Monday, October 22, 2007
Similar to the item that was reported, this simply means that the $8.5 million loan the county made in November, 2004, to AHC is even more subordinate to other loans from other lenders. The county’s subordination has moved from $50 million to $53 million.
David Cristeal, in the county's housing division, in a subsequent interview wanted to make sure people understood that the loaned amount is not increasing either in this case or in the case of Buckingham Village. Also, this subordination lasts only during the construction of the community center.
The only threat to the county’s coffers is if AHC Inc. or Buckingham M.I. Limited Partnership should default on the loans. Monies paid would be paid in order of subordination—the more subordinate the county’s loan is, the less likely it would be paid. The county is satisfied that the projects will pay off.
Links to this post: