MuniMae Sells Low-Income Housing Tax Credit Business

pal Mortgage & Equity LLC (MuniMae) has agreed to sell substantially all of the low-income housing tax credit (LIHTC) business operated by its subsidiaries MMA Equity Corp. and MMA Financial TC Corp. to an affiliate of New York-based JEN Partners LLC. MuniMae will sell the LIHTC assets for an aggregate consideration of approximately $30.7 million, consisting of $18.7 million to be paid in cash and approximately $12 million in liabilities to be assumed by JEN Partners. The sale is structured to occur in two separate closings. The first closing will cover at least 30 tax credit equity funds and the operating assets of the business, inclusive of employees, with a cash payment of at least $14 million plus the assumption of liabilities. The second closing will cover the remaining assets being transferred plus the balance of cash consideration. MuniMae will retain control of certain tax credit equity funds with respect to which it has guarantee obligations and will engage the purchaser to manage the funds. MuniMae's LIHTC business aggregates, syndicates and manages portfolios of LIHTC and assisted multifamily properties and manages the properties, assets related to the operation of the properties, as well as the investment vehicles through which such properties are owned and operated. Michael L. Falcone, MuniMae's CEO, says the sale supports the company's strategy to become "a smaller, more focused enterprise." "We have no present intent to sell any other business lines, but we may continue to sell certain assets," he adds. SOURCE:

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