In Low Income Housing Tax Credit (LIHTC) Dispute
March 15, 2018
On March 13, 2018, the Supreme Court of Louisiana issued a ruling regarding Low Income Housing Tax Credit (LIHTC) Property located in the City of New Orleans. In the matter titled Errol G Williams, Assessor, Parish of Orleans v. Opportunity Homes Limited Partnership and Louisiana Tax Commission, the LA Supreme Court ruled that the Louisiana Tax Commission’s (LTC) decision to use the Income Approach in valuing LIHTC property was the correct method of valuation. The dispute involved the tax years 2014 and 2015 for scattered site rent restricted property consisting of 32 buildings and 54 units that are used as low income family housing.
This decision reverses the appellate court and upholds the decision of the district court thereby reinstating the LTC’s lower values. Although the Court ruled the Assessor can use a market approach when valuing LIHTC property, in the instant case, any analysis of comparable market sales was absent from the record and “…the preponderance of the evidence supported the Commission’s determination that the income approach was the appropriate method…”. It further notes that the LTC did not err in its ruling nor did it act in excess of its authority.
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