HUD-FHA Programs. Our extensive HUD practice includes representing owners and lenders in all types of HUD loan closings, and providing representation in connection with Transfers of Physical Assets (TPAs), HUD’s Mark-to-Market (Mortgage Restructuring) OAHP Program involving the restructuring of Section 8 assisted properties, HUD’s Section 236 “decoupling program”, project based section 8 programs and transferring project based Section 8 contracts to a new site, and HUD’s Section 202 prepayment and repositioning initiatives. We represent owners of eligible low-income housing in connection with the recapitalization, refinance, or sale of projects pursuant to the Emergency Low-Income Housing Preservation Act of 1987 or the Low-Income Housing Preservation and Resident Homeownership Act of 1990. We have extensive experience in HUD administrative enforcement matters, including Form 2530 Previous Participation Clearance issues, adverse project physical inspections and management reviews, Abatement of Section 8 contracts, Lead-based paint compliance, HUD Inspector General Audits and Investigations and Real Estate Assessment Center matters.
Real Estate Transactions and Real Estate Finance. We represent lenders, developers and owners in connection with the sale, acquisition, development, and financing of all types of real estate properties, including commercial, residential and industrial developments, and with the purchase and sale of parcels of land, and have represented clients in all forms of commercial and residential leasing activity. We have also have represented both developers and lenders involved with the financing, development and acquisition of health care facilities. We perform the requisite legal work for traditional construction, permanent, and acquisition mortgage loans, as well as more specialized real estate financing transactions, such as leasehold mortgage loans, mortgage warehouse facilities, conduit loans, securitized loans, and sale-leasebacks.
Our attorneys have extensive experience representing both borrowers and lenders, including representing borrowers and lenders regarding HUD Transfers of Physical Assets (TPAs), partial and full payment of FHA insurance claims and mortgage reinstatements, and the submission and negotiation of workouts of defaulted loans.
Bond and Tax Credit Transactions. We have extensive experience in connection with transactions involving multifamily housing revenue bonds, Low Income Housing Tax Credits and Historic Tax Credits, including transactions which also involve the use of both taxable and tax exempt financing, HOME funds, local or state housing funds, and/or which are subject to a subsidy-layering review by HUD or a state housing finance agency. We help structure the financing, close the acquisition, and issue the necessary opinions to the Issuer, Underwriter, Lender and Trustee.
As Lender’s counsel on a recent closing, we worked with the two separate agencies to obtain approvals to close the FHA insured loan. We successfully obtained an amendment to a ground lease wherein the governmental agency agreed to re-subordinate its ground lease and the tax credit agency agreed to subordinate its tax credit land use restriction. Another recent closing as Lender’s counsel, we worked with the tax credit investor and HUD to close a transaction involving Historic Tax Credits for a portion of a building and which also involved as part of the financing a property tax exemption for a 12-year period.
Fannie Mae and Freddie Mac. We are involved with the closing, refinancing, assumption and workout of loans originated under the Fannie Mae Delegated Underwriting and Servicing (DUS) and Prior Approval programs, both cash and MBS product lines, and are familiar with the range of Freddie Mac’s multifamily mortgage programs.
We have represented owners and have advised lenders in all facets of the Section 8 programs. We have recently closed a HUD-insured Section a 221d4 project in Omaha that included bonds, tax credits with the local finance agency and a mark up to budget rent increase while representing the lender and submitting the documents with our closing package to HUD for approval, noting the Section 8 increased rents under the Mark up to Budget program supported the new debt service. We closed a project where we represented the Purchaser in which we were instrumental in securing a Housing Assistance Contract under Section 8 that provided for a 20 year renewal contract and where we were able to obtain Rent Increase Approval Letters from HUD prior to closing at the levels required by the Purchaser.
State and County Housing Programs. Our practice extends beyond the federal arena to encompass state and local housing programs. We have particular experience with the various housing finance agencies in California, and have represented clients in connections with transactions involving City and County Housing Agencies, Redevelopment Agencies, the California Housing Finance Agency, the California Tax Credit Allocation Committee, the California Debt Limitation Allocation Committee, and the California Department of Housing and Community Development..
Nonprofit Housing Providers. We have assisted in the formation of nonprofit entities and represented nonprofits in their acquisition, management, and financing of projects, including transactions involving joint ventures with private entities and the HUD preservation programs. We have represented Nonprofits who desire to prepay their HUD insured loans in order to recapitalize and rehabilitate the property through Bonds and Tax Credits, most recently involving a LIHPRHA property with a 50 year Use Agreement.
Formation and Operation of Business Entities. We assist clients in selecting and preparing the proper legal vehicle for real estate projects and investments, such as co-tenancies, joint ventures, general and limited partnerships, limited liability companies, corporations, and trusts, in order to provide the best opportunity for financial profitability, and to accommodate the particular needs of each particular client. We also counsel entities regarding operating issues once the entities are formed.
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