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ATTORNEYS FOR PETITIONERS: 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
_____________________________________________________________________ VILLAGE HOUSING PARTNERS II, L.P., VILLAGE HOUSING PARTNERS VIII, L.P., VILLAGE HOUSING CORPORATION, ) ) ) ) Petitioners, ) ) v. ) Cause No. 49T10-0208-TA-103 ) WAYNE TOWNSHIP ASSESSOR, ) NOBLE COUNTY, INDIANA, ) ) Respondent. ) _____________________________________________________________________ ON APPEAL FROM A FINAL DETERMINATION OF THE INDIANA BOARD OF TAX REVIEW _____________________________________________________________________ NOT FOR PUBLICATION December 22, 2005 FISHER, J. Village Housing Partners II, L.P., Village Housing Partners VIII, L.P., and Village Housing Corporation (collectively, VHP) appeal from a final determination of the Indiana Board of Tax Review (Indiana Board) valuing their real property for the 1995 assessment year (the year at issue). The sole issue for the Court to decide is whether the Indiana Board erred in denying an obsolescence depreciation adjustment to VHP's apartment complex for the year at issue.

FACTS AND PROCEDURAL HISTORY VHP owns Deerfield Apartments (hereinafter the Complex), a low-income housing development in Kendallville, Indiana. The development consists of 80 rental units, each with either one, two, or three bedrooms. The Complex, constructed in two phases in the early 1990s, was designed as low-income housing in order to qualify for tax credits pursuant to section 42 of the Internal Revenue Code (the LIHTC Program). 1 Under this program, VHP received

approximately $3.4 million in tax credits to award to investors who provided financing for the project. In exchange for these tax credits, VHP agreed to rent all eighty units to individuals whose income was 60% or less of the area's median gross income (adjusted for family size). 2 In addition, VHP agreed to charge rents pursuant to Department of

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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