Tax Credit Expertise

Based on the recommendation of his regional vice president, the owner of an Atlanta real estate development company called on Property Tax Advocates to determine whether to file a lawsuit appealing the value of a newly constructed tax credit property in Texas.  Another national property tax consulting firm presented the case to the board but the owner questioned the value reduction determined by the board from $12,630,393 to $11,900,000.

Tax credit properties are a special type of low-income housing property whose owners receive federal tax credits in return for specific restrictions being placed on the properties.  The most onerous of these restrictions are the type of tenants the units can be rented to, the amount of rent that can be charged, and when and for how much the property can be sold.

The President of Property Tax Advocates has combined his experience as a former tax CPA and current property tax consultant to decipher the effect of the varoius restrictions on values and design a method of valuation that quantifies the negative impact. After analyzing the restrictions and the financial projections of the property, he strongly recommended that the owners file a lawsuit contesting the value set by the board.

After two settlement conferences with the appraisal district, Property Tax Advocates successfully negotiated a reduction down to $8,200,000.

Total savings – $141,342 

Not only did Property Tax Advocates save the owners this amount of money, it finalized the value prior to taxes being paid and the construction loan being converted.

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