HomeMy WebLinkAboutWATERSTONE APARTMENTS - 7-97A - CORRESPONDENCE - (3)PP F4
Mr. Robert Blanchard
Waterstone Apartments
January 2, 1998
Page 2
So long as the Firm Commitment Application is submitted before SAMA approval is
given to another project, Waterston financing should remain intact. For every day
beyond January 20, that the Firm Commitment Application has not been submitted to
HUD, there is a greater risk of losing the project financing. If Ordinance No. 161 is
applied to this project, the additional delays will preclude Mr. Hubbard from keeping the
HUD -insured financing.
I hope that this has sufficiently addressed your questions. If fiuther information is
desired, I can be reached at the numbers below.
Sincerely,
John E. Raycraft
cc: Rod Hubbard
6556 South Poplar Court • Englewood, CO SO] 11-4626
Phone: 303.741.2215 • Fox: 3031.741.2221 • E-Mail: tri.den&r.netcom.eom
"A
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Financial Corporation
Lender to the Multi -Housing Industry
Correspondent Offices Nationwide
January 2, 1998
Via Fax and U.S. Mail
Mr. Robert Blanchard
Planning Department
281 North College Avenue
P. O. Box 580
Fort Collins, CO 80522-0580
Re: Waterstone Apartments
Dear Mr. Blanchard:
JAN 6 RD
John Raycraft
Associate
Rod Hubbard has asked that I contact you regarding the status of the financing of
Waterstone Apartments. The lender for this project is proposed to be_TRI Capital
Corpoiatobn. TRI Capital is processing this application as a FHA insured loan. The FHA
insured -loan process is'a two-step process: The first step is a "SALVIA Application", the
second step is a Firm Commitment Application.,The SAMA Application has been made
to FHA for project insurance: FHA/HUD will process only one project application at a
time in the Fort Collins market. Once a project is built and occupied they will consider
the next project. For that reason HUD "holds the market open" for a project for the
submission of the Firm Commitment Application for 120 days after a "SAMA" approval
has been given. The Firm Commitment Application includes the approved plans and
specifications.
A SAMA approval was given to Waterstone in April 1997. Due to delays in securing
approval of final plans and specifications, the Firm Commitment Application could not
be submitted within the required 120 days. The SAMA was then resubmitted and a new
SAMA letter was received in August 1997. During this period, HUD has essentially
precluded any other project from receiving HUD insured financing. Final plans and
specifications must be submitted by January 20, 1998 or HUD will open the. market for
another project. The delays incurred in securing approval of final plans and specifications
have jeopardized the financing of the project. After January 20, 1998; HUD will open the
market to other projects (accept -a SAMA application for'another project). This°may ,
preclude the availability of HUD=insured financing:
ATTACHMENT Q