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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 JOEL SCHIFF DEPUTY ATTORNEY GENERAL Indianapolis, IN _____________________________________________________________________

IN THE INDIANA TAX COURT
_____________________________________________________________________ PEDCOR INVESTMENTS-1994-XVII, L.P., ) ) Petitioner, ) ) v. ) Cause No. 49T10-0206-TA-65 ) PORTAGE TOWNSHIP ASSESSOR, ) ) Respondent. ) _____________________________________________________________________ ON APPEAL FROM A FINAL DETERMINATION OF THE INDIANA BOARD OF TAX REVIEW _____________________________________________________________________ NOT FOR PUBLICATION May 9, 2007 FISHER, J. Pedcor Investments-1994-XVII, L.P. (Pedcor) appeals from a final determination of the Indiana Board of Tax Review (Indiana Board) valuing its real property for the March 1, 1998 assessment date. The sole issue for the Court to decide is whether the Indiana Board erred in denying Pedcor's low-income housing project an economic obsolescence depreciation adjustment.

FACTS AND PROCEDURAL HISTORY Pedcor owns the Port Crossing apartment complex in Portage, Indiana. A

portion of this complex, known as "Phase II," is low-income housing and qualifies for tax credits pursuant to Section 42 of the Internal Revenue Code (the LIHTC Program). 1 Under the LIHTC program, Pedcor received approximately $4.26 million in tax credits to award to investors, over a ten-year period, who provided financing for Phase II. In exchange for these tax credits, Pedcor agreed to rent all 96 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 Housing Finance Authority (IHFA) rental guidelines. Pedcor agreed to abide by these rental restrictions for a period of 30 years. For the March 1, 1998 assessment date, the Portage Township Assessor (Assessor) assigned an assessed value of $756,870 to the improvements in Phase II.

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.

Download Pedcor Investments-1994-XVII, LP v. Portage Township Assessor.pdf

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