In Springfield, Missouri, organized tenants have filed a lawsuit against the past and present owners of their tax credit–financed properties, claiming that in exercising an opt-out provision they violated both state and federal requirements.
In Springfield, Missouri, tenants of two LIHTC (Low-Income Housing Tax Credit) properties — Rosewood Estates and Cedarwood Terrace — are suing past and current owners for illegally exiting the tax credit program without required notice. The lawsuits, led by a tenant union of seniors, working families, and people with disabilities, claim the owners violated Missouri lease provisions and federal rules, putting tenants at risk of displacement.
Despite promises that affordability would remain, the owners quietly used a legal loophole to leave the program. Some residents were misled into moving out, even during a period when evictions and rent increases were restricted. With over 200,000 LIHTC units nationally eligible to exit in the next five years, the case highlights the urgent need for oversight and tenant protections.
The tenants’ legal action seeks to return the properties to the LIHTC program and prevent further unlawful displacement. Their story shows the power of tenant organizing and staying informed about housing rights.
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