Housing Authority Weighs JT Klein Housing Partnership

OTHER

Contemplated: at least 40-year subordinate loans; Housing Authority ownership through tax credit compliance period, with exit options thereafter

Subordinate loans contemplated as noninterest-bearing with at least a 40-year term and deferred payments until maturity; Housing Authority retains ownership in the managing member through the tax credit compliance period. JT Klein may acquire the Authority’s interest for $100 after the compliance period or can be compelled to purchase at fair market value; at buyout JT Klein must also purchase the subordinate loan notes at present value of future cash flows discounted by 15%.

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