City of Milwaukee - File #: T291

• File #: T291
• Version: 0
• Type: Travaux Resolution
• Status: Passed
• File created: 9/7/2022
• In control: TRAVAUX INC. BOARD OF DIRECTORS
• On agenda: 9/16/2022
• Final action: 9/16/2022
• Title: Resolution approving the acquisition of membership interests in Cherry Court Development LLC The HACM, through its wholly owned LLC “Cherry Court LLC”, managing member, is acquiring the investor member interest in the Cherry Court Project. This is a 120- unit multifamily building constructed and funded with Low Income Housing Tax Credit. The entity that owns this project is Cherry Court Development LLC. This project had already passed the 15-year compliance period. The investor is selling their interest in the project for $1 and a disposition fee of $4,000. All disposition fees will be paid by HACM. To preserve the Limited Liability status of Cherry Court Development LLC, Travaux will be acquiring .001% interest in the LLC. “Cherry Court LLC”, its Managing member will acquire 99.99% of the investor interest.
• Sponsors: THE CHAIR

Date	Ver.	Action By	Action	Result	Tally
9/16/2022	0	TRAVAUX INC. BOARD OF DIRECTORS	ADOPTED; Minutes note: Fernando Aniban, HACM’s Assistant Secretary, summarized the documents included on the agenda and answered Director questions about the property’s profitability and occupancy rate.	Pass	8:0

Number
T291

Version
Original

Reference

Sponsor
The Chair

Title
Resolution approving the acquisition of membership interests in Cherry Court Development LLC

The HACM, through its wholly owned LLC “Cherry Court LLC”, managing member, is acquiring the investor member interest in the Cherry Court Project. This is a 120- unit multifamily building constructed and funded with Low Income Housing Tax Credit. The entity that owns this project is Cherry Court Development LLC. This project had already passed the 15-year compliance period. The investor is selling their interest in the project for $1 and a disposition fee of $4,000. All disposition fees will be paid by HACM. To preserve the Limited Liability status of Cherry Court Development LLC, Travaux will be acquiring .001% interest in the LLC. “Cherry Court LLC”, its Managing member will acquire 99.99% of the investor interest.

Analysis

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

WHEREAS, Cherry Court Development LLC, a 120 units Multifamily 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 Cherry Court Development LLC desires to exit and sale its interest in the project to Cherry Court LLC; and

WHEREAS, to maintain the Limited Liability Company status of the Cherry Court Development LLC, HACM and Cherry Court LLC will allow Travaux, Inc, a Wisconsin corporation and an instrumentality of HACM, to assume membership interest in Cherry Court Development LLC; and

WHEREAS, Cherry Court LLC desires to acquire 99.99%, and Travaux, Inc., a Wisconsin corporation (“Travaux”), to acquire 0.001%, of the membership interests in Cherry Court Development LLC from Nationwide Affordable Housing Fund 34-Apollo Tax Credit Fund-60, L.L.C., a...