Company: CLPR
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001437749-25-003988
Chunk: 92

Company: Clipper Realty Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 92
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 representations, covenants and events of default. Certain loan agreements require the Company to comply with affirmative and negative covenants, including the maintenance of debt service coverage and debt yield ratios. In the event that the Company is not compliant, certain lenders may require cash sweeps of rent until the conditions are cured. Except as described above, the Company is not in default on any of its loan agreements. 
 
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Contractual Obligations and Commitments
 
The following table summarizes principal and interest payment requirements on our debt under terms as of December 31, 2024:
 

                                       (in thousands)                         
------------------------------------------------------------------------------
             Principal                 Interest                Total          
      2025   $82,144                   $44,554                 $126,699       
      2026           101,091                  41,792                   142,883
      2027            43,019                  51,333                    94,352
      2028           416,554                  45,712                   462,266
      2029           209,571                  37,714                   247,285
Thereafter           422,980                  75,940                   498,919
     Total   $1,275,359                $297,045                $1,572,404     
 
On June 29, 2023 the Company entered into the Article 11 Agreement. Under the Article 11 agreement, the Company has entered into a Housing Repair and Maintenance Letter Agreement (“HRMLA”) in which the Company has agreed to perform certain capital improvements to Flatbush Gardens over the next three years. The current estimate is that the costs of that work will be an amount up to $27 million. The Company expects those costs to be offset by the savings provided by property tax exemption and enhanced payments for tenants receiving government assistance (See note 1). Through December 31, 2024 the Company spent approximately $9.1 million on capital improvements required under the HRMLA.
 
The Company is obligated to provide parking availability through August 2025 under a lease with a tenant at the 250 Livingston Street property; the current cost to the Company is approximately $205 per year.
 
Distributions
 
In order to qualify as a REIT for Federal income tax purposes, we must currently distribute at least 90% of our taxable income to our stockholders. During the years ended December 31, 20424 and 2023, we paid