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Board affirms standard lease terms: 10-year term and COLA tied to federal CPI unless lending need arises
Summary
The board discussed tenant requests about lease ceilings and term length and affirmed continuing the current approach: standard 10-year leases with cost-of-living adjustments tied to the federal CPI; longer terms may be considered case‑by‑case for lending needs and require board approval.
The board discussed requested clarifications to lease language after a tenant raised two questions: whether there is a ceiling on cost-of-living increases and whether the authority offers lease terms longer than 10 years.
Board members and staff said the cost-of-living adjustments (COLA) in leases are anchored to the federal cost-of-living metric (the federal COLA), meaning increases follow that index; the board said it is comfortable with the current language. Regarding term length, staff said the authority traditionally issues 10‑year leases; exceptions (for example, to match the life of a loan) have been made on a case‑by‑case basis when lending institutions require a longer lease term. The board said any deviation from the standard language would need board approval.
A board member reiterated that exceptions for lending purposes are handled individually and would return to the board for approval. The board did not adopt new lease language at the meeting but confirmed it will continue using its current COLA language tied to the federal metric and standard 10‑year terms unless a lending-related need is presented for board consideration.
