On Thursday, February 26th, the Ohio Supreme Court issued an important ruling that will have profound impact on the valuation of LIHTC projects across Ohio. In the case of Woda Ivy Glen Limited Partnership vs. Fayette County Board of Revisions, the Ohio Supreme Court concluded that “The use restrictions imposed under I.R.C. 42constitute governmental restrictions for the general welfare that must be taken into account when determining the value of LIHTC property.”

This is an enormously important ruling for owners and managing agents of LIHTC projects across Ohio, as the court is essentially requiring an ‘income approach’ that considers actual rents when establishing the valuation of LIHTC projects. Once adopted by county auditors, this will undoubtedly result in lowered tax liabilities for most LIHTC projects in Ohio.

The Woda Group deserves significant credit for their efforts in bringing this case to the Ohio  Supreme Court. Additionally, Ohio Capital Corporation for Housing worked closely with Porter Wright Morris & Arthur LLP in the creation of an ‘amicus brief’ filed in support of this case which proved helpful in the final ruling. Thanks also to the Ohio Housing Council, the Coalition on Housing and Homelessness in Ohio, the Ohio Community Development Corporation and the Council for Rural Housing and Development of Ohio for also lending their support to the amicus brief. Please join me in extending congratulations to Jeff Woda and his team for what they have achieved with this ruling!

For more information, please contact your OCCH Asset Manager at
614-224 8446.