Louisville Housing Authority Agenda and Packet 2012 03 13

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Background Information The Louisville Housing Authority ( "LHA" or the "Authority ") engaged S.R. Clark Companies, through an already existing contract with the Boulder County Housing Authority ( "BCHA "), to complete an analysis of their housing portfolio ( "Portfolio Analysis "). Work commenced on the Portfolio Analysis in May 2011 and this report represents the initial findings and preliminary recommendations to support discussion with LHA Board and staff leadership, A final report will be delivered with clarified recommendations. LHA owns 116 units of affordable housing in 7 different properties located throughout the City of Louisville, Colorado. For the purpose of this report, the properties are grouped in the following categories: • Affordable Multi - Family Housing: These are the four properties in LHA's Portfolio (Acme, Lilac, Regal Court II, and Regal Square) which are not public housing or low- income housing tax credit properties. Such properties are owned outright by the Authority and are generally operated without specific rent restrictions or tenant qualification requirement with the exception of Regal Square, which benefits from Department of Housing and Urban Development (HUD) Housing Assistance Program (HAP) contract (to be discussed in more detail below). ➢ Low Income Housing Tax Credit ( "LIHTC ") Properties: Lydia Morgan (Lincoln Street Partnership) and Sunnyside (East Street Partnership) are LHA's two LIHTC properties and are therefore restricted by the land use regulatory agreement associated with the award of the tax credits and the operating partnership agreements made with the tax credit investor. The LURA restrictions run for multiple decades while the partnership agreement runs until the end of the 15 -year tax credit compliance period. In the case of Lydia Morgan, the LIHTC compliance period concludes as of December 31, 2012, and for the case of Sunnyside as of April 19, 2016. A. HUD Public Housing: Hillside Square (13 units) is a HUD Public Housing property receiving both public housing operating subsidy and capital grants. Tenants must be income qualified and typically pay very low or no rent. Objectives The objectives of the LHA Portfolio Analysis are as follows: ➢ To assess the financial and operational viability of each housing property; > To identify alternative financing approaches were beneficial; Louisville Housing Authority Page 2 Portfolio Analysis Summary Report 17