With our assistance, Hollybrook Farms in Laurel, Delaware is the first Delaware recipient of Tax Credit Exchange Funds under the American Recovery and Reinvestment Act (ARRA). This amazing achievement was celebrated Tuesday, September 1st with a guest list that included, Delaware’s Governor Jack Markell and United States Senator Tom Carper. A press release just released by our client is attached. The ARRA is providing necessary funds to preserve affordable housing for 124 families and nearly 200 construction jobs. This could not have happened without the team work all the partners in the transaction showed, including the Delaware State Housing Authority, United States Department of Agriculture Rural Development, Bonneville Mortgage and Greystone Bank. In addition, it took the tireless devotion of the developer, Edwards and Layfield Development Company, to the success of this important development.
I toured a unit Tuesday and I think Architectural Alliance (architect) and Gillis Gilkerson (contractor) did an amazing job. The tenants who attended the event agree with me and it is clear by their words and smiles how proud they are of their newly remodeled homes.
In the Spring of this year, the investor limited partner notified the partnership that they would be unable to fund any further equity installments. But for the ARRA, this would have meant the end of the development as an affordable housing community. It seems in the past, when negotiating the partnership agreements, most of the attention is spent on developer, contractor, general partner and management agent performance. No one ever expected the investor limited partner to run out of funds due to the equity market collapse. While most partnership agreements I have seen provide clear remedies for these circumstances, I think it merits special discussion these days and going forward.
Please do not hesitate to contact me with any questions.