VA Supreme Court Declares General Contractor Not a Necessary Party to Lien Enforcement Suit

A new decision from the Supreme Court of Virginia involving mechanic's liens may take some by surprise. Practitioners for years have believed that a general contractor is a "necessary party" to a subcontractor's suit to enforce a subcontractor's mechanic's lien. Earlier this month, in a 4-3 decision, the Supreme Court of Virginia ruled that a general contractor was not a necessary party to its subcontractor's lien enforcement suit, where the subcontractor's lien had been bonded and released at the request of the owner of the property and the construction lender.

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Historic Rehabilitation Tax Credit Transactions After The Safe Harbor

Lenders, Developers and Borrowers were all frustrated by the chilling effect that revenue rulings and court cases had on Historic Rehabilitation loans in 2013, causing delays in closings and delays in admitting Federal tax credit investors as partners of the Borrower. After issuance of Revenue Procedure 2014-12, a Safe Harbor for Historic Tax Credit Transactions, a resurgence of Federal investor interest is now apparent; however, structuring loans for these transactions after the Revenue Procedure involves tackling new territory.

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