Law360, New York (July 22, 2011, 3:16 PM ET) -- Four housing developers claimed Thursday that the federal government breached subsidized mortgage contracts by blocking them from prepaying mortgages and turning low-income housing into market-rate units.
According to the four separate suits filed in the U.S. Court of Federal Claims, the developers — which own property in South Carolina, West Virginia and Virginia — had 50-year subsidized mortgage contracts with the U.S. Department of Agriculture's Rural Housing Service. The developers agreed to build or rehabilitate apartment buildings and offer them as low-income housing to rural residents,...
Developers Sue US Over Low-Income Housing Contracts
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