A Tribune article of Nov. 1 headlined ”$3.3 billion owed to state: Poor collection system cited” contains grossly misleading information concerning the Illinois Housing Development Authority.
While it is true that nearly $800 million is owed to IHDA, it must be understood that this is bonded debt that is being paid off by our mortgage-loan recipients. We are in the business of issuing such debt, like banks and savings and loans.
More significantly, the $13.25 million ”considered uncollectible” is actually an amount we are holding in reserves in case of a mortgagee`s failure; it is essentially an insurance policy we create for ourselves. The fact is, none of the IHDA`s 178 multifamily developments is delinquent in its payments.
It is a disservice to lump this kind of indebtedness and the reserves we hold ourselves with other kinds of debt and with collection systems that may not be working effectively. Ours do.
