Low-Income Housing Loan Lock-In Sparks New Suit

Law360, Washington (October 26, 2016, 6:04 PM EDT) -- Companies holding U.S. Department of Agriculture loans for low- and moderate-income housing sued the government in the U.S. Court of Federal Claims on Tuesday, alleging legislation rescinding their ability to prepay the loans, and to escape the affordable housing obligations, breached their contracts.

All told 28 partnerships, corporations and others have joined the list of developers suing the government over the same laws, which when passed in 1988 and 1992 eliminated the right of existing 50-year loanholders to pay up the full amount whenever they choose and to gain the ability to sell the housing units or charge market rate....

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