Questions and Answers
RENT INCREASES AFTER PREPAYMENT?
In response to Jeff Ecklund’s presentation, I was asked: Following prepayment of a project, are you prohibited from raising the rents?
My response is that you are still able to raise the rents because of operating expense increases, but you cannot raise rents because of prepayment. Since I am neither an attorney nor an accountant, I suggest you consult someone that can render a professional opinion.
DAMAGE AWARD FROM ECKLUND LAWSUIT?
Assuming damages are paid as a result of Jeff Ecklund’s lawsuit, who gets them?
The simple answers, and complex answers, need to come from your lawyer. It would appear that the damage award would be to the borrower. If it is a Limited Partnership, then the distribution would presumably be in accordance with the Partnership Agreement. It appears that if the Agreement doesn’t address this, then you can either renegotiate the Agreement, or distribute them in accordance with the formula in the present Agreement. In other words, good luck.
Next: Remarks by Chuck Edson