[The Livable Places home page from today, 4/16]
An update on yesterday's news of the shuttering of affordable housing developer Livable Places. Ryan Lehman, the non-profit's former executive director, emails with clarification on the type of bankruptcy and what finally brought an end to the Fuller Lofts project.
Livable Places actually plans to file an Assignment for the Benefit of Creditors, which is an alternative to bankruptcy offered under CA law. It is more similar to Chapter 7 in that the organization closes its doors. In a nutshell, what happened on Fuller Lofts was as follows: There was a dispute with the general contractor over cost overruns and schedule delays, which ultimately resulted in litigation between the general contractor and the construction lender. During the early stages of the dispute, we retained third party construction claims experts and attorneys to review the disputed items with the hopes of reaching a settlement. Based on the experts advice, we made what we saw as a reasonable settlement offer to the general contractor. Unfortunately, the contractor wanted significantly more money than we offered, which ultimately resulted in them terminating their contract. It is a most disappointing outcome for what could have been an exciting mixed-use and mixed-income community.
We tried to follow-up with Ryan in regards to the future of the Fuller Lofts, but unfortunately the email is already bouncing back.
· Breaking: Affordable Housing Developer Files Bankruptcy [Curbed LA]
· Fuller Lofts Construction Halt Comes Down To - What Else? - Money [Curbed LA]
· Rumblings & Bumblings Responses: Sh*t Hits Fan at Fuller Lofts [Curbed LA]