Alaska Supreme Court Rules Developer Agreed to 30-Year Affordability in LIHTC Scoring Choice
The Alaska Supreme Court ruled that a developer that received low-income housing tax credits (LIHTCs) from the Alaska Housing Finance Corporation in 2001 is ineligible to exercise a qualified contract option to exit the agreement after 15 years, because the developer claimed extra points in its LIHTC application by agreeing to provide an additional 15 years of affordability. In Creekside Limited Partnership; Creekside-Alyeska LLC and Community Development Inc. v. Alaska Housing Finance Corporation, the developer sued after the housing agency denied its desire to end affordability restrictions after 15 years. Creekside argued it didn’t sign a contract to waive its right to the qualified contract option, but a lower court ruled that in accepting the six-point application scoring advantage for agreeing to do so, Creekside agreed to the 15-year extension. The Supreme Court upheld the lower court’s ruling.
The Novogradac LIHTC Year 15 Handbook provides guidance, options and insight for all parties in a LIHTC transaction at Year 15, whether they desire to retain their property, exit ownership or are undecided.