City Council Study Session Agenda and Packet 2012 05 08

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PAGE FOUR SUBJECT: DISCUSSION WITH LOUISVILLE HOUSING AUTHORITY (LHA) - CONSIDERATION OF LHA CONSOLIDATION WITH BOULDER COUNTY HOUSING AUTHORITY DATE: MAY 8, 2012 intergovernmental agreement that will provide for a transfer of assets and commitments by BCHA to provide additional housing units in Louisville, beyond the current portfolio. LHA, BCHA and the City would draft an IGA in coordination with attorneys from all parties, for final review and adoption by the 3 entities. To summarize, as stated in the April 12, 2012 letter provided by the LHA to the City Council 2 weeks ago (attached), the LHA believes the best path forward is consolidation of the LHA's assets with BCHA for the following reasons: • Federal funding for affordable housing programs has seen drastic cuts in recent years. • Several of the properties operate at a loss and require cash flow from other properties to sustain their operation. • The two Low Income Housing Tax Credit properties are owned through partnership with private investors, and both are nearing the end of the partnership's term, meaning that both properties will require restructuring and refinancing. • The inefficiency of having two independent housing authorities operating in Louisville has been a topic of discussion for many years. • LHA does not believe that its current structure will allow it to expand its affordable housing stock. Again, at this stage the proposal is to prepare an Intergovernmental Agreement with BCHA, LHA and the City of Louisville. The IGA would transfer current assets and liabilities to BCHA over the course of the next year in exchange for BCHA's commitment on the provision and expansion of affordable housing in the City of Louisville. Formal consideration to proceed forward in this manner would occur at the May 15th City Council meeting. FISCAL IMPACT: LHA would retain its own attorney to prepare and review the IGA with BCHA. This cost would be covered by the LHA. There would be some cost for the City Attorney to review the IGA on behalf of the Louisville City Council. RECOMMENDATION: Discussion ATTACHMENTS: 1) LHA Letter to Louisville City Council 5