Scattered-Site Low-Income Housing Project Valuation Should Be Adjusted for Obsolescence

摘要

The owner of a scattered-site low-income housing development is entitled to a valuation adjustment for obsolescence, the Indiana Tax Court ruled, reversing the decision of the Indiana Board of Tax Review. (Hometowne Associates, L.P v. Maley, No. 49T10-0208-TA-998, 2005 WL 3442934 (Ind.Tax), December 16, 2005). The 60-unit Unity Park development in Indianapolis receives low-income housing tax credits and Section 8 assistance. For 2001, it was assessed at $2.2 million, a valuation upheld by the Marion County Property Tax Assessment Board of Appeals and the state review board. In 2001, real property in Indiana was assessed at its "true tax value," rather than its fair market value. Under Indiana assessment regulations, the true tax value of a commercial improvement was its reproduction cost minus any physical and/or obsolescence depreciation.