Student Housing Default and other Non-Payment Notices



In light of the payment stresses resulting from lower occupancy in student housing projects, administrators involved in student housing might be curious as to what gives rise to an event filing on the MSRB EMMA Website. An Event Filing or Event Disclosure is a particular type of Continuing Disclosure intended to “alert investors and other market participants to important information that can have an impact on their assessment of municipal bonds or the issuer.” Each event filing must be associated with a disclosure category; examples of relevant categories include “Non-payment Related Default”, “Unscheduled Draw on Debt Service Reserve Reflecting Financial Difficulties” and “Financial Obligation – Event Reflecting Financial Difficulties”. The full list is available on the MSRB Website.    

Generally, a non-payment of principal and/or interest event filing triggers a consultant report and an operational consultant to engage with the project and its operators. Eventually a project may end up in litigation or bankruptcy, and there are many more notices that get published. Even though the notices are written by the project’s and/or the trustee’s counsel, it may be helpful to preview these examples in order to understand the approach taken by other struggling projects.  

Ultimately, you should consult your advisor and counsel in terms of what guidance your Bond documents provide. Inability to pay principal and interest can be stressful, but knowing what to do when it occurs alleviates the uncertainty. 

Below are some examples of student housing projects that have posted notices. Click on the links to learn more:

1. NOTICE OF DEFAULT. Dated May 11, 2020 

$77,820,000 Florida Development Finance Corporation Student Housing 

Revenue Bonds (Midtown Campus Properties, LLC Student Housing Project, 

Series 2019 (Taxable) CUSIP Nos.: 34062AAA9 and 34062AAB71 

https://emma.msrb.org/SS1379686-SS1074288-SS1481518.pdf

2. NOTICE OF NON-PAYMENT OF INTEREST. August 14, 2020 

https://emma.msrb.org/SS1397212-SS1086742-SS1495015.pdf

$198,130,000 in aggregate principal amount of those certain Tax-Exempt 

Revenue Bonds (Provident Oklahoma Education Resources, Inc. – Cross Village 

Student Housing Project) Series 2017A and $53,550,000 Federally Taxable 

Revenue Bonds (Provident Oklahoma Education Resources, Inc. – Cross Village 

Student Housing Project) Series 2017B (the “Series 2017A Bonds” and the 

“Series 2017B Bonds, 

https://emma.msrb.org/Security/Details/A4CC96086B8E415F583547554FC41E4E1

3. NOTICE OF NON-PAYMENT OF INTEREST. May 22, 2018 

VERMONT HOUSING FINANCE AGENCY 

STUDENT HOUSING FACILITIES REVENUE BONDS 

(WEST BLOCK, UNIVERSITY OF VERMONT APARTMENT PROJECT) 

SERIES 2004, CUSIP No. 924197AA41 

https://emma.msrb.org/ES1159988-ES907077-ES1308311.pdf


Contact Us! 

Contact Johan Rosenberg bjrosenberg@blueroseadvisors.com or Justin Krieg at jkrieg@blueroseadvisors.com to learn more, or if your project is facing financial difficulty. 

https://www.develop3rs.com/|https://www.blueroseadvisors.com/

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