Monday, November 7, 2011

The Nordbye case: sometimes decency wins.

Here's a heartening case: Nordbye v. BRCP/GM Ellington, an Oregon appellate decision that defended federally subsidized tenants. Basically it says that if you receive a honking federal low-income housing tax credit (LIHTC) subsidy in exchange for a promise to maintain housing at reduced rents for 30 years, then that's what you need to do without an extremely good reason. So, you know, selling the complex without proper safeguards to an entity that resells it at a profit to a different bunch of schnooks who start kicking out tenants willy-nilly... on the whole, not what the subsidy was for.

You'd think this would be mere common sense, but in the world of federal housing tax credits, common sense is a blessed relief, not an everyday occurrence.

(Via subsidized-housing guru Michael Novogradac, who will probably mention it here soon.)

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