When a 57-unit senior living community in Princeton, Minnesota looked to refinance their debt through HUD, but had an existing TIF (Tax Increment Financing) bank loan, which can be incompatible with HUD financing, the borrowers turned to Lancaster Pollard for a solution. The LP team, led by Quintin Harris, communicated to HUD that paying off the TIF loan, which was collateralized and serviced by the TIF development agreement, would benefit the senior living community because the cash flow received from the City of Princeton due the TIF Agreement would flow directly to the borrower. That cash flow could then be included in the project value. So Mr. Harris secured a $6 million loan, with a 35-year term and low interest rate, which paid off the first mortgage, two member notes and the TIF loan.
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