6. Transfer of Courtyard ApartmentsNorth
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2- 14 MainStreet
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Human Resources, Inc.
P. fOx 83 00
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I? "'artner that Provides Opportunities
fior Disadvantaged Citizens to A.� � ��fiezent
May 9, 2006
Mr. James Patrick., Manager
City of Kalispell
PO Box 17
Kalispell, MT 59903
.. CourtVard Apartments
Dear Jim,
pologize for taWngOng to create and send this letter. NMHR has been doing alot
• -dons concerning the transfer f subject property
f research and discussing various
since our Iasi discussion on April 3, 2006.
April that on 2�. NMH's rf Directorsendorsed the
concept �� � off y confirming f NMHassuming ownership of the entire 32 units at Courtyard, and pursuing
the possibility f adding a community room at the project.
this transfer f ownership fart with Mat Rude
I very informative discussionCURRENT
at Montana Board of
i . His k in was NOT ASSUME THE
MORTGAGE PRIOR TO JULY . Even though such an assumption would be possible,
rs i si i n before a protect could designed
and
before LIHTC could be mid �� � p
lied for. Such a move would preclude NMfrom applying
for LIHTC for 10 years! Not a good move.
there was a mortgage balance f $2 ,727 f the
� r�firr as f March17 �retain
M f . confirmed that the City s units must
�r�g�r�� �`., frrr � aid �
• f$16,000. The current reserve is funded a 2 per month a ��� reserve - suggestedmore than double the minimum, He continuingto fund the reserve at $296
should request allowed utilize part the reserves
rmonth; r, � � to
offset operating budget somas for the next 2 years. The amount needed is
� � current
r year r$10,000.pr�� any �This will allow r andapplying for
ran m n with the City, while developing the
management r funding
� , �� mid
the variousfunding in a timely fashion, Upon successful y
.P�col)le, (7hal-N-xh-Ig- . z'
CS S'n a '
refinance the entire 32 units and assume ownership of the ity's 16 units for $1.00 or
other value as agreed;
n the past several weeks, NMHR has consulted with Emily Chen of National Equity Fund
(NEF),, Toby Halliday of Local Initiatives support Corporation LIS , Blake Chambliss
and Tracy Dutsor , both private consultants on preservation projects.
Mat Rude supported the concept of the assumption of the Courtyard Apartments by
NMHR and recommended that the City of Kalispell give MBOH a written request ASAP to
utilize reserves for the budget shortfalls for the next 2 years. This strategy will provide
NMHR and the City time to work out the details of the transfer of ownership and the
future of the Courtyard Apartment complex, A "nod of approval of the concept" from
the City Council will be necessary to continue to the next steps; including applications
for financing, project needs analysis and the myriad of other details*
I look forward to working with you and your staff on this project# If you have questions,
please contact lane Dolan or met 752-6565.
Sincerely,
Doug s . R th
Executive Director