Nonprofit May Yet Buy Low-Income Housing at Below Market Rate

A nonprofit organization may be eligible to exercise its right of first refusal in a partnership agreement to buy a Michigan low-income housing complex subject to a federal tax credit program, the Sixth Circuit said.

A jury should decide for sure, the US Court of Appeals for the Sixth Circuit said, reversing a grant of summary judgment to an investor in the project.

In order to facilitate the development and rehabilitation of low-income housing, Congress adopted the Low-Income Housing Tax Credit program. Under the program, a developer applies for tax credits and then enters into a limited partnership with private ...