HIA Update-June 11, 2020

HIA Construction Loan

The City issued the take-out commitment letter late Wednesday and it has been sent over to Western Alliance Bank.  We are working to finalize the loan as soon as possible with the bank, which should be by next week. 

HIA Funding and Long-Term Financing

The HIA project at this time is proceeding generally on schedule.  It is anticipated that all work on the project may be completed as early as February 2021.  We are evaluating the current funding scenario and working to determine if there would be a significant financial advantage (i.e. lower HIA funding repayments) to accelerate the City’s closing on the bonds.  Doug Strandness and the Summit House Board are evaluating options and costs and will be providing additional information to homeowners regarding any potential costs savings.  At this time, the City’s interest rate on bonds is 2.60%.  We anticipate that given the current economic situation and Federal Reserve projections that interest rates are likely to continue to remain low for the next 18 to 24 months.