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File #: R13404    Version: 0
Type: Housing Authority Resolution Status: Passed
File created: 5/31/2023 In control: HOUSING AUTHORITY
On agenda: 6/7/2023 Final action: 6/7/2023
Effective date:    
Title: Resolution approving and authorizing the acquisition of membership interests in Scattered Sites LLC
Sponsors: THE CHAIR
Attachments: 1. Assignment and Assumption of Membership Interests and Third Amendment to the Amended and Restated Operating Agreement
Date Ver.Action ByActionResultTallyAction DetailsMeeting DetailsVideo
6/7/20230 HOUSING AUTHORITY ADOPTED

Minutes note: Fernando Aniban, HACM’s Assistant Secretary, provided background information regarding the acquisition of membership interests in Scattered Sites LLC. He explained that the 24 single family homes were funded with Low Income Housing Tax Credits and that the LLC has reached the end of its 15-year tax credit compliance period. HACM would like to acquire the Investor Member’s 99.991% membership stake for the purchase price of $42,000.
Pass4:0 Action details Meeting details Not available

Number

R13404

 

Version

Original

 

Reference

 

Sponsor

The Chair

 

Title

Resolution approving and authorizing the acquisition of membership interests in Scattered Sites LLC

 

Analysis

 

Body

WHEREAS, HACM is the sole member of Scattered Sites Development LLC, a Wisconsin limited liability company, which is the managing member of Scattered Sites LLC, a Wisconsin limited liability company (“Scattered Sites”); and

 

WHEREAS, Scattered Sites, comprising of 24 units scattered site building funded with Low Income Housing Tax Credit had already completed its 15 year tax credit compliance period; and

 

WHEREAS, the tax credit investors in Scattered Sites desires to exit and sale its interest in the project; and

 

WHEREAS, the Housing Authority of the City of Milwaukee (HACM) desires to acquire 99.991% of the membership interests in Scattered Sites from Nationwide Affordable Housing Fund 35 - Red Stone Equity Fund-2, LLC, a Delaware limited liability company (the “Investor Member”), Red Stone Equity Manager, LLC, a Delaware limited liability company (the “Special Member”, and together with the Investor Member may be referred to herein as the “Assignors”, pursuant to the terms of the Assignment and Assumption of Membership Interests and Third Amendment to the Amended and Restated Operating Agreement (the “Agreement”) by and among Assignor, HACM and Scattered Sites Development LLC.

 

NOW, THEREFORE, BE IT RESOLVED, by the Housing Authority of the City of Milwaukee that the execution and delivery of such Agreement is hereby approved and the proper officers of HACM and Scattered Sites Development LLC are hereby authorized and directed to execute and deliver such Agreement in such form and substance as may be approved by the Secretary-Executive Director; and be it

 

FURTHER RESOLVED, that the proper officers of HACM, Scattered Sites Development LLC or the Secretary-Executive Director is hereby authorized and directed to negotiate, execute and deliver such Agreement on behalf of HACM and Scattered Sites Development LLC, in such form and substance as may be approved by the Secretary-Executive Director; and be it. 

 

FURTHER RESOLVED, that the proper officers of HACM, Scattered Sites Development  LLC or the Secretary-Executive Director be, and hereby is, authorized, empowered and directed, in the name of and on behalf of HACM and Scattered Sites Development LLC, to take or cause to be taken any and all actions, to sign and deliver all necessary certificates, documents, agreements, and instruments as may be necessary, appropriate, convenient, proper or advisable in furtherance of, or to effectuate the transactions contemplated by the Agreement, including the payment of the purchase price and disposition related costs specified therein.

 

Requestor

 

Drafter

Housing Management May 18, 2023