MEMORANDUM FOR: Susan K. Zagame, Deputy Assistant Secretary for Policy,
Financial Management and Administration, HP

ATTENTION:

Ross Kumagai, Director, Funding Control Division, HPFC

FROM: Thomas T. Demery, Assistant Secretary for Housing, H

SUBJECT:

Section 8 Loan Management Set-Aside (LMSA) Discretionary Units
FHA Project No. 048-44001, Amy Jo Manor

Please process an assignment of funds from the Section 8 LMSA Headquarters' discretionary holdback for the subject project according to the attachment. The project's current Section 8 contract provides for subsidy on 91 units plus an additional 25 units by a special authorization of payments from HAP reserves. The 44 units initiated here will provide for 100 percent Section 8 subsidy in the project.

Questions regarding this memorandum should be directed to Eileen Walker on
A data diskette is provided.

755-5654.

Attachment

with 85K wire..

85k off of 265 12 for repous +

put up a 4.0.7 to

24 month

also I fees to be repaid immediately.

3 year repair period.

125 thou loc

For the purpose of completing preliminary TPA approval on the Amy Jo Manor Apartment project, we propose the following based on our discussions:

1.

2.

3.

Flexible Subsidy Loan - As required, $125,000 of the existing
outstanding balance of $375,000 will be paid at closing of
the transfer of ownership reducing the outstanding flexible
subsidy loan balance to $250,000. The new ownership will
assume the flexible subsidy loan agreement dated July 1,
1981. A modification to that agreement will be made
reflecting the new loan balance as $250,000.

Development Repairs We have agreed to provide $320,000 for
the purpose of making repairs to the property. It is our
understanding that the HUD-Detroit inspection report will
reflect an amount of approximately the same amount of
$320,000. It is our proposal that the $320,000 of repairs
be spread over three years, commencing with the transfer of
ownership. As security for completion of these repairs, we
will provide HUD with a letter of credit in the amount of
$125,000.

Deferred Principal Workout Agreement Dated November 1, 1986. We would propose that the Workout Agreement be assigned to the new ownership entity and extended for fifteen years from the date of transfer of ownership. We will agree to enter

Real Property Services Corp.

1935 Camino Vida Roble

Carlsbad, CA 92008

619/431-9100 Telefax 619/431-9156