Susan Ellinger, Heather McDowell and Steven Carr of the Ellinger Carr law firm will be the featured speakers and trainers at the upcoming annual conference and training meeting for the North Carolina Housing Authority Directors Association in Wilmington on September 23. Topics include a North Carolina legislative update, the HUD RAD conversions and financing program, and personnel management issues.
Archives for 2013
Financings, closings for affordable housing top $335 million
August 14, 2013 By
Over the past twelve months, Ellinger Carr lawyers have counseled and assisted with the closings of more than 20 complex commercial transactions for the investment of more than $335 million in equity and debt financings of multifamily affordable housing apartment complexes. These closings provided for tax credit financing, including tax credits allocated by the North Carolina Housing Finance Agency and similar housing finance agencies in other states, for commercial real estate developments in affordable and senior communities in North and South Carolina, and in Florida, Georgia, Louisiana, Tennessee, Texas and Virginia.
Ellinger Carr is presently advising and assisting public housing authorities, other public housing agencies and other clients with implementation of the Rental Assistance Demonstration (RAD) program of the United States Department of Housing and Urban Development (HUD). RAD is similar to previous HUD mixed finance initiatives, like the HOPE VI program used for redevelopment of public housing communities, including recent HOPE VI project closings and financings that Ellinger Carr lawyers assisted with in Charlotte, Greensboro, Raleigh and Wilmington, North Carolina and Richmond, Virginia. Our firm’s lawyers also have counseled and assisted with special bond financings under the HUD Capital Fund Financing Program (CFFP). The lawyers have closed multiple CFFP transactions providing more than $30 million in capital investments and improvements to public housing units in the Carolinas and elsewhere in the United States. 
Ellinger Carr is a business law and commercial real estate law firm based in Raleigh, North Carolina. Providing safe, affordable housing for families, seniors and developmentally disabled persons has long been a part of the work of the Ellinger Carr law firm, in communities in the Carolinas, the Southeast and elsewhere in the United States. The firm’s lawyers are experienced and knowledgeable counselors, transaction specialists and business problem solvers, admitted to practice in North Carolina, South Carolina, Florida, Louisiana and New York. For assistance in affordable housing, HUD financing, commercial real estate and corporate/business development matters, call 919-785-9998 or email Susan Ellinger at sellinger@ellingercarr.com or Steven Carr at scarr@ellingercarr.com.
Ellinger Carr advising, assisting Housing Authorities with RAD Financing and Conversion Program
August 12, 2013 By
Ellinger Carr is now advising and assisting public housing authorities, other public housing agencies and other clients with implementation of the Rental Assistance Demonstration (RAD) program of the United States Department of Housing and Urban Development (HUD). Providing safe, affordable housing for families, seniors and developmentally disabled persons has long been a part of the work of the Ellinger Carr law firm, in communities in the Carolinas, the Southeast and elsewhere in the United States.
Susan Ellinger, the firm’s founding member, has announced that the firm’s lawyers are working currently with housing authorities, non-profits and lenders to apply for and to facilitate the RAD conversions of existing public housing units, where conversions are financially feasible, with private debt and equity financings.
“The RAD program is the latest HUD innovation and initiative designed to convert public housing properties to long-term, project-based Section 8 rental assistance in order to achieve certain goals, including preservation and improvement of existing properties and good quality housing in our communities,” Ms. Ellinger said. “To meet these goals, RAD provides housing authorities and other owners of these properties with access to private debt and equity financing to address both immediate and long-term capital requirements.”
Ms. Ellinger explained that RAD is similar to previous HUD mixed finance initiatives, like the HOPE VI program used for redevelopment of public housing communities, including recent HOPE VI project closings and mixed use financings that Ellinger Carr assisted with in Charlotte, Greensboro, Raleigh, and Wilmington, North Carolina and in Richmond, Virginia.
“RAD offers new financing flexibility and alternatives for housing authorities, and HUD has committed to a relatively quick and streamlined application and financing process for eligible properties and owners,” Ms. Ellinger noted.
Ellinger Carr is a business law and commercial real estate law firm based in Raleigh, North Carolina. Ellinger Carr lawyers are experienced and knowledgeable counselors, transaction specialists and business problem solvers, admitted to practice in North Carolina, South Carolina, Florida, Louisiana and New York. For assistance in affordable housing, HUD financing, commercial real estate and corporate and business development matters, call 919-785-9998 or email Susan Ellinger at sellinger@ellingercarr.com or Steven Carr at scarr@ellingercarr.com.
Grand Opening for Affordable Multifamily Apartments in Greenville, North Carolina
April 22, 2013 By
The NRP Group celebrated a grand opening and ribbon-cutting for its latest addition to the NRP Group’s portfolio of affordable multifamily housing, the Winslow Pointe community, in Greenville, North Carolina.
On March 20, NRP co-founder and principal, Alan F. Scott, hosted Mayor Allen Thomas and Mayor Pro-Tem Rose Glover and other guests from Greenville to announce the completion and lease-up of the Winslow Pointe community, serving 84 families with one-, two- and three-bedroom apartments, representing a $10.9 million investment in safe, affordable housing and fully-equipped kitchens with Energy Star appliances, and a community clubhouse with a community room, Internet access, fitness center and playground facilities.
The Winslow Pointe community is the NRP Group’s latest North Carolina affordable housing community, financed in part with Federal and State affordable housing tax credits and permanent loan financing. The Ellinger Carr law firm served as counsel to the construction lender, Bank of America, for the initial construction phase of the project.
NRP Group has built more than 18,000 housing units since its founding in 1995, and it manages 96 communities encompassing more than 10,000 market rate and tax credit family and senior apartment properties in North Carolina, Ohio, Michigan, Virginia, Texas, Indiana, New Mexico, Florida and Arizona. It soon will begin construction on its latest North Carolina tax credit property in north Raleigh, North Carolina.
Ellinger Carr is a business law and commercial real estate law firm based in Raleigh, North Carolina. Ellinger Carr lawyers are experienced and knowledgeable counselors, transaction specialists and business problem solvers, admitted to practice in North Carolina, South Carolina, Florida, Louisiana and New York.
Among more recent transactions, on April 18, 2013 Ellinger Carr, serving as counsel to the construction lender, Bank of America, concluded a $21.9 million construction and equity financing closing for rehabilitation and new construction of a 95-unit affordable housing property in New Port Richey, Florida.
For assistance in commercial real estate and corporate and business development matters, call 919-785-9998 or email Susan Ellinger at sellinger@ellingercarr.com or Steven Carr at scarr@ellingercarr.com.
HOA Disputes May be Submitted for Voluntary Community Mediations if House Bill 278 Becomes Law
March 26, 2013 By
Matters relating to real estate under the jurisdiction of a condominium or homeowners’ association (HOA) about which the condo association or the HOA and a member or members cannot agree or from which a dispute arises may have an opportunity to submit the dispute to a neutral mediator, for a nonbinding mediation session, before formal proceedings and litigation are commenced by the parties, if a recently introduced bill becomes law in the North Carolina General Assembly.
House Bill 278 was introduced March 12, 2013, by State Representatives Deborah Ross and Duane Hall, both of Wake County. The bill proposes to establish a voluntary pre-litigation mediation process for resolution of HOA disputes by local community mediation centers. Disputes covered by the bill include those arising under Chapter 47C of the General Statutes (the North Carolina Condominium Act) and under Chapter 47F of the General Statutes (the North Carolina Planned Community Act) or under an association’s declaration, bylaws, or rules and regulations.
The mediation would be initiated either by an HOA or a member/owner. Certain disputes related solely to a member’s failure to pay timely an HOA assessment or any fines or fees associated with the levying or collection of an association assessment would not be eligible for mediation under the proposed law.
Start Up with an LLC? What Does Your Operating Agreement Say?
March 24, 2013 By
It’s fairly easy to start up and to organize your limited liability company (LLC) with the filing of articles of organization with the North Carolina Secretary of State’s office. Many clients file the articles themselves. The LLC has become one of the most popular forms of business entity among new businesses being formed.
Owners of an LLC are called members. Members may include individuals, corporations, other LLCs, and even foreign entities. There is no maximum number of members. Most states, including North Carolina also permit “single-member” LLCs, those having only one owner. However, because of significant potential liabilities, and both legal and tax consequences, if your LLC has more than one member or owner, we advise our clients to think about and to write and agree on a clear and unambiguous operating agreement. There are also securities law requirements and considerations if you have multiple members investing equity capital in your LLC.
The operating agreement works like a partnership agreement, as the owners/members are treated for tax purposes like partners, or like a shareholders’ agreement in a closely held corporation. A written operating agreement is not required by North Carolina law, but the absence of a clear understanding and written agreement on key points of the business between the members leaves much to chance and may lead to potential disputes and headaches later.
What details should the operating agreement cover? Well, some fundamentals include the following questions you and your fellow members should discuss and agree on:
- How much capital do we need for our start up? How much is each member investing for a percentage ownership interest?
- Will the LLC need to borrow money, from members or third parties?
- Who is the manager, and who selects the manager?
- When the LLC earns income, how will distributable cash be distributed, and when, or how will money earned be reinvested in the business?
- How will major decisions of the LLC be made? Do we need the members to agree unanimously or by some supermajority vote requirement on the big issues?
- What happens if the members can’t agree, or become deadlocked? How are disputes resolved, or should we include a buy/sell provision if we can’t work out our differences?
- Can the members compete with each other and with the business of the LLC?
- Can the members bring a legal action or arbitration to resolve a dispute or to sue for breach of the operating agreement or a member’s failure to make a capital contribution?
These questions and other issues unique to your LLC’s business and your business plan should be discussed and agreed on by the members who are bringing their capital, their talents and labor to the new business, and memorialized in a writing prepared by your lawyer, along with advice about tax and accounting- related provisions from your accountant and tax advisor.
