total whole loans held as well as securitized loan pools began to increase. The total number of single-family whole loan first mortgages outstanding dropped from 843 at December 31, 2007 to 738 at December 31, 2008 or a reduction of 105 loans or a drop of 12.5%. During the same six-month period, total loans added and pooled into AAA rated mortgage backed securities was 201. The average value of each single-family first mortgage loan in portfolio changed from $41,720 at December 31, 2007 to $42,671 at December 31, 2008. New first mortgage loans entering the portfolio as pooled mortgage backed securities from July 1, 2008 to December 31, 2008 averaged $170,999.

Loan delinquencies on single-family mortgages went up from 2.29% of loans outstanding to 4.88% of whole first mortgage loans outstanding reflecting Nevada’s rapidly deteriorating economy.

Total investment earnings increased from $10,304,748 to $10,459,466 or up 1.5%.

Total salaries and payroll expenses paid went from $920,404 to $1,016,676 or up 10.5% as previously vacant loan officer positions and an internal auditor began to be refilled due to increased loan volume.

The net cash position of the Housing Division increased from $228,911 at December 31, 2007 to $293,389 at December 31, 2008.

Standard & Poor’s reaffirmed the Housing Division’s Issuer Credit Rating at AA- in December with a “positive outlook.”

Overview of Financial Statements

The combined Balance Sheet and Statement of Revenues and Expenses and Changes in Net Assets reflect the financial position and results of operations from the Housing Division’s four primary programs: General Fund, HOME Program and the Single and Multi-unit bond programs. The HOME Program is in essence a break-even operation. Two other programs of the Housing Division, the Federal Tax Credit Program and the Federal Weatherization Program also have a material operational impact on Housing Division operations [salaries and administrative expenses] but no material financial impact since they are involved in allocation of non-cash items or services. At mid-year, total Housing Division debt outstanding was $905,182,000 versus the Statutory Limit of $5 billion.


MANAGEMENT’S DISCUSSION AND ANALYSIS - CONTINUED


6

Financial Analysis

Total Assets: The total assets at mid-year were $1,104,860,050 up $54,937,232 or 5.2%. This material increase is primarily due to single-family loan program’s resurgence. The five-year trend in mid-year total assets has been:

2008 2007 2006 2005 2004

$1,104,860,050 $1,049,922,818 $957,859,869 $974,872,861 $1,054,673,004

The book value of single-family whole first mortgage loans outstanding at mid-year was $31,235,419.

2008 2007 2006 2005 2004

Value $48,209,594 $53,524,426 $48,051,861 $79,430,610 $150,978,885# of loans 738 843 1,019 1,345 2,126% delinquent 4.88% 2.29% 2.16% 2.07% 3.67%

Total Liabilities: The total liabilities at mid-year were $926,721,829 up $48,116,619 or 5.5%. The five-year trend in total liabilities has been:

2008 2007 2006 2005 2004

$926,721,829 $878,605,210 $795,943,602 $820,838,247 $907,007,270

The Total Asset: Total Liability ratio trend for the past five years has been:

2008 2007 2006 2005 2004

1.192X 1.195X 1.203X 1.188X 1.163X

The Total Bond Liabilities [current and non-current] relative to the $5.0 billion statutory debt limit trend has been:

2008 2007 2006 2005 2004

18.1% 17.2% 15.6% 16.1% 17.8%

Net Assets: The net assets of the Housing Division increased to $178,138,221 up $6,820,613 or 3.98%. The five-year trend in net assets has been:

2008 2007 2006 2005 2004

$178,138,221 $171,317,608 $161,916,267 $154,034,614 $147,665,734




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Financial Analysis - Continued

In the past five years, combined net assets from the three primary financial programs: general funds, single-family program and multi-unit program have shown the following trend:

Net Assets 2008 2007 2006 2005 2004

General Fund $160,807,286 $155,294,164 $142,173,239 $125,058,734 $93,593,077Single-Family 13,393,120 10,972,457 14,773,408 18,434,524 43,736,975Multi-Unit 3,937,815 5,050,987 4,969,620 10,541,356 10,335,682

The trend in administrative expenses plus operational charges for salaries, overhead and direct expenses paid by programs were for the past four years:

2008 2007 2006 2005Net Assets Amount % Amount % Amount % Amount %

Single-Family $ 283,988 21.67 $ 105,018 7.54 $ 22,509 1.79 $ 15,864 1.31Multi-Unit 1,026,502 78.33 1,287,927 92.46 1,237,026 98.21 1,197,001 98.69

Totals $1,310,490 $1,392,945 $1,259,535 $1,212,865

Administrative Budget

The Housing Division’s administrative expense budget was approved for fiscal years FY2008 and FY2009 by the 2007 Nevada Legislature, as proposed by the Governor’s Budget Office. The Housing Division’s administrative budget reflects numerous managerial accounting differences from a GAAP revenue and expense statement. Significant differences between financial statements and the legislatively approved administrative budget include but are not limited to:

The Housing Division budgets for revenues and expenditures only to the extent expected to affect funds of the State;

Revenues and expenditures of indentures and bond certificate trusts are not funds of the State, but are included in either the Multi-unit or Single-family bond programs or General Fund in the financial statements and not reflected in the State budget;

The Housing Division budgets for revenues and expenditures of the Federal HOME Program to the extent they are paid to or by the State of Nevada. The HOME Program is not included in the General Fund in the financial statements;

The Division budgets for compensated absences only to the extent expected to be paid, rather than on the modified accrual basis;

All amortizable bond issuance costs are reported as such on the financial statements but reported as current period revenues and expenditures on the State budget;

Income on investments, mortgages and bond interest payments are reflected as such in the financial statements but are not part of the State budget;

Under State budgeting procedures, there is neither an increase nor decrease in net assets.




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Administrative Budget - Continued

During the first half of the budget year ended December 31, 2008, the Housing Division:

Had no increase in its administrative budgetary revenue authority amounts. Actual expenditures did not deviate from the original budget.

Budgetary reserves at mid-year were $468,899.

This Management Discussion and Analysis along with the accompanying Financial Statements, Notes and Supplementary Information reflect our ongoing commitment to full, fair and honest disclosure at December 31, 2008.

For questions regarding the accompanying Financial Statements, Notes and Supplementary Information, please visit our website at [email protected] or contact our office at 775-687-2032.

CHAS L. HORSEY /S/ LON A. DEWEESE /S/Chas L. Horsey, Administrator Lon A. DeWeese, Chief Financial Officer

mailto:[email protected]

COMBINED FINANCIAL STATEMENTS

HomeInvestment

General PartnershipsASSETS Funds Program Single-Family Multi-Unit 2008 2007

Current assets:Cash 293,389$ -$ -$ -$ 293,389$ 228,911$ Investments

Restricted 111,488,908 - 212,500 - 111,701,408 125,511,942 Unrestricted 44,211 - 8,375,248 56,454,126 64,873,585 78,631,806

Total investments 111,533,119 - 8,587,748 56,454,126 176,574,993 204,143,748 Loans receivable 837,886 - 390,864 4,560,802 5,789,552 5,122,553 Interest and other receivables, net 456,272 5,421,496 1,217,386 1,609,636 8,704,790 9,030,387

Total current assets 113,120,666 5,421,496 10,195,998 62,624,564 191,362,724 218,525,599

Noncurrent assets:Long-term investments

Restricted 24,353,002 - 1,534,128 - 25,887,130 8,330,896 Unrestricted - - 175,407,074 135,961,383 311,368,457 248,873,791 Fair value adjustment on investments (39,130) - - - (39,130) (140,414)

Total long-term investments 24,313,872 - 176,941,202 135,961,383 337,216,457 257,064,273 Loans receivable, net of current portion 24,588,324 - 30,844,555 518,315,297 573,748,176 572,558,085 Deferred issue costs, net of amortization - - 2,487,070 - 2,487,070 1,758,900 Office furniture and equipment, net of accumulated depreciation of $300,472 45,623 - - - 45,623 15,961

Total noncurrent assets 48,947,819 - 210,272,827 654,276,680 913,497,326 831,397,219

Total assets 162,068,485$ 5,421,496$ 220,468,825$ 716,901,244$ 1,104,860,050$ 1,049,922,818$

Current liabilities:Bonds payable -$ -$ 1,355,000$ 3,689,000$ 5,044,000$ 8,964,000$ Interest payable - - 2,709,830 5,638,793 8,348,623 7,842,659 Interfund 119,441 - 134,977 (254,418) - - Accounts payable and other liabilities 1,141,758 5,421,496 675,898 5,952,054 13,191,206 11,663,551

Total current liabilities 1,261,199 5,421,496 4,875,705 15,025,429 26,583,829 28,470,210

Noncurrent liabilities:Bonds payable, net of current portion - - 202,200,000 697,938,000 900,138,000 850,135,000

Total liabilities 1,261,199 5,421,496 207,075,705 712,963,429 926,721,829 878,605,210

Net assets:Invested in capital assets 45,623 - - - 45,623 15,961 Restricted 157,759,212 - 13,393,120 3,937,815 175,090,147 168,177,531 Unrestricted 3,002,451 - - - 3,002,451 3,124,116

Total net assets 160,807,286 - 13,393,120 3,937,815 178,138,221 171,317,608

Total liabilities and net assets 162,068,485$ 5,421,496$ 220,468,825$ 716,901,244$ 1,104,860,050$ 1,049,922,818$

The accompanying notes are an integral part of this statement.

LIABILITIES AND NET ASSETS


COMBINED BALANCE SHEET

December 31, 2008(With comparative totals for December 31, 2007)(See accompanying accountants' review report)

Combined TotalsProgram Funds

HomeInvestment

General PartnershipsFunds Program Single-Family Multi-Unit 2008 2007

Operating revenuesInterest and other investment income 2,026,856$ -$ 4,478,856$ 3,830,200$ 10,335,912$ 10,191,850$ Realized and unrealized gains on investments 113,426 - - 10,128 123,554 112,898

Total investment income 2,140,282 - 4,478,856 3,840,328 10,459,466 10,304,748 Interest income on mortgage loans 845,727 - 1,025,000 10,886,207 12,756,934 14,296,328 Other income 615,048 - - 995,657 1,610,705 1,726,265

Total operating revenues 3,601,057 - 5,503,856 15,722,192 24,827,105 26,327,341

Operating expensesSalaries and other payroll costs 944,426 72,250 - - 1,016,676 920,404 Administrative expenses 933,598 9,158 65,185 30,844 1,038,785 973,683 Servicers' fees 26,028 - 45,513 - 71,541 88,034 Interest on bonds payable - - 4,841,720 14,585,794 19,427,514 19,318,189 Amortization of issue costs - - 63,664 - 63,664 89,035 Interfund operating charge (1,214,461) - 218,803 995,658 - -

Total operating expenses 689,591 81,408 5,234,885 15,612,296 21,618,180 21,389,345

Total operating income (loss) 2,911,466 (81,408) 268,971 109,896 3,208,925 4,937,996

Non-operating revenuesFederal program revenue - 1,926,584 - - 1,926,584 1,001,203 Federal program expenses - (1,845,176) - - (1,845,176) (938,792)

Total non-operating revenues - 81,408 - - 81,408 62,411

CHANGE IN NET ASSETS 2,911,466 - 268,971 109,896 3,290,333 5,000,407

Transfers (2,307,771) - 2,307,771 - - -

Net assets at beginning of period 160,203,591 - 10,816,378 3,827,919 174,847,888 166,317,201

Net assets at end of period 160,807,286$ -$ 13,393,120$ 3,937,815$ 178,138,221$ 171,317,608$


Combined Totals


COMBINED STATEMENT OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS

Six months ended December 31, 2008(With comparative totals for the six months ended December 31, 2007)

(See accompanying accountants' review report)

Program Funds

HomeInvestment


Cash flows from operating activities:Cash received from mortgage loans 2,259,721$ -$ 1,922,992$ 22,134,526$ 26,317,239$ 81,080,704$ Cash payments to purchase mortgage loans (1,448,355) - - (15,245,618) (16,693,973) (57,131,649) Cash receipts (payments) for goods and services (4,213) - (227,945) 595,487 363,329 (1,941,550) Interfund (27,236) - 29,401 (2,165) - -

Net cash provided by operating activities 779,917 - 1,724,448 7,482,230 9,986,595 22,007,505

Cash flows from noncapital financing activities:Proceeds from sale of bonds - - 25,000,000 11,000,000 36,000,000 92,895,000 Principal payments and purchase of bonds - - (4,735,000) (12,278,000) (17,013,000) (16,103,000) Interest payments on bonds - - (4,376,789) (14,732,417) (19,109,206) (18,792,957) Issue costs - - (394,527) - (394,527) (521,991) Operating transfer (2,307,771) - 2,307,771 - - - Federal grants received - 1,926,584 - - 1,926,584 1,001,203 Cash paid to other governments and organizations - (1,926,584) - - (1,926,584) (1,001,203)

Net cash provided by (used in) noncapital financing activities (2,307,771) - 17,801,455 (16,010,417) (516,733) 57,477,052

Cash flows from investing activities:(Purchase) of short-term investments (36,873,192) - (41,846,045) (34,110,867) (112,830,104) (151,905,591) Sale of short-term investments 38,367,888 - 48,096,825 31,131,999 117,596,712 95,543,409 (Purchase) of long-term investments (17,199,901) - (43,296,937) (5,638,310) (66,135,148) (79,680,543) Sale of long-term investments 14,723,073 - 13,173,859 13,220,254 41,117,186 46,458,694 Income received on investments 2,105,430 - 4,346,395 3,925,111 10,376,936 10,065,991

Net cash provided by (used in) investing activities 1,123,298 - (19,525,903) 8,528,187 (9,874,418) (79,518,040)

NET DECREASE IN CASH (404,556) - - - (404,556) (33,483)

Cash at beginning of period 697,945 - - - 697,945 262,394

Cash at end of period 293,389$ -$ -$ -$ 293,389$ 228,911$


COMBINED STATEMENT OF CASH FLOWS



Combined TotalsProgram Funds

HomeInvestment


Reconciliation of change in net assets to net cash provided by operating activities:

Change in net assets 2,911,466$ -$ 268,971$ 109,896$ 3,290,333$ 5,000,407$ Adjustments to reconcile change in net assets to net cash provided by operating activities:

Amortization of issue costs - - 63,664 - 63,664 89,035 Depreciation 11,639 - - - 11,639 6,687 Income on investments (2,026,856) - (4,478,856) (3,830,200) (10,335,912) (10,191,850) Realized and unrealized (gains) losses on investments (113,426) - - (10,128) (123,554) (112,898) Interest on bonds payable - - 4,841,720 14,585,794 19,427,514 19,318,189 Change in assets and liabilities:

Loans receivable (2,004) - 1,007,373 (4,107,048) (3,101,679) 8,215,554 Other receivables 80,560 47,725 (109,384) 116,228 135,129 2,290,309 Interfund (27,236) - 29,401 (2,165) - - Accounts payable and other liabilities (54,226) (47,725) 101,559 619,853 619,461 (2,607,928)

Net cash provided by operating activities 779,917$ -$ 1,724,448$ 7,482,230$ 9,986,595$ 22,007,505$


Program Funds Combined Totals



COMBINED STATEMENT OF CASH FLOWS - CONTINUED



NOTES TO FINANCIAL STATEMENTS

December 31, 2008(See accompanying accountants’ review report)

14

NOTE A - AUTHORIZING LEGISLATION

The Nevada Housing Division (the “Division”) is a separate agency of the Department of Business and Industry of the State of Nevada, pursuant to the Nevada Housing Finance Law, as amended, in Chapter 319 of the Nevada Revised Statutes.

The Division was created for the purpose of making available additional funds to assist private enterprise and governmental agencies in providing safe and sanitary housing facilities for low and moderate income households. The Division is currently authorized to issue its bonds, notes, and other obligations in an aggregate amount not to exceed $5,000,000,000, which shall not constitute a debt of the State of Nevada or any political subdivision thereof. These funds may be used to make loans to and purchase mortgage loans from mortgage lenders, and to make temporary loans and advances in anticipation of insured mortgage loans or to finance permanent mortgage loans for the construction or rehabilitation of multi-unit residential housing.

NOTE B - THE REPORTING ENTITY AND NATURE OF FUNDS

1. All Funds

All funds are treated as proprietary funds. For financial reporting purposes, the Division is a component unit of the State of Nevada.

The specified reserve funds and any monies not used for the specific purpose set forth for each program may be used only for the following limited purposes as may be individually set forth in each program’s documents.

a. To invest funds as authorized by various bond resolutions and trust agreements.b. To pay interest, principal and redemption premiums at or prior to maturity or redemption.c. To establish and maintain reserves to secure the bonds.d. To pay reasonable and necessary operating expenses of the program.e. After all program requirements are satisfied, excess funds may be used for any lawful purpose of the

Division.

Substantially all program fund assets are pledged in trust for the benefit of the bondholders.

The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result form providing services in connection with the proprietary funds’ principal ongoing operations. Operating expenses for the proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The following describes the general and program funds maintained by the Division, all of which conform with the authorizing legislation, general bond and note certificates and trust indentures.


NOTES TO FINANCIAL STATEMENTS - CONTINUED


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NOTE B - THE REPORTING ENTITY AND NATURE OF FUNDS - Continued

2. General Funds

A state enterprise fund was authorized by enabling legislation and has been used to account for all transactions required by the state budget and appropriation statutes. It is funded principally from authorized transfers from the various programs and from investment income.

The enabling legislation also authorized the Division to maintain such other funds as may be deemed necessary to account for other lawful activities of the Division. Special funds have been established and were funded with authorized transfers from the various programs and other investment income.

As of December 31, 2008, the Division had designated certain general fund assets totaling $157,759,212 to a reserve trust fund for the following purposes: to invest in certain securities; to pay interest and principal of certain bonds if there are insufficient funds in the program’s fund; and to pay operating expenses of the fund as specified by the Administrator.

3. Home Investment Partnerships Program

HOME Investment Partnerships Program (HOME) is a federally funded grant program for affordable housing. It is designed as a partnership among the federal government, state and local governments, and those in the private sector (profit and non-profit) who build, own, manage, finance, and support low-income housing initiatives. The Division has been designated the administrator of the program for the State of Nevada. The Division distributes monies through grants and loans to local governments, funds projects directly, and monitors compliance with grant guidelines. The program has four components: (1) Homebuyer Assistance, (2) Homeowner Rehabilitation, (3) Rental Rehabilitation, and (4) Tenant-Based Assistance.

4. Single-Family Program Funds

There were 26 single-family mortgage purchase programs existing as of December 31, 2008, under 9 general bond certificates. Various funds are prescribed to account for the proceeds from the sale of the bonds and for the debt service requirements established by the bond certificate documents.

In addition to providing reserves, the bond sale proceeds must be used to purchase from Nevada lending institutions mortgage loans originated under the program which are made on single-family residences, or to purchase existing mortgage loans from the portfolios of lending institutions under circumstances requiring the lending institutions to reinvest the proceeds from such purchase in new mortgage loans on single-family residences to persons or families of low and moderate income in the State of Nevada.

5. Multi-Unit Program Funds

There were 70 multi-unit programs existing as of December 31, 2008, under 70 general bond certificates or trust indenture documents.

In addition to providing reserves, the bond sale proceeds must be used to provide financing and purchase mortgage loans or mortgage backed securities for various multi-unit rental housing projects located in Nevada to be rented to low to moderate income families, elderly persons, and other special needs groups.




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NOTE C - SUMMARY OF ACCOUNTING POLICIES

A summary of the Division’s significant accounting policies consistently applied in the preparation of the accompanying financial statements follows.

1. Accrual Accounting for Enterprise Funds

Since the Division’s funds are considered to be enterprise funds for financial reporting purposes, the Division follows the accrual basis of accounting, wherein revenues are recorded as earned and expenses are recorded as incurred.

2. Fund Accounting

Transactions of the Division, including interfund cash transfers, are recorded in the respective funds based upon their purposes as established by the Nevada legislature and by the certificates and legal documents executed by the Division. Revenue and expenses applicable to each fund are recorded in the respective funds.

3. Mortgages Purchased

Mortgages purchased are carried at their unpaid principal balance, less discount when applicable.

4. Investments

Investments are carried at fair value. Realized and unrealized gains and losses are reflected in the statement of revenues, expenses and changes in net assets.

5. Bond Costs and Accreted Values Payable

Bond and note issue costs are deferred and amortized principally on a bonds outstanding method.

Interest is generally payable semiannually.

6. Allowance for Possible Loss on Loans

Loans receivable are collateralized by real property; obligations of the United States of America or of certain specified agencies or instrumentalities thereof; or FHA insured, Veterans Administration (VA) guaranteed or certain privately insured mortgages; or letters of credit, or guarantees from AA or AAA rated lenders. Periodic evaluation of loans receivable is made to determine if a charge against operations for possible loan losses will be required. No allowance was considered necessary at December 31, 2008.

7. Operating Expense Allocation

General and administrative expenses of operating the Division are allocated among the various programs. The amounts allocated are limited by bond program indentures and certificates.




17

NOTE C - SUMMARY OF ACCOUNTING POLICIES - Continued

8. Interfund Accounts

The general bond certificates or trust indentures, which establish the various programs, provide for certain transfers of cash from one fund to another and from a program to the Division’s general operating accounts. It is frequently not practicable nor possible to affect a transfer as of the balance sheet date. Thus, there are a number of amounts due from or due to the various funds or programs at any given time.

9. Combined Financial Statements

All of the various programs are required by documents to have a number of specific funds established to account for transactions. Therefore, each column contains the total amounts for the various funds and accounts required, and the combined financial statements contain the total of all funds of the Division. Since the assets of certain funds are restricted by the legislative authority, the general bond and note certificates or trust indentures, the totaling of the funds and accounts, including assets therein, is for financial reporting purposes in accordance with generally accepted accounting principles and does not indicate that combined assets are available in any manner other than that provided by the legislature or the general bond and note certificates or trust indentures.

10. Comparative Data

Comparative total data for the prior year represent summarized totals only and have been presented in the accompanying combined financial statements in order to provide an understanding of changes in the Division’s combined financial position and operations and is not meant to be a complete financial statement presentation. Certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year’s presentation.

11. Cash and Investments

For purposes of cash flows, the Division considers all short-term highly liquid investments to be investments regardless of the maturity date.

12. Accrued Interest Receivable

Interest is accrued based upon the principal amount outstanding. Accrued interest income is discontinued on loans when, in the opinion of management, collection of such interest income becomes doubtful. When payment of interest is provided for pursuant to the terms of loan insurance or guarantees, accrual of interest on delinquent loans is continued.




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13. Bond Redemptions

During the period ended December 31, 2008, the Division redeemed a total of $17,013,000 of debt, pursuant to provisions of the related agreements, which permit surplus revenues, resulting primarily from mortgage loan payments, to be used to retire the obligations. The accelerated amortization of costs of issuance resulting from these surplus revenue redemptions is included in amortization of issue costs.

14. Arbitrage Rebate

Arbitrage rebate to the Internal Revenue Service is recognized in the statement of earnings as a reduction of interest income on investments.

15. Proprietary Accounting and Financial Reporting

Governmental Accounting Standards Board (GASB) Statement No. 20 requires the Division to apply all applicable GASB pronouncements and, unless they conflict with or contradict GASB pronouncements, all Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board Opinions, and Accounting Research Bulletins issued on or before November 30, 1989. As permitted by the Statement, the Division has elected not to apply FASB pronouncements issued after that date.

16. Using Estimates

In preparing the financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates.

17. Accounting for Compensated Absences

Compensated absences are accounted for in accordance with Governmental Accounting Standards Board (GASB) Statement 16, Accounting for Compensated Absences, which requires that a liability for compensated absences relating to services already rendered and that are not contingent on a specified event be accrued as employees earn the rights to the benefits. Compensated absences relating to future services or that are contingent on a specified event will be accounted for in the period those services are rendered or those events take place.




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18. Accounting and Financial Reporting for Certain Grants

Grants are accounted for in accordance with Governmental Accounting Standards Board (GASB) Statement 24, Accounting and Financial Reporting for Certain Grants and Other Financial Assistance, which requires that cash pass through grants received by a governmental entity, be reported as revenues and expenditures in the Division’s financial statements.

19. Interest Rate Swap Agreements

The Division enters into interest rate swap agreements with rated swap counterparties in order to provide lower cost fixed rate financing for its single-family loan production needs through synthetic fixed rate structures. The interest differentials to be paid or received under such swaps are recognized as an increase or decrease in interest expense of the related bond liabilities.

20. Recent Accounting Pronouncements

In June 2008, GASB issued statement number 53, Accounting and Financial Reporting for Derivative Instruments, which addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by state and local governments. The requirements of this statement are effective for financial statements for periods beginning after June 15, 2009. Management believes the adoption of GASB 53 will not have a material impact on the Division’s basic financial statements.

21. Reclassifications

Certain reclassifications have been made to the prior year combined totals to conform to the current year presentation. These reclassifications had no effect on the change in net assets.




20

NOTE D - INVESTMENTS

Investments at fair value consist of the following at December 31, 2008:

GeneralFunds Single-Family Multi-Unit Total

Short-term investments $111,466,253 $ 3,652,125 $ 55,278,330 $170,396,708U.S. Treasury bonds 2,407,219 - - 2,407,219Investment agreements - 11,118,064 3,543,095 14,661,159Federal National MortgageAssociation 16,684,568 38,067,076 65,594,335 120,345,979Federal Home LoanMortgage Corporation - 10,458,936 - 10,458,936Government NationalMortgage Association 5,288,951 122,232,749 67,999,749 195,521,449

$135,846,991 $185,528,950 $192,415,509 $513,791,450

Each program’s documents and the trust agreements allow the Division to invest funds in (a) direct and general obligations of the United States or any of its states; (b) obligations which are guaranteed by the United States; (c) obligations of various agencies and instrumentalities of the United States; (d) insured or secured certificates of deposit and interest bearing time deposits; (e) repurchase agreements with certain institutions; (f) public housing bonds issued by public agencies or municipalities; (g) certain commercial or finance company paper; (h) interests in short-term investment trust funds restricted to investment obligations described above; or (i) general obligations of investment providers under investment agreements.

Investment Risk Factors

There are many factors that can affect the value of investments. Some, such as custodial credit risk and concentration of credit risk may affect fixed income securities, which are particularly sensitive to credit risks and changes in interest rates.

Credit Risk

Fixed income securities are subject to credit risk, which is the chance that a bond issuer will fail to pay interest or principal in a timely manner, or that negative perceptions of the issuer’s ability to make these payments will cause security prices to decline. The circumstances may arise due to a variety of factors such as financial weakness, bankruptcy, litigation and/or adverse political developments.

A bond’s credit quality is an assessment of the issuer’s ability to pay interest on the bond, and ultimately, to pay the principal. Credit quality is evaluated by one of the independent bond-rating agencies, for example Moody’s Investors Service (Moody’s) or Standard and Poor’s (S&P).

The lower the rating, the greater the chance - in the rating agencies opinion – that the bond issuer will default, or fail to meet its payment obligations. Generally, the lower a bond’s credit rating, the higher its yield should be to compensate for the additional risk.




21

NOTE D – INVESTMENTS - Continued

Credit Risk - Continued

Certain fixed income securities, including obligations of the U.S. government or those explicitly guaranteed by the U.S. government, are not considered to have credit risk.

Investment agreements meet the requirements of the rating agency providing the rating on the related debt issue, and of the Division’s investment policy. Investment agreements generally provide for collateralization of balances in the event of a rating agency downgrade of the institution below certain rating requirements.

The credit risk profile for investments at December 31, 2008 is a follows:

GeneralFunds Single-Family Multi-Unit Total

Investment type

Short-term investmentsAaa $97,466,252 $ 3,652,125 $55,278,330 $156,396,707B 14,000,001 - - 14,000,001

Total short-terminvestments 111,466,253 3,652,125 55,278,330 170,396,708

Investment agreementsNR – Aaa - 1,291,638 551,270 1,842,908NR – Aa3 - 1,354,602 775,181 2,129,783NR – A2 - 6,705,668 - 6,705,668NR - A3 - 1,760,656 994,314 2,754,970NR - Ba1 - - 732,577 732,577NR – Ca - 5,500 489,753 495,253

Total investmentagreements $ - $ 11,118,064 $ 3,543,095 $ 14,661,159

Federal NationalMortgage Association

Aaa $16,684,568 $ 38,067,076 $65,594,335 $120,345,979

Federal Home LoanMortgage Corporation

Aaa $ - $ 10,458,936 $ - $ 10,458,936

Government NationalMortgage Association

Aaa $ 5,288,951 $122,232,749 $67,999,749 $195,521,449




22

NOTE D - INVESTMENTS - Continued

Custodial Credit Risk

Custodial credit risk is the risk that in the event of the failure of the custodian, the investments may not be returned.

The Division’s investments are exposed to custodial credit risk. These investments may be uninsured and unregistered investments for which the securities are held by a counterparty or by its agent or trust department, but not in the Division’s name.

Housing Division policy limits money market fund custodial risks by diversifying the number of money market funds utilized. No securities backing money market funds, into which the Housing Division invests, are currently held by the agency’s bond trustee.

Concentration of Credit Risk

Concentration of credit risk is the risk associated with having too much invested in a few individual issuers, thereby exposing the organization to greater risks resulting from adverse economic, political, regulatory, geographic, or credit developments. The Division currently places no limit on the amount the Division may invest in any one issuer provided their ratings are in the highest two general ratings categories. However, the Division monitors rating changes on all issuers. If warranted, more concentrated investments may have to be diluted to alternative investment providers. As of December 31, 2008, the Division’s investments in the Fannie Mae and Ginnie Mae are 23.42% and 38.05%, respectively, of the Division’s total investments. The Fannie Mae and Ginnie Mae investments are in mortgage backed securities matched to the interest rate and maturity of the underlying bonds. Because such investments are matched to concomitant liabilities, the Division is less concerned about a concentration risk on these investments.




23

NOTE D - INVESTMENTS - Continued

Interest Rate Risk

Interest rate risk is the risk that the value of fixed income securities will decline because of rising interest rates. The prices of fixed income securities with a longer time to maturity, measured by duration, tend to be more sensitive to changes in interest rates and, therefore, more volatile than those with shorter durations.

As a means of limiting its exposure to fair value losses arising from the recent economic recession, the Division’s management has chosen to overweight its current portfolio balance in favor of money market investments. In addition, current policy limits new U.S. Treasury instruments to durations of two years or less.

Maturities in Years

Fair ValueLess than

1 1-5 6-10More than

10No

MaturityShort-terminvestments $170,396,708 $ - $ - $ - $ - $170,396,708

U.S. Treasurysecurities 2,407,219 - - 2,407,219 - -

U.S. agencies 326,326,364 - - 9,700,583 316,625,781 -

Investment agreements 14,661,159 3,856,052 - - 10,805,107 -

$513,791,450 $3,856,052 $ - $12,107,802 $327,430,888 $170,396,708

NOTE E - LOANS RECEIVABLE

Under the various single-family mortgage purchase programs and for single-family mortgages purchased from the general funds, mortgage loans receivable have initial terms which may extend to 30 years. The various multi-unit mortgage loans receivable are represented by notes collateralized by deeds of trust and general obligations of lending institutions.

Mortgage loans receivable consist of the following:

Interest RatesGeneralFunds Single-Family Multi-Unit

CombinedTotal

Single-FamilyMortgage Programs 4.5%-10.98% $25,468,398 $31,235,419 $ - $ 56,703,817

Multi-Unit Programs 4.125%-11.25% 539,407 - 522,876,099 523,415,506

Less unamortizeddiscount (581,595) - - (581,595)

$25,426,210 $31,235,419 $522,876,099 $579,537,728

Due within one year $ 837,886 $ 390,864 $ 4,560,802 $ 5,789,552

NOTE F - BONDS PAYABLE

Bonds payable consist of the following:Original

Maturity Date Amount OutstandingSingle-Family Bonds:

1996 Issue A, 4.80%-6.25% April 1, 2028 25,000,000$ 60,000$ 1996 Issue E, 4.35%-6.20% October 1, 2028 25,000,000 485,000 1997 Issue A, 4.30%-6.15% April 1, 2029 23,750,000 85,000 1997 Issue A, 7.00%, Taxable October 1, 2014 1,250,000 25,000 1997 Issue B, 4.70%-6.15% April 1, 2029 23,750,000 45,000 1997 Issue B, 7.07%, Taxable April 1, 2012 1,250,000 70,000 1997 Issue C, 4.10%-5.75% April 1, 2029 29,085,000 1,210,000 1998 Issue A, 4.10%-5.40% April 1, 2030 27,000,000 1,750,000 1998 Issue A, 5.92%, Taxable April 1, 2012 3,000,000 560,000 1998 Issue B, 4.10%-5.50% April 1, 2030 27,000,000 2,225,000 1998 Issue B, 6.09%, Taxable April 1, 2012 3,000,000 250,000 1998 Issue C, 3.80%-5.25% October 1, 2030 14,000,000 1,340,000 1999 Issue A, 3.75%-5.30% April 1, 2030 30,000,000 1,810,000 1999 Issue B, 3.80%-5.25% April 1, 2031 27,000,000 1,915,000 1999 Issue C, 4.30%-5.85% April 1, 2031 25,000,000 1,600,000 1999 Issue D, 4.60%-6.30% October 1, 2031 35,000,000 340,000 2000 Issue A, 4.90%-6.35% April 1, 2032 27,000,000 685,000 2000 Issue A, 7.75%, Taxable October 1, 2020 3,000,000 430,000 2000 Issue B, 5.05%-6.15% April 1, 2032 31,500,000 710,000 2000 Issue B, 7.62%, Taxable October 1, 2020 3,500,000 315,000 2000 Issue C, 4.45%-5.98% April 1, 2032 29,650,000 1,380,000 2000 Issue C, 7.67%, Taxable October 1, 2020 3,295,000 740,000 2000 Issue D, 4.50%-5.875% April 1, 2032 14,525,000 985,000 2000 Issue D, 7.00%, Taxable October 1, 2020 475,000 105,000 2001 Issue A, 3.20%-5.50% October 1, 2032 23,400,000 1,690,000 2001 Issue B, 2.95%-5.65% October 1, 2032 35,000,000 2,580,000 2001 Issue C, 2.60%-5.25% October 1, 2032 15,000,000 1,850,000 2002 Issue A, 3.10% - 5.65% April 1, 2033 30,000,000 175,000 2006 Issue A, 4.95% October 1, 2033 18,000,000 16,955,000 2006 Issue A, Variable April 1, 2037 4,500,000 4,500,000 2006 Issue B, 3.80%-4.65% October 1, 2036 18,000,000 16,665,000 2006 Issue B, Variable October 1, 2041 4,500,000 4,500,000 2007 Issue A, 3.75%-4.90% April 1, 2037 18,000,000 17,545,000 2007 Issue A, Variable April 1, 2042 4,500,000 4,500,000 2007 Issue B, 3.85%-5.30% April 1, 2047 32,000,000 31,475,000


NOTES TO COMBINED FINANCIAL STATEMENTS - CONTINUED

December 31, 2008(See accompanying accountants' review report)

24

NOTE F - BONDS PAYABLE - ContinuedOriginal

Maturity Date Amount OutstandingSingle-Family Bonds: - Continued

2007 Issue B, Variable April 1, 2042 8,000,000$ 8,000,000$ 2008 Issue A, 3.05%-5.875% April 1, 2038 34,300,000 34,300,000 2008 Issue A, Variable October 1, 2039 14,700,000 14,700,000 2008 Issue B, 2.10%-5.55% April 1, 2039 17,500,000 17,500,000 2008 Issue B, Variable April 1, 2039 7,500,000 7,500,000

Total single-family bonds 717,930,000 203,555,000

Multi-Unit Bonds:

1996 B Mesquite Bluffs, Variable May 1, 2028 7,075,000 6,255,000 1996 Oakmont Fort Apache, Variable October 1, 2026 7,800,000 7,800,000 1996 Oakmont Flamingo, Variable October 1, 2026 9,500,000 9,500,000 1997 Fremont Meadows, Variable October 1, 2027 3,350,000 3,060,000 1997 Austin Crest, 5.50%-5.80% April 1, 2031 15,750,000 13,760,000 1997 Maryland Villas, Variable, Taxable October 1, 2030 735,000 50,000 1997 Maryland Villas, Variable October 1, 2030 4,165,000 4,140,000 1997 Judith Villas, Variable, Taxable October 1, 2030 975,000 345,000 1997 Judith Villas, Variable October 1, 2030 5,525,000 5,490,000 1997 Joshua Villas, Variable, Taxable October 1, 2030 1,200,000 800,000 1997 Joshua Villas, Variable October 1, 2030 6,800,000 4,770,000 1998 Cheyenne Pointe, 6.46%, Taxable April 1, 2010 1,545,000 235,000 1998 Cheyenne Pointe, 5.45%-5.50% April 1, 2030 8,755,000 8,755,000 1998 Boulder Creek, 6.44%, Taxable October 1, 2011 2,245,000 540,000 1998 Boulder Creek, 5.375%-5.50% April 1, 2031 12,725,000 12,725,000 1998 Vintage Hills, 7.64%, Taxable October 1, 2010 1,460,000 332,000 1998 Vintage Hills, 5.79% October 1, 2030 7,740,000 7,740,000 1998 Spanish Hills, 6.26%, Taxable April 1, 2014 1,845,000 810,000 1998 Spanish Hills, 5.25%-5.35% October 1, 2031 6,655,000 6,655,000 1998 Autumn Ridge, 5.25%-5.35% October 1, 2026 6,600,000 6,570,000 1998 South Valley, 6.24%, Taxable April 1, 2013 2,620,000 1,070,000 1998 South Valley, 5.25%-5.375% October 1, 2031 11,380,000 11,380,000 1998 Capistrano Pines, 6.29%, Taxable April 1, 2012 1,445,000 380,000 1998 Capistrano Pines, 5.25% October 1, 2031 8,185,000 8,185,000 1998 Casa Sorrento, 6.29%, Taxable October 1, 2011 1,645,000 350,000 1998 Casa Sorrento, 5.25% October 1, 2031 9,335,000 9,335,000 1998 Campaige Place, 4.60%-5.55% October 1, 2028 8,000,000 6,675,000 1998 Hilltop Villas, Variable, Taxable April 1, 2031 570,000 570,000 1998 Hilltop Villas, Variable April 1, 2031 3,220,000 3,200,000 1998 Stewart Villas, Variable, Taxable April 1, 2031 585,000 585,000 1998 Stewart Villas, Variable April 1, 2031 3,310,000 3,290,000




25


Maturity Date Amount OutstandingMulti-Unit Bonds: - Continued

1999 Studio Three, Variable October 1, 2030 8,500,000$ 5,670,000$ 1999 Diamond Creek, 7.60%, Taxable April 1, 2014 3,250,000 1,620,000 1999 Diamond Creek, 5.90%-6.05% April 1, 2032 16,245,000 16,245,000 1999 Bonanza Gardens, 7.88%, Taxable October 1, 2011 915,000 220,000 1999 Bonanza Gardens, 6.30% April 1, 2030 5,185,000 5,185,000 1999 Parkway Silverado, Variable, Taxable October 15, 2032 2,240,000 1,140,000 1999 Parkway Silverado, Variable October 15, 2032 12,710,000 12,710,000 1999 Apache Pines, Variable, Taxable October 15, 2032 2,085,000 860,000 1999 Apache Pines, Variable October 15, 2032 11,815,000 11,815,000 1999 Palo Verde, 8.02%, Taxable April 1, 2011 1,050,000 345,000 1999 Palo Verde, 7.25% April 1, 2031 5,950,000 5,950,000 2000 Whispering Palms, 6.20% April 1, 2022 4,375,000 3,295,000 2000 Whispering Palms, 6.30% April 1, 2032 5,240,000 4,950,000 2000 Summerhill, 4.50%-6.00% October 1, 2030 10,200,000 9,030,000 2000 City Center Apts., Variable April 1, 2032 9,350,000 7,440,000 2000 Horizon Pines Sr. Apts., Variable April 15, 2033 8,750,000 8,750,000 2000 Banbridge, Variable, Taxable October 1, 2032 700,000 335,000 2000 Banbridge, Variable October 1, 2032 3,960,000 3,960,000 2000 Horizon Sr. Apts., Variable October 15, 2033 10,840,000 10,840,000 2000 Orchard Club, 7.10%, Taxable April 1, 2012 1,835,000 800,000 2000 Orchard Club, 5.85%-5.95% April 1, 2034 16,500,000 16,500,000 2000 Vintage Desert Rose, 5.15%-5.80% April 1, 2033 8,170,000 8,010,000 2000 Rancho Mesa, 5.75% April 1, 2031 11,260,000 11,160,000 2000 CitiVista, 5.45%-5.70% October 1, 2033 8,250,000 7,655,000 2001 Ambrosia Sr. Apts., 5.45% April 1, 2034 9,190,000 9,190,000 2001 Ambrosia Sr. Apts., 6.06% Taxable April 1, 2010 810,000 195,000 2001 Centennial Park, 5.45% October 1, 2036 5,100,000 5,100,000 2001 Centennial Park, 6.47%, Taxable April 1, 2013 800,000 330,000 2001 Lake Vista, 3.35%-5.50% April 1, 2033 2,750,000 2,125,000 2001 Parkside Gardens, 5.48% April 1, 2037 9,580,000 9,580,000 2001 Parkside Gardens, 5.48%-6.43%, Taxable April 1, 2014 1,690,000 880,000 2001 Villanova, 5.40%-5.42% April 15, 2035 18,905,000 18,905,000 2001 Villanova, 5.56%, Taxable April 15, 2009 995,000 100,000 2001 Silver Creek, 5.40%-5.42% April 15, 2035 12,860,000 12,860,000 2001 Silver Creek, 5.56%, Taxable April 15, 2009 680,000 70,000 2002 City Center-Las Vegas, Variable April 15, 2035 14,000,000 13,900,000 2002 Silver Pines, Variable October 15, 2035 11,800,000 11,800,000 2002 Oakmont at Reno, Variable April 15, 2027 4,350,000 4,350,000 2002 St. Rose Seniors, Variable April 15, 2027 14,770,000 14,770,000




26


Maturity Date Amount OutstandingMulti-Unit Bonds: - Continued

2002 Bluffs at Reno, Variable October 15, 2035 17,850,000$ 17,850,000$ 2002 Bluffs at Reno, Variable, Taxable October 15, 2035 3,150,000 2,150,000 2002 Sunset Canyon, 5.20%-5.61% April 1,2036 10,965,000 10,875,000 2002 Sunset Canyon, 5.11%, Taxable April 1, 2017 1,935,000 1,540,000 2002 Los Pecos, 2.90%-5.15% April 1, 2036 8,800,000 8,450,000 2002 Los Pecos, 5.65%, Taxable April 1, 2036 2,200,000 2,115,000 2002 Whittell Pointe, 5.15% April 1, 2036 7,045,000 7,045,000 2002 Whittell Pointe, 5.25%, Taxable April 1, 2016 1,245,000 900,000 2002 Wood Creek, 5.25% October 1, 2034 7,580,000 7,580,000 2002 Wood Creek, 4.00%-5.41%, Taxable October 1, 2014 1,340,000 845,000 2003 Pinewood, 4.95%-5.05% April 1,2036 26,985,000 26,965,000 2003 Pinewood, 3.83%, Taxable October 1, 2013 4,765,000 2,440,000 2003 Community Gardens, 3.10%-5.10% October 1, 2038 7,435,000 6,970,000 2003 Cedar Village, 3.10%-5.10% October 1, 2038 6,205,000 5,825,000 2003 L'Octaine Urban, Variable April 1, 2036 4,120,000 3,760,000 2003 Whittell Pointe II, 2.60% - 4.85% April 1, 2037 7,500,000 7,225,000 2003 Zephyr Pointe, 2.60%-4.85% April 1, 2037 15,160,000 14,695,000 2004 Glenbrook Terrace, 4.20%-5.33% April 1, 2037 18,000,000 17,620,000 2004 Roman Villas, 4.00%-4.80% April 1, 2040 10,380,000 9,875,000 2004 Sundance Village, Variable October 1, 2035 22,385,000 21,685,000 2005 Sierra Pointe, Variable April 15, 2038 9,985,000 9,465,000 2005 Sonoma Palms, Variable April 15, 2038 16,300,000 16,300,000 2005 Southwest Village, Variable October 15, 2038 19,000,000 17,000,000 2006 Riverwood, 3.90%-4.75% April 1, 2039 9,790,000 4,360,000 2007 Golden Apartments, Variable October 1, 2037 8,200,000 8,200,000 2007 Centennial Park, 4.90% April 1, 2037 2,040,000 2,005,000 2007 Vintage at Laughlin, Variable April 15, 2041 11,000,000 11,000,000 2007 Vista Creek, Variable April 15, 2041 21,000,000 21,000,000 2007 HELP Owens Apartments, Variable October 1, 2042 5,545,000 5,545,000 2007 Arby Road Apartments, 5.35%-6.10% April 1, 2041 15,350,000 15,350,000 2008 Sierra Manor, 6.95% June 1, 2041 11,000,000 11,000,000

Total multi-unit bonds 754,650,000 701,627,000

Combined total 1,472,580,000$ 905,182,000$




27


NOTES TO FINANCIAL STATEMENTS


28

NOTE F - BONDS PAYABLE - Continued

A substantial portion of the bonds have serial maturities and/or provisions for early redemption at the option of the Division. Scheduled bond maturities at June 30, 2008, for the following periods, are:

Single-Family Multi-UnitCombined

TotalPeriods ending June 30, 2009 $ 2,490,000 $ 11,957,000 $ 14,447,000 2010 3,130,000 6,923,000 10,053,000

2011 3,585,000 11,286,000 14,871,000 2012 3,595,000 8,177,000 11,772,000 2013 3,575,000 8,846,000 12,421,000 2014-2018 19,525,000 58,346,000 77,871,000 2019-2023 25,445,000 116,946,000 142,391,000 2024-2028 32,300,000 122,991,000 155,291,000 2029-2033 37,075,000 139,403,000 176,478,000 2034-2038 38,280,000 157,865,000 196,145,000 2039-2043 11,540,000 60,165,000 71,705,000 2044-2048 2,750,000 - 2,750,000

$183,290,000 $702,905,000 $886,195,000

Total interest expense for the period ended December 31, 2008 was $19,427,514.

Many bonds payable have variable rates of interest that are not based on a defined spread. Instead, tax-exempt bonds track the SIFMA Index while the federally taxable debt tracks the one-month LIBOR Index.

The single-family bonds are payable from, and secured by, a pledge of:

a. The proceeds derived from the sale of bonds.b. The rights and interest of the Division in all mortgage loans purchased by the Division under the

various bond certificates.c. Revenues, which primarily include (a) mortgage repayments and the net income, if any, derived by

the Division from premises owned by the Division as a result of foreclosure or other action taken in the event of a default on such a mortgage loan; (b) curtailments, consisting generally of all amounts representing monthly principal payments with respect to mortgage loans which are received in advance of the scheduled amortization thereof; and (c) all earnings realized by the investment of monies in all funds and accounts.

d. All funds and accounts created by the various bond certificates, including the bond reserve fund, the mortgage loan reserve fund and monies and securities therein.

The multi-unit bonds are payable from, and secured by, a pledge of:

a. The proceeds derived from the sale of bonds.b. All earnings realized from the investment of bond proceeds.c. After permanent financing: (a) all revenues received from the development including housing

assistance payments and rental payments made by tenants; (b) the notes receivable, collateralized by deeds of trust; and (c) the rights of the Division to the FHA insurance, draws on bank letters of credit, private mortgage insurance, hazard insurance and condemnation proceeds.




29

NOTE G - INTEREST RATE SWAP AGREEMENTS

Objective

The Division has entered into six pay-fixed, receive-variable interest rate swaps in order to provide lower cost fixed rate financing for its single-family loan production needs. Division policy requires hedging of all variable rate debt issuances through synthetic fixed rate structures.

Terms, Fair Values and Credit Risk

The terms, fair values, and credit ratings of the outstanding swaps as of December 31, 2008, were as follows. The notional amounts of the swaps match the principal amounts of the associated debt. Except as discussed under rollover risk, the Division’s swap agreements contain scheduled reductions to outstanding notional amounts that are expected to approximately follow scheduled or anticipated reductions in the associated “bonds payable” category.

Credit Risk

All of the Division’s swaps rely upon the performance of the third parties who serve as swap counterparties, and as a result the Division is exposed to credit risk – the risk that a swap counterparty fails to perform according to contractual obligations. The appropriate measurement of this risk at the reporting date is the fair value of the swaps as detailed above. To mitigate the risk, the Division maintains strict credit standards for swap counterparties, and requires the counterparties to be rated in the AA or higher category by either Moody’s or Standard and Poor’s at the time the contract is entered into.

The Division has executed its swap transactions with a single counterparty. That counterparty is rated AAA/Aaa. The swap agreements contain a collateral agreement with the counterparty, and require full collateralization of the fair value of the swap should the counterparty’s credit rating fall below the requirement. Eligible collateral on the swaps can include cash or U.S. government securities held by a third-party custodian.

AssociatedSingle-FamilyBond Issue

CurrentNotionalAmount

EffectiveDate

FixedRatePaid

Variable RateReceived

Termi-nationDate

Counter-PartyRating

FairValue

2006 Issue A $ 4,500,000 9/23/08 4.720%68% of USD-LIBOR-BBA 4/1/37 Aaa ($707,394)

2006 Issue B 4,500,000 9/23/08 4.230%68% of USD-LIBOR-BBA 10/1/41 Aaa (592,351)

2007 Issue A 4,500,000 9/23/08 4.246%68% of USD-LIBOR-BBA 4/1/42 Aaa (602,692)

2007 Issue B 8,000,000 10/9/07 4.340%68% of USD-LIBOR-BBA 4/1/42 Aaa (1,126,767)

2008 Issue A 14,700,000 4/3/08 3.736%68% of USD-LIBOR-BBA 10/1/39 Aaa (1,476,660)

2008 Issue B 7,500,000 9/25/08 3.670%68% of USD-LIBOR-BBA 4/1/39 Aaa (752,191)

Total single-family $43,700,000 ($5,258,055)




30

NOTE G - INTEREST RATE SWAP AGREEMENTS - Continued

Terms, Fair Values and Credit Risk - Continued

Basis RiskThe Division is exposed to basis risk when the relationship between LIBOR and BMA converges, changing the synthetic rate on the bonds. As of December 31, 2008, the BMA rate was .90% and 68% of LIBOR was .30%. When exposed to basis risk, the net interest expense incurred on the combination of the swap agreement and the associated variable rate debt may be higher or lower than anticipated.

Termination RiskThe Division’s swap agreements do not contain any out-of-the-ordinary termination events that would expose it to significant termination risk. In keeping with market standards, the Division or the counterparty may terminate each swap if the other party fails to perform under the terms of the contract. In addition, the swap documents allow either party to terminate in the event of a significant loss of creditworthiness. The Division views the likelihood of such events to be remote at this time. If at the termination a swap has a negative value, the Division would be liable to the counterparty for a payment equal to the fair value of such swap.

Rollover RiskThe Division is exposed to rollover risk on swaps that mature or may be terminated at the counterparty’s option prior to the maturity of the associated debt. As of December 31, 2008, the Division is not exposed to any rollover risk.

Swap Payments and Associated Debt

Using interest rates as of June 30, 2008, debt service requirements of the Division’s outstanding variable-rate debt and net swap payments are as follows. As rates vary, variable-rate interest rate payments on the bonds and net sweep payments will change.

Principal InterestSwaps,

Net TotalYears ending June 30, 2009 $ - $ 633,500 $ 884,043 $ 1,517,543 2010 - 633,500 884,043 1,517,543

2011 - 633,500 884,043 1,517,543 2012 - 633,500 884,043 1,517,543 2013 - 633,500 884,043 1,517,543 2014-2018 - 3,167,500 4,420,215 7,587,715 2019-2023 - 3,167,500 4,420,215 7,587,715 2024-2028 - 3,167,500 4,420,215 7,587,715 2029-2033 4,575,000 2,937,375 4,149,128 11,661,503 2034-2038 20,725,000 1,719,987 2,418,624 24,863,611 2039-2043 10,900,000 183,313 270,408 11,353,721

$36,200,000 $17,510,675 $24,519,020 $78,229,695




31

NOTE H - CHANGES IN LONG-TERM LIABILITIES

Long-term liabilities of Division consist of bonds payable to debt holders for the purchase of mortgage loans.

Single-Family Multi-UnitCombined

TotalBonds payable

Balances at July 1, 2008 $183,290,000 $702,905,000 $886,195,000Increase in debt 25,000,000 11,000,000 36,000,000Decrease in debt (4,735,000) (12,278,000) (17,013,000)

Balances at December 31, 2008 $203,555,000 $701,627,000 $905,182,000

Due within one year $ 1,355,000 $ 3,689,000 $ 5,044,000

NOTE I - RESTRICTED ASSETS

Substantially all investments in the Single-Family and Multi-Unit Mortgage Purchase Funds are held by trustees and are restricted as to use as required by the various bond certificates or trust indentures. Such restricted assets are included in funds and accounts within the program funds as established by the bond certificates. Such funds typically include, among others, bond reserve funds, capital reserve funds, debt service funds, and mortgage loan reserve funds. Restricted investments and interest receivable included in the various programs of the Division as of December 31, 2008 are as follows:

GeneralFund Single-Family Multi-Unit

CombinedTotal

Investments $135,802,780 $1,746,628 $ - $137,549,408Interest receivable 264,279 21,291 - 285,570

$136,067,059 $1,767,919 $ - $137,834,978




32

NOTE J - DEFINED BENEFIT PENSION PLAN

1. Plan Description

The Nevada Housing Division contributes to the Public Employees’ Retirement System (PERS), a cost-sharing, multiple-employer, defined benefit pension plan administered by the State of Nevada. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The State of Nevada issues a publicly available financial report that includes financial statements and required supplementary information for PERS. That report may be obtained by writing to the Public Employees’ Retirement System of Nevada, 693 West Nye Lane, Carson City, Nevada 89703 or by calling (775) 687-4200.

2. Funding Policy

Under the plan, the Division employees choose to contribute 10.50% of the employee’s gross salary which the employer matches, or the employee may choose to have the employer pay the total contribution which is then 20.50% of the employee’s gross salary. The employee choosing to participate in the employer-paid pension plan is paid a lower salary. The actuarially determined funding requirement contribution rate for the fiscal year was 20.50%. The contribution requirements of plan members and the Division are established and may be amended by the Nevada State Legislature. The Division’s contributions to PERS for the periods ended June 30, 2008, 2007 and 2006 were $201,131 $167,951 and $188,309, respectively, and were equal to the required contributions for each period.

NOTE K - OPERATING LEASE

The following is a schedule of future minimum rental payments to be made under non-cancelable operating leases for the Division’s office facilities. The Carson City lease will expire in April 2011; the Las Vegas office lease will expire September 30, 2010.

Periods ending June 30, 2009 $172,083 2010 118,848 2011 85,379

$376,310

Total rent expense for the period ended December 31, 2008 was $77,640.

REQUIRED SUPPLEMENTAL INFORMATION

Vairance withFinal Budget Budget to GAAP

Actual Amounts Positive Differences Actual AmountsOriginal Final Budgetary Basis (Negative) Over (Under) GAAP Basis

Operating revenuesInterest and other investment income -$ -$ -$ -$ 2,026,856$ (1) 2,026,856$ Realized and unrealized gains on investments - - - - 113,426 (1) 113,426

Total investment income - - - - 2,140,282 2,140,282

Interest income on mortgage loans 845,727 (1) 845,727 Other income 1,003,923 1,003,923 522,116 (481,807) 92,932 (1) 615,048 Federal grants 3,993,501 3,993,501 1,967,302 (2,026,199) (1,967,302) (2) -

Total operating revenues 4,997,424 4,997,424 2,489,418 (2,508,006) 1,111,639 3,601,057

Operating expensesSalaries and other payroll costs 2,336,074 2,287,665 928,864 1,358,801 15,562 (3) 944,426 Administrative expenses 741,255 740,886 (101,390) 842,276 1,034,988 (1) 933,598 Servicers' fees - - - - 26,028 (1) 26,028 Interfund operating charge (1,253,373) (1,253,373) 24,854 (1,278,227) (1,239,315) (1) (1,214,461) Reserve 1,265,748 468,899 - 468,899 - - Attorney general 136,445 136,445 68,222 68,223 (68,222) (1) - Federal grant expenses 3,180,180 3,180,174 2,027,970 1,152,204 (2,027,970) (2) -

Total operating expenses 6,406,329 5,560,696 2,948,520 2,612,176 (2,258,929) 689,591

CHANGE IN NET ASSETS (1,408,905) (563,272) (459,102) 104,170 3,370,568 2,911,466

Transfers - - - - (2,307,771) (1) (2,307,771)

Net assets at beginning of period 1,408,905 563,272 563,272 - 159,640,319 160,203,591

Net assets at end of period -$ -$ 104,170$ 104,170$ 160,703,116$ 160,807,286$

Explanation of differences:

(1) The Division budgets for revenues and expenditures only to the extent expected to effect funds of the State of Nevada. Revenues and expenditures of the general reserve trustand loan servicing function of the Division are not funds of the State, but are included in the General Fund in the financial statements.

(2) The Division budgets for revenues and expenditures of the HOME Program to the extent they are paid to/from the State of Nevada. The HOME Program, however, is notincluded in the General Fund in the financial statements.

(3) The Division budgets for compensated absences only to the extent expected to be paid, rather than on the modified accrual basis.

Budgeted Amounts


STATEMENT OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS - BUDGET AND ACTUAL

GENERAL FUND

Six months ended December 31, 2008(See accompanying accountants' review report)

SUPPLEMENTAL INFORMATION


COMBINING BALANCE SHEETSINGLE-FAMILY PROGRAM FUNDS


1996A 1996E 1997A 1997B 1997C 1998A 1998BMortgage Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage

ASSETS Purchase Purchase Purchase Purchase Purchase Purchase PurchaseCurrent assets:

InvestmentsRestricted -$ -$ -$ -$ -$ -$ -$ Unrestricted - - - 4,561 2,522 1,389 2,640

Total investments - - - 4,561 2,522 1,389 2,640 Loans receivable 16,908 15,115 11,685 6,636 27,419 39,820 41,583 Interest and other receivables, net 8,401 13,380 9,022 9,718 96,119 23,771 29,966

Total current assets 25,309 28,495 20,707 20,915 126,060 64,980 74,189 Noncurrent assets:

Long-term investmentsRestricted 3,000 24,250 5,500 5,750 60,500 115,500 123,750 Unrestricted 49,571 121,756 138,677 116,867 140,822 90,436 102,560 Fair value adjustment on investments - - - - - - -

Total long-term investments 52,571 146,006 144,177 122,617 201,322 205,936 226,310 Loans receivable, net of current portion 1,021,506 1,033,677 822,623 463,270 1,894,338 2,880,937 3,047,979 Deferred issue costs, net of amortization 2,546 6,838 1,787 1,519 15,912 29,674 32,810

Total noncurrent assets 1,076,623 1,186,521 968,587 587,406 2,111,572 3,116,547 3,307,099 Total assets 1,101,932$ 1,215,016$ 989,294$ 608,321$ 2,237,632$ 3,181,527$ 3,381,288$


Current liabilities:Bonds payable -$ 10,000$ -$ 10,000$ 30,000$ 125,000$ 75,000$ Interest payable 913 7,484 1,718 1,899 17,151 31,738 33,964 Interfund 5 36 8 9 91 173 186 Accounts payable and other liabilities - - 112,621 92,465 17,972 11,414 12,435

Total current liabilities 918 17,520 114,347 104,373 65,214 168,325 121,585 Noncurrent liabilities:

Bonds payable, net of current portion 60,000 475,000 110,000 105,000 1,180,000 2,185,000 2,400,000 Total liabilities 60,918 492,520 224,347 209,373 1,245,214 2,353,325 2,521,585

Net assetsRestricted 1,041,014 722,496 764,947 398,948 992,418 828,202 859,703

Total liabilities and net assets 1,101,932$ 1,215,016$ 989,294$ 608,321$ 2,237,632$ 3,181,527$ 3,381,288$

Parity Program


COMBINING BALANCE SHEETSINGLE-FAMILY PROGRAM FUNDS - CONTINUED


ASSETS

Current assets:Investments

RestrictedUnrestricted

Total investmentsLoans receivableInterest and other receivables, net

Total current assets


RestrictedUnrestrictedFair value adjustment on investments

Total long-term investmentsLoans receivable, net of current portionDeferred issue costs, net of amortization

Total noncurrent assets

Total assets


Current liabilities:Bonds payableInterest payableInterfund Accounts payable and other liabilities

Total current liabilities

Noncurrent liabilities:Bonds payable, net of current portion

Total liabilities

Net assetsRestricted

Total liabilities and net assets

1998C 1999A 1999B 1999C 1999D 2000A 2000BMortgage Mortgage Mortgage Mortgage Mortgage Mortgage MortgagePurchase Purchase Purchase Purchase Purchase Purchase Purchase

-$ -$ -$ -$ -$ -$ -$ 3,030 593 4,356 5,064 4,283 4,189 1,381 3,030 593 4,356 5,064 4,283 4,189 1,381

25,057 33,368 32,037 25,045 8,047 11,456 8,568 14,880 17,475 20,205 17,532 13,561 12,774 13,247 42,967 51,436 56,598 47,641 25,891 28,419 23,196

67,000 90,500 95,750 80,000 17,000 55,750 51,250 115,792 73,672 76,241 138,818 58,869 27,697 16,464

- - - - - - - 182,792 164,172 171,991 218,818 75,869 83,447 67,714

1,542,984 2,445,545 2,477,664 2,016,583 768,091 1,113,922 850,092 23,521 22,292 24,266 24,760 4,673 15,001 12,533

1,749,297 2,632,009 2,673,921 2,260,161 848,633 1,212,370 930,339

1,792,264$ 2,683,445$ 2,730,519$ 2,307,802$ 874,524$ 1,240,789$ 953,535$

15,000$ 30,000$ 40,000$ 35,000$ 5,000$ 30,000$ 25,000$ 17,343 23,441 24,928 22,952 4,765 18,350 16,031

101 136 144 120 26 84 77 1,650 3,323 - 81,337 37,799 2,711 -

34,094 56,900 65,072 139,409 47,590 51,145 41,108

1,325,000 1,780,000 1,875,000 1,565,000 335,000 1,085,000 1,000,000 1,359,094 1,836,900 1,940,072 1,704,409 382,590 1,136,145 1,041,108

433,170 846,545 790,447 603,393 491,934 104,644 (87,573)

1,792,264$ 2,683,445$ 2,730,519$ 2,307,802$ 874,524$ 1,240,789$ 953,535$

Parity Program




ASSETS









Total assets





Total liabilities



2000C 2000D 2001A 2001B 2001C Total 2002AMortgage Mortgage Mortgage Mortgage Mortgage Parity MortgagePurchase Purchase Purchase Purchase Purchase Program Purchase

-$ -$ -$ -$ -$ -$ -$ 2,148 842 6,661 2,228 - 45,887 2,871 2,148 842 6,661 2,228 - 45,887 2,871

17,465 9,788 17,863 23,094 17,983 372,029 1,927 40,855 7,832 14,562 19,265 14,576 388,740 1,409 60,468 18,462 39,086 44,587 32,559 806,656 6,207

106,000 54,500 84,500 129,000 92,500 1,259,000 8,750 325,642 26,078 36,363 60,296 59,742 1,726,792 10,681

- - - - - - - 431,642 80,578 120,863 189,296 152,242 2,985,792 19,431

1,755,956 956,736 1,631,783 2,151,459 1,755,603 29,609,242 213,807 26,372 17,170 28,540 34,676 35,674 358,018 4,289

2,213,970 1,054,484 1,781,186 2,375,431 1,943,519 32,953,052 237,527 - 2,274,438$ 1,072,946$ 1,820,272$ 2,420,018$ 1,976,078$ 33,759,708$ 243,734$

45,000$ 20,000$ 30,000$ 50,000$ 40,000$ 615,000$ -$ 33,060 15,377 21,048 33,418 21,320 345,987 2,126

159 82 127 194 139 1,892 19,513 175,363 3,405 - - - 552,495 - 253,582 38,864 51,175 83,612 61,459 1,515,374 21,639

2,075,000 1,070,000 1,660,000 2,530,000 1,810,000 24,565,000 175,000 2,328,582 1,108,864 1,711,175 2,613,612 1,871,459 26,080,374 196,639

(54,144) (35,918) 109,097 (193,594) 104,619 7,679,334 47,095

2,274,438$ 1,072,946$ 1,820,272$ 2,420,018$ 1,976,078$ 33,759,708$ 243,734$

Parity Program




ASSETS









Total assets





Total liabilities



2006A 2006B 2007A 2007B 2008A 2008BMortgage Mortgage Mortgage Mortgage Mortgage Mortgage CombinedPurchase Purchase Purchase Purchase Purchase Purchase Total

137,500$ -$ 25,000$ 25,000$ 25,000$ -$ 212,500$ 155,851 782,791 125,604 792,204 2,426,122 4,043,918 8,375,248 293,351 782,791 150,604 817,204 2,451,122 4,043,918 8,587,748

- - - - - - 390,864 104,460 96,104 102,481 188,985 215,572 111,234 1,217,386 397,811 878,895 253,085 1,006,189 2,666,694 4,155,152 10,195,998

- - - - - 263,378 1,534,128 21,845,303 20,863,373 22,331,575 39,205,275 46,766,074 22,608,430 175,407,074

- - - - - - - 21,845,303 20,863,373 22,331,575 39,205,275 46,766,074 22,871,808 176,941,202

- - - - - - 30,844,555 324,584 259,273 300,737 477,435 460,617 299,571 2,487,070

22,169,887 21,122,646 22,632,312 39,682,710 47,226,691 23,171,379 210,272,827

22,567,698$ 22,001,541$ 22,885,397$ 40,688,899$ 49,893,385$ 27,326,531$ 220,468,825$

185,000$ 150,000$ 170,000$ 235,000$ -$ -$ 1,355,000$ 333,804 291,951 309,429 478,153 627,357 320,110 2,709,830 15,166 14,502 15,423 26,751 32,252 9,473 134,977 29,047 679 89,130 1,207 2,217 1,123 675,898

563,017 457,132 583,982 741,111 661,826 330,706 4,875,705

21,270,000 21,015,000 21,875,000 39,240,000 49,000,000 25,000,000 202,200,000 21,833,017 21,472,132 22,458,982 39,981,111 49,661,826 25,330,706 207,075,705 -

734,681 529,409 426,415 707,788 231,559 1,995,825 13,393,120

22,567,698$ 22,001,541$ 22,885,397$ 40,688,899$ 49,893,385$ 27,326,531$ 220,468,825$


COMBINING BALANCE SHEETMULTI-UNIT PROGRAM FUNDS


1996B 1996 1996 1997 1997 1997 1997 1997Mesquite Oakmont Oakmont Fremont Austin Maryland Judith Joshua

Bluffs Flamingo Fort Apache Meadows Crest Villas Villas VillasCurrent assets:

InvestmentsRestricted -$ -$ -$ -$ -$ -$ -$ -$ Unrestricted - 4,712 4,712 1 148,993 - - -

Total investments - 4,712 4,712 1 148,993 - - - Loans receivable 140,000 - - 25,000 - 30,000 45,000 45,000 Interest and other receivables, net (4,830) 14,392 11,668 4,570 68,955 1,731 2,388 2,660

Total current assets 135,170 19,104 16,380 29,571 217,948 31,731 47,388 47,660 Noncurrent assets:

Long-term investmentsRestricted - - - - - - - - Unrestricted - - - - 14,065,780 - - - Fair value adjustment on investments - - - - - - - -

Total long-term investments - - - - 14,065,780 - - - Loans receivable, net of current portion 6,115,000 9,500,000 7,800,000 3,035,000 - 4,160,000 5,790,000 5,525,000 Deferred issue costs, net of amortization - - - - - - - -

Total noncurrent assets 6,115,000 9,500,000 7,800,000 3,035,000 14,065,780 4,160,000 5,790,000 5,525,000 6,250,170$ 9,519,104$ 7,816,380$ 3,064,571$ 14,283,728$ 4,191,731$ 5,837,388$ 5,572,660$

Current liabilities:Bonds payable 140,000$ -$ -$ 25,000$ 135,000$ 30,000$ 45,000$ 45,000$ Interest payable 5,725 8,332 6,692 2,838 199,318 4,102 5,690 5,810 Interfund (10,555) 6,059 4,975 1,733 9,460 (2,371) (3,302) (3,150) Accounts payable and other liabilities - 4,713 4,713 - - - - -

Total current liabilities 135,170 19,104 16,380 29,571 343,778 31,731 47,388 47,660 Noncurrent liabilities:

Bonds payable, net of current portion 6,115,000 9,500,000 7,800,000 3,035,000 13,625,000 4,160,000 5,790,000 5,525,000 Total liabilities 6,250,170 9,519,104 7,816,380 3,064,571 13,968,778 4,191,731 5,837,388 5,572,660

Net assets:Restricted - - - - 314,950 - - -

6,250,170$ 9,519,104$ 7,816,380$ 3,064,571$ 14,283,728$ 4,191,731$ 5,837,388$ 5,572,660$

ASSETS



COMBINING BALANCE SHEETMULTI-UNIT PROGRAM FUNDS - CONTINUED










Current liabilities:Bonds payableInterest payableInterfundAccounts payable and other liabilities



Total liabilities

Net assets:Restricted

ASSETS


1998 1998 1998 1998 1998 1998 1998 1998Cheyenne Boulder Vintage Spanish South Capistrano Casa Autumn

Pointe Creek Hills Hills Valley Pines Sorrento Ridge

-$ -$ -$ -$ -$ -$ -$ -$ 2,898 220,916 236,619 87,893 127,534 87,475 102,978 6,581,746 2,898 220,916 236,619 87,893 127,534 87,475 102,978 6,581,746

105,000 - 91,500 - - - - - 7,059 63,538 5,590 35,438 58,047 39,409 44,569 2,482

114,957 284,454 333,709 123,331 185,581 126,884 147,547 6,584,228

- - - - - - - - 543,730 13,444,565 - 7,657,212 12,651,035 8,721,366 9,848,324 211,792

- - - - - - - - 543,730 13,444,565 - 7,657,212 12,651,035 8,721,366 9,848,324 211,792

8,781,136 - 7,935,500 - - - - - - - - - - - - -

9,324,866 13,444,565 7,935,500 7,657,212 12,651,035 8,721,366 9,848,324 211,792

9,439,823$ 13,729,019$ 8,269,209$ 7,780,543$ 12,836,616$ 8,848,250$ 9,995,871$ 6,796,020$

105,000$ 95,000$ 90,000$ 70,000$ 120,000$ 55,000$ 55,000$ 70,000$ 123,701 182,850 118,378 101,425 168,973 113,404 128,026 87,401

5,731 9,120 5,552 5,132 (8,559) (5,888) (6,658) (4,517) 167,859 - 31,642 - - - - - 402,291 286,970 245,572 176,557 280,414 162,516 176,368 152,884

8,885,000 13,170,000 7,982,000 7,395,000 12,330,000 8,510,000 9,630,000 6,500,000 9,287,291 13,456,970 8,227,572 7,571,557 12,610,414 8,672,516 9,806,368 6,652,884

152,532 272,049 41,637 208,986 226,202 175,734 189,503 143,136

9,439,823$ 13,729,019$ 8,269,209$ 7,780,543$ 12,836,616$ 8,848,250$ 9,995,871$ 6,796,020$















Total liabilities


ASSETS


1998 1998 1998 1999 1999 1999 1999 1999Campaige Hilltop Stewart Studio Diamond Bonanza Parkway Apache

Place Villas Villas Three Creek Gardens Silverado Pines

-$ -$ -$ -$ -$ -$ -$ -$ 12 - - 1 243 131,231 143,849 66,583 12 - - 1 243 131,231 143,849 66,583

75,000 30,000 30,000 - 152,466 53,958 219,229 115,544 87,200 2,137 2,194 9,409 93,838 15,053 12,802 (2,482)

162,212 32,137 32,194 9,410 246,547 200,242 375,880 179,645

- - - - - - - - - - - - 401,780 - - - - - - - - - - - - - - - 401,780 - - -

6,600,000 3,740,000 3,845,000 5,670,000 17,738,748 5,372,459 13,630,771 12,559,456 - - - - - - - -

6,600,000 3,740,000 3,845,000 5,670,000 18,140,528 5,372,459 13,630,771 12,559,456

6,762,212$ 3,772,137$ 3,877,194$ 5,679,410$ 18,387,075$ 5,572,701$ 14,006,651$ 12,739,101$

75,000$ 30,000$ 30,000$ -$ 125,000$ 35,000$ -$ -$ 92,071 3,956 4,065 13,308 275,567 85,998 7,857 7,114 (4,871) (1,819) (1,871) (3,898) (12,282) (3,723) 9,522 8,760

- - - - - 57,000 128,724 46,152 162,200 32,137 32,194 9,410 388,285 174,275 146,103 62,026

6,600,000 3,740,000 3,845,000 5,670,000 17,740,000 5,370,000 13,850,000 12,675,000 6,762,200 3,772,137 3,877,194 5,679,410 18,128,285 5,544,275 13,996,103 12,737,026

12 - - - 258,790 28,426 10,548 2,075

6,762,212$ 3,772,137$ 3,877,194$ 5,679,410$ 18,387,075$ 5,572,701$ 14,006,651$ 12,739,101$















Total liabilities


ASSETS


1999 2000 2000 2000 2000 2000Palo Whispering 2000 City Center Horizon 2000 Horizon Orchard

Verde Palms Summerhill Apts. Pines Sr. Apts. Banbridge Sr. Apts. Club

-$ -$ -$ -$ -$ -$ -$ -$ 415,983 567,842 213,315 11 725,464 67 795,486 - 415,983 567,842 213,315 11 725,464 67 795,486 - 65,000 80,000 89,837 200,000 - 40,000 - 129,903 4,303 (17,024) 44,878 1,786 (7,127) 1,213 (8,978) 88,075

485,286 630,818 348,030 201,797 718,337 41,280 786,508 217,978

- - - - - - - - - - - - - - - 385,981 - - - - - - - - - - - - - - - 385,981

6,198,000 8,111,667 8,983,072 7,240,000 8,750,000 4,255,000 10,840,000 17,113,434 - - - - - - - -

6,198,000 8,111,667 8,983,072 7,240,000 8,750,000 4,255,000 10,840,000 17,499,415

6,683,286$ 8,742,485$ 9,331,102$ 7,441,797$ 9,468,337$ 4,296,280$ 11,626,508$ 17,717,393$

64,000$ 80,000$ 175,000$ 200,000$ -$ 40,000$ -$ 110,000$ 114,761 129,035 134,446 6,901 4,865 4,254 5,775 258,684

4,330 (5,668) (6,208) (5,115) (6,016) (2,977) (7,453) (11,901) 264,622 345,070 - - 719,438 3 788,086 - 447,713 548,437 303,238 201,786 718,287 41,280 786,408 356,783

6,231,000 8,165,000 8,855,000 7,240,000 8,750,000 4,255,000 10,840,000 17,190,000 6,678,713 8,713,437 9,158,238 7,441,786 9,468,287 4,296,280 11,626,408 17,546,783

4,573 29,048 172,864 11 50 - 100 170,610 - 6,683,286$ 8,742,485$ 9,331,102$ 7,441,797$ 9,468,337$ 4,296,280$ 11,626,508$ 17,717,393$















Total liabilities


ASSETS


2000 2000 2001 2001 2001 2001Vintage Rancho 2000 Ambrosia Centennial Lake Parkside 2001

Desert Rose Mesa Citivista Sr. Apts. Park Vista Gardens Villanova

-$ -$ -$ -$ -$ -$ -$ -$ 164,847 275,503 156,975 191,823 149,077 270,229 244,290 164,847 275,503 156,975 191,823 149,077 - 270,229 244,290 63,750 108,721 62,700 76,099 - 20,000 - 141,667 27,103 54,333 24,956 28,902 24,945 27,324 48,162 61,885

255,700 438,557 244,631 296,824 174,022 47,324 318,391 447,842

- - - - - - - - - - - - 5,381,309 - 10,382,186 - - - - - - - - - - - - - 5,381,309 - 10,382,186 -

7,963,598 11,038,695 7,616,176 9,267,684 - 2,105,000 - 18,816,667 - - - - - - - -

7,963,598 11,038,695 7,616,176 9,267,684 5,381,309 2,105,000 10,382,186 18,816,667

8,219,298$ 11,477,252$ 7,860,807$ 9,564,508$ 5,555,331$ 2,152,324$ 10,700,577$ 19,264,509$

65,000$ 85,000$ 65,000$ 75,000$ 30,000$ 20,000$ 60,000$ 140,000$ 115,781 160,425 108,428 128,168 74,825 28,799 145,392 217,257

(5,510) (7,686) (5,263) (6,452) (3,737) (1,475) (7,195) (15,098) 60,000 - 53,861 - - - - 51,667

235,271 237,739 222,026 196,716 101,088 47,324 198,197 393,826

7,945,000 11,075,000 7,590,000 9,310,000 5,400,000 2,105,000 10,400,000 18,865,000 8,180,271 11,312,739 7,812,026 9,506,716 5,501,088 2,152,324 10,598,197 19,258,826

39,027 164,513 48,781 57,792 54,243 - 102,380 5,683

8,219,298$ 11,477,252$ 7,860,807$ 9,564,508$ 5,555,331$ 2,152,324$ 10,700,577$ 19,264,509$















Total liabilities


ASSETS


2001 2002 2002 2002 2002 2002 2002 2002Silver City Center Silver Oakmont St. Rose Bluffs Sunset LosCreek Las Vegas Pines at Reno Seniors at Reno Canyon Pecos

-$ -$ -$ -$ -$ -$ -$ -$ 172,280 17,506 544,815 591,503 512,235 103,265 423,530 465,139 172,280 17,506 544,815 591,503 512,235 103,265 423,530 465,139 95,000 - 441,634 597,498 595,313 - 95,000 85,000 42,107 36,208 (5,863) (29,865) (17,106) (14,670) 68 (28,746)

309,387 53,714 980,586 1,159,136 1,090,442 88,595 518,598 521,393

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

12,803,333 13,900,000 11,358,366 3,752,502 14,174,687 20,000,000 12,272,500 10,437,500 - - - - - - - -

12,803,333 13,900,000 11,358,366 3,752,502 14,174,687 20,000,000 12,272,500 10,437,500

13,112,720$ 13,953,714$ 12,338,952$ 4,911,638$ 15,265,129$ 20,088,595$ 12,791,098$ 10,958,893$

95,000$ -$ -$ -$ -$ -$ 95,000$ 85,000$ 147,812 45,759 6,287 2,520 7,869 11,241 163,601 135,934 (10,272) (9,554) (9,465) (3,489) (11,847) (15,889) 8,535 7,263 41,667 17,331 537,126 554,362 496,634 85,072 167,324 250,609

274,207 53,536 533,948 553,393 492,656 80,424 434,460 478,806

12,835,000 13,900,000 11,800,000 4,350,000 14,770,000 20,000,000 12,320,000 10,480,000 13,109,207 13,953,536 12,333,948 4,903,393 15,262,656 20,080,424 12,754,460 10,958,806

3,513 178 5,004 8,245 2,473 8,171 36,638 87

13,112,720$ 13,953,714$ 12,338,952$ 4,911,638$ 15,265,129$ 20,088,595$ 12,791,098$ 10,958,893$















Total liabilities


ASSETS


2002 2002 2003 2003 2003 2003 2003Whittell Wood 2003 Community Cedar L'Octaine Whittell ZephyrPointe Creek Pinewood Gardens Village Urban Pointe II Pointe

-$ -$ -$ -$ -$ -$ -$ -$ 160,233 170,202 237,965 175,337 152,313 14,668 143,959 271,792 160,233 170,202 237,965 175,337 152,313 14,668 143,959 271,792 58,333 65,398 - - - - 53,477 105,608 34,186 36,888 123,421 29,237 24,503 6,310 28,956 24,638

252,752 272,488 361,386 204,574 176,816 20,978 226,392 402,038

- - - - - - - - - - 29,727,330 6,936,045 5,790,214 - - - - - - - - - - - - - 29,727,330 6,936,045 5,790,214 - - -

7,878,811 8,360,245 - - - 3,760,000 7,179,367 14,601,207 - - - - - - - -

7,878,811 8,360,245 29,727,330 6,936,045 5,790,214 3,760,000 7,179,367 14,601,207

8,131,563$ 8,632,733$ 30,088,716$ 7,140,619$ 5,967,030$ 3,780,978$ 7,405,759$ 15,003,245$

55,000$ 60,000$ 240,000$ 50,000$ 40,000$ -$ 55,000$ 105,000$ 102,517 110,916 361,736 87,422 73,379 3,488 85,734 174,366

(5,462) (5,796) (22,058) (5,228) (4,369) 2,820 (3,034) (11,025) - - - - - 14,658 - 80,000

152,055 165,120 579,678 132,194 109,010 20,966 137,700 348,341

7,890,000 8,365,000 29,165,000 6,920,000 5,785,000 3,760,000 7,170,000 14,590,000 8,042,055 8,530,120 29,744,678 7,052,194 5,894,010 3,780,966 7,307,700 14,938,341

89,508 102,613 344,038 88,425 73,020 12 98,059 64,904

8,131,563$ 8,632,733$ 30,088,716$ 7,140,619$ 5,967,030$ 3,780,978$ 7,405,759$ 15,003,245$















Total liabilities


ASSETS


2004 2004 2004 2005 2005 2005 2007Glenbrook Roman Sundance Sierra Sonoma Southwest 2006 Centennial

Terrace Villas Village Pointe Palms Village Riverwood Park

-$ -$ -$ -$ -$ -$ -$ -$ 497,940 244,779 79,756 59,940 29,340 24,213 - 19,405 497,940 244,779 79,756 59,940 29,340 24,213 - 19,405 134,998 - - - - - - -

79 38,954 3,642 (9,698) (17,666) (21,654) 59,118 16,794 633,017 283,733 83,398 50,242 11,674 2,559 59,118 36,199

- - - - - - - - - 9,812,734 - - - - - - - - - - - - - - - 9,812,734 - - - - - -

17,417,501 - 21,613,770 9,465,000 16,299,719 17,000,000 4,360,000 2,005,000 - - - - - - - -

17,417,501 9,812,734 21,613,770 9,465,000 16,299,719 17,000,000 4,360,000 2,005,000

18,050,518$ 10,096,467$ 21,697,168$ 9,515,242$ 16,311,393$ 17,002,559$ 4,419,118$ 2,041,199$

135,000$ 65,000$ -$ -$ -$ -$ 15,000$ 10,000$ 216,039 115,721 20,115 5,263 8,684 9,057 51,775 24,561 13,215 (7,406) (16,486) (8,282) (14,263) (16,467) 7,343 1,003

193,394 - - 52,335 15,850 7,010 - 8,190 557,648 173,315 3,629 49,316 10,271 (400) 74,118 43,754

17,485,000 9,810,000 21,685,000 9,465,000 16,300,000 17,000,000 4,345,000 1,995,000 18,042,648 9,983,315 21,688,629 9,514,316 16,310,271 16,999,600 4,419,118 2,038,754

7,870 113,152 8,539 926 1,122 2,959 - 2,445

18,050,518$ 10,096,467$ 21,697,168$ 9,515,242$ 16,311,393$ 17,002,559$ 4,419,118$ 2,041,199$















Total liabilities


ASSETS


2007 2007 2007 2007 2007 2008Golden Vintage at Vista HELP Owens Arby Road Sierra Combined

Apartments Laughlin Creek Apartments Apartments Manor Total

-$ -$ -$ -$ -$ -$ -$ 115,123 9,371,966 16,028,824 67,191 5,836,871 7,802,728 56,454,126 115,123 9,371,966 16,028,824 67,191 5,836,871 7,802,728 56,454,126

- - - (1,831) - - 4,560,802 7,604 (1,394) (3,671) 1,010 232,301 31,392 1,609,636

122,727 9,370,572 16,025,153 66,370 6,069,172 7,834,120 62,624,564

- - - - - - - - - - - - - 135,961,383 - - - - - - - - - - - - - 135,961,383

8,200,000 1,641,441 4,996,129 5,480,454 9,512,675 3,748,027 518,315,297 - - - - - - -

8,200,000 1,641,441 4,996,129 5,480,454 9,512,675 3,748,027 654,276,680 - 8,322,727$ 11,012,013$ 21,021,282$ 5,546,824$ 15,581,847$ 11,582,147$ 716,901,244$

-$ -$ -$ -$ -$ -$ 3,689,000$ 7,606 5,861 11,189 5,144 219,193 27,607 5,638,793 4,150 (9,625) (18,375) (4,159) 11,513 3,135 (254,418)

110,776 15,769 28,452 - 540 551,405 5,952,054 122,532 12,005 21,266 985 231,246 582,147 15,025,429

8,200,000 11,000,000 21,000,000 5,545,000 15,350,000 11,000,000 697,938,000 8,322,532 11,012,005 21,021,266 5,545,985 15,581,246 11,582,147 712,963,429

195 8 16 839 601 - 3,937,815 - 8,322,727$ 11,012,013$ 21,021,282$ 5,546,824$ 15,581,847$ 11,582,147$ 716,901,244$


COMBINING STATEMENT OF REVENUES, EXPENSES ANDCHANGES IN NET ASSETS - SINGLE-FAMILY PROGRAM FUNDS


1996A 1996E 1997A 1997B 1997C 1998A 1998BMortgage Mortgage Mortgage Mortgage Mortgage Mortgage MortgagePurchase Purchase Purchase Purchase Purchase Purchase Purchase

Operating revenuesInterest and other investment income 4,096$ 2,780$ 2,270$ (78,501)$ 3,786$ 6,510$ 10,203$ Realized and unrealized gains (losses) on investments - - - - - - -

Total investment income 4,096 2,780 2,270 (78,501) 3,786 6,510 10,203 Interest income on mortgage loans 36,106 39,035 29,813 17,536 63,070 93,407 99,591 Other income - - - - - - -

Total operating revenues 40,202 41,815 32,083 (60,965) 66,856 99,917 109,794

Operating expensesAdministrative expenses - - - - - - - Servicers' fees 1,618 1,604 1,226 710 2,808 4,461 4,370 Interest on bonds payable 5,231 15,661 3,986 4,047 35,184 65,558 73,143 Amortization of issue costs 2,247 653 1,892 311 1,313 2,149 4,070 Interfund operating charge 28 76 19 18 186 358 400

Total operating expenses 9,124 17,994 7,123 5,086 39,491 72,526 81,983

CHANGE IN NET ASSETS 31,078 23,821 24,960 (66,051) 27,365 27,391 27,811

Transfers - - - - - - -

Net assets at beginning of period 1,009,936 698,675 739,987 464,999 965,053 800,811 831,892

Net assets at end of period 1,041,014$ 722,496$ 764,947$ 398,948$ 992,418$ 828,202$ 859,703$

Parity Program


COMBINING STATEMENT OF REVENUES, EXPENSES ANDCHANGES IN NET ASSETS - SINGLE-FAMILY PROGRAM FUNDS - CONTINUED


Operating revenuesInterest and other investment incomeRealized and unrealized gains (losses) on investments

Total investment income

Interest income on mortgage loansOther income

Total operating revenues

Operating expensesAdministrative expensesServicers' feesInterest on bonds payableAmortization of issue costsInterfund operating charge

Total operating expenses

CHANGE IN NET ASSETS

Transfers

Net assets at beginning of period

Net assets at end of period

1998C 1999A 1999B 1999C 1999D 2000A 2000BMortgage Mortgage Mortgage Mortgage Mortgage Mortgage MortgagePurchase Purchase Purchase Purchase Purchase Purchase Purchase

(1,238)$ 3,071$ 8,091$ 710$ 3,179$ 2,894$ 2,572$

- - - - - - -

(1,238) 3,071 8,091 710 3,179 2,894 2,572

48,064 75,694 76,896 67,850 27,914 41,520 30,846 - - - - - - -

46,826 78,765 84,987 68,560 31,093 44,414 33,418

- - - - - - - 2,363 3,519 3,619 3,038 970 1,656 1,073

35,424 48,267 53,876 50,864 11,416 37,235 32,466 1,745 4,712 3,153 4,280 1,112 1,086 1,234

206 281 310 268 61 170 156

39,738 56,779 60,958 58,450 13,559 40,147 34,929

7,088 21,986 24,029 10,110 17,534 4,267 (1,511)

- - - - - - -

426,082 824,559 766,418 593,283 474,400 100,377 (86,062)

433,170$ 846,545$ 790,447$ 603,393$ 491,934$ 104,644$ (87,573)$

Parity Program











Transfers



2000C 2000D 2001A 2001B 2001C Total 2002AMortgage Mortgage Mortgage Mortgage Mortgage Parity MortgagePurchase Purchase Purchase Purchase Purchase Program Purchase

1,123$ 2,366$ 3,713$ 6,784$ 2,800$ (16,887)$ 569$

- - - - - - -

1,123 2,366 3,713 6,784 2,800 (16,887) 569

63,498 33,052 51,302 70,448 52,343 981,879 7,015 - - - - - - -

64,621 35,418 55,015 77,232 55,143 964,992 7,584

- - - - - - - 2,551 1,368 2,426 3,128 2,683 43,573 322

68,020 31,021 42,571 68,386 45,755 722,880 4,310 977 990 1,363 2,709 4,686 38,435 138 327 165 257 396 299 3,953 27

71,875 33,544 46,617 74,619 53,423 808,841 4,797

(7,254) 1,874 8,398 2,613 1,720 156,151 2,787

- - - - 265,000 265,000 -

(46,890) (37,792) 100,699 (196,207) (162,101) 7,258,183 44,308

(54,144)$ (35,918)$ 109,097$ (193,594)$ 104,619$ 7,679,334$ 47,095$

Parity Program











Transfers



2006A 2006B 2007A 2007B 2008A 2008BMortgage Mortgage Mortgage Mortgage Mortgage Mortgage CombinedPurchase Purchase Purchase Purchase Purchase Purchase Total

636,164$ 569,603$ 594,596$ 1,110,638$ 1,288,227$ 291,850$ 4,478,856$

- - - - - - -

636,164 569,603 594,596 1,110,638 1,288,227 291,850 4,478,856

- - - - - - 1,025,000 - - - - - - -

636,164 569,603 594,596 1,110,638 1,288,227 291,850 5,503,856

4,771 4,771 4,770 9,349 32,311 9,213 65,185 - - - - - - 45,513

548,473 487,505 519,372 968,450 1,265,389 320,110 4,841,720 5,342 8,671 4,252 4,579 - - 63,664

30,560 29,202 30,956 52,149 62,455 9,473 218,803

589,146 530,149 559,350 1,034,527 1,360,155 338,796 5,234,885

47,018 39,454 35,246 76,111 (71,928) (46,946) 268,971

- - - - - 2,042,771 2,307,771

687,663 489,955 391,169 631,677 303,487 - 10,816,378

734,681$ 529,409$ 426,415$ 707,788$ 231,559$ 1,995,825$ 13,393,120$


COMBINING STATEMENT OF REVENUES, EXPENSES ANDCHANGES IN NET ASSETS - MULTI-UNIT PROGRAM FUNDS


1996B 1996 1996 1997 1997 1997 1997 1997 1998Mesquite Oakmont Oakmont Fremont Austin Maryland Judith Joshua Cheyenne

Bluffs Flamingo Fort Apache Meadows Crest Villas Villas Villas PointeOperating revenues

Interest and other investment income -$ -$ -$ -$ 411,257$ -$ -$ -$ 15,024$ Realized and unrealized gains (losses) on investments - - - - - - - - -

Total investment income - - - - 411,257 - - - 15,024 Interest income on mortgage loans 74,070 112,710 92,392 36,710 - 50,725 71,637 70,624 249,017 Other income 8,610 12,115 9,948 4,968 19,033 6,244 8,106 7,803 11,628

Total operating revenues 82,680 124,825 102,340 41,678 430,290 56,969 79,743 78,427 275,669

Operating expensesAdministrative expenses - - - - - - - - 102 Interest on bonds payable 74,070 112,710 92,392 36,710 400,930 50,725 71,637 70,624 249,017 Amortization of issue costs - - - - - - - - - Interfund operating charge 8,610 12,115 9,948 4,968 19,033 6,244 8,106 7,803 11,628

Total operating expenses 82,680 124,825 102,340 41,678 419,963 56,969 79,743 78,427 260,747

CHANGE IN NET ASSETS - - - - 10,327 - - - 14,922

Transfers - - - - - - - - -

Net assets at beginning of period - - - - 304,623 - - - 137,610

Net assets at end of period -$ -$ -$ -$ 314,950$ -$ -$ -$ 152,532$


COMBINING STATEMENT OF REVENUES, EXPENSES ANDCHANGES IN NET ASSETS - MULTI-UNIT PROGRAM FUNDS - CONTINUED






Operating expensesAdministrative expensesInterest on bonds payableAmortization of issue costsInterfund operating charge



Transfers



1998 1998 1998 1998 1998 1998 1998 1998 1998Boulder Vintage Spanish South Capistrano Casa Autumn Campaige HilltopCreek Hills Hills Valley Pines Sorrento Ridge Place Villas

378,181$ 1,256$ 211,853$ 346,898$ 234,411$ 264,795$ 182,048$ -$ -$

- - - - - - - 10,128 -

378,181 1,256 211,853 346,898 234,411 264,795 182,048 10,128 -

- 238,417 - - - - - 189,769 47,990 18,327 11,210 10,318 17,208 11,832 13,382 9,088 9,791 4,822

396,508 250,883 222,171 364,106 246,243 278,177 191,136 209,688 52,812

- - - - - - - - - 367,713 238,417 204,101 339,975 228,065 257,545 175,956 189,769 47,990

- - - - - - - - - 18,325 11,211 10,319 17,208 11,832 13,382 9,089 9,793 4,822

386,038 249,628 214,420 357,183 239,897 270,927 185,045 199,562 52,812

10,470 1,255 7,751 6,923 6,346 7,250 6,091 10,126 -

- - - - - - - - -

261,579 40,382 201,235 219,279 169,388 182,253 137,045 (10,114) -

272,049$ 41,637$ 208,986$ 226,202$ 175,734$ 189,503$ 143,136$ 12$ -$











Transfers



1998 1999 1999 1999 1999 1999 1999 2000Stewart Studio Diamond Bonanza Parkway Apache Palo Whispering 2000Villas Three Creek Gardens Silverado Pines Verde Palms Summerhill

-$ -$ 11,570$ 847$ 96$ 182$ 831$ 2,863$ 1,302$

- - - - - - - - -

- - 11,570 847 96 182 831 2,863 1,302

49,292 65,399 545,377 174,772 172,227 158,468 230,745 259,233 270,157 4,956 7,796 24,662 7,484 19,078 17,577 8,700 11,449 12,478

54,248 73,195 581,609 183,103 191,401 176,227 240,276 273,545 283,937

- - - - - - - 2,996 - 49,292 65,399 553,794 173,112 172,227 158,468 230,745 259,233 270,060

- - - - - - - - - 4,956 7,796 24,661 7,483 19,078 17,577 8,700 11,448 12,478

54,248 73,195 578,455 180,595 191,305 176,045 239,445 273,677 282,538

- - 3,154 2,508 96 182 831 (132) 1,399

- - - - - - - -

- - 255,636 25,918 10,452 1,893 3,742 29,180 171,465

-$ -$ 258,790$ 28,426$ 10,548$ 2,075$ 4,573$ 29,048$ 172,864$











Transfers



2000 2000 2000 2000 2000 2000 2001City Center Horizon Pines 2000 Horizon Orchard Vintage Rancho 2000 Ambrosia

Apts. Sr. Apts. Banbridge Sr. Apts. Club Desert Rose Mesa Citivista Sr. Apts.

-$ 35$ -$ 145$ 9,635$ 1,064$ 1,664$ 964$ 1,224$

- - - - - - - - -

- 35 - 145 9,635 1,064 1,664 964 1,224

88,640 104,343 53,158 130,302 513,181 234,169 327,038 218,378 256,583 10,233 12,032 5,978 14,904 23,887 11,066 15,446 10,570 12,956

98,873 116,410 59,136 145,351 546,703 246,299 344,148 229,912 270,763

- - - 202 - - - - - 88,640 104,343 53,158 130,302 519,705 232,456 322,662 217,673 257,472

- - - - - - - - - 10,233 12,031 5,978 14,905 23,887 11,065 15,445 10,570 12,956

98,873 116,374 59,136 145,409 543,592 243,521 338,107 228,243 270,428

- 36 - (58) 3,111 2,778 6,041 1,669 335

- - - - - - - - -

11 14 - 158 167,499 36,249 158,472 47,112 57,457

11$ 50$ -$ 100$ 170,610$ 39,027$ 164,513$ 48,781$ 57,792$











Transfers



2001 2001 2001 2001 2002 2002 2002 2002Centennial Lake Parkside 2001 Silver City Center Silver Oakmont St. Rose

Park Vista Gardens Villanova Creek Las Vegas Pines at Reno Seniors

150,687$ -$ 290,838$ 1,737$ 1,214$ -$ 142$ 209$ 123$

- - - - - - - - -

150,687 - 290,838 1,737 1,214 - 142 209 123

- 57,857 - 516,363 351,331 201,976 141,713 52,123 177,684 7,502 2,963 14,435 26,235 17,850 19,115 16,224 5,980 20,309

158,189 60,820 305,273 544,335 370,395 221,091 158,079 58,312 198,116

- - - 1,970 1,390 - - - - 150,351 57,857 291,812 516,644 351,526 201,976 141,713 52,123 177,684

- - - - - - - - - 7,501 2,963 14,434 26,235 17,850 19,115 16,225 5,981 20,309

157,852 60,820 306,246 544,849 370,766 221,091 157,938 58,104 197,993

337 - (973) (514) (371) - 141 208 123

- - - - - - - - -

53,906 - 103,353 6,197 3,884 178 4,863 8,037 2,350

54,243$ -$ 102,380$ 5,683$ 3,513$ 178$ 5,004$ 8,245$ 2,473$











Transfers



2002 2002 2002 2002 2002 2003 2003 2003Bluffs Sunset Los Whittell Wood 2003 Community Cedar L'Octaine

at Reno Canyon Pecos Pointe Creek Pinewood Gardens Village Urban

152$ 1,572$ 1,329$ 997$ 1,084$ 736,923$ 176,587$ 147,991$ -$

- - - - - - - - -

152 1,572 1,329 997 1,084 736,923 176,587 147,991 -

251,874 328,440 272,644 205,581 221,873 - - - 44,995 27,660 17,135 14,582 10,968 11,633 44,291 10,493 8,764 5,715

279,686 347,147 288,555 217,546 234,590 781,214 187,080 156,755 50,710

- - 5,130 - - - - - - 251,874 328,440 272,644 205,756 222,756 725,828 175,232 147,029 44,995

- - - - - - - - - 27,659 17,136 14,582 10,969 11,633 44,291 10,493 8,764 5,715

279,533 345,576 292,356 216,725 234,389 770,119 185,725 155,793 50,710

153 1,571 (3,801) 821 201 11,095 1,355 962 -

- - - - - - - - -

8,018 35,067 3,888 88,687 102,412 332,943 87,070 72,058 12

8,171$ 36,638$ 87$ 89,508$ 102,613$ 344,038$ 88,425$ 73,020$ 12$











Transfers



2003 2003 2004 2004 2004 2005 2005 2005Whittell Zephyr Glenbrook Roman Sundance Sierra Sonoma Southwest 2006Pointe II Pointe Terrace Villas Village Pointe Palms Village Riverwood

898$ 1,674$ 2,085$ 235,250$ 323$ 55$ 85$ 144$ -$

- - - - - - - - -

898 1,674 2,085 235,250 323 55 85 144 -

174,122 353,277 433,513 - 259,008 113,195 195,756 227,505 156,493 10,884 22,132 26,528 14,861 32,755 14,653 24,450 28,500 14,685

185,904 377,083 462,126 250,111 292,086 127,903 220,291 256,149 171,178

- - 18,877 - - - 5 172 - 171,937 349,608 433,513 232,091 259,008 113,195 195,756 227,505 156,493

- - - - - - - - - 10,885 22,133 26,528 14,861 32,755 14,653 24,450 28,500 14,685

182,822 371,741 478,918 246,952 291,763 127,848 220,211 256,177 171,178

3,082 5,342 (16,792) 3,159 323 55 80 (28) -

- - - - - - - - -

94,977 59,562 24,662 109,993 8,216 871 1,042 2,987 -

98,059$ 64,904$ 7,870$ 113,152$ 8,539$ 926$ 1,122$ 2,959$ -$











Transfers



2007 2007 2007 2007 2007 2007 2008Centennial Golden Vintage at Vista HELP Owens Arby Road Sierra Combined

Park Apartments Laughlin Creek Apartments Apartments Manor Total

50$ 40$ 9$ 17$ (91)$ (69)$ -$ 3,830,200$

- - - - - - - 10,128

50 40 9 17 (91) (69) - 3,840,328

49,306 97,694 132,105 252,201 66,063 438,385 27,607 10,886,207 3,340 12,331 16,530 31,557 8,266 23,511 3,135 995,657

52,696 110,065 148,644 283,775 74,238 461,827 30,742 15,722,192

- - - - - - - 30,844 49,306 97,694 132,105 252,201 66,063 438,385 27,607 14,585,794

- - - - - - - - 3,341 12,330 16,531 31,558 8,265 23,510 3,135 995,658

52,647 110,024 148,636 283,759 74,328 461,895 30,742 15,612,296

49 41 8 16 (90) (68) - 109,896

- - - - - - - -

2,396 154 - - 929 669 - 3,827,919

2,445$ 195$ 8$ 16$ 839$ 601$ -$ 3,937,815$

StatedInterest Yield to

Rate Maturity Maturity Fair ValueGeneral Funds

Cash Management Fund - - - 48,686,564$ American Beacon Money Market - - - 14,000,001 Citifunds Cash Reserves Money Market - - - 29,999,999 Goldman Sachs Fin Sq Money Market - - - 18,779,689 U.S. Treasury Bond 11.250% 11.250% 2/15/2015 2,407,219 GNMA II Pool #703871 5.850% 5.850% 11/20/2038 1,238,440 GNMA II Pool #706234 6.750% 6.750% 12/20/2038 374,717 GNMA II Pool #706235 6.750% 6.750% 11/20/2038 194,163 GNMA II Pool #706276 5.850% 5.850% 12/20/2038 3,481,631 FNMA Pool #953978 5.315% 5.315% 4/1/2047 642,418 FNMA Pool #954094 5.565% 5.565% 6/1/2047 256,871 FNMA Pool #954162 5.605% 5.605% 11/1/2047 1,320,460 FNMA Pool #954197 5.605% 5.605% 12/1/2047 917,740 FNMA Pool #954344 5.565% 5.565% 7/1/2047 237,886 FNMA Pool #954444 5.605% 5.605% 1/1/2048 2,228,720 FNMA Pool #960840 5.605% 5.605% 2/1/2048 2,955,346 FNMA Pool #962423 5.605% 5.605% 12/1/2047 184,460 FNMA Pool #962424 5.605% 5.605% 3/1/2048 914,142 FNMA Pool #963016 5.605% 5.605% 2/1/2048 466,420 FNMA Pool #963567 5.705% 5.705% 4/1/2048 4,354,115 FNMA Pool #963568 5.705% 5.705% 4/1/2048 290,762 FNMA Pool #964162 5.705% 5.705% 3/1/2048 188,667 FNMA Pool #964265 5.705% 5.705% 4/1/2048 207,739 FNMA Pool #971469 5.485% 5.485% 6/1/2047 259,842 FNMA Pool #964664 6.105% 6.105% 5/1/2048 387,192 FNMA Pool #964666 5.705% 5.705% 6/1/2048 127,513 FNMA Pool #965233 6.105% 6.105% 7/1/2048 744,275

135,846,991 SINGLE-FAMILY PROGRAMS :

1996A Single-Family Program

Bayerische 5.930% 5.930% 3/31/2028 49,571 Bayerische 6.670% 6.670% 4/1/2028 3,000

52,571 1996E Single-Family Program

Bayerische 5.875% 5.875% 9/30/2028 121,756 Bayerische 6.375% 6.375% 10/1/2028 24,250

146,006 1997A Single-Family Program

FGIC Capital Market 6.860% 6.860% 4/1/2029 5,500 AIG 6.220% 6.220% 3/30/2029 138,677

144,177


SCHEDULE OF INVESTMENTS

December 31, 2008(See acconmping accountants' review report)

61


Rate Maturity Maturity Fair Value


SCHEDULE OF INVESTMENTS - CONTINUED


1997B Single-Family ProgramCash Management Fund - - - 4,561$ AIG 6.400% 6.400% 3/30/2029 116,867 AIG 6.920% 6.920% 5/31/2029 5,750

127,178 1997C Single-Family Program

Cash Management Fund - - - 2,522 AIG 6.440% 6.440% 3/31/2029 60,500 AIG 5.870% 5.870% 3/31/2029 140,822



207,325 1998B Single-Family Program



Cash Management Fund - - - 3,030 Bayerische 4.500% 4.500% 9/30/2030 115,792 Bayerische 5.150% 5.150% 9/30/2030 67,000


Cash Management Fund - - - 593 Natixis Funding Corp. 5.460% 5.460% 3/31/2030 164,172





223,882

62






1999D Single-Family ProgramCash Management Fund - - - 4,283$ AIG 6.360% 6.360% 9/30/2031 58,869 AIG 6.590% 6.590% 9/30/2031 17,000


Cash Management Fund - - - 4,189 Trinity Funding 6.250% 6.250% 3/31/2032 55,750 Trinity Funding 6.680% 6.680% 3/31/2032 27,697


Cash Management Fund - - - 1,381 Bayerische 6.616% 6.616% 3/31/2032 67,714


Cash Management Fund - - - 2,148 Trinity Funding 6.310% 6.310% 9/30/2030 325,642 AIG 6.580% 6.580% 9/30/2030 106,000

433,790 2000D Single-Family Program

Cash Management Fund - - - 842 AIG 5.870% 5.870% 3/31/2032 54,500 AIG 5.660% 5.660% 3/31/2032 26,078


Cash Management Fund - - - 6,661 Bayerische 5.600% 5.600% 9/30/2032 120,863


Cash Management Fund - - - 2,228 AIG 5.560% 5.560% 9/30/2032 60,296 Bayerische 5.930% 5.930% 10/1/2032 129,000


AIG 3.900% 3.900% 3/31/2033 92,500 AIG 4.110% 4.110% 3/31/2033 59,742


Cash Management Fund - - - 2,871 Trinity Funding 5.510% 5.510% 4/1/2033 19,431

22,302

63






2006A Single-Family ProgramCash Management Fund - - - 137,500$ Transamerica Life 4.600% 4.600% 4/1/2037 694,289 GNMA II Pool #655963 5.490% 5.490% 2/20/2036 616,402 GNMA II Pool #656134 5.410% 5.410% 5/20/2036 1,444,672 GNMA II Pool #656136 5.530% 5.530% 6/20/2036 499,086 GNMA II Pool #656137 5.700% 5.700% 7/20/2036 1,088,178 GNMA II Pool #659436 5.700% 5.700% 8/20/2036 1,297,989 GNMA II Pool #659752 5.410% 5.410% 6/20/2036 300,955 GNMA II Pool #659754 5.530% 5.530% 6/20/2036 159,944 GNMA II Pool #659755 5.700% 5.700% 9/20/2036 2,818,651 GNMA II Pool #661296 5.700% 5.700% 10/20/2036 1,210,117 GNMA II Pool #661466 5.700% 5.700% 10/20/2036 672,711 GNMA II Pool #663576 5.700% 5.700% 9/20/2036 516,518 GNMA II Pool #663577 5.700% 5.700% 10/20/2036 223,442 GNMA II Pool #663729 5.560% 5.560% 10/20/2036 278,628 GNMA II Pool #666703 5.700% 5.700% 8/20/2036 150,745 GNMA II Pool #680740 5.500% 5.500% 11/20/2037 2,397,709 GNMA II Pool #680744 5.530% 5.530% 8/20/2037 184,769 GNMA II Pool #680746 5.650% 5.650% 9/20/2037 148,479 GNMA II Pool #680931 5.650% 5.650% 10/20/2037 339,953 GNMA II Pool #680932 5.530% 5.530% 8/20/2037 67,949 GNMA II Pool #680715 5.800% 5.800% 11/20/2037 911,500 GNMA II Pool #680716 5.800% 5.800% 11/20/2037 65,183 FNMA Pool #893584 5.410% 5.410% 6/1/2036 1,034,943 FNMA Pool #893637 5.700% 5.700% 8/1/2036 1,133,818 FNMA Pool #894173 5.530% 5.530% 8/1/2036 533,549 FNMA Pool #894174 5.700% 5.700% 9/1/2036 2,102,306 FNMA Pool #902575 5.700% 5.700% 10/1/2036 512,194 FNMA Pool #905602 5.700% 5.700% 11/1/2036 439,885 FNMA Pool #914485 5.560% 5.560% 10/1/2036 156,590

22,138,654 2006B Single-Family Program

Cash Management Fund - - - 634,109 San Sabia 4.750% 4.750% 10/1/2048 663,893 GNMA II Pool #663730 5.420% 5.420% 10/20/2036 254,818 GNMA II Pool #663731 5.360% 5.360% 1/20/2037 4,723,431 GNMA II Pool #663732 5.080% 5.080% 2/20/2037 971,085 GNMA II Pool #663733 5.560% 5.560% 11/20/2036 1,170,453 GNMA II Pool #666762 5.360% 5.360% 2/20/2037 688,604 GNMA II Pool #666763 5.080% 5.080% 3/20/2037 831,533

64






2006B Single-Family Program - ContinuedGNMA II Pool #668462 5.360% 5.360% 3/20/2037 294,482$ GNMA II Pool #668463 5.080% 5.080% 4/20/2037 3,312,861 GNMA II Pool #669229 5.080% 5.080% 4/20/2037 664,854 GNMA II Pool #669391 5.360% 5.360% 2/20/2037 175,865 GNMA II Pool #669392 5.080% 5.080% 4/20/2037 533,034 GNMA II Pool #671756 5.360% 5.360% 5/20/2037 225,066 GNMA II Pool #677671 5.270% 5.270% 7/20/2037 841,082 GNMA II Pool #680930 5.270% 5.270% 6/20/2037 280,379 GNMA II Pool #680933 5.300% 5.300% 8/20/2037 145,539 GNMA II Pool #680716 5.800% 5.800% 11/20/2037 1,088,491 GNMA II Pool #680717 5.350% 5.350% 12/20/2037 356,515 GNMA II Pool #693750 5.750% 5.750% 6/20/2038 343,454 FNMA Pool #909969 5.560% 5.560% 10/1/2036 127,937 FNMA Pool #909970 5.360% 5.360% 12/1/2036 1,198,569 FNMA Pool #915233 5.360% 5.360% 1/1/2037 400,509 FNMA Pool #918414 5.080% 5.080% 5/1/2037 365,770 FNMA Pool #918415 5.360% 5.360% 1/1/2037 371,673 FNMA Pool #942832 5.080% 5.080% 5/1/2037 206,573 FNMA Pool #947710 5.515% 5.515% 1/1/2037 365,948 FHLMC Pool #B31882 5.360% 5.360% 1/1/2037 409,637

21,646,164 2007A Single-Family Program

Cash Management Fund - - - 25,895 Calyon 4.351% 4.351% 4/1/2042 660,311 GNMA II Pool #669434 5.270% 5.270% 6/20/2037 1,897,319 GNMA II Pool #669435 5.350% 5.350% 6/20/2037 488,012 GNMA II Pool #669436 5.220% 5.220% 5/20/2037 3,048,393 GNMA II Pool #671755 5.270% 5.270% 6/20/2037 1,191,177 GNMA II Pool #671757 5.350% 5.350% 7/20/2037 1,069,762 GNMA II Pool #671392 5.270% 5.270% 7/20/2037 835,782 GNMA II Pool #671393 5.350% 5.350% 8/20/2037 700,736 GNMA II Pool #674698 5.270% 5.270% 6/20/2037 417,672 GNMA II Pool #674846 5.350% 5.350% 8/20/2037 611,901 GNMA II Pool #677736 5.270% 5.270% 7/20/2037 516,856 GNMA II Pool #693941 5.750% 5.750% 5/20/2038 157,316 FNMA Pool #946233 5.425% 5.425% 5/1/2037 340,708 FNMA Pool #946234 5.485% 5.485% 7/1/2047 2,576,206 FNMA Pool #946235 5.435% 5.435% 4/1/2047 579,211 FNMA Pool #947070 5.485% 5.485% 6/1/2047 663,849 FNMA Pool #947071 5.435% 5.435% 4/1/2047 216,061

65






2007A Single-Family Program - ContinuedFNMA Pool #947075 5.435% 5.435% 5/1/2047 223,730$ FNMA Pool #947159 5.565% 5.565% 7/1/2047 3,079,697 FNMA Pool #953922 5.565% 5.565% 8/1/2047 1,065,313 FNMA Pool #953977 5.435% 5.435% 6/1/2047 216,766 FNMA Pool #953979 5.485% 5.485% 6/1/2047 162,057 FHLMC Pool #U30462 5.350% 5.350% 7/1/2037 316,173 FHLMC Pool #U30519 5.220% 5.220% 4/1/2037 156,138 FHLMC Pool #U30521 5.220% 5.220% 4/1/2037 241,429 FHLMC Pool #U30522 5.270% 5.270% 7/1/2037 850,259 FHLMC Pool #U30622 5.350% 5.350% 7/1/2037 173,450


Cash Management Fund - - - 613,374 San Sabia 4.750% 4.750% 10/1/2048 815,447 GNMA II Pool #674699 5.630% 5.630% 8/20/2037 668,168 GNMA II Pool #674847 5.300% 5.300% 8/20/2037 474,653 GNMA II Pool #674848 5.630% 5.630% 9/20/2037 1,104,074 GNMA II Pool #677737 5.630% 5.630% 8/20/2037 687,894 GNMA II Pool #677739 5.650% 5.650% 10/20/2037 2,770,569 GNMA II Pool #677492 5.300% 5.300% 9/20/2037 1,060,293 GNMA II Pool #677493 5.530% 5.530% 9/20/2037 1,140,116 GNMA II Pool #677494 5.650% 5.650% 10/20/2037 2,217,730 GNMA II Pool #677653 5.650% 5.650% 10/20/2037 854,823 GNMA II Pool #680739 5.300% 5.300% 11/20/2037 122,927 GNMA II Pool #680692 5.500% 5.500% 10/20/2037 245,854 GNMA II Pool #680713 5.800% 5.800% 12/20/2037 1,231,091 GNMA II Pool #680813 5.650% 5.650% 10/20/2037 438,933 GNMA II Pool #680811 5.800% 5.800% 12/20/2037 350,767 GNMA II Pool #684034 5.300% 5.300% 12/20/2037 128,900 GNMA II Pool #684035 5.530% 5.530% 8/20/2037 191,638 GNMA II Pool #684036 5.800% 5.800% 10/20/2037 545,681 GNMA II Pool #684500 5.800% 5.800% 11/20/2037 199,571 GNMA II Pool #684991 5.800% 5.800% 11/20/2037 444,839 GNMA II Pool #686634 5.800% 5.800% 11/20/2037 98,028 GNMA II Pool #686648 5.800% 5.800% 10/20/2037 408,162 GNMA II Pool #688649 5.650% 5.650% 9/20/2037 163,124 GNMA II Pool #698920 5.750% 5.750% 5/20/2038 316,956 GNMA II Pool #698945 5.550% 5.550% 9/20/2038 324,470 GNMA II Pool #677652 5.350% 5.350% 9/20/2037 1,000,166 GNMA II Pool #682718 5.350% 5.350% 6/20/2037 232,608

66






2007B Single-Family Program - ContinuedGNMA II Pool #691169 5.350% 5.350% 8/20/2037 209,033$ GNMA II Pool #696621 5.750% 5.750% 7/20/2038 169,920 GNMA II Pool #699063 5.750% 5.750% 6/20/2038 157,271 GNMA II Pool #699066 5.750% 5.750% 8/20/2038 147,513 GNMA II Pool #684502 5.270% 5.270% 7/20/2037 29,284 GNMA II Pool #691171 5.750% 5.750% 5/20/2038 27,009 GNMA II Pool #693745 5.750% 5.750% 6/20/2038 281,925 GNMA II Pool #694002 5.750% 5.750% 6/20/2038 51,908 GNMA II Pool #698895 5.750% 5.750% 6/20/2038 24,332 GNMA II Pool #698936 5.750% 5.750% 6/20/2038 141,107 FNMA Pool #947072 5.555% 5.555% 8/1/2047 1,059,163 FNMA Pool #947073 5.785% 5.785% 9/1/2047 762,271 FNMA Pool #953921 5.555% 5.555% 8/1/2047 375,100 FNMA Pool #953923 5.905% 5.905% 10/1/2047 3,889,229 FNMA Pool #953924 5.785% 5.785% 8/1/2047 349,256 FNMA Pool #953980 5.785% 5.785% 9/1/2047 213,943 FNMA Pool #954092 5.555% 5.555% 11/1/2047 176,417 FNMA Pool #954093 5.785% 5.785% 8/1/2047 586,146 FNMA Pool #954095 5.905% 5.905% 9/1/2047 254,029 FNMA Pool #954096 5.905% 5.905% 10/1/2047 468,305 FNMA Pool #954160 5.755% 5.755% 11/1/2047 522,770 FNMA Pool #954161 6.055% 6.055% 11/1/2047 3,174,782 FNMA Pool #954195 5.755% 5.755% 7/1/2047 202,115 FNMA Pool #954196 6.055% 6.055% 11/1/2047 214,265 FNMA Pool #954574 5.755% 5.755% 10/1/2047 492,277 FNMA Pool #954443 6.055% 6.055% 12/1/2047 832,451 FNMA Pool #960838 6.055% 6.055% 10/1/2047 208,212 FNMA Pool #960839 6.055% 6.055% 1/1/2048 148,939 FNMA Pool #960841 5.955% 5.955% 12/1/2037 373,611 FNMA Pool #960842 5.555% 5.555% 7/1/2047 121,041 FNMA Pool #962462 5.755% 5.755% 10/1/2047 122,083 FNMA Pool #971428 5.755% 5.755% 4/1/2047 169,989 FHLMC Pool #U30463 5.300% 5.300% 8/1/2037 648,489 FHLMC Pool #U30619 5.300% 5.300% 8/1/2037 257,970 FHLMC Pool #U30620 5.650% 5.650% 9/1/2037 923,387 FHLMC Pool #U30621 5.530% 5.530% 9/1/2037 361,282 FHLMC Pool #U30689 5.650% 5.650% 11/1/2037 443,894 FHLMC Pool #T30417 5.500% 5.500% 11/1/2037 1,182,000 FHLMC Pool #T30418 5.800% 5.800% 10/1/2037 1,163,271 FHLMC Pool #U30786 5.500% 5.500% 10/1/2037 235,634

40,022,479

67






2008A Single-Family ProgramCash Management Fund - - - 2,146,748$ San Sabia 3.750% 3.750% 10/3/2039 828,787 GNMA II Pool #680714 5.350% 5.350% 12/20/2037 375,063 GNMA II Pool #680812 5.350% 5.350% 1/20/2038 2,576,865 GNMA II Pool #682812 5.350% 5.350% 12/20/2037 1,094,971 GNMA II Pool #684037 5.350% 5.350% 1/20/2038 1,843,507 GNMA II Pool #684501 5.350% 5.350% 2/20/2038 4,346,338 GNMA II Pool #684552 5.450% 5.450% 2/20/2038 2,015,003 GNMA II Pool #684989 5.450% 5.450% 3/20/2038 2,798,838 GNMA II Pool #684990 5.350% 5.350% 2/20/2038 2,753,047 GNMA II Pool #685538 5.350% 5.350% 3/20/2038 356,448 GNMA II Pool #685539 5.450% 5.450% 3/20/2038 261,589 GNMA II Pool #684810 5.450% 5.450% 4/20/2038 681,726 GNMA II Pool #684877 5.450% 5.450% 4/20/2038 5,322,845 GNMA II Pool #684878 5.350% 5.350% 2/20/2038 656,700 GNMA II Pool #685601 5.450% 5.450% 3/20/2038 206,431 GNMA II Pool #688341 5.450% 5.450% 4/20/2038 392,878 GNMA II Pool #688647 5.450% 5.450% 5/20/2038 3,675,114 GNMA II Pool #688650 5.450% 5.450% 2/20/2038 149,082 GNMA II Pool #688651 5.350% 5.350% 1/20/2038 340,672 GNMA II Pool #691168 5.450% 5.450% 5/20/2038 1,497,640 GNMA II Pool #693750 5.750% 5.750% 6/20/2038 1,946,237 GNMA II Pool #693751 5.450% 5.450% 4/20/2038 110,638 GNMA II Pool #691170 5.350% 5.350% 2/20/2038 287,778 GNMA II Pool #693939 5.450% 5.450% 5/20/2038 975,751 GNMA II Pool #696867 5.450% 5.450% 5/20/2038 207,411 GNMA II Pool #684502 5.270% 5.270% 7/20/2037 176,219 GNMA II Pool #691171 5.750% 5.750% 5/20/2038 162,528 GNMA II Pool #693745 5.750% 5.750% 6/20/2038 1,696,495 GNMA II Pool #694002 5.750% 5.750% 6/20/2038 312,359 GNMA II Pool #698895 5.750% 5.750% 6/20/2038 146,419 GNMA II Pool #698936 5.750% 5.750% 6/20/2038 849,120 FNMA Pool #960836 5.505% 5.505% 2/1/2038 200,885 FNMA Pool #960874 5.605% 5.605% 2/1/2038 230,045 FNMA Pool #962460 5.505% 5.505% 1/1/2038 132,215 FNMA Pool #962461 5.605% 5.605% 2/1/2038 177,695 FNMA Pool #961146 5.505% 5.505% 1/1/2038 252,981 FNMA Pool #963017 5.605% 5.605% 4/1/2038 97,994 FNMA Pool #963031 5.505% 5.505% 1/1/2038 381,826 FNMA Pool #963565 5.605% 5.605% 5/1/2038 632,541

68






2008A Single-Family Program - ContinuedFNMA Pool #963566 5.605% 5.605% 3/1/2038 363,923$ FNMA Pool #971427 5.605% 5.605% 3/1/2038 192,814 FNMA Pool #964160 5.605% 5.605% 5/1/2038 673,587 FNMA Pool #964161 5.505% 5.505% 12/1/2037 186,181 FNMA Pool #964263 5.905% 5.905% 4/1/2038 263,322 FNMA Pool #964264 5.905% 5.905% 4/1/2038 198,966 FNMA Pool #964665 5.605% 5.605% 4/1/2038 126,852 FNMA Pool #965234 5.905% 5.905% 6/1/2038 818,198 FHLMC Pool #T30419 5.350% 5.350% 1/1/2038 2,043,116 FHLMC Pool #T30472 5.350% 5.350% 1/1/2038 1,052,808


Cash Management Fund - - - 45,741 San Sabia 2.400% 2.400% 3/2/2009 3,856,052 San Sabia 3.350% 3.350% 10/3/2039 541,489 GNMA II Pool #700457 5.750% 5.750% 6/20/2038 188,875 GNMA II Pool #700458 5.550% 5.550% 9/20/2038 989,553 GNMA II Pool #700459 5.550% 5.550% 7/20/2038 164,791 GNMA II Pool #693940 5.750% 5.750% 7/20/2038 1,053,023 GNMA II Pool #696868 5.750% 5.750% 7/20/2038 913,498 GNMA II Pool #696869 5.750% 5.750% 7/20/2038 341,052 GNMA II Pool #696870 5.750% 5.750% 7/20/2038 481,324 GNMA II Pool #696611 5.550% 5.550% 8/20/2038 741,464 GNMA II Pool #696873 5.550% 5.550% 8/20/2038 2,290,252 GNMA II Pool #696896 5.550% 5.550% 9/20/2038 1,476,552 GNMA II Pool #699061 5.550% 5.550% 9/20/2038 1,307,668 GNMA II Pool #700616 5.850% 5.850% 10/20/2038 3,519,493 GNMA II Pool #700596 5.550% 5.550% 10/20/2038 1,407,847 GNMA II Pool #700598 5.750% 5.750% 9/20/2038 130,191 GNMA II Pool #700699 5.850% 5.850% 10/20/2038 823,962 GNMA II Pool #700700 5.550% 5.550% 8/20/2038 353,599 GNMA II Pool #700878 5.750% 5.750% 10/20/2038 195,303 GNMA II Pool #703698 5.850% 5.850% 10/20/2038 949,750 GNMA II Pool #703702 5.550% 5.550% 9/20/2038 177,540 GNMA II Pool #703819 5.850% 5.850% 11/20/2038 593,009 GNMA II Pool #703821 5.750% 5.750% 8/20/2038 145,572 GNMA II Pool #703875 5.850% 5.850% 11/20/2038 855,096 GNMA II Pool #703876 5.850% 5.850% 8/20/2038 154,318 GNMA II Pool #703939 5.850% 5.850% 10/20/2038 500,896 GNMA II Pool #703940 5.550% 5.550% 10/20/2038 344,494

69






2008B Single-Family Program - ContinuedGNMA II Pool #704088 5.850% 5.850% 11/20/2038 823,276$ GNMA II Pool #706228 5.750% 5.750% 9/20/2038 225,630 GNMA II Pool #706230 5.550% 5.550% 11/20/2038 160,585 GNMA II Pool #706231 5.550% 5.550% 10/20/2038 175,011 GNMA II Pool #706232 5.850% 5.850% 12/20/2038 642,024 FNMA Pool #970931 5.612% 5.612% 6/1/2038 134,071 FNMA Pool #970941 5.912% 5.912% 9/1/2038 212,725

26,915,726

Total single-family programs 185,528,950

MULTI-UNIT PROGRAMS :

1996 Oakmont Flamingo Multi-Unit ProgramCash Management Fund - - - 4,712

1996 Oakmont Fort Apache Multi-Unit ProgramCash Management Fund - - - 4,712

1997 Fremont Meadows Multi-Unit ProgramCash Management Fund - - - 1

1997 Austin Crest Multi-Unit ProgramCash Management Fund - - - 3,369 Fannie Mae Pool #382569 6.062% 6.062% 4/1/2030 13,880,607 MBIA 5.250% 5.250% 3/31/2031 330,797

14,214,773 1998 Cheyenne Pointe Multi-Unit Program

Cash Management Fund - - - 2,898 Transamerica Life 5.720% 5.720% 3/31/2030 543,730

546,628 1998 Boulder Creek Multi-Unit Program

Cash Management Fund - - - 86,670 Fannie Mae Pool #109351 5.810% 5.810% 1/1/2031 13,347,359 Transamerica Life 5.350% 5.350% 3/31/2031 231,452

13,665,481 1998 Vintage Hills Multi-Unit Program

Cash Management Fund - - - 236,619

70






1998 Spanish Hills Multi-Unit ProgramCash Management Fund - - - 10,000$ Federal National Mortgage Assoc. 5.760% 5.760% 4/1/2031 7,569,815 Natixis Funding Corp. 4.500% 4.500% 10/1/2031 165,290

7,745,105 1998 South Valley Multi-Unit Program

Federal National Mortgage Assoc. 5.720% 5.720% 6/1/2031 12,500,608 FGIC Capital Market 4.300% 4.300% 9/30/2031 277,961

12,778,569 1998 Capistrano Pines Multi-Unit Program

Federal National Mortgage Assoc. 5.610% 5.610% 5/1/2031 8,595,363 AIG 4.500% 4.500% 9/30/2019 213,478

8,808,841 1998 Casa Sorrento Multi-Unit Program

Fannie Mae Pool #383319 5.610% 5.610% 11/1/2018 9,700,583 AIG 4.500% 4.500% 9/30/2019 250,719

9,951,302 1998 Autumn Ridge Multi-Unit Program

Cash Management Fund - - - 6,581,746 FGIC Capital Market 4.300% 4.300% 9/30/2031 211,792

6,793,538 1998 Campaige Place Multi-Unit Program

Cash Management Fund - - - 12

1999 Studio Three Multi-Unit ProgramCash Management Fund - - - 1

1999 Diamond Creek Multi-Unit ProgramCash Management Fund - - - 243 MBIA 6.050% 6.050% 10/1/2032 401,780

402,023 1999 Bonanza Gardens Multi-Unit Program


1999 Parkway Silverado Ranch Multi-Unit ProgramCash Management Fund - - - 143,849

1999 Apache Pines Multi-Unit ProgramCash Management Fund - - - 66,583

71






1999 Palo Verde Multi-Unit ProgramCash Management Fund - - - 415,983$

2000 Whispering Palms Multi-Unit ProgramCash Management Fund - - - 567,842

2000 Summerhill Multi-Unit ProgramCash Management Fund - - - 213,315

2000 City Center Apts. Multi-Unit ProgramCash Management Fund - - - 11

2000 Horizon Pines Sr. Apts. Multi-Unit ProgramCash Management Fund - - - 725,464

2000 Banbridge Multi-Unit ProgramCash Management Fund - - - 67

2000 Horizon Sr. Apts. Multi-Unit ProgramCash Management Fund - - - 795,486

2000 Orchard Club Multi-Unit ProgramNatixis Funding Corp. 5.100% 5.100% 4/1/2034 385,981

2000 Vintage Desert Rose Multi-Unit ProgramCash Management Fund - - - 164,847

2000 Rancho Mesa Multi-Unit ProgramCash Management Fund - - - 275,503

2000 Citivista Multi-Unit ProgramCash Management Fund - - - 156,975

2001 Ambrosia Sr. Apts. Multi-Unit ProgramCash Management Fund - - - 191,823

2001 Centennial Park Multi-Unit ProgramCash Management Fund - - - 109,540 GNMA Pool #536548 5.794% 5.794% 4/15/2036 5,420,846

5,530,386

72






2001 Parkside Gardens Multi-Unit ProgramCash Management Fund - - - 197,740$ GNMA Pool #536597PN 5.800% 5.800% 12/15/2036 10,454,675

10,652,415 2001 Villanova Multi-Unit Program


2001 Silver Creek Multi-Unit ProgramCash Management Fund - - - 172,280

2002 City Center - Las Vegas Multi-Unit ProgramCash Management Fund - - - 17,506

2002 Silver Pines Multi-Unit ProgramCash Management Fund - - - 544,815

2002 Oakmont at Reno Multi-Unit ProgramCash Management Fund - - - 591,503

2002 St. Rose Seniors Multi-Unit ProgramCash Management Fund - - - 512,235

2002 Bluffs at Reno Multi-Unit ProgramCash Management Fund - - - 103,265

2002 Sunset Canyon Multi-Unit ProgramCash Management Fund - - - 423,530

2002 Los Pecos Multi-Unit ProgramCash Management Fund - - - 465,139

2002 Whittell Pointe Multi-Unit ProgramCash Management Fund - - - 160,233

2002 Wood Creek Multi-Unit ProgramCash Management Fund - - - 170,202

2003 Pinewood Multi-Unit ProgramCash Management Fund - - - 195 GNMA Pool #607554PN 5.220% 5.220% 3/15/2036 29,434,983 AIG 4.100% 4.100% 4/1/2036 530,117

29,965,295

73






2003 Community Gardens Multi-Unit ProgramCash Management Fund - - - 127,671$ GNMA Pool #607562PN 5.320% 5.320% 5/15/2038 6,983,711

7,111,382 2003 Cedar Village Multi-Unit Program

Cash Management Fund - - - 112,667 GNMA Pool #607561PN 5.340% 5.340% 5/15/2038 5,829,860

5,942,527 2003 L'Octaine Urban Multi-Unit Program


2003 Whittell Pointe II Multi-Unit ProgramCash Management Fund - - - 143,959

2003 Zephyr Pointe Multi-Unit ProgramCash Management Fund - - - 271,792

2004 Glenbrook Terrace Multi-Unit ProgramCash Management Fund - - - 497,940

2004 Roman Villas Multi-Unit ProgramCash Management Fund - - - 181,839 GNMA Pool #626415CL 5.030% 5.030% 3/15/2040 9,875,674

10,057,513 2004 Sundance Village Multi-Unit Program


2005 Sierra Pointe Multi-Unit ProgramCash Management Fund - - - 59,940

2005 Sonoma Palms Multi-Unit ProgramCash Management Fund - - - 29,340

2005 Southwest Village Multi-Unit ProgramCash Management Fund - - - 24,213

2007 Centennial Park Multi-Unit ProgramCash Management Fund - - - 19,405

2007 Golden Apartments Multi-Unit ProgramCash Management Fund - - - 115,123

74






2007 Vintage at Laughlin Multi-Unit ProgramCash Management Fund - - - 9,371,966$

2007 Vista Creek Multi-Unit ProgramCash Management Fund - - - 16,028,824

2007 HELP Owens Apartments Multi-Unit Program


2007 Arby Road Apartments Multi-Unit ProgramCash Management Fund - - - 5,836,871

2008 Sierra Manor Multi-Unit ProgramCash Management Fund - - - 7,802,728

Total multi-unit programs 192,415,509

Total 513,791,450$

75


SCHEDULE OF RESTRICTED ASSETSSINGLE-FAMILY PROGRAM FUNDS


1996A 1996E 1997A 1997B 1997C 1998A 1998B 1998C 1999A 1999BMortgage Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage MortgagePurchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase

Capital reserve fund 3,053$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Debt service reserve - 24,641 5,596 5,850 61,475 117,180 125,566 67,873 91,750 97,114 Interest reserve - - - - - - - - - -

3,053$ 24,641$ 5,596$ 5,850$ 61,475$ 117,180$ 125,566$ 67,873$ 91,750$ 97,114$

Short-term investments -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Long-term investments 3,000 24,250 5,500 5,750 60,500 115,500 123,750 67,000 90,500 95,750 Interest receivable 53 391 96 100 975 1,680 1,816 873 1,250 1,364

3,053$ 24,641$ 5,596$ 5,850$ 61,475$ 117,180$ 125,566$ 67,873$ 91,750$ 97,114$

Parity Program


SCHEDULE OF RESTRICTED ASSETSSINGLE-FAMILY PROGRAM FUNDS - CONTINUED


Capital reserve fundDebt service reserveInterest reserve

Short-term investmentsLong-term investmentsInterest receivable

1999C 1999D 2000A 2000B 2000C 2000D 2001A 2001B 2001C TotalMortgage Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage ParityPurchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Program

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 81,325 17,281 56,631 52,107 107,745 55,300 85,696 130,935 93,403 1,277,468

- - - - - - - - - -

81,325$ 17,281$ 56,631$ 52,107$ 107,745$ 55,300$ 85,696$ 130,935$ 93,403$ 1,277,468$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 80,000 17,000 55,750 51,250 106,000 54,500 84,500 129,000 92,500 1,259,000 1,325 281 881 857 1,745 800 1,196 1,935 903 18,468

81,325$ 17,281$ 56,631$ 52,107$ 107,745$ 55,300$ 85,696$ 130,935$ 93,403$ 1,277,468$

Parity Program


SCHEDULE OF RESTRICTED ASSETSSINGLE-FAMILY PROGRAM FUNDS - CONTINUED


Capital reserve fundDebt service reserveInterest reserve

Short-term investmentsLong-term investmentsInterest receivable

2002A 2006A 2007A 2007B 2008A 2008BMortgage Mortgage Mortgage Mortgage Mortgage Mortgage CombinedPurchase Purchase Purchase Purchase Purchase Purchase Total

-$ -$ -$ -$ -$ -$ 3,053$ 8,872 - - - - - 1,286,340

- 137,690 25,035 25,035 25,035 265,731 478,526

8,872$ 137,690$ 25,035$ 25,035$ 25,035$ 265,731$ 1,767,919$

-$ 137,500$ 25,000$ 25,000$ 25,000$ -$ 212,500$ 8,750 - - - - 263,378 1,534,128

122 190 35 35 35 2,353 21,291

8,872$ 137,690$ 25,035$ 25,035$ 25,035$ 265,731$ 1,767,919$

Financial statements and report of independent certified ...

Business

analytical

statedinterestyield

bba 4142 aaa

employees

nevada housing

nevada housing

stated interest

basic financial