memoBuffaloRidgeMEMORANDUM
TO: TOWN COUNCIL ACTING AS THE TOWN OF AVON HOUSING AUTHORITY
FROM: TOWN ATTORNEY
RE: BUFFALO RIDGE APARTMENTS
DATE: December 6, 2004
In May of 2002, the
Council, acting as the Town of Avon Housing Authority, authorized the Buffalo Ridge II Apartments, an affordable housing project jointly developed by Corum Real Estate Group and Wintergreen
Homes. The project is owned and operated by Buffalo Ridge II, LLLP. The Council sponsored the issuance of Private Activity Bonds by Buffalo Ridge II to finance the project.
In
order to secure exemption from the ad valorem tax otherwise assessed against the project, the Authority was admitted as a special limited partner of Buffalo Ridge II (under the Housing
Authority Law, a housing project may be exempted from taxation if the Housing Authority has an “ownership interest”). Neither the Town nor the Authority has any rights or obligations
as a special limited partner, with the exception that the Authority’s consent to any amendment to the limited partnership agreement is required.
The Town has now been requested to
agree to an amendment to the limited partnership agreement which will permit its amendment without the consent of the Authority so long as the amendment does not affect its rights or
obligations under the Agreement, in the judgment of the General Partner and Investment Partner.
Inasmuch as the Authority has no rights or obligations under the agreement, I recommend
that the amendment be agreed to.
JWD:ipse