Tax Credit & Affordable Housing Investment Disputes

Overview

NP represents many clients in the tax credit industry, not only in the transactions to establish new tax credit developments, but also in providing significant guidance on inter-partnership disputes.

We have decades of experience involving workouts and litigation in courts nationwide, providing time-tested approaches and strategies that work best for your objectives.

We can assist you in dealings with regulatory agencies or if you’re seeking to unwind your interests in mature tax-credit projects. We can advise you on 15-year exit strategies. And we can address novel legal issues regarding the LIHTC program.

Whatever the issue, our team adapts with the evolving tax credit industry and its increased activity.

Rely on our ability to resolve and, where necessary, litigate your tax credit and affordable housing investment dispute.

Representative experience

• Handled a $50 million HUD-insured loan and construction work-out on an affordable housing project just north of New York City. Successfully worked with the project lender, surety, and HUD to restart construction and complete a project that stalled because the owner and general contractor had defaulted under their loan and construction contract obligations. This entailed restructuring the loan’s HUD-insurance and loan obligations and ultimately finding a purchaser for the project—all without jeopardizing the lender’s HUD-approved status and ensuring full occupancy of the project.
• Federal appeal of a district court decision relating to the Qualified Contract portion of the low-income housing tax credit program
• Advised investor in right of refusal litigation over approximately 50 properties
• Obtained a victory for tax credit investor client in a right of first refusal case under Section 42(i)(7) in federal district court
• Nonprofit organization in connection with legislation involving eligibility to include properties on National Register of Historic Places
• Top investors in the low-income housing tax credit investment space nationwide
• Investor limited partner in multiple litigations in the Midwest
• Affiliated investors in multiple matters in the Midwest
• Investor limited partner in multiple disputes nationwide regarding investor rights

Recognition

• Nixon Peabody has been named a Tier 1 National firm for Real Estate Law and Tax Law in the 2025 edition of Best Law Firms®.