Louisville Housing Authority Agenda and Packet 2011 07 26

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typically done better than others in the county. We also have an aging population and looking at senior planning as important to us. 64 of our properties are senior units. Frank said we have an updated consolidated plan for Boulder County, which breaks down by jurisdiction, includes AMI levels. We didn't do the same level of granular analysis as in past data. Walt said that in this community people are living in rental units which they can afford. Rents are escalating up and these people are finding they cannot afford to stay within the community. Some of them have found Regal Square II and Sunnyside. A lot of the elderly have gone to Lydia Morgan, mainly because that's where the property is available and they want to remain residents in the city. Within our portfolio there are a limited number of senior friendly properties. Frank stated Lilac Place property is not cash flowing very well. It was a former USDA property. It is sitting on a big piece of land and we had consideration of building that up into a few more units. That was tabled. It has continued to come up over the past 5+ years as a potential sale. Regal court II has financial constraints around it. Regarding Hillside Square disposition; we are still in the process of trying to decide the overall time investments and what we would do with the property. It will never be senior property. It is a family property. Steve said Regal Court I and Regal Court II properties will be considered and he will come back with opportunity ideas for a partnership that all parties could be part of and that we could get some cash out of, or reduce the debt with tax credit equity. Sherry wants to hold onto Acme because it is downtown, we don't owe anything on it, we have put solar on it, and she thinks it will be worth more in the future. Frank said that within the constrained requirements that exist now, you do not have the resources to proceed unless we make some moves somewhere. You have 160 unit portfolios and owe money to various funds. We all want a plan and know what kind of needs we want to hit. What we don't know are the moves. We need to know the constraints and opportunities. If Lilac Place is two levels, and doesn't work for seniors, is there no equity in it? Is there a market for it? He asked if it would make sense to convert it and sell low income condos. Once you acquire a 12 -plex and its operating, you are already better off than most of the other things that come by Steve said you could combine these properties and pay for the development costs. The debt on Lilac, Regal Square and Regal Court comes due in 2014, at 5.5% and probably isn't pre- payable. If you can add that to the tax credit properties, plus the public housing, it is an interesting possibility to add to the land idea with 24 -30 units of senior property on. Bank qualified tax exempt bonds are government purpose, issued by a housing authority. That's it. Private activity bonds have to have debt, but its debt issued by a taxable partnership, so it's a private activity. The interest rate to a bank is not as good as a tax exempt. 30 year amortization depresses the cost of the debt service. Frank said our biggest tools would be what Steve is describing, putting together a tax credit partnership. Our plan is to see how the market goes. The plan for the second phase of Josephine Commons, most of those are going to be permanently affordable rental unit, will be in a PAD 4% deal, moving a bunch of housing units and other properties that we will pull out of.