Low-Income Housing Tax Credit:
Court Rulings
General Affordable Housing
Property Tax Assessment
Real Estate Professional
General
United States v. G-I Holdings Inc.
Disguised sale statute
(December 14, 2009)
Rhone-Poulenc Surfactants and Specialties LP, GAF Chemicals Corporation, A Partner Other Than The Tax Matter Partner, v. Commissioner of Internal Revenue
Partner statute of limitation governs partnership item
(June 29, 2000)
General Affordable Housing
KDF Post Street v. SF Rent Stabilization and Arbitration Board
San Francisco's rent control ordinance and the ability to claim low-income housing tax credits (LIHTCs)
(August 26, 2010)
Cricket Hollow Partners, LP and Cricket Hollow Development, Inc. v. MMA Cricket Hollow, LLC
Forseeability of additional tax credits
(July 16, 2009)
El Patio Community Housing Partners v. Commissioner
Petition for Readjustment of Partnership Items Under Code Section 6226 (December 9, 2008)
Tax Court Decision (March 18, 2009)
Termination of tenancy of over-income tenants
Fair Housing Center of the Greater Palm Beaches Inc. v. Cornerstone Residential Management LLC
Plaintiff does not have standing to challenge Defendants’ award of tax credits through the LIHTC program, or other federal aid in the form of loans, grants, advances or contributions.
(September 17, 2008)
State Building & Construction Trades Council v. Duncan
The receipt of state LIHTCs does not trigger prevailing wage requirements
(April 23, 2008 )
United States v. McSha Properties Inc.
Inflation of construction costs, thus increasing eligible basis for Section 42 low-income housing tax credits issued in connection with affordable housing project
(March 6, 2008)
Lee v. Commissioner
(September 11, 2006)
Key Investment Fund Limited Partnership XIX v. Urban Partnership LLC
(August 22 , 2006)
State Building and Construction Trades Council v. California Department of Industrial Relations
San Francisco Superior Court overturned the earlier Woodhaven ruling and ruled that receipt of California state credits constitutes receipt of California public funds and therefore causes a state prevailing wage requirement.
(
August 1, 2006)
Bentley Court II LP v. Commissioner of Internal Revenue
A partnership must recapture low-income housing tax credits (LIHTCs) it claimed during closed tax years regardless of the statute of limitation
(May 31, 2006)
DaimlerChrysler Corp. v. Cuno
Plaintiffs’ principal claim that the franchise tax credit depletes state funds to which they contribute through their taxes, and thus diminishes the total funds available for lawful uses and imposes disproportionate burdens on them, is insufficient to establish their standing to challenge the state franchise tax credit.
(May 15, 2006)
Asylum Hill Problem Solving Revitalization Association v. King
Plaintiffs are not entitled to bring a cause of action to compel the Connecticut Housing Finance Authority to take affirmative steps to prevent racial segregation and high concentration of poverty that allegedly have resulted from its administration of a federal low-income housing tax credit program.
(February 21, 2006)
Solick v. Oregon Department of Revenue
Taxpayer demonstrated that contamination of her home with toxic mold was an event that was not only sudden, but also unusual and unexpected, and her state claim of casualty loss for personal possessions for tax year 2001 is substantiated
(March 8, 2004)
Re Adoption of the 2003 Low Income Housing Tax Credit Qualified Allocation Plan
New Jersey Superior Court affirmed the New Jersey Housing Mortgage Finance Agency's (NJHMFA) adoption of its 2003 qualified allocation plan (QAP) and rejected a claim that it encourages racial segregation
(April 28, 2004)
Brademas v. Indiana Housing Finance Authority
Action against state housing finance authority alleging that authority had wrongfully denied a number of entities federal tax credits under a low-income housing credit program is barred by statute of limitations
(January 12, 2004)
Chevron TCI Inc. v. Talleyrand Associates
Court interprets partnership agreement where partnership anticipated obtaining tax credit benefits in form of tax credits due to partnership's ownership of a low-income housing tax credit project
(December 19, 2003)
Rhonda Carter v. Maryland Management Co.
Landlord participating in a federal low-income housing program use Maryland's "tenant holding over" statute to evict tenants
(November 10, 2003)
Federal Home Loan Mortgage Corp. v. Commissioner
Depreciation--Benefit of Below-Market Financing Can Be Amortizable Intangible Asset
(September 29, 2003)
Cuyahoga Metropolitan Housing Authority v. U.S.
Requirements for rent comparability studies to support owners' requests for Section 8 rent increases constituted a breach of housing assistance payments (HAP) contracts
(September 22, 2003)
Parkwood Limited Dividend Housing Association v State Housing Development Authority
Dissolution of Limited Dividend Housing Association underHousing Development Authority Act
(September 16, 2003)
Oti Kaga Inc. v. South Dakota Housing Development Authority
Racial Discrimination Against Native Americans
(September 15, 2003)
Topa Equities v. City of Los Angeles
LIPPRHA does not preempt HUD subsidized developments that have prepaid Section 236 mortgages from rent control laws
(September 8, 2003)
Brademas v. Kernan (Indiana Housing Finance Authority)
Denial of low-income homing tax credits/Statute of limitations for personal injury claims
(February 27, 2003)
Buckeye Community Hope Foundation v. City of Cuyahoga Falls
Citizen-led referendum to invalidate already-approved affordable housing property deemed constitutional
(March 25, 2003)
Oti Kaga Inc. v. South Dakota Housing Development Authority
Racial Discrimination Against Native Americans
(February 8, 2002)
Eastampton Center LLC v. Pennrose Properties, Inc.
"Inclusionary Development" Policy and Tax Credits
(January 15, 2002)
Wisconsin v. Board of Review of Beloit
(April 27, 2000)
New Arena Square North & amp South Ltd. v. Florida Housing Finance Corporation
Completeness of Tax Credit Applications
(December 1, 1999)
Redlands Surgical Services v. Commissioner of Internal Revenue
Joint Ventures: For Profit and NonProfit
(July 19, 1999)
John L. Brassard v. United States of America
Developer Fees-Payment Contingencies
(July 29, 1999)
Corbin West Tax Court Case
Seller Carryback Financing and Eligible Basis
(January 15, 1999)
Williamsburg Gardens v. Commissioner of Internal Revenue
Developer Fees and Eligible Basis
(December 2, 1998)
John W. Owen & Glenda P. McCormick v. United States of America
Cash Basis vs. Accrual Accounting-Deductibility of Expenses
(December 17, 1998)
Arnold R. and Marion R. Blitzer v. United States of America
Placed in Service Test-Certificates of Occupancy-Different Buildings, Different Months
(July 14, 1982)
Property Tax Assessment Cases
SAHFNet Google Group on property taxes
Brandon Bay Limited Partnership v. Payette County, Idaho
Value of tax credits allocated under the federal low-income housing tax credit program pursuant to Internal Revenue Code §42 should be included in the real property assessment of apartments for taxation purposes.
(March 21, 2006)
Wilsonville Heights Assoc. Ltd. v. Oregon Department of Revenue
Oregon Supreme Court ruled that the methodology for determining taxable value of interest in federally subsidized and restricted low-income housing property that reduces the market value of comparable unrestricted property by the present value of market rents surrendered by owner is consistent with the statutes and case law
(November 3, 2005)
Town Square Limited Partnership v. Clay County, S.D., Board of Equalization
South Dakota Supreme Court ruled that under South Dakota law, assessment under the income capitalization method of an apartment building that qualifies under the low-income housing tax credit program requires consideration of both the restricted rents imposed on the rental units as well as the federal tax credits allocated to the property
(September 21, 2005)
Spring Hill L.P. v. Tennessee Board of Equalization
Property tax assessments should include present value of federal Low-Income Housing Tax Credits in the valuations of low-income housing properties
(December 31, 2003)
Appeal of The Greens of Pine Glen Ltd. v. Durham County Board of Equalization
Consideration of Section 42 Restrictions in Property Tax Value
(February 28, 2003)
Maryville Properties, L.P. v. Nelson
Low-Income Housing Tax Credits Should Be Excluded in the Valuation of Real Property
(March 13, 2002)
The Greens of Pine Glen Ltd. v. Durham County Board of Equalization
Section 42 Restrictions Should be Considered in Property Tax Value
(November 30, 2001)
Real Estate Professional
Alfredo A. and Jane R. Galager, Petitioners v. Commissioner of Internal Revenue, Respondent
Taxpayer did not meet the 750 hour test
(March 25, 2004)
Karl and Brigit Jahina, Petitioners v. Commissioner of Internal Revenue, Respondent
Taxpayer failed half personal services test
(November 21, 2002 )
William C. and Cheryl M. Fowler, Petitioners v. Commissioner of Internal Revenue, Respondent
Qualifying as a real estate professional for purposes of Section 469(c)(7).
(March 22, 2002)
Sidney C. Shaw, Petitioner v. Commissioner of Internal Revenue, Respondent
The government argued that Taxpayer did not establish he was a real estate professional. Court ruled that documentation provided was not reasonable.
(February 6, 2002)
Bailey v. Commissioner
Taxpayer not a real estate professional under Section 469(c)(7)
(November 8, 2001)
Danilo DeGuzman and Daisy DeGuzman, Plaintiffs v. United States of America, Defendant
US District Court, NJ found taxpayer did not rise to 750 hour test
(May 24, 2001)
Osama A. Mowafi v. Commissioner of Internal Revenue Service
Taxpayer not a real estate professional under Section 469(c)(7)
(May 10, 2001)
Matti Kosonen, Petitioner v. Commissioner of Internal Revenue, Respondent
Taxpayer did not file a proper election to group his rentals as a real estate professional.
(March 28, 2000)
Antonio & Luzviminda Pungot v. Commissioner of Internal Revenue
Section 469-Active Trade or Business Qualification
(February 24, 2000)
Nicholas A. and Marjorie E. Paleveda, Petitioners v. Commissioner of Internal Revenue, Respondent
Relief provisions for real estate professionals cannot be applied to years prior to 1994
(September 18, 1997)