[RPPTL LandTen] LOW - INCOME HOUSING TAX CREDIT PROPERTIES -- "FOREVER" LEASED !

Mike Davis mike at mgfdlaw.com
Thu Oct 29 16:32:25 PDT 2015


Got it.  Thanks for the attachments.

Michael Geo. F. Davis
Attorney at Law
The MGFD Law Firm PA
Countryside Colonial Center
2753 SR 580, Suite 209
Clearwater, FL 33761-3351
P 727-726-1900
F 727-726-7440
mike at mgfdlaw.com
Primary Eservice: eservice at mgfdlaw.com

From: landten-bounces at lists.flabarrpptl.org [mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of Martin Lawyer
Sent: Thursday, October 29, 2015 7:17 PM
To: RPPTL Landlord Tenant Committee
Subject: [RPPTL LandTen] LOW - INCOME HOUSING TAX CREDIT PROPERTIES -- "FOREVER" LEASED !

No, regarding LIHTC properties, federal law is clear:  The tax credit property lease is perpetual, renewable annually unless there is "good cause" to evict.

I have attached my "syllogism" and the full statute, 26 U.S.C. § 42 (38 pages), as well as the IRS Revenue Ruling 2004-82 cited in the syllogism.  The LITHC program is subject to U.S. Treasury Department and state housing finance agency oversight.

The contrast in the syllogism is with the voucher program under U.S. Dept. of HUD oversight known as Section 8 wherein private landlords are permitted to terminate tenancy of voucher holders by way of non-renewal.

There is also a HUD subsidy program called "project-based Section 8" where terminations by non-renewal are not permitted.  In this program, as with LIHTC, the landlords of the entire building(s) are private.

If you're wondering what the landlords get out of the LIHTC and project-based Sec. 8, it is as follows:


(a)          LIHTC --  huge amounts of rental income for which the private owners pay NO tax.

(b)         Project-Based Sec. 8  --  Front-end low interest 2o-year mortgages that cost way less to developers than unsubsidized dwelling complexes.



                      Marty

                     C. Martin (Marty) Lawyer, III
                     Florida Bar # 128095
                     Bay Area Legal Services, Inc.
                     1302  N. 19th St.,  Suite # 400
                     Tampa,  FL 33605-5230
                     (813)  232-1222, Ext.109
                      FAX:  248-9922

"Preserving Independence, Hope and Dignity"

From: landten-bounces at lists.flabarrpptl.org<mailto:landten-bounces at lists.flabarrpptl.org> [mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of Mike Davis
Sent: Thursday, 29 October, 2015 18:47
To: RPPTL Landlord Tenant Committee <landten at lists.flabarrpptl.org<mailto:landten at lists.flabarrpptl.org>>
Subject: Re: [RPPTL LandTen] How much does a N/Nonrenewal have to spell out

Marty

I believe that Jeff is speaking to nonrenewals.  I think that either landlord or tenant has the absolute right to nonrenew, absent any government subsidy.  Practically, landlord should have objective verifiable reasons in the file for nonrenewal.  Unless it is obvious from the tenant's physical attributes, you can't tell who's in a protected class until you get the FH complaint.  "Objective verifiable" to me are 7Cures (other than nonpayment noncompliances) or 3Days (nonpayment noncompliances).  When a government subsidy (tax credit, sec 8, etc.) is involved, consult the applicable docs, statutes and regs to see what are permissible nonrenewal reasons and the degree of detail required.

In general 7Cures and 7Terminates under 83.56(2) need detail.  In general I find judges take the position "If I were the tenant did this sufficiently inform me of what I was doing or not doing wrong."  I have found that most judges don't go to the constitutional issue, unless they have to.  They rarely have to, since they can rely on contract law (7Day ambiguous and construed against landlord drafter) or a provision in 83 Part II (i.e. good faith).  In general I don't think that you need the detail that includes a cite to a lease provision or a date/time.  Just specific behavior ("noise" too ambiguous, "loud music in late evening" specific).  I believe that many landlord attorneys (including me) prepare 7Days with general language and then cite to the specific noncompliance to prevent themselves from being limited to just the one specific noncompliance:  "due to excessive loud noise, including but not limited to loud music in the late night hours"  Again when a government subsidy is involved, consult the applicable docs, statutes and regs to see what are permissible termination reasons and the degree of detail required.  Thanks for the info on the Florida Housing Finance Corporation.

I would be interested in the opinion of other listserve members.

Mike

Michael Geo. F. Davis
Attorney at Law
The MGFD Law Firm PA
Countryside Colonial Center
2753 SR 580, Suite 209
Clearwater, FL 33761-3351
P 727-726-1900
F 727-726-7440
mike at mgfdlaw.com<mailto:mike at mgfdlaw.com>
Primary Eservice: eservice at mgfdlaw.com<mailto:eservice at mgfdlaw.com>

From: landten-bounces at lists.flabarrpptl.org<mailto:landten-bounces at lists.flabarrpptl.org> [mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of Martin Lawyer
Sent: Thursday, October 29, 2015 5:25 PM
To: RPPTL Landlord Tenant Committee
Subject: Re: [RPPTL LandTen] How much does a N/Nonrenewal have to spell out

Yes, a specific notice is required, but not just because it's a Tax Credit property.  Sec. 83.56(2), Fla. Stat., interpreted in the context of constitutional procedural due process, requires the landlord to specify the ground.

Those tax credit property residential leases approved by the Florida Housing Finance Corporation have very specific and limited grounds for eviction.  However, there are numerous permitted grounds for eviction.  Your landlord client is not permitted to substitute his/her/its own lease for the one approved by the State agency.

For example, a legally sufficient notice should say:

Your action constitutes a material breach of ¶ xx. of the lease, which is specifically a ground for eviction pursuant to ¶ yy. of the lease in that:

On [date] at approximately [time] at the location of ___________________ you did/failed to do __________________________ .

                      Marty

                     C. Martin (Marty) Lawyer, III
                     Florida Bar # 128095
                     Bay Area Legal Services, Inc.
                     1302  N. 19th St.,  Suite # 400
                     Tampa,  FL 33605-5230
                     (813)  232-1222, Ext.109
                      FAX:  248-9922

"Preserving Independence, Hope and Dignity"

From: landten-bounces at lists.flabarrpptl.org<mailto:landten-bounces at lists.flabarrpptl.org> [mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of Jeff Mazor
Sent: Thursday, 29 October, 2015 10:36
To: 'RPPTL Landlord Tenant Committee' <landten at lists.flabarrpptl.org<mailto:landten at lists.flabarrpptl.org>>
Subject: [RPPTL LandTen] How much does a N/Nonrenewal have to spell out


This residential case is driving me a bit nuts!

Property is a low income housing tax credit property. Tenant is a royal pain and Landlord would rather eat glass than renew.

I understand that landlord must have good cause, but does the notice have to list the specific good cause reasons for the nonrenewal to be valid?

In this case, prior to service of the non-renewal, tenant had previously been served with a couple dozen notices to pay or vacate as well as 7 day cure notices.

Also, tenant knew very well that landlord  would not renew and the reasons  -  all via emails between the two.

Help!!!!!

Jeff

Jeffrey R. Mazor, Esq.

J. R. Mazor & Associates, P.A.

Presidential Circle Building

4000 Hollywood Blvd.,  Suite 265-s

Hollywood, FL 33021

Email:   JMazor at Mazor.com<mailto:JMazor at Mazor.com>

Phone: 954-962-3500

Fax:       954-342-7703


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