Jordan Ramis pc. Attorneys at law

Finance for Non-profit

Restructuring to Rebuild Facilities

Problem

  • Our client's office site was destroyed by a fire.  For insurance purposes, the value was insufficient to facilitate adequate replacement of the facility, and the operation needed additional residential care beds. The real property on which the operation was sited was one of three adjoining tax lots, which required consolidation into a large parcel to facilitate development.

Solution

  • The property was consolidated and two separate entities created.  One entity was for an office clinic site and the second entity was for apartments. 
  • A commercial condominium was formed, funding of the office clinic with state-backed bonds was negotiated through a national bank, and secondary financing was obtained from state and county funds. The principal apartment funding from HUD was negotiated again with local and state-backed secondary funding.
  • All county and local permits were obtained.

Results

  • The consolidation of multiple sites was allowed.
  • The commercial condominium was approved by the state.
  • A fourteen-unit apartment building was constructed and occcupied as was an office/clinic building.