“The Whole Caboodle: Understanding the Legal Documents in a Multifamily Housing Closing”
Pre-Conference Institute
Wednesday, March 8
Presenters: Isabel Brown, William DiCamillo, Elizabeth Klueck
Each affordable development project has a voluminous set of loan documents, such as loan agreements, regulatory agreements, promissory notes, deeds of trust, and assignment agreements from multiple lenders. In addition, there may be documents that govern the ownership structure, such as an operating agreement and a partnership agreement with an investor, plus other documents. Then, throw in architect and construction contracts, and there are enough documents to make your head spin! At best, it is a headache to read through all these documents. At worst, they contain pages and pages of legalese so intimidating and confusing that the documents are ignored. This workshop will unravel the mystery of all this paper so that you can understand why these documents are so important and what they do. It will also help you get a handle on how to review and negotiate these documents so that you can communicate your organization’s goals to your lenders, attorneys, and other key participants in the deal.
“What Lies Beneath: The Top 10 Lurking Dangers in Standard Construction Contract Provisions”
Workshops – Session I
Thursday, March 9
Presenters: William DiCamillo, Isabel Brown
Back by popular demand!
In the sprint to closing a construction loan for an affordable housing project, the construction contract is frequently overlooked, and often misunderstood. While loan documents, partnership agreements and other documents command attention and negotiation, the construction contract, in contrast, is often treated as a mere afterthought. After all, the AIA-standard forms are mostly boilerplate stuff that someone must have thought made sense, and all we need to think about is the contract sum and the schedule, right? Unfortunately, this conventional wisdom is anything but wise, as the standard AIA construction contract is loaded with provisions that could potentially lead to shocking results. This panel will discuss the 10 most significant provisions-including some hidden risk allocation provisions and other clauses that to the untrained eye appear harmless but, in fact, fundamentally alter the owner’s expectations.
“Parking—If You Build It, Will They Come?”
Workshops – Session I
Thursday, March 9
Presenter: Eric Phillips
Structured “podium” parking is expensive. The California Tax Credit Allocation Committee and other funders are looking for ways to cut costs on development, yet parking remains a top concern for neighbors. We will look at the evolving parking construction laws and examine alternatives to building concrete parking structures. We’ll take a glimpse at future parking demand with the mass adoption of car-sharing services.
“What’s Your Game Plan?”
Workshops – Session VI
Friday, March 10
Presenters: Amy DeVaudreuil, Vincent Brown
Parting ways with a tax credit investor following the 15-year compliance period can be fraught with financial and legal issues; thus, a successful investor exit takes planning. Workshop attendees will learn what to look for when analyzing the current project and which questions to ask prior to initialing the investor’s exit. In addition, attendees will walk away with a list of tips and workable techniques for an optimal negotiation.