Project Disposition Philosophy
In its role as Fund Manger, NEF is charged with managing the disposition of projects in the Funds as they reach the end of their 15-year compliance period, and in winding up the affairs of the Funds. In performing this function, NEF's policies and objectives are as follows:- Uphold NEF's fiduciary responsibility to investors.
- Dispose of the Fund assets in a manner that minimizes displacement of current low-income tenants, promotes the long-term continued low-income use of the property, and promotes the purchase of properties by NEF's non-profit partners that seek to purchase and are in good standing.
- Manage the Funds in a manner that meets or exceeds the targeted internal rate of return to NEF investors, while also minimizing the impact of capital gains taxes to investors resulting from project dispositions, to the extent possible.
- Dispose of the Fund assets in a manner that maintains positive community relations.
- Timely wind up the affairs of the Fund Limited Partnership as contemplated in the Fund offering.
- Provide clear and concise reporting to investors regarding dispositions, including forecasts of anticipated capital gains taxes in order to assist investors in their tax planning.
Featured Project: Seneca SRO
This $15 million project exemplifies both collaboration and creative financing that addresses a dire housing shortage in Buffalo, N.Y. Developed by two organizations with stellar track records -- DePaul Group and STEL -- in providing supportive housing for persons living with psychiatric disabilities and other special needs populations, the 75-unit Seneca SRO was built upon the former site of an asbestos-ridden bowling center, and it is one of the first projects to leverage tax credits and private debt with OMH funding.
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