The Passaic Affordable Housing Coalition, a Porzio client, in conjunction with the Housing Authority of the City of Passaic, announced plans to rehabilitate three senior citizen apartment complexes, an ambitious project totaling $17 million in private public funding. According to the New Jersey Home Mortgage and Finance Agency, the project will generate about $27.2 million in economic output.
Construction has begun on the individual units, which will include new kitchens, bathrooms, appliances, cabinets, plumbing, elevators, flooring, handicap accessibility, lighting, emergency safety systems, and new interior and exterior painting. A new building facade, new balconies, doors, windows, exterior lighting and intercom systems will also be installed.
The project is possible through the US Department of Housing and Urban Development Rental Assistance Demonstration Pilot Program ("RAD"), which allows public housing agencies to convert their current public housing stock to long-term Section 8 contracts, leveraging debt and equity to address immediate capital needs while preserving affordable housing. This RAD project is one of the very first in the State of New Jersey and the largest to date in New Jersey.
Public private partnerships such as this are likely to become more common nationwide, as a 2010 U.S. Department of Housing and Urban Development assessment valued the backlog of federal funding for public housing at over $25.6 billion, and rising at a rate of $3.4 billion per year.
To read the NorthJersey.com coverage of the project, please click here.
On Feb. 1, the New Jersey Supreme Court heard oral argument in Mortgage Grader, Inc. v. Ward & Olivo, a case that could have been ripped straight from a law school exam. The question on appeal is whether a partner in a law firm organized as a limited liability partnership loses the liability protections normally afforded in those partnerships if the business fails to maintain professional liability insurance.
This article was originally published in the June 2016 issue of New Jersey Lawyer Magazine, a publication of the New Jersey State Bar Association, and is reprinted here with permission.
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The Delaware Chancery Court recently issued a decision in favor of Porzio's clients after a three-day trial in Wilmington, Delaware in 2009 Caiola Family Trust v. PWA and Ward Katz, CA No. 8028-VCP (October 14, 2015). Gary M. Fellner, Esq. was the lead trial attorney for plaintiffs. He was assisted at trial and throughout this three-year litigation by Michael J. Naporano, Esq., and local Delaware counsel, Patricia L. Enerio, Esq.
The center of the case concerned a limited liability company that owned a multi-family apartment complex in Kansas. The LLC was formed in Delaware, so Delaware law controlled. Porzio's clients were the company's 90% majority owner and the "non-managing members" under the LLC operating agreement. Defendants PWA, LLC and Ward Katz from Kansas held the remaining 10% interest. Though PWA held the minority stake, PWA was the LLC's "managing member" under the operating agreement. The Court wrote that, unlike a corporation, the non-managing member of an LLC, even though it may be the majority owner, "does not get to call the shots." The managing member does. But the Court also wrote that the managing member can be removed "if it fails to pay attention to the requirements of the LLC's operating agreement." In other words, if it does not follow the agreement, it can be replaced by someone that the non-managing member controls.
After PWA refused to step down as managing member, plaintiffs filed suit and asked the Chancery Court to order PWA removed and replaced with a company controlled by plaintiffs. After a three-day trial, the Chancery Court issued a 91-page opinion agreeing with plaintiffs that grounds for PWA's removal were proven at trial, including the wrongful payment of asset management fees to a non-party. The Court also granted plaintiffs' request to an award of legal expenses incurred as prevailing parties. The Opinion can be viewed here.