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You can search the entire site. or go to the recent opinions, or the chronological or subject indices. Creekside Limited Partnership, Creekside-Alyeska, LLC, and Community Development, Inc. v. Alaska Housing Finance Corporation (3/12/2021) sp-7509

Creekside Limited Partnership, Creekside-Alyeska, LLC, and Community Development, Inc. v. Alaska Housing Finance Corporation (3/12/2021) sp-7509

         Notice:  This opinion is subject to correction before publication in the PACIFIC  REPORTER.  

         Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts,  

         303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email  

         corrections@akcourts.us.  



                    THE  SUPREME  COURT  OF  THE  STATE  OF  ALASKA  



CREEKSIDE  LIMITED  PARTNERSHIP; )  

CREEKSIDE-ALYESKA,  LLC;  and                                )    Supreme Court No. S-17517  

                                                                                               

COMMUNITY  DEVELOPMENT,  INC.,  )  

                                                             )    Superior  Court  No.  3AN-18-06143  CI  

                            Appellants,                      )  

                                                                                    

                                                             )    O P I N I O N  

         v.                                                  )  

                                                                                                   

                                                             )    No. 7509 - March 12, 2021  

                                 

ALASKA HOUSING FINANCE                                       )  

CORPORATION,                                                 )  

                                                             )  

                            Appellee.                        )  

                                                             )  



                                                                                                 

                                       

                   Appeal from the Superior Court of the State of Alaska, Third  

                                                                                              

                   Judicial District, Anchorage, Thomas A. Matthews, Judge.  



                                                                                                      

                   Appearances: Taylor B. McMahon, Law Offices of Royce &  

                                                                                                   

                   Brain, Anchorage, for Appellants.  Cynthia L. Cartledge and  

                                                                                            

                   Megan        N.    Sandone,        Jermain,       Dunnagan          &     Owens,  

                                                                                           

                   Anchorage,  and  Stefan  A.  Saldanha,  Assistant  Attorney  

                                                                                           

                   General,  Anchorage,  and  Kevin  G.  Clarkson,  Attorney  

                                                 

                   General, Juneau, for Appellee.  



                                                                                                  

                   Before:       Bolger,  Chief  Justice,  Winfree,  Maassen,  and  

                                                                                

                   Carney, Justices.  [Borghesan, Justice, not participating.]  



                                     

                   WINFREE, Justice.  



I.       INTRODUCTION  



                                                                                                                         

                   A project developer that had used state-allocated federal tax credits for a  



                                                                                                                        

low-income housing project sued the state housing authority, asserting an option to  


----------------------- Page 2-----------------------

 eliminate a contractual obligation to maintain the project as low-income housing for 15                                                                                                                                                                           



 years beyond the initial 15-year qualifying period. The superior court granted summary                                                                                                                                                       



judgment in favor of the housing authority, and the developer appeals several aspects of                                                                                                                                                                            



 the court's ruling.                                     We conclude that the court correctly interpreted the relevant statutes                                                                                                                    



 and contract documents and correctly determined there were no material disputed facts                                                                                                                                                                      



 about the formation of the parties' agreements.                                                                                                 We therefore affirm the court's grant of                                                                           



 summary judgment in the housing authority's favor.                                                                                            



 II.                 FACTS AND PROCEEDINGS                         



                     A.                   Facts  



                                                                                                                                                                                 

                                          1.                  The low-income housing tax credit program  



                                                                                                                                                                                                                                               

                                          The federal government created a low-income housing tax credit (LIHTC)  



                                                                                                                                               1  

                                                                                                                                                                                                                                   

 program as part of the Tax Reform Act of 1986.                                                                                                     The program incentivizes development  



                                                                                                                                                                                                                                                                    

 and rehabilitation of affordable rental housing by providing tax credits to developers of  



                                                                                                                         2  

                                                                                               

 qualified low-income housing projects. 



                                                                                                                                                                                                                                                          3  

                                                                                                                                                                                                                                                               

                                          Tax credit allocation involves both the federal and state governments.                                                                                                                                               The  



                                                                                                                                                                                                                        4  

                                                                                                                                                                                                                                                 

 federal government allocates LIHTCs to states based on population.                                                                                                                                                             State housing  



                                                                                                                                                                                                                             

 agencies then are responsible for allocating tax credits to low-income rental housing  



                     1                    Tax Reform Act of 1986, Pub. L. No. 99-514, § 252, 100 Stat. 2085, 2189-                                                                                                                                       



 2208 (codified as amended at I.R.C. § 42).                                                                          



                     2                    MARK                      P.           KEIGHTLEY,                                  CONG.                       RESEARCH                               SERV.,                      RS22389,                             AN  



 INTRODUCTION TO THE LOW-INCOME HOUSING TAX CREDIT   1 (2019).   

                                                                                                                                                                  



                     3                   Id.  at 2.   



                     4                   Id.  



                                                                                                                                 -2-                                                                                                                       7509
  


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                                                                                        5  

developers   under   their   state's   qualified   allocation   plan,   which   must   meet   certain  



                     6  

requirements.                                                                                                                  

                        For example, all allocation plans must prioritize projects serving the  



                                                                                                             7  

                                                                                                                 

                                                                                                  

lowest-income tenants and remaining affordable for the longest periods. 



                                                                                                                                  

                    The Internal Revenue Code establishes rules about the length of time a  

                                                                                                               8   The Code  

                                                                                                                           

project must maintain affordability requirements to receive tax credits. 



provides that developers must make "an extended low-income housing commitment" to  

                                                                                                                                 



receive credits, requiring the project to maintain affordability for an "extended use  

                                                                                                                              

period."9      The extended use period lasts 15 years beyond the initial 15-year compliance  

                                                                                                                  



period,  for  a  total  of  30  years,  unless  otherwise  specified  by  the  state  agency's  

                                                                                                                     

agreement.10  



                    TheCodeprovides two possibilities forending theaffordabilityrestrictions  

                                                                                                                   

                                                               11   First,  the  extended  use  period  may  end  

prior  to  the  extended  use  period's  end.                                                                                 

                                                         



prematurely if the project is acquired from the developer by foreclosure (or instrument  

                                                                                                                    



          5         Id. ;  see  I.R.C.  §  42(m)(1)(B)  (defining  qualified  allocation  plan).  



          6         See  I.R.C.  §  42(m)(1)(C)  (setting  out  required  selection  criteria).  



          7         I.R.C.  §  42(m)(1)(B)(ii)(I)-(II);  KEIGHTLEY,  supra  note  2,  at  2.  



          8         I.R.C.  §  42(h)(6).  



          9         Id.  



          10        See   I.R.C.   §   42(i)(1)   (stating   "compliance   period"   is   "the   period   of   15  



taxable  years  beginning  with  the   [first]  taxable  year of  the  credit  period  with  respect  

thereto");  I.R.C.  §  42(h)(6)(D)  (defining  "extended  use  period"  as  period  that  "begin[s]  

on  the  [first]  day  in  the  compliance  period  on  which  [the]  building  is  part  of  a  qualified  

low-income  housing  project"  and  ends  on  "the  date  which  is   15  years  after  the  close  of  

the   compliance   period"   or   "the   date   specified   by   [the]   agency   in   [the]   agreement,"  

whichever  is  later).  



          11        I.R.C. § 42(h)(6)(E).  

                                  



                                                               -3-                                                         7509
  


----------------------- Page 4-----------------------

in lieu of foreclosure).                  12  Second, the extended use period may end prematurely under                                                 



                                                                                            13  

what is known as the "qualified contract" option.                                                                                                          

                                                                                                 Under this option a developer may  



                                                                                                                                                             

remove the project from the program if, after the initial 15-year compliance period, the  



                                                                                                           

state housing agency cannot find a buyer for the project that will continue operating it  

                                            14  But a state may exclude the qualified contract option; the Code  

                                                                                                                                                         

as low-income housing. 



provides that the qualified contract option "shall not apply to the extent more stringent  

                                                                                                                                                  

requirements are provided in the agreement or in State law."15  

                                                                                                                      



                         2.          Alaska Housing Finance Corporation's allocation plan                                                  

                         Alaska Housing Finance Corporation (AHFC) is a public corporation                                                                      16  



                                                                                                                       17  

                                                                                                                                                  

responsible   for   administering   Alaska's   LIHTC   program.                                                                  AHFC's   Greater  



                                                                                                                                           

Opportunities for Affordable Living Program Rating and Award Criteria Plan (GOAL  

                                                                                         18  In August 1999 AHFC announced its  

                                                                                                                                                               

                                                                                 

program) serves as the agency's allocation plan. 



GOAL program for fiscal year 2000. The program sought "to encourage the responsible  

                                                                                                                                              



development of housing for lower-income persons and families through the allocation  



             12          I.R.C.  §  42(h)(6)(E)(i)(I).  



             13          See  I.R.C.  §  42(h)(6)(E)(i)(II).  



             14          Id.  



             15          Id.  



             16          AS  18.56.020;  see  also  Anderson  v.  Alaska  Hous.  Fin.  Corp.,  462  P.3d  19,  



26-27   (Alaska   2020)   (describing   AHFC   as   legislatively   created   state   actor   "wholly  

controlled   by   the   State   through   its   appointees"   to   further   goal   of   "address[ing]   the  

shortage  of  residential  housing  available  to  low- and  middle-income  Alaskans").  



             17          Low         Income            Housing             Tax        Credit,   ALASKA                    HOUS.           FIN.        CORP.,  

                                                                                                     

https://www.ahfc.us/pros/homelessness/development-grants/low-income-housing-tax- 

                                                  

credit (last visited Dec. 2, 2020).  



             18          See  id.  



                                                                               -4-                                                                       7509
  


----------------------- Page 5-----------------------

of GOAL program funds."                                                                AHFC stated that it would use the GOAL program criteria                                                                                                             



to distribute the program funds, including tax credits.                                                                                                                   The GOAL program established                                        



how AHFC would score applications.                                                                                            The second criterion, titled "Extended Low-                                                                                      



Income Project Use," stated: "Six (6) Points will be awarded to applications that commit                                                                                                                                                                  



the   project   to   an   extended  low-income   use   equaling   30   years.     An   extended   use  



agreement . . . is required."                                                            



                                          3.                   The Creekside project                              



                                          Creekside Limited Partnership initially consisted of general partner Alpine                                                                                                                                       



Partners, Ltd., a for-profit developer, and limited partner Anchorage Mutual Housing                                                                                                                                                                  



                                                                                                                                                              19  

Association (AMHA), a non-profit organization.                                                                                                                                                                                                             

                                                                                                                                                                        Creekside applied for tax credits  



                                                                                                                                                                                                                                                                    

under the 2000 GOAL program in October 1999. Creekside proposed to construct a 30- 



                                                                                                                                                                                                                                                  

unit, low-income housing project in Girdwood. Creekside awarded itself six additional  



                                                                                                                                                                                                                                                                        

qualifying points in its application for "Extended Low Income project use," stating the  



                                                                                                                                                                   

project would "maintain affordability for a 30 year period."  



                                                                                                                                                                                                                                                                          

                                          AHFC sent a  December  1999  notice  of  intent  to  award  tax  credits  to  



                                                                                                                                                                                                                                         

Creekside for  its project.                                                              AHFC indicated  it would  send  Creekside a "reservation  



                                                                                                                                                                                                                                                        

agreement"  that,   along  with  other   documents,   would  "outline  specific  project  



                                                                                                                                                                                                                                            

requirements in accordance with representations made . . . in [Creekside's] application,  



                                                                                                                                                                                                                                                                                    

as well as federal and/or state programmatic requirements which may be applicable."  



                                                                                                                                                                                                                                                                        

Creekside's representative signed the acceptance letter attached to the award letter.  



                     19                   Alpine developed the property and AMHA was to manage it. AMHA later                                                                                                                                                       



left the              project; Community Development, Inc. (CDI) joined as a limited partner and later                                                                                                                                                              

became general partner.                                                         CDI is a non-profit corporation                                                                             involved in development,   

management, and ownership of low-income housing projects in Alaska and other states.                                                                                                                                                                                                

When CDI became involved in the project in 2001, it formed Creekside-Alyeska, LLC.                                                                                                                                                                                                  

Creeksidenowconsists ofgeneral                                                                            partner Creekside-Alyeska,                                                             LLC, owned                              in its entirety     

by CDI.                     



                                                                                                                                    -5-                                                                                                                           7509
  


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                                   AHFCsubsequentlysentCreeksidethe2000 LIHTCreservationagreement,                                                                                                   



which provided: "The owner agrees to maintain all project characteristics certified to in                                                                                                                                   



the tax credit application for 30 years.                                                                 These characteristics will be included in the                                                                  



restrictive covenant which is required for this property."                                                                                         One of these "characteristics"       



was that "100% of the residential rental units are reserved for families at or below 60%                                                                                                                             



of the median income."                                         Creekside's representative signed the reservation agreement.                                                                                                    



                                   Creekside entered into a land use restrictive agreement with AHFC in                                                                                                                   

                                            20        Creekside  agreed  to  "lease  one  hundred  percent  (100%)  of  the  

December   2001.                                                                                                                                                                                                       



residential rental units in the [c]omplex to individuals or families whose income is sixty  

                                                                                                                                                                                                                    



(60) percent or less of area median gross income"; it also agreed to do so for 30 years,  

                                                                                                                                                                                                                 



beginning when the apartment complex became a qualified low-income housing project.  

                                                                                                                                                                                                                                   



Notwithstanding this 30-yearrequirement,theagreement provided that"theextendeduse  

                                                                                                                                                                                                                         



period for any building which is part of the [project] shall terminate:  [o]n the date the  

                                                                                                                                                                                                                        



building is acquired by foreclosure or instrument in lieu of foreclosure."  

                                                                                                                                                                                             



                                   4.               Creekside's attempt to terminate affordability restrictions  

                                                                                                                                                                                      



                                   In January 2018 Creekside requested to exercise the qualified contract  

                                                                                                                                                                                                           



option described in the Internal Revenue Code to terminate the project's affordability  

                                                                                                                                                                                                

restrictions.21   AHFC denied this request on the ground that Creekside had committed to  

                                                                                                                                                                                                                            



maintaining the affordability restriction for the full 30 years without a qualified contract  

                                                                                                                                                                                                            



option.  

                    



                 B.                Proceedings  



                                   Creekside sued AHFC in April 2018, seeking declaratory judgment that  

                                                                                                                                                                                                                       



                 20                See   I.R.C. § 42(h)(6)(B)(vi) (requiring agreement for tax credits to be                                                                                                              



recorded as restrictive covenant).                         



                 21                See I.R.C. § 42(h)(6)(E)(i)(II).  

                                                                  



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----------------------- Page 7-----------------------

 Creekside had "not waived [its] right to exercise the qualified contract option."                                                                                                        The  



                                                                                                                      22  

parties filed cross-motions for summary judgment.                                                                                                                                      

                                                                                                                              Creekside argued that it could  



                                                                                                                                                                                                      

 exercise the qualified contract option because it had never waived the right to do so.  



                                                                                                                                                                                                

 Creekside stated that it believed it was merely complying with federal law when it  



                                                                                                                                                                                  

 claimed the six points for a 30-year extended project life in its application and asserted  



                                                                                                                                                                                               

 that AHFC did not communicate to applicants that claiming the six points "would be  



                                                                                                                                                                                       

 construed as a waiver." AHFC responded that Creekside chose to accept Alaska's "more  



                                                                                                                                                                                             

 stringent requirements" by claiming the six points on its application and that the land use  



                                                                                                                                                           

restrictive agreement reflected this aspect of the project agreement.  



                                                                                                                                                                                         

                               The superior court held oral argument on the motions in March 2019. Later  



                                                                                                                                                                                            

 in March the court issued an order granting AHFC's summary judgment motion and  



                                                                                                                                                                         

 denying Creekside's summary judgment motion.  The court later denied Creekside's  



                                                        

reconsideration motion.  



                                                                                                                                                                                

                               Creeksidenowappeals both thesuperior court's grant ofAHFC's summary  



                                                                                                                                                           

judgment motion and denial of Creekside's reconsideration motion.  



                                                          

 III.           STANDARD OF REVIEW  

                                                                                                                                                     23  We will affirm "if  

                               "We review grants of summary judgment de novo." 



the record presents no genuine issue of material fact and if the movant is entitled to  

                                                                                                                                                                                               



                22             See  Alaska R. Civ. P. 56(c) (stating summary judgment is proper if "there                                                                             



 is no genuine issue as to any material fact and that any party is entitled to a judgment as                                                                                                    

 a matter of law");                      see also James v. Alaska Frontier Constructors, Inc., 468 P.3d 711,  

 717 (Alaska 2020) ("Summary judgment is proper only when undisputed material facts                                                                                                       

 lead to the conclusion that a party is entitled to judgment as a matter of law.").                                                                                



                23             Christensen v. Alaska Sales &Serv., Inc., 335 P.3d 514, 516 (Alaska 2014).  

                                                                                                                                                                                      



                                                                                               -7-                                                                                       7509
  


----------------------- Page 8-----------------------

judgment as a matter of law."               24  



                                                                                                                        

                    "Questions of contract interpretation are generally questions of law which  

                                      25  But factual questions exist "when the meaning of contract  

                                                                                                                     

                             

 [are] reviewed de novo." 

                                                                               26   Finally, "[t]he question of the  

language depends on conflicting extrinsic evidence."                                                                        

                                                                



meaning of a written contract, including a review of the extrinsic evidence to determine  

                                                                                                                  



whether any of the extrinsic evidence is conflicting, is a legal question which we review  

                                                                                                                       

de novo."27  

      



                    "We  review  the  denial  of  a  motion  for  reconsideration  for  abuse  of  

                                                                                                                             

discretion."28  An "[a]buse of discretion will be found 'when the decision on review is  

                                                                                                               

manifestly unreasonable.' "29  

                                        



IV.       DISCUSSION  



                                                                                                       

          A.        The Qualified Contract Option Is Not Available To Creekside.  



                                                                                                                         

                    As discussedabove, under federal lawtherearetwo ways a developer using  



                                                                                                                             

tax credits for a low-income housing project can end affordability restrictions prior to 30  



          24        Hagen   v.   Strobel,   353   P.3d  799,   802   (Alaska   2015)   (quoting   Kelly   v.  



Municipality  of  Anchorage ,  270  P.3d  801,  803  (Alaska  2012)).  



          25        Estate  of Polushkin ex rel. Polushkin  v.  Maw,   170  P.3d   162,   167  (Alaska  



2007).  



          26        Id.  



          27        Id.  



          28        Szabo  v.  Municipality  of  Anchorage ,  320  P.3d  809,  813  (Alaska  2014).  



          29        Harper  v.  BioLife  Energy  Sys.,  Inc.,  426  P.3d   1067,   1071  (Alaska  2018)  



(quoting   Timothy   W.  v.  Julia  M.,  403  P.3d   1095,   1100   (Alaska  2017)); see  Sharpe  v.  

Sharpe,   366   P.3d   66,   68   (Alaska   2016) ("A   superior   court   abuses   its   discretion   by  

making  a decision that is arbitrary, capricious,  manifestly  unreasonable,  or  .  .  .  stem[s]  

from  an  improper motive."  (alterations  in  original)  (quoting  Morris  v. Horn,  219  P.3d  

 198,  203-04  (Alaska  2009))).  



                                                              -8-                                                        7509
  


----------------------- Page 9-----------------------

                                                                                                                                           30  

years: (1) foreclosure of the project property, or (2) the qualified contract option.                                                           The  



qualified contract option does "not apply to the extent more stringent requirements are                                                           



provided   in   the   agreement   or   in   State   law,"   but   there   is   no   such   exception  for  

foreclosure.31  



                       Whengrantingsummary judgment for AHFC,thesuperior courtconcluded  

                                                                                                                                      



that Creekside had "agreed to an affordability requirement that is more stringent than the  

                                                                                                                                                  



federal baseline." Applying basic contract principles, the superior court determined that  

                                                                                                                                                 



the written documents clearly showed Creekside took the 6 extra qualifying points in  

                                                                                                                                                    



exchange for maintaining affordability for 30 years.  Looking within the four corners of  

                                                                                                                                                    



the project's land use restrictive agreement that created the affordability covenant, the  

                                                                                                                                                  



court concludedthat theagreement's "silenceon the[q]ualified[c]ontract[o]ption shows  

                                                                                                                                             



that the [q]ualified [c]ontract [o]ption [was] not available."  The court explained that  

                                                                                                                                                 



Creekside produced no "admissible evidenceofambiguity,"noting that it had not refuted  

                                                                                                                                           



the contract documents' "plain language" and would be unable to provide any evidence  

                                                                                                                                        



doing so because its "contrary reading would mean [it] got something for nothing." The  

                                                                                                                                                 



court thus determined that AHFC was entitled to judgment as a matter of law and granted  

                                                                                                                                           



summary judgment for AHFC.  

                                          



                       Creeksideasserts that thesuperior court improperly concludedthequalified  

                                                                                                                                         



contract  option  was  unavailable  to  Creekside.                                           Creekside  raises  a  number  of  

                                                                                                                                                  



arguments:  (1) the allocation plan language was ambiguous and Creekside believed it  

                                                                                       



was merely agreeing to federal requirements by claiming the six extra points on its  

                                                                                                                                                   



application; (2) the land use restrictive agreement does not govern because it was entered  

                                                                                                                                           



into after construction had begun; (3) the land use restrictive agreement was an improper  

                                                                                                                                        



            30         I.R.C.  §  42(h)(6)(E)(i).  



            31         Id.  



                                                                         -9-                                                                       7509  


----------------------- Page 10-----------------------

                                                                                                                                     

modification of the earlier contract documents; (4) the land use restrictive agreement  



                                                                                                                               

mentioning  foreclosure  but  not  the  qualified  contract  option  did  not  mean  that  the  



                                                                                                                       

qualified  contract option was unavailable; (5) an unpublished New Jersey decision  



                                                                                                                    

suggested a different result; and (6) the court should have applied waiver law principles.  



                                                                                                                             

                    We agree with the superior court's conclusion that the allocation plan  



                                                                                                                              

language was not ambiguous and that it is unreasonable for Creekside to believe it was  



                                                                                                                               

awarded the 6 additional points merely for agreeing to federal requirements and not for  



                                                                                                                       

agreeing  with AHFC's 30-year affordability commitment.   The agreement between  



                                                                                                                           

Creekside and AHFC involved a number of documents: the 1999 application, the notice  



                                                                                                                             

of intent to award, the reservation form, and the land use restrictive agreement.  The  



                                                                                                                           

following  undisputed  facts  are  relevant  to  this  dispute:                             (1)  in  Creekside's  1999  



                                                                                    

application it claimed 6 qualifying points for agreeing that the "[p]roject will maintain  



                                                                                                                                 

affordability for a 30 year period"; (2) Creekside signed the notice of intent to award in  



                                                                                                                     

1999, agreeing to later sign a reservation agreement; (3) the reservation form Creekside  



                                                                                                                               

signed in 2000 required it to "maintain all project characteristics certified to in the tax  



                                                                                                                               

credit application for 30 years,"including theaffordability requirements for all units; and  



                                                                                                                     

(4) the land use restrictive agreement Creekside signed in 2001 created a covenant  



                                                                                                                            

running with the land, which required it to maintain affordability on all units for 30 years  



                                                                                                                              

and mentioned early termination only if there were a "foreclosure or instrument in lieu  



                                                                                                                 

of foreclosure."   This clearly demonstrates that Creekside committed to maintaining  



                                                                                                                                

project affordability  for  30 years; Creekside's 30-year  affordability  commitment to  



                                                                                                                               

AHFC was more stringent than federal law requires  but nonetheless authorized by  



                    

federal law.  



                                                                                  

          B.        Summary Judgment For AHFC Was Proper.  



                                                                                                                        

                    Creekside argues that summary judgment for AHFCwas improper because  



                                                                                                                                 

there were disputed issues of material fact.  Creekside contends that it "did not intend to  



                                                              -10-                                                         7509
  


----------------------- Page 11-----------------------

waive the [q]ualified [c]ontract right or agree to more stringent requirements," pointing                                                                         



to a representative's affidavit as support.                                          Creekside also points to other evidence it says                                      



 demonstrates its                 actual intent, including that in 2017 it "initiated the                                               [q]ualified [c]ontract   



process by engaging consultants, reviewing the property documents, and setting up a                                                                                       



 conference call with AHFC."                



                            This argument is unconvincing. Summary                                                 judgment is not proper when the  



                                                                                                                                                                                32  

non-moving party shows "that a genuine issue of material fact exists to be litigated."                                                                                               



 "But . . . the offered evidence must not be too  conclusory, too speculative, or too  

                                                                                                                                                                            

 incredible to be believed, and it must directly contradict the moving party's evidence."33  

                                                                                                                                                                                     



 The  representative's  affidavit  is  conclusory;  Creekside  cannot  survive  summary  

                                                                                                                                                               



judgment on a contract issue merely by now stating that its prior subjective intent was  

                                                                                           34    And evidence of Creekside's actions in  

not to give up the qualified contract option.                                                                                                                                  

                                                                             



 2017 - namely that it tried to assert the qualified contract option - does not address  

                                                                                                                                           



the reasonable expectations of the parties when they entered into the contract over 15  

                                                                                                                                                                              



years earlier.   Creekside simply has no admissible evidence of a contemporaneous  

                                                                                                                                              



 subjective intent contrary to the project documents.   Because there was no genuine  

                                                                                                                                                                   



              32            Christensen v. Alaska Sales &Serv., Inc.                                          , 335 P.3d 514, 519 (Alaska 2014)                         



 (quoting  Lockwood v. Geico Gen. Ins. Co.                                              , 323 P.3d 691, 696 (Alaska 2014)).                         



              33            Id. at 516.  

                                        



              34            See Peterson v. Wirum, 625 P.2d 866, 870 (Alaska 1981) ("Differences of  

                                                                                                                                                                                

 opinion among the parties as to their subjective intent, expressed during the litigation,  

                                                                                                                   

 do not establish an issue of fact regarding the parties' reasonable expectations at the time  

                                                                                                                                                                           

they entered into the contract, since such self-serving statements are not considered to  

           

be probative."); cf. AAA Valley Gravel, Inc. v. Totaro, 219 P.3d 153, 169-70 (Alaska  

                                                                                                                                                                   

 2009)- ("[U]nambiguous contract language is not rendered ambiguous simply because  

                                                                                                                                                                   

the parties disagree on their intent at the time of contracting, [or] because they advance  

                                                                                                                                                                   

 different interpretations during the course of litigation . . . .").  

                                                                                                                        



                                                                                      -11-                                                                               7509
  


----------------------- Page 12-----------------------

dispute of material fact, the superior court properly granted summary judgment for                                                                         



AHFC.  



                             Creekside's other appeal arguments compel no different result.                                                                          The fact   



that   the   land   use   restrictive   agreement   was  executed   later   in   time   than   the   other  



documents does not make it irrelevant, nor did it constitute an improper modification of                                                                                            



the earlier documents.                            Creekside knew when it applied for the project that, based on                                                                    

                                                                                                                                             35    And the notice of  

federal law, it would have to sign a land use restrictive agreement.                                                                                                                



intent  letter mentioned the reservation form, which in turn mentioned the land  use  

                                                                                                                                                                                 



restrictive  agreement.                             The  land  use  restrictive  agreement  did  not  modify  earlier  

                                                                                                                                                       



agreements; consistent with Creekside's claim of the six points for an extended project  

                                                                                                                                                                         



term, it provided foreclosure as the only early termination option.  

                                                                                                                             



                             The unpublished New Jersey decision Creekside points to is not analogous.  

                                                                                                                                                                                          



In that case New Jersey tried to prevent a developer from terminating the affordability  

                                                                                         



requirements early due to foreclosure; the trial court determined, and the appellate court  

                                                                                                                                                                              

                                                                                                                                   36     That differs from this  

affirmed, that New Jersey could not do so under federal law.                                                                                                                     

                                                                                                                          



case:  federal law allows states to apply more stringent requirements to eliminate the  

                                                                                                                                                                                  



qualified contract option, but federal law does not allow states to restrict a developer's  

                                                                                                                                                               

ability to terminate affordability restrictions upon foreclosure.37  

                                                                                                           



                            Unlike the New Jersey case Creekside points to, a recent Hawaii federal  

                                                                                                                                                                         



district court decision is directly relevant, and it supports the superior court's ruling.  In  

                                                                                                                                                                                    



              35            See   I.R.C. § 42(h)(6)(B)(vi) (requiring agreement for tax credits to be                                                                              



recorded as restrictive covenant).               



              36            Mfrs. & Traders Trust Co. v. Marina Bay Towers Urban Renewal II, LP,  

                                                                                                             

No. A-5879-17T2, 2019 WL 5395937, at *12, *15-16 (N.J. Super. App. Div. Oct. 22,  

                                                                                                                                                 

2019) (per curiam).  

                         



              37            See I.R.C. § 42(h)(6)(E)(i).  

                                                       



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----------------------- Page 13-----------------------

Tuttle   v.   Front  Street   Affordable   Housing   Partners   the   developer   of   an   affordable  



housing complex applied for, and the state housing authority granted, an early release                                                                    

                                                                    38   Like Creekside, the Tuttle developer had utilized  

from the affordability commitment.                                                                                                                       



tax credits under the state's LIHTC program and agreed to a restrictive covenant on the  

                                                                                                                                                                  

property.39              The  covenant  included  a  51-year  affordability  period  in  exchange  for  

                                                                                                                                                                 

receiving the tax credits.40                          After receiving notice that LIHTC restrictions nonetheless  

                                                                                                                                                 



would be lifted, and in anticipation that rents subsequently would increase to market  

                                                                                                                                                          



rates, residents sued the developer and the state housing authority for breach of the  

                                                                                                                                                                 

restrictive covenant.41                       Applying Hawaii law, the federal district court held that the  

                                                                                                                                                                 



qualified contract exception was unavailable and thus the developer's early release from  

                                                                                                                                                               



the covenant was void; it concluded the covenant requiring affordability for the full 51- 

                                                                                                                                                                  

                                                      42  The court determined, using contract interpretation rules,  

year term must be reinstated.                                                                                                                                 

                                    



that the "expressed intent [in a restrictive covenant] is controlling and unexpressed intent  

                                                                                                                                                             

                                               43   The superior court in this case likewise applied contract rules  

is generally unavailing."                                                                                                                                      

                        



and found that the qualified contract option was unavailable based on the developer's  

                                                                                                                                                 



agreement to more stringent affordability requirements than the federal baseline.  

                                                                                                                                                              



                          Finally, Creeksideasserts thatthesuperiorcourtshouldhaveapplied waiver  

                                                                                                                                                           



law principles in deciding the summary judgment motion. "Waiver is generally defined  

                                                                                                                                                          



             38           478 F. Supp. 3d 1030, 1034 (D. Haw. 2020).
                                



             39           Id.  at 1036-37.
   



             40           Id.
  



             41           Id. at 1038.  

                                      



             42           Id.  at 1034, 1039-43, 1049.               



             43           Id. at 1040 (emphasis omitted).  

                                                                     



                                                                                -13-                                                                          7509
  


----------------------- Page 14-----------------------

                                                                                                       44  

as 'the intentional relinquishment of a known right.' "                                                     Waiver "can be accomplished       



by an express statement or by conduct that is 'inconsistent with any other intention than                                                                     



a   waiver,   or   where   neglect   to   insist   upon   the   right  results   in   prejudice   to   another  

                45   Proving implied waiver of a legal right requires "direct, unequivocal conduct  

party.' "                                                                                                                                              



indicating a purpose to abandon or waive the legal right, or acts amounting to an estoppel  

                                                                                                                                                      

by the party  whose conduct is to  be  construed  as a waiver."46                                                               The superior  court  

                                                                                                                                                           



concluded that waiver theory did not apply.  

                                                                                     



                          Creekside made no viable evidentiary showing that it had a right to exercise  

                                                                                                                                                       



the qualified contract option, and the Code's explicit statement that states may eliminate  

                                                                                                                                                    



the qualified contract option with more stringent requirements indicates that Creekside  

                                                                                                                                                   



did not have such a right.  Further, for the reasons described above, Creekside's actions  

                                                                                                                                                        



were consistent with an intent to commit to maintaining affordability requirements for  

                                                           



30 years  without the possibility  of early  termination through the qualified  contract  

                                                                                                                                                      



option.  The Code does not create a right to a qualified contract option that a developer  

                                                                                                                                                   



"waives."              The Code allows states to  eliminate the qualified contract option.                                                                    The  

                                                                                                                                                              



superior court correctly concluded that Creekside applied for and received tax credits in  

                                                                                                                                                                  



exchange for executing relevant contract documents for a low-income housing project  

                                                                                                                



with an extended 30-year life and no qualified contract option.  

                                                                                                           



             44          Milne   v.   Anderson,   576   P.2d   109,   112   (Alaska   1978)   (quoting   Arctic  



Contractors, Inc. v. State                      , 564 P.2d 30, 40 (Alaska 1977)).                  



             45          Powercorp Alaska, LLC v. Alaska Energy Auth., 290 P.3d 1173, 1185  

                                                                                                                                               

(Alaska 2012) (quoting Carr-Gottstein Foods Co. v. Wasilla, LLC, 182 P.3d 1131, 1136  

                                                                                                                                                             

(Alaska 2008)).  

                 



             46          Milne, 576 P.2d at 112.  

                                                               



                                                                               -14-                                                                         7509
  


----------------------- Page 15-----------------------

            C.	         The   Superior   Court   Did   Not   Abuse   Its  Discretion   By   Denying  

                        Creekside's Motion For Reconsideration                                       .  



                        Creekside contends that the superior court erred by rejecting Creekside's                                    

                                                47   "Under Alaska Civil Rule 77(k)(1)(ii), a party may ask the  

motion for reconsideration.                                                                                                                          



court to reconsider a ruling previously decided if, in reaching its decision, the court has  

                                                                                                                                                    

overlooked or misconceived some material fact or proposition of law."48  

                                                                                                                                       Creekside  



asserted three main arguments for reconsideration.  First, Creekside argued that it never  

                                                                                                                                                



intended to waive the qualified contract option and there thus was a genuine dispute of  

                                                                                                                                                      



material  fact  regarding  the  parties'  intent.                                  The  court  dismissed  this  argument  as  

                                                                                                                                                      



"conclusory" and "speculative." Second, Creekside argued that its claimand acceptance  

                                                                                                                                       



of the six qualifying points for an extended project life was merely a statement of  

                                                                                                                                                      



compliance with federal law and that there was a material factual dispute regarding the  

                                                                                                                                                     



significance of the six additional points in the application.  Again, the court dismissed  

                                                                                                                              



Creekside's              argument             as      "speculative              and        unsubstantiated"                  based         on       the  

                                                                                                                                                  



contemporaneous project development record.  Third, Creekside argued that "the legal  

                                                                                                                                                  



issue should be considered in the context of waiver," claiming the documents AHFC  

                                                                                                                                              



produced in discovery showed AHFC intended the applicants to waive the right to the  

                                                                                                                                                     



qualified contract option, as opposed to AHFC's later assertion that the six points were  

                                                                                                                                                  



an "incentive."  The court explained it had not overlooked or failed to consider waiver  

                                                                                                                                              



principles in its decision but instead "(1) considered and rejected their applicability, and  

                                                                                                                                                    



(2) determined that principles of contract law controlled."  

                                                                                                          



            47          The   correct   standard   of   review   is   abuse   of   discretion.     See   Szabo   v.  



Municipality of Anchorage                       , 320 P.3d 809, 813 (Alaska 2014).                  



            48          Alaskan Adventure Tours, Inc. v. City &Borough of Yakutat , 307 P.3d 955,  

                                                                                                                                                   

963 n.23 (Alaska 2013).  

                                 



                                                                         -15-	                                                                   7509
  


----------------------- Page 16-----------------------

                                 Thesuperior court                            clearlyexplained                           howit    had not                   overlooked Creekside's  



evidence or legal arguments but instead considered and rejected them. Because the court                                                                                                                   



adequately   considered   all   of   Creekside's   factual   and   legal   arguments   and   properly  



granted summary judgment for AHFC, the court did not abuse its discretion by denying                                                                                                               

Creekside's motion for reconsideration.                                                           49  



V.               CONCLUSION  



                                 We AFFIRM the superior court's rulings and judgment.  

                                                                                                                                                   



                 49              Cf. Szabo, 320 P.3d at 816 (upholding denial of reconsideration motion  

                                                                                                                                                                                                    

after court "adequately considered" movant's arguments).  

                                                                                                                   



                                                                                                      -16-                                                                                                         7509  

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