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New Arena Square North & South, Ltd. v. Florida Housing Finance Corp.

Citations: 744 So. 2d 1259; 1999 Fla. App. LEXIS 15746; 1999 WL 1075321Docket: No. 98-4128

Court: District Court of Appeal of Florida; November 30, 1999; Florida; State Appellate Court

Narrative Opinion Summary

The case involves New Arena Square North, South, Ltd. (New Arena) challenging a decision by the Florida Housing Finance Corporation (FHFC) concerning the allocation of low-income housing tax credits (LIHTC). The central issue was whether New Arena demonstrated site control of certain parcels required for eligibility under the LIHTC program, governed by section 42 of the Internal Revenue Code. FHFC denied New Arena 15 points, arguing that the absence of fee simple title to two parcels, covered instead by a 99-year ground lease, did not satisfy site control requirements. New Arena provided a recorded certificate of title and a title insurance policy to assert site control. An administrative hearing supported FHFC's position, but the court reversed this decision, highlighting the absence of competent substantial evidence. The court emphasized that site control can be established through long-term leases, as per the application form, and that FHFC's requirement for fee simple title was unsupported by legal authority. Consequently, the court ordered a rescore and further proceedings consistent with its opinion, with Judges Webster and Davis concurring.

Legal Issues Addressed

Competent Substantial Evidence Requirement

Application: The court reversed the FHFC's decision due to lack of competent substantial evidence supporting the denial of points for site control.

Reasoning: The court found no competent substantial evidence supporting FHFC's findings and reversed the decision.

Role of Title Insurance in Establishing Site Control

Application: New Arena demonstrated site control by providing a recorded certificate of title and a title insurance policy, which the court held as sufficient for establishing marketable title.

Reasoning: New Arena demonstrated site control by providing a recorded certificate of title and an owner's title insurance policy that insured marketable title for the relevant parcels.

Site Control in Low-Income Housing Tax Credit Applications

Application: New Arena was initially denied points for site control on the basis that it did not hold fee simple title, but the court found that site control can be demonstrated through a long-term lease.

Reasoning: FHFC's assertion that New Arena must hold fee simple title to qualify for site control is unsupported by legal authority, and the application form also allows for site control through long-term leases.