In this episode of the Advancing Communities Podcast, Cinnaire’s Chief Strategy Officer Jim Peffley continues his three-part series examining a growing crisis in the affordable housing industry where private equity funds or other investors are seeking windfall returns at Year 15. By ignoring Right of First Refusal agreements and forcing owners to either make large payment plans to retain ownership or force a sale, these profit motivated investors are jeopardizing mission-focused organizations and our nation’s affordable housing stock.
In this discussion, Jim is joined by Dr. Willie Logan, President and CEO of Opa-locka Community Development Corporation, a nonprofit builder of affordable housing communities in northern Miami-Dade, FL. In 2020, Opa-locka CDC won a landmark lawsuit against HallKeen Management, a large property management company, over ownership stakes of Aswan Village Apartments in Miami. Jim and Willie discuss the Aswan Village case and the implications the litigation has for affordable housing owners across the country facing similar troubling situations. They also provide insight into how owners and developers can protect themselves and their affordable housing properties from these troubling practices.