The U.S. District Court for the Northern District of Illinois granted in part a Motion to Compel the Deposition Testimony of the director of the affordable housing for the entity which managed and operated subject housing for LIHTC limited partnership which was formed to acquire tax credits in an Illinois affordable housing apartment complex interest. The director was unable to assert the Apex Doctrine to shield himself from testifying regarding the circumstances of the acquisition of the subject property and the due diligence required and performed in the acquisition, as he had specific knowledge of the circumstances in question. Full Circle Villagebrook GP, LLC v. Protech 2004-D, LLC, 2022 WL 16646418, No. 20 C 7713 (N.D. Ill Nov. 2, 2022). The Second Amended Limited Partnership Agreement ("Partnership Agreement"), effective May 1, 2005, was established as an entity under the Low-Income Housing Tax Credit ("LIHTC") program, 26 U.S.C.A. § 42 et seq., to provide housing for low-income households in Carol Stream, Illinoi, specifically through the Villagebrook Apartments. Full Circle Villagebrook GP, LLC ("Full Circle") was the general partner, AMTAX Holdings 436, LLC ("AMTAX") was the Investor Limited Partner, and Protech 2004-D, LLC ("Protech") was the Special Limited Partner. The investor limited partner interests were pooled in a tax credit "fund." The owners of qualified projects can claim tax credits "annually over a period of ten years, thereby offsetting their tax liability, but must continue to comply with rent affordability restrictions for a period of fifteen years, known as the compliance period, to avoid recapture of those credits." Full Circle Villagebrook GP, LLC, 2022 WL 2339947, at *1 (quoting Urban 8 Fox Lake Corp. v. Nationwide Affordable Housing Fund 4, LLC, 431 F. Supp. 3d 995, 997 (N.D. Ill. 2020)). 2022 WL 16646418 at *1.
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