2025-00810Notice

Boilermakers Get Special Deal to Buy Property From Themselves

Published Date: 1/15/2025

Notice

Summary

The Boilermakers Western States Apprenticeship Fund in Page, Arizona, got special permission to buy property from their own union lodge, even though rules usually say they can’t. This deal, effective January 15, 2025, helps the Fund save time and money by keeping their training program right where it is. It’s a win for the apprentices and the union members involved!

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Analyzed Economic Effects

3 provisions identified: 2 benefits, 1 costs, 0 mixed.

Keeps Apprenticeship Training Open

The Department of Labor exempted the Boilermakers Western States Apprenticeship Fund to buy the training property in Page, Arizona so the apprenticeship program can stay at that site. The exemption is effective January 15, 2025, and the Plan says it owns about $600,000 in training equipment (including a $250,000 ventilation system) used at the facility and has 369 active apprentices who use the site.

Mortgage and Financing Limits Set

If the Plan finances the purchase, any mortgage must be from an independent third-party bank (not a party in interest), the loan collateral is limited to a first mortgage lien and assignment of lease and rents, and monthly mortgage payments may not exceed $10,000. These financing rules apply under the exemption that became effective January 15, 2025.

Price Cap and Cost-Sharing Conditions

Under the exemption, the Plan will pay the lesser of $920,000 (the April 1, 2021 appraisal) or an updated appraised fair market value determined on the purchase date, and the updated appraisal must be provided within 30 days before closing. Lodge 4 and the Plan must each pay half of the exemption-related costs (such as independent fiduciary, appraiser, and legal fees); the Plan will not pay commissions or other purchase-related expenses.

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Key Dates

Published Date
1/15/2025

Department and Agencies

Department
Independent Agency
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