Online, May 20, 2016 (Newswire.com) - MEMPHIS, Tenn.--In its ongoing desire to fully cooperate with HUD, GMF-Preservation of Affordability Corp (GMF) voluntarily agreed to the appointment of a receiver over the Warren and Tulane Apartments. GMF, the Receiver, and the lender intend to work together for the best interests of the properties and their residents.
GMF fully supports Tuesday's court appointment for a receiver over Warren And Tulane Apartments
GMF contributed large capital advances for both properties until the day HUD abated our contract this February. Immediately upon the abatement of the rent subsidies, HUD provided some reduced funding directly to GMF's third party manager, LEDIC, for site maintenance and operations for Warren and Tulane while HUD and the City of Memphis developed a plan to relocate residents. Both properties are now under the full control of the court-appointed Receiver.
"While we disagree with many of the allegations in a complaint filed by the lender, we fully supported the appointment of the receiver because it is in the best interest of the property and the residents," says Rev. Richard Hamlet, GMF President and CEO. "Going forward, GMF will continue to work closely with HUD and the receiver to market these properties and find a new owner who is willing and able to rehabilitate the properties for the benefit of the residents and their neighboring communities," added Rev. Hamlet.
In response to frivolous claims that GMF is not making adequate investments in its affordable housing properties, Reverend Hamlet added, "GMF invested millions of dollars in Warren and Tulane but unfortunately we were not successful in responding to the challenging needs of these historically troubled properties".
Warren and Tulane did not evolve into problem properties overnight; rather, they have been troubled for decades. GMF recognized that these were properties in need when it acquired them in 2011 and advanced capital to make much needed and long-overdue repairs and improvements for the benefit of its residents, repairs and improvements which should have been made years prior to GMF's acquisition.
"GMF's mission is to go into properties with the most need and look for solutions to problems that existed long before GMF acquired them. GMF continues to be committed to finding solutions to systemic issues in low-income housing for the benefit of all residents, whether these solutions involve the continued investment of large amounts of capital in its properties, the sale of certain properties, or both," stated Rev. Hamlet.
GMF-Preservation of Affordability Corp. is a Global Ministries Foundation company that invests in real estate opportunities that provide affordable housing for low to moderate income residents across the United States. GMF ministers to the physical, spiritual and emotional needs of our residents, at no cost to them and on a strictly voluntary basis.
Source URL: http://businesswire.com/news/home/20160520005837/en
Share: