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Preliminary Recommendations <br />Based on the foregoing described analysis and preliminary conclusions, S.B. Clark <br />Companies recommends the following: <br />> LHA should consider all opportunities to achieve operating efficiencies by <br />consolidation with a larger organization and /or addition of new properties new <br />existing properties. <br />➢ LHA should consider restructuring the debt on Lilac Place and Regal Court II into <br />a longer amortization loan, possibly by combination of these properties with new <br />acquisition or development and possibly along with the combination of its public <br />housing property, <br />> In the alternative, LHA may want to examine sale of Lilac Place and /or Regal <br />Court II. While there is likely little "equity" to be returned, at least the "risk" <br />capital of debt burden properties could be re- deployed into a potentially more <br />profitable development or acquisition and thereby extend the agency's mission. <br />> A comprehensive evaluation of any opportunities for property acquisition or land <br />for development should be considered to determine how best to recapitalize the <br />Hillside Square public housing asset. In the interim, subject to HUD approval, <br />disposition could be pursued. However, the benefits of net earnings for the higher <br />voucher subsidy versus the lower public housing subsidy is now being more <br />closely scrutinized by HUD. <br />The Authority should engage in planning and executing the wind -up of the Lydia <br />Morgan tax credit partnership and explore the possibility of an early exit of the . <br />investor in East Street now that the tax credits have been earned at this property. <br />At a minimum, debt restructure for a lower interest rate should be examined for <br />East Street. <br />Louisville Housing Authority Page 6 <br />Portfolio Analysis Summary Report <br />21 <br />