For the last several years, there has been an ongoing dispute between not for profit (NFP) sponsors of affordable housing projects and investors. Often the investors are not the original investors in the projects. The dispute is about what happens in Year 15, the end of the compliance period of the low income housing tax credit.
On the NFP side, there is an expectation that through the exercise of a right of first refusal the not for profit sponsor will achieve ownership of the property to insure its long term affordability. Investors, often referred to as aggregators, strive to get a serious payout or retain ownership after Year 15.
Below is my coverage of this issue in reverse chronological order. I have tried to keep my coverage objective, although I do lean a little toward the sponsor side. I find this dispute an instance of capitalism hating the commons.
Low Income Housing Tax Credit – Another Win For The Aggregators February 11, 2022
House Tax Bill Would Help Not For Profit Sponsors Of Low Income Housing Partnerships October 1, 2021
Low Income Housing Tax Credit Enriching Private Interests At Expense Of Common Good June 3, 2021
New York AG Supports Community Group In Battle With AIG Over Tax Credit Property May 1, 2021
Third Win For Investors Versus Not For Profit Sponsors Of Low Income Housing Tax Credit Projects March 25, 2021
Low Income Housing Tax Credit – Aggregators Fight Sponsors In Year 15 February 26, 2021
National Housing Trust Responds To Housing Credit Right Of First Refusal Litigation January 24, 2021
After The Low Income Housing Tax Credits Are Done, Investors Want More January 23, 2021
For great value continuing professional education. I recommend the Boston Tax Institute
You can register on-line or reach them by phone (561) 268-2269 or email vc@bostontaxinstitute.com. Mention Your Tax Matters Partner if you contact them.
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