By Ted Griggs, Baton Rouge Advocate 1995
The Louisiana Housing Finance Agency on Wednesday amended a tax-break program to force federal officials or courts to decide whether developers get more time to finish apartment projects hampered by public opposition.
Developers receiving tax credits normally have two years to complete low-to-moderate income projects. However, the LHFA changed its rules last month, and reserved the right to reissue federal tax credits to developers when delays are cause by frivolous lawsuits or housing discrimination.
Under Wednesday's additional amendment, the U.S. Department of Housing and Urban Development or federal courts, not the LHFA, will decide whether a lawsuit is frivolous or delays were caused by housing discrimination. The tax credits will be held in reserve until HUD or the courts make a decision.
If HUD or federal courts decide that frivolous lawsuits or housing discrimination caused project delays, developers will be given two more years or longer to finish projects, depending on the time it takes to complete a lawsuit.
Critics have said the tax-break extension will benefit Baton Rouge's controversial St. Jean Apartments, proposed on South Harrell's Ferry Road near O'Neal Lane.
Wayne Neveu, an LHFA attorney, said the extension was not designed with any single project in mind. Affordable housing developments have been halted or delayed throughout Louisiana and the United States, he said.
"All the agency has done here in this qualified allocation plan is adopt a national policy that frivolous lawsuits will not result in affordable housing being denied to those who need affordable housing." Neveu said.
The agency does not want to be a part of unlawful procedures or strategies to deny people affordable housing, Neveu said.
Locke Meredith, an attorney representing homeowners who oppose the St. Jean Apartments, said the latest changes to the program will remove political pressure on the LHFA.
Meredith said he would prefer to see the courts decide whether lawsuits are frivolous or if housing discrimination has taken place.
He would also like to proof that a project has not changed before the tax-break extension is granted.
