U.S. Bank National Association v. Lewis and Clark Apartments, LP (In re Lewis and Clark Apartments, LP)

Summarized by ,
13 years 5 months ago

Citation:

In re Lewis and Clark Apartments, LP, ---F.3d --- (8th Cir. BAP October 11, 2012) (Federman, J.)

Tag(s):

Ruling:

REVERSING and REMANDING, the 8th Cir. BAP held that a challenge to a valuation decision based on law and not fact is an appealable interlocutory order because the legal bases for valuation affect plan confirmation; also, the 8th Cir. BAP held that any valuation of real property must consider the impact of tax credits on the amount that a third party would pay for the property in an arm's length transaction, at least when the tax credits run with the land.

Procedural context:

Appeal from the bankruptcy court's decision to exclude tax credits from a determination of value and that a secured claim was worth $3,500,000.00.

Facts:

The debtor's apartment complex was a Low Income Housing Tax Credit (LIHTC) property and all parties conceded that the tax credits would transfer to a subsequent owner whether the ownership transfered by sale or foreclosure. US Bank had a total claim of $6,297,215.39. The bankruptcy court determined that the property was worth $3,500,000.00 not considering the value of tax credits.

Judge(s):

Kressel, Federman, and Nail (BAP Judges)

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