Resources on Rural Rental Housing Preservation and Prepayment

Resources on Rural Rental Housing Preservation and Prepayment

Background Information and Resources
News on Legislation and Funding Levels
News on Programs and on Funding Offered, USDA RD and Others
News on Research and Publications
News on Lawsuits and Links to Court Decisions
Links to Other Sites' Preservation Resources
Rural Housing Discussion List

Background Information and Resources

News on Legislation and Funding Levels

News on Programs and on Funding Offered, USDA RD and OthersNews on Research and Publications

News on Lawsuits and Links to Court Decisions

  • Tenants win preservation victory — item in HAC News newsletter, 7/3/07

  • Goldammer v. United States, court decision, June 14, 2007

  • The U.S. Oregon District Court reconsidered its earlier ruling in light of the Ninth Circuit Court of Appeals decision of October 3, 2006 (below), and ruled that the prepayment violated the Emergency Low Income Housing Preservation Act of 1987 and that the tenants' interest, in returning the property to the Section 515 program, outweighed the possible inconvenience and cost of undoing the illegal prepayment. In July 2007 the court should decide how the property will be returned to the Section 515 progr

  • Settlement reached in rural preservation lawsuits — item in HAC News newsletter, 6/6/07

  • Goldammer v. United States, court decision, Oct. 3, 2006

    Owners of Section 515 properties in Oregon filed a quiet title action to remove RD's mortgage after RD refused to accept prepayment. RD settled the suit and permitted the prepayment, believing that a Ninth Circuit Court of Appeals decision, Kimberly v. United States, allowed the owners to prepay. Tenants filed a new suit under the Administrative Procedures Act because RD did not follow its prepayment regulations. The Ninth Circuit held that tenants are entitled to sue to determine whether RD followed the law that restricts prepayments. It also held that Kimberly did not apply, and ordered a lower court, which had dismissed the suit, to hear the case. The decision could result in undoing the Oregon prepayment. Read the National Housing Law Project's summary of the decision here.

  • Recent Federal Court Decisions Favor Prepayment of Rural Rental Housing Loans — news summary, 09/02/04

  • Franconia Associates v. U.S. — court decision, Aug. 30, 2004

    The U.S. Court of Claims held that USDA breached its loan contracts by imposing prepayment restrictions and required the government to pay lost profits to the owners of 37 of the 41 projects involved in the case. Damages were calculated at an average of over $400,000 per project. The government, represented by the Department of Justice, has decided not to appeal the case.

  • Cienega Gardens v. United States — court decision, Aug. 29, 2005

    The U.S. Court of Claims ruled that prepayment restrictions, including the Emergency Low Income Housing Preservation Act, caused a "taking" of HUD-insured rental properties and owners were entitled to damages.

  • Charleston Housing Authority v. USDA, court decision — Aug. 18, 2005

    The Eighth Circuit Court of Appeals upheld the Emergency Low Income Housing Preservation Act, which restricts prepayments of Section 515 (and Section 514, not at issue in this case) mortgages made before December 15, 1989. It also held the owner's plan to demolish a development with almost all African-American tenants violated the Fair Housing Act. For details, visit http://www.ruralhome.org/infoAnnouncements_RuralRentalPreservationLaw.php

  • Kimberly Associates v. U.S.A. — court decision, Dec. 12, 2002

    The Ninth Circuit Court of Appeals allowed owners to avoid the USDA prepayment process by using a "quiet title" lawsuit under state law to have the prepayment restrictions removed from their property. In a later, unpublished decision, the Ninth Circuit concluded that the project's tenants could not appeal the earlier decision. The court held that the tenants' appeal was moot since the government and the property owner had entered into a settlement agreement. It announced its ruling in an unpublished memorandum decision that did not address the substantive issues of the case.

Links to Other Sites' Preservation Resources

 

Rural Housing Discussion List

HAC's rural housing e-mail discussion list is available for discussion on topics related to affordable rural housing development in the United States, including rental housing preservation. Subscribers are invited to post questions and comments about rural housing development, policy, sources of information, etc.

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For more information about the Housing Assistance Council's work on rental prepayment and preservation, contact Leslie Strauss, This e-mail address is being protected from spambots. You need JavaScript enabled to view it , 202-842-8600 ext. 141.

 

Updated: August 29, 2007