LIHPRHA Agreement question

ID Status Date Public/Private Industry AHACPA Contact
#7583 Closed public _General Les Sparks
Customer Reply

I have a question regarding a HUD property we audit. I am not sure how familiar you are with LIHPRHA agreements but figured it was worth a shot –

The client is wondering what happens to their rents under their LIHPRHA agreement in the event that their HAP contact doesn’t get extended. They want to know if they are bound by some sort of rent limit because of the tax credit or if they would be able to charge market rent. The client is trying to sell their GP interest and neither the potential new owners attorneys or the clients attorneys are able to figure this out based on the agreement.

Kathy Christensen

From Les Sparks:

The entire discussion depends on the actual LIHPRHA Use Agreement. With the payment of the loan and the expiration of the HAP contract (we are assuming o renewal…?) then the rents are now restricted to the use agreement or the tax credit, whichever are the more stringent.

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