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Louisville Housing Authority <br />BOARD MEMO <br />Date: May 19, 2012 <br />To: Board of Commissioners <br />From: Frank Alexander, Executive Director <br />Re: Board Report for May 29, 2012 Meeting <br />Action Item <br />Resolution for Lydia Morgan LIHTC partnership expiration <br />We are seeking LHA board approval of the attached resolution authorizing the closing transaction and <br />expenditure of funds to buy out JPMorgan Chase and Enterprise, limited partners in the Lincoln <br />Street Elderly Limited Partnership, which owns Lydia Morgan. The JPMC exit terms are very favorable for <br />LHA: they have agreed to a buyout price of $100 plus no more than $2,000 in attorney fees. There will be no <br />exit tax liability for LHA to pay. Buyout terms from Enterprise are even better: $10 buyout price, no <br />attorney fees, and no exit tax liability. <br />immediately following the exit of both limited partners. The proposal is that Lincoln Street Elderly Limited <br />the Partnership. This is typical for this phase of a LIHTC project and in accordance with the expectations of <br />LHA and LHC back in the mid-1990s when the project was originally financed and built. <br />We are still awaiting written consent for these transactions from first mortgage lender Wells Fargo, which is <br />required by the financing documents, but expect that response within days. In addition, in order to complete <br />these exit transactions, we need written approval from Louisville Housing Corporation, the general partner <br />of the Partnership, which staff also seeks to obtain today. <br />Discussion Items <br />April Financials <br />LHA Portfolio Analysis <br />recommendation that we move forward with an intergovernmental agreement (IGA) between BCHA, LHA, <br />and City of Louisville. Assistant County Attorney Jeremy Durham is currently working on drafting the IGA <br /> <br />A commitment from BCHA to maintain a minimum of 116 units of affordable housing in <br />Louisville in perpetuity <br /> <br />A commitment from BCHA to acquire and/or develop additional affordable housing in a finite <br />period of time. The numbers used in discussion have been 15 units in five years. <br /> <br />Provision for the appointment of a Louisville resident to the Boulder County Housing and <br />Human Services Advisory Board <br /> <br />Provision for the transfer of property titles and currently financial obligations from LHA to <br />BCHA <br />8 <br /> <br />