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ATTORNEYS FOR PETITIONER: JAMES W. BEATTY STEPHEN M. TERRELL LANDMAN & BEATTY Indianapolis, IN

ATTORNEYS FOR RESPONDENT: STEVE CARTER ATTORNEY GENERAL OF INDIANA JOHN D. SNETHEN DEPUTY ATTORNEY GENERAL Indianapolis, IN _____________________________________________________________________

IN THE INDIANA TAX COURT
_____________________________________________________________________ PEDCOR INVESTMENTS-1990-XIII, L.P., PEDCOR INVESTMENTS-1994-XXI, L.P., PEDCOR INVESTMENTS, LLC, ) ) ) ) Petitioners, ) ) v. ) Cause No. 49T10-0206-TA-64 ) FRANKLIN TOWNSHIP ASSESSOR, ) JOHNSON COUNTY, ) ) Respondent. ) _____________________________________________________________________ ON APPEAL FROM THREE FINAL DETERMINATIONS OF THE INDIANA BOARD OF TAX REVIEW _____________________________________________________________________ NOT FOR PUBLICATION May 9, 2007 FISHER, J. Pedcor Investments-1990-XIII, L.P., Pedcor Investments-1994-XXI, L.P., and Pedcor Investments, LLC (collectively, Pedcor) appeal three final determinations of the Indiana Board of Tax Review (Indiana Board) valuing its real property for the March 1, 1995, 1996, and 1997 assessment dates (the years at issue). The sole issue for the Court to decide is whether the Indiana Board erred in denying Pedcor's low-income housing project an obsolescence depreciation adjustment.

FACTS AND PROCEDURAL HISTORY Pedcor owns Lakeview Apartments in Franklin, Indiana. There are two sections to this complex: Phase I consists of 160 apartments; Phase II consists of 64

apartments. A portion of the units in Phase I, and all the units in Phase II, are lowincome housing and qualify for tax credits pursuant to Section 42 of the Internal Revenue Code (the LIHTC Program). 1 Under the LIHTC program, Pedcor received approximately $2.7 million in tax credits to award to investors, over a ten-year period, who provided financing for Phases I and II. In exchange for these tax credits, Pedcor agreed to rent 60% of the units in Phase I, and 100% of the units in Phase II, to individuals whose income was 60% or less of the area's median gross income (adjusted for family size) and subject to Indiana

Federal law provides numerous tax incentives to encourage the production of affordable housing for low-income individuals, including the Low Income Housing Tax Credit (LIHTC) Program at issue here. See generally 26 U.S.C.

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