Adam Leitman Bailey, P.C. was able to obtain a possessory judgment against two defendants in an ejectment action involving a widespread fraudulent conspiracy with respect to the Low Income Housing Tax Credit Program (LIHTC) the Plaintiff Building was partaking in. The Building was developed and financed in order to comply with a Real Estate tax-exemption program under Section 421-a of the Real Property Tax Law (the “421-a” Program). Under its HFA Regulatory Agreement, the LIHTC Program, and the 421-a Program, there were certain technical requirements that Projects must meet to remain in conformance with the requirements of the law.
The Regulatory Agreement mandates that a certain percentage of the Building’s tenants must meet certain income ceilings and other eligibility requirements with respect to the low-income units. Failure to abide by thesecan lead to significant violations of Federal Tax Laws and, if left undealt with, could entail substantial losses for the Owner.
The Plaintiff hired an outside company to ensure compliance with these agreements. One of the defendants was an employee of said company responsible for the enrollment, waiting list, interview and eventual leasing processes for qualified individuals.That employee entered into a fraudulent conspiracy with the other Defendants to rent apartments to persons who did not meet the qualifications and were not on the established waiting list, including the father of her children whom she illegally placed as a resident in the building.
Adam Leitman Bailey was successful in expeditiously obtaining a possessory judgment against both defendants and direction for the court to determine monetary damages.