Friday, September 10, 2010

Appeals court rules on foreclosure on co-op

Bold is mine nto original to article:

Appeals court rules on foreclosure on co-op: "An appeals court this week ruled in favor of a group that formerly lived in the Third East Hills Park, finding that the U.S. Department of Housing and Urban Development failed to comply with its contract when it foreclosed on the co-op and ordered the residents to move.

A group of residents at the East Hills subsidized housing development filed a federal lawsuit against HUD in July 2006, alleging that a 2004 foreclosure notice, the March 2006 termination of their housing contract and forced relocation were improper.

HUD claimed it was terminating its contract and shuttering the community of 140 townhouses because the cooperative members failed to properly maintain the property as was required. It estimated the cost for repairs at $2.4 million.

In the meantime, in October 2006, HUD purchased the property at foreclosure and immediately turned it over to the Urban Redevelopment Authority to allow the construction of new, mixed-income housing using a $3.4 million grant from HUD."

"The record contains evidence from which a reasonable fact-finder could conclude that HUD sought to foreclose upon the property and refused to make feasible repairs in order to facilitate a redevelopment project that it financed," they wrote.

Read more:

NOTE: What did I say the other day about these grants??? Wouldn't it have been cheaper to have paid for the repairs of 2.4 million and left the renters in??? This is your tax money people. Not to mention the court costs, negative impact on community etc.

No comments: