As the affordable housing industry has matured and changed over the years, there has been an increase in disputes that arise near the end of the 15-year Compliance Period. These specialized exit disputes involve extremely complicated transactions, new and existing parties, and parties whose objectives have changed since inception of the partnerships. Adding to these complex issues is the fact that this is still a relatively young industry insofar as partner disputes are concerned, thus there is very little specific case law to look to in order to resolve these disputes.
Litigation
Year 15 LIHTC Disputes
Our Approach
We represent real estate developers who are general or managing partners in disputes involving business partnerships in the affordable housing industry, and have particular experience in litigating partnership exit disputes. Winthrop has been on the forefront in litigating these matters since, and in many cases helping to create that much-needed case law ourselves.
The precedents we achieve on behalf of our clients are already working to frame future cases and negotiations, as well as inform future LIHTC partnership agreements, and we continue to uncover emerging controversies in this area. Some of the issues that have arisen in these Year-15 exit disputes include:
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Disputes over Purchase Options, Put and Call Rights, and Rights of First Refusal
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Fair Market Value and Appraisal Disputes
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Disputes over Purchase Option Price Determinations
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Ownership Interest Disputes
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Capital Transaction Disputes
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Capital Account Disputes
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Disputes concerning Forced Sale Rights
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Project Refinance Disputes
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Limited Partner Removal Initiatives
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Qualified Contract Issues
In addition, our interdisciplinary team advises clients on their rights, obligations and duties under their Partnership Agreements and other operative documents on the front end, working with them along the way to avoid the costly and disruptive process of litigation wherever possible. However, when litigation is unavoidable, our litigators are zealous advocates for our clients’ rights.
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