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File #: R13405    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 II LLC
Sponsors: THE CHAIR
Attachments: 1. Assignment and Assumption of Membership Interests and Third Amendment to the Amended and Restated Operating Agreement, 2. Compliance and Indemnity Agreement- Scattered Sites II
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 II LLC. He explained that the 24 single family homes were funded with Low Income Housing Tax Credits and the LLC will reach the end of its 15-year tax credit compliance period in December of 2023. HACM would like to acquire the Investor Member’s 99.991% membership stake for the purchase price of $43,000.
Pass4:0 Action details Meeting details Not available
Number
R13405

Version
Original

Reference

Sponsor
The Chair

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

Analysis

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

WHEREAS, Scattered Sites II, comprising of 24 units scattered site building funded with Low Income Housing Tax Credit will complete its 15 year tax credit compliance period by 12/31/23; and

WHEREAS, the tax credit investors in Scattered Sites II desires to exit and sale its interest in the project but will also require the Housing Authority of the City of Milwaukee to execute Compliance and Indemnity Agreement which will be in-forced until the end of the compliance period; and

WHEREAS, the Housing Authority of the City of Milwaukee (HACM) desires to acquire 99.991% of the membership interests in Scattered Sites II from Red Stone - Fund 9 Limited Partnership, a Delaware limited partnership (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 II, 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 II, 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 o...

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