CHICAGO -- The Illinois Housing Development Authority has chosen Goldman, Sachs & Co., Bear, Stearns & Co., and CS First Boston as senior rotating managers, for the agency's bond issues for the next two years.

The housing authority also picked firms for two tiers of co-managers, including Rodman & Renshaw Inc. The firm was dropped from an Illinois general obligation bond issue in August when state officials learned of pending sexual harassment complaints.

The first tier of co-managers picked by the housing agency are: Artemis Capital Group, Inc.; Dougherty, Dawkins, Strand & Bigelow, Inc.; Hutchinson, Shockey, Erley & Co.; and Merrill Lynch & Co. The firms will be included in all bond deals, according to Peter Dwars, director of the agency.

Dwars said that Rodman is among 30 to 35 firms that will be rotated, three or four at a time, in deals as second tier co-managers.

Dwars also said that the agency will ask each firm to certify that it has written policies against sexual harassment in accordance with a state law that took effect July 1.

After Illinois dropped Rodman from the state GO bond issue, Rodman officials met with officials in Gov. Jim Edgar's administration to discuss the action. Following the meeting last month, Rodman issued a statement saying the firm was pleased with the meeting's outcome and -- at the state's request -- would not discuss what was said.

Rodman officials did not return phone calls yesterday.

The three firms chosen as senior managers will rotate as bookrunners on deals, Dwars said. CS First Boston is the only firm to appear on the senior manager list from the previous two years. In November 1991, the housing agency selected First Boston, Lehman Brothers, and PaineWebber, Inc. to rotate as lead managers on about $600 million of bond issuance.

Dwars said the list of firms picked by the agency was shown to James Montana, Edgar's chief legal counsel and point-person for the state's underwriter selection process.

Dwars said Montana was shown the list because the agency wanted to make sure "no one was getting too much business" from state bond issues. Dwars said that he did not look at campaign contributions during the agency's selection process.

An article in the November issue of Chicago magazine says that First Boston contributed $19,000 to Edgar's campaign during the first half of this year.

The selection process for the senior managers focused on the strength of the firms' housing departments and their individual bankers, Dwars said.

Given that a good share of bond issuance during the last two years involved refinancings, the agency will probably issue only about $200 million of debt per year over the next two years, Dwars said.

The housing agency sent out a request for proposals from underwriters in the spring and interviewed the 45 firms that responded, Dwars said.

The agency also selected Schiff Hardin & Waite as its bond counsel for the next two years.

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