Louisville Housing Authority Agenda and Packet 2012 06 26

Home Browse Search

Ernie motioned to move for engagement with Wagenlander & Heisterkamp Kelly seconded the motion. Motion carries unanimously. Status of Lydia Morgan LIHTC partnership expiration Ben Doyle, Assistant County Attorney, and outside counsel, Paul Smith, have been working on this partnership expiration agreement. Lydia Morgan ownership structure is a low income tax credit partnership. 20% of the building is owned by Bank One, since bought out by JP Morgan Chase. 80% is owned by Enterprise. At the 15 year point, tax- credit properties contemplate restructure /refinancing. The original investors leave and the ownership is consolidated into fewer owners. The senior lender, Wells Fargo, must consent to all this. They have not done this. If the LHA board approves, we will buy out JP Morgan/Chase, Enterprise. LHC will remain in as a partner. This property will then be owned entirely by those two parties. The next step is that the partnership, the legal entity that owns the building, will sell it to LHA. The benefit is simplification, allowing us to dissolve the Lincoln Street partnership and to dissolve the Louisville Housing Corporation. Under the IGA, this property would transfer from LHA to BCHA. We have complied with everything and the property has served its tax credit purpose. The list of things that this property needs will be incorporated into the new debt. The end result of all this is that LHA owns the property. The way that these deals are typically financed, is that LHA loaned money to the partnership to help make the deal happen. Instead of requiring the partnership to pay up on the debts, LHA will forgive the debts and get title to the property. Walt motioned to approve Resolution 2012 -05. Ernie seconded the motion. Motion approved unanimously. Approval of Resolution 2012 -05 for Lydia Morgan LIHTC partnership expiration Public Housing Disposition Application There was a discussion of applying for Public Housing disposition for Hillside. Willa said that the residents would receive tenant protection vouchers. They may elect to stay in place, or can use the voucher in the private market. Frank said that Hillside is losing money. Tenants only pay 30% of their income, and HUD subsidy doesn't cover the cost to operate public housing. Disposition allows you to remove those restrictions, giving tenants a replacement voucher. We have to maintain properties in an equal number of units, doing that in a way that eliminates that shortfall. More discussion of IGA logistics: Jeremy said that we have each party making their best efforts to obtain consent for HUD Regal Square and other properties. Hillside disposition will likely take the longest. We have not approached Sunnyside for lender consent. At that point BCHA will be the general partner. Update on encroachment at Acme Place Jeremy said it looks as if the neighbor is encroaching on LHA property. It is, in fact, the other way around. As far as any potential disputes with the neighbor, BCHA will take steps to make certain the property is transferred so that BCHA will potentially be the adverse possessor having occupied the spot for the last 20 years. 4